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The most reliable way to gain HN rep is, as you guessed it, turning in bounties. You get more rep if you don't ask for payment, turn the bounty in to the fella behind the counter and go with the line that says "Okran's will be done" or whatever it is, the one that doesn't mention payment. That should net you +5 for each bounty, possibly more now (its been a while since I turned a bounty in to them).
If you just want to get as many bounties as possible as fast as possible, you can head to Wend and wander the river for a while. There are small groups of skeletons that can spawn and wander the area with 1 or 2 per group that have bounties on their head.