Not at all, the bloodline of hunters is perfect - adds a nice layer to the craft, if you ask me. Me likes. The previous run-in with a werwulf can stand as well, so long as you're prepared for the fact that the beast in this world is different in several key ways to the one from our own folklore. We'll get to the specifics with that once we get going, though.
As for werwulf/werewolf, the spelling is irrelevant. They'd be the same creature, I just preferred the Old English spelling over the modern one.