Storyteller Side Quest - Tatooine (Kotor 1)
Start Location: Sand People Enclave
Cut Off Point: Reaching the Unknown World/Freeing the Jawas
While doing the story quests on Tatooine you'll be able to take the non-violent approach to interacting with the Sand People and (somewhat) earn their trust. This side quest will only be available if you go that route and remain peaceful with the Sand People. For more information on exactly how to do all of this check my Tatooine Walkthrough.
After you defeat the Krayt Dragon at the very end of the Tatooine story you'll receive a Krayt Dragon Pearl if you accept the reward from Komad. You'll want to take this back to the Sand People Chieftain and show it with him - he'll be impressed and will allow you to speak with the Sand People Storyteller (pictured below).
You will also receive 250xp at this time, which is your reward for showing the chieftain your pearl.
There will be no additional reward nor opportunities for Light Side or Dark Side Points during your conversation with The Storyteller. Once you're done listening to the entire history (which you can hear here if you want) you'll have no reason not to turn the entire Sand People Enclave hostile.
Defeat The Storyteller for the unique Raito's Gaderffii weapon that you can't get anywhere else. Also, making the entire enclave hostile to you will allow you to open all the chests throughout and pick up all the loot from the Sand People. Last but not least, you'll also be able to free the Jawas here and return to Iziz in Anchorhead for more xp and a reward from him too.