sonofliberty, if you haven't figured out how to attach your saved game to your post yet and you notice this thread, then I hope this helps: You can check which is the correct saved game by viewing the accompanying .jpg image for that saved game. Compress all 6 files of your saved game into a singled archived file - I recommend that you use winrar to create a .rar file (because zip files have been known to become corrupt when uploaded to this site in the past). Start creating new post. Click on the Manage Attachments (if you aren't already in Advanced mode, then you will need to click on the Go Advanced button first in your new post in order for this option to appear). Click on the Choose file button. Select your saved game archived file. Click on the Upload button. Click on the Close this window button. Submit your new post.
I don't have a save where the merchants are KOS as I quit as soon as I saw the game was ruined. I want to try to upload a save just to make sure I get it right, then I will go back and play to the same point.
Here is a save after the destruction of the thieves guild. About 1/2 the merchants are KOS vs my party.