I got it to work within the last week on Great Lakes for both blacksmithing and tailoring.
According to what's in the Playguide on the official UO site, the only things you can faction bless/hue are:
Metal armor - 1000 silver
Leather armor - 750 silver
Weapons (melee and archery; who knows if they'll remember to add in throwing) - 1000 silver
Clothing - 200 silver (This includes such things as cloaks, robes, dresses, skirts, shirts, sandals, aprons, etc.)
In order to make the gump show up, you have to satisfy all of the following criteria at the time the item is crafted:
- The crafter must belong to a faction and be in the appropriate NPC shop in a faction town currently controlled by his or her faction while making the item. Note: I'm not sure if this criteria is considered satisfied if the crafter is in the process of quitting the faction.
- The crafter must have sufficient silver in his/her backpack (see amounts listed above for various types of items).
- The item must be exceptional quality when crafted. The crafter does NOT have to have GM or better skill in the skill used to make the item.
Assuming all these criteria are satisfied, as soon as the item is created, a gump will appear asking if you want the item to be faction hued/blessed and which of the faction's two colors it should be. The gump also indicates the cost and how much silver you actually have in your pack.
If the crafter has GM or better skill and selected the option to show the maker's mark, the crafter's name will appear on the exceptionally-crafted item, followed on the same line with the faction abbreviation in brackets (e.g., "Anna [TB]"). (This is true whether or not you faction hue/bless the item, as long as the exceptionally-crafted item is made somewhere in Felucca. Exceptionally-crafted items made in Trammel by a faction crafter will only show the crafter's name, if that option is selected. They do not show the crafter's faction.)
The faction hue/blessing is only supposed to last 21 days.
More info is here on the UO.com site:
http://www.uoherald.com/guide/guide.php?guideId=212.