I was just signing up before going to bed. My LS and I were going to work on it tonight. I'll report back. Apparently the OP had some issue with being unable to replace the leve on the next reset, though...
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I'm unsure about the replacing the leve thing, though I know you can't replace these leves if you haven't finished it. (You can replace if you fail iirc)
But anyway, good luck with it, and post your results :)
Okay... last update: I completed the faction leves without any issues, and was able to trade them without issue. The second leve in each of the 3 series gave no errors when I signed up. Apparently the error message is a small bug that doesn't affect anything... at least for me.
Is there any point to doing faction leve quests prior to the rank 50 NMs?