Zhent--Dagger Falls relations

I am wondering how we are rendering the uneasy peace between the Zhents and Teshwave and Dagger Falls. I was under the assumption, and this is my major issue here, that while Zhents were definitely frowned upon and hated in Dagger Falls they were still able to freely pass through town in their so-marked regalia and would be tolerated so long as they acted lawfully and peacefully. I always assumed that the sheer military might of the Zhents pretty much forced Lord Morn's hand to accept their comings and goings.

Now, let me be clear: I have not, in the few moments I actually have to spare to play, run into any problems with my character who happens to affiliate with the Zhent forces, but I would like to be certain as to how to RP any confrontations that may occur. I have been less than politic with my character's outfit when venturing out, and have been gently reminded by a few traveling companions not to display Zhent finery when in eye shot of the Dagger Falls guards. I just want to know how to RP this in the future, as I am not intimately familiar with Forgotten Realms cannon.

Thanks for any and all guidance in this most delicate matter.

Without having seen anything, I would venture a guess that those you travel with would prefer to not be known Zhents or known associates of Zhents. *shrug* You assumption regarding relations is largely correct. It may be that not all want to test it, so to speak.