As I understand it, when you take part in Faction War and engage in PvP you suffer NO Faction standing hits.
But when you take part in Faction War missions and FW Plex flipping (ie shooting enemy fw NPCs) you can gain friendly and loose enemy faction standings.
This means that in theory, if you were running missions for Caldari NPC corps and you then went into the Gallente (or Minmatar) militia, you would be fine to return to Caldari space once you left Faction War and resume your pve activity - providing you had simply PvP'd and not taken part in missions or plexing.
Is this correct?