Do you really believe a half-orc like Olot would let an elf tell him what to do and basically submit to him? More importanly, do you think that Olot, with a 20ft base speed is going to outrun anyone? Tell ya what, I got no problem with your input, but if we piss off the DM, then let him tell us. It has nothing to do with you until we meet up in the group
I just want to be clear, Onlythestrong and Voda Vosa - as a player, I have no objection whatsoever to what you're doing. I'm just saying that if similar things were to happen around Finn, he would take action in his own way. He's Chaotic, sure, but he's Chaotic Good. He's got no trouble with initimidation and scare tactics (although he's more likely to try the honey than the vinegar, himself) so long as they don't devolve into threats of mass murder. As I put in my background for him, he will not give any useful information to someone he perceives as evil - and if he's not willing to give information, he's sure as heck not going to support them as part of an adventuring party!
Again, I personally am all for you roughing up the snotty elf guard. I've had my own problems with guards in this city (as you could tell by reading my own little section). Just don't let Finn hear you plotting murders between yourselves
You may of misunderstood Olot. He understands the bad things that are about to happen, and would much rather of avoided the fight. His comment to Frundor was for his own pride. After they had left the elf, they probably would of forgotten about him. I imagine that once the party become familiar with the ways of each other, we will have no issues. It's the getting used to each other part that could be interesting.