I just wanted to pipe in for those few newer forum members that are not sure about how to choose sides or what all of this Conflict Zone stuff means.
Anywhere you see a "Low Intensity Conflict Zone", "High Intensity Conflict Zone", "Convoy Beacon" and I'm sure other types of locations on your Left Target Panel (default = 1), those are specific areas where you will need to pick a side for whatever event is going on. Which side you pick is up to you but it does matter if you have picked up a quest at one station or another.
So for instance, right now there is a big community combat event going on in the
Lugh system. If you get the combat quests from either the
Lugh for Equality (Federation and found in Hartsfield Market) or
The Crimson State Group (Independent and found in Baladin Gateway) or both if you want to play both sides at different times, then when you enter into any one of those specific conflict zones you will need to choose your side.
To choose your side bring up your Right System Panel (default = 4) and navigate to the last tab called Functions. From this tab the first item is Faction and you will be able to choose from the list of conflicting sides that are involved in this area. So in the example above you will choose between Lugh for Equality or Crimson State Group.
Once you have picked a side, everyone on the opposing side is fair game even in our Mobius Group. If you accidentally fire upon a friendly on your side you will start seeing many red or purple targets (if you are in a wing) - leave the conflict zone immediately and then return and choose your side again (if it doesn't remember).
Remember to pick up the quests for this fight at designated nearby stations or systems. You will still get some credits for each kill of your enemy, but you will even get a greater reward if you have the regular quest turn in for X number of kills or REALLY good credits for the different tiers of the community combat event.
Hopefully that clears it up a bit and I'm going only from memory so if something is inaccurate or doesn't make sense can a fellow member please update. I will be playing in the Lugh System for this combat event and inviting fellow players to join me for both factions (obviously at different times).