What can Reputation be used for?
Reputations can be set for almost anything. As previously stated, these are just "one-liners" that represent a character. These can help define events in that character's history that are significant (such flaws as "Infamous Sire" and "Red Listed" or merits such as "Reputation") or can define things that happened in the course of the game.
Reputations can be good, bad, or neutral. Reputations can be set when someone owes a Boon. Reputations can be set when someone pays off a boon honorably. Reputations can be set on suspicions alone! The +status/reputations will likely give you a good set of examples. It should be clear from reading them that whether a reputation is good or bad is in the eye of the beholder. "Sally is climbing the social ladder with speed." would probably be considered a negative rumor in the eyes of the Nosferatu, but to the Toreador it says something fantastic about Sally.
The Prince should be setting a reputation for someone whom he has chosen as a Primogen, Keeper, or Sheriff. The Primogen should be setting reputations for their Whip. The Sheriff should be setting reputations for his Deputy. These are common examples of "neutral" reputations, so called because -- good or bad -- they are informational.
What do Reputations mean?
The value of a reputation indicates its strength. A strong reputation will be harder to ever hope to quash, while a weak reputation may be forgotten quite easily.
- 1 - Largely informational. This reputation is "neutral" to most people or others just don't care.
- 25 - A well known Reputation. This is pretty solid information.
- 50 - Undeniable. Whatever it says is probably true and a lot of people believe it.
- 75 - Not only is it well known, but its probably known throughout the Camarilla.
- 100 - A reputation of this magnitude can make or break you... and everyone knows it.