My character was standing near a locked door to some building and accidentally pressed space. My character opened the door with his lock picking skills. Then I saw a message on my screen telling me people have witnessed this crime. Now everytime he is at this village, everyone yells at him for what he did. How will the villagers there seeing him as a criminal affect my game? Should I restart the game?

It doesn't affect the game as such. If the village has any guards (or other law-related people) approach one of them and he should challenge you for your crimes and demand you pay a fine; once you do so everyone will forget all about it. If there is a guard but he doesn't challenge you you may need to perform another criminal act within his sight to make him pay attention to your deeds.

If the village doesn't have anyone who can fine you I wouldn't worry about it. You don't need to be on friendly terms with them to advance the main quest (or indeed any other quests outside of that particular location) so the impact is minimal.

Ok, thank you for your response. :)

If you're carrying plenty of gold drop most of it before talking to a guard - the fine (if any) should be a lot less.

Don't forget to collect your phat lewt before you depart :)