I was still chased by Thalmor when i sided with Saadia.

White knighting for a sneaky redguard traitor. Hmmm... what are you playing at, man?

This time I led Saadia out to the stables, but before she got there I killed Kematu, just to see if I could take him. I was low level enough at the time, he almost took me instead. I kinda figured on my second character, I would do the opposite of what I did the first time. As for who is lying, well it's really up to you to decide. I like these situations where you can affect character's lives drastically, yet it doesn't really have any effect on you. Like Sapphire and Shadr, Sibbi and Svidi, or Carlotta and Mikael. You get to decide to help them, or you can screw 'em over and be on your merry way, it it just adds to the fun.

There are a few other reasons you might get chased by Thalmor...

You got it the other way round. The Empire persecutes the Thalos religion and fights for the Thalmor, Stormcloaks fight the Empire and the Thalmor. Why do you see Stormcloaks being led away by Thalmor patrols? Or one of the Greymanes in a Thalmor prison? Galmor Stone-Fist is quite explicit in his sympthies: "The only thing I hate more than the empire are their witch-elven puppetmasters".
The Stormcloaks are just taking their cue from the succesful Redguard rebellion in Hammerfell.

That's why I sided against Saadia: solidarity with the redguard resistance against the Dominion.

the reward I got from Kematu made me forget my doubts on who was the liar.. money doesn't lie
And with Kematu's reward I just had enough money to buy my first house so I did rather forgot her quickly ..

This doesn't take a way the fact that when playing this quest I was constantly doubting who was telling the truth .. very nice job from Beth


hmmm: maybe I should become a mercenary after all

And yet, Ulfric is a Dominion puppet and doesn't even realize it. Don't believe me? Read his dossier at the Embassy.

The Stormcloaks attack Imperial troops and weaken the races of men.
The Empire is fighting for everyone in Tamriel and for Talos.
The redguards killed Thalmor and had good leadership due to Legion reserves left behind.
The Stormcloaks are being led by a Thalmor puppet.

I've read it. He is described as a possible "asset". I also read they lost control of him and now fear a stormcloak victory. The only puppet left in the Thalmor puppet show is the empire.

Who attacks who and who weakens who? The empire participates in the outlawing of Talos worship. They knew the consequences. And I think a determined rebellion of the Nords has a lot more chance of beating the Thalmor.

The empire is is weak. It is a shadow of its former self. It has fought the dominion and it has lost. It is humbled and demoralized. It is Rome in the 4th century. It is Byzantium after the battle of Manzikert. It is the Persian Empire on the eve of the invasion by tiny Macedonia.

Small well-motivated rebllions can sometimes achieve wonders. Like the muslim rebellion on the Arabian peninsula that destroyed the mighty Sassanid Empire, the small Mongol tribe of Genghis Kahn that took over most of the known world or the tiny kingdom of Asturias under Pelayo in the far North of Spain that started a reconquista that would conquer the whole of Iberia.

The Empire worships Talos, and fights in his name! The WGC is but words that mean nothing!
If the Empire lost, all nirn would be destroyed. The Empire will fight on and win, as it has always done.

An inn s a good place to hear rumours eg about strangers in town
I'm pretty sure that kidnapping someone in a foriegn land isn't observing that lands laws
As for their not killing her being proof of anything perhaps they want to torture her or deliver her to the Thalmor
All I'm sure of is that there is no hard evidence as to who is telling the truth

I'm not sure who to believe but Kematu is a merc so what's to stop him from doing another mission that's worse then this one. I usually side with Saadia but why would he hide out in a Bandit lair if he was an honest Merc.

I agree with this.

When Hammerfell continued to resist the Thalmor taking/being given the southern reaches of their Nation, the Empire kicked them out (which was probably one of the most stupid decisions that the Empire made...), which leaves them to be their own Sovereign Nation. Also, Hammerfell is successfully resisting the Thalmor. Alone.

All of this leads to the correct assumption that they are not allowed into Whiterun and other Imperial sympathetic cities. They aren't a part of the Empire anymore, therefore are banned from the Empire's cities.

Because of this, and the way Saadia won't let you know anything even though she desperately needs your help, leads me to believe that the Alik'r Warriors are the ones telling the truth.

If Saadia is a Thalmor agent why would she flee to Skyrim? After Hammerfall itself its the province where accusations of Thalmor sympathy are most likely to get you lynched.
Whiterun isn't a pro-Imperial city, at present its neutral.
We don't even know either of them are telling the truth. Both sides could be spinning the yarn they think is most likely to get the PC to help them.

I've sided with Saadia for 2 reasons:
1. Innocent until proven guilty.
2. My character wanted a scimitar for her collection.

According to the official guide it's moot. There is no right or wrong party. Pick a side and roll with it.

She reacts stupidly when told the deal. The guys literally hang out FOREVER waiting for a solution , assassins would have forced the issue much sooner. Also , and I can't believe nobody here mentiioned this , a head weighs much less than an entire woman. Plus the man is reasonable instead of just going nuts no way back fight-time in the cave if you explore that route without just attacking him , he'll talk to you some more. The man strikes me as an officer charged with a duty to perform in every regard , especially the spell cast at her capture instead of a huge thump on the head and ropes. A little too humane for somebody not caring about her living or dying , or what you might see him do in that encounter.

Then there's this =P I'd personally hand her over though to have more entertainment with the thalmor sent after you about it.

Kematu is not part of the equation. The quoted line on the first page explains his position. He is a hired merc, sent to bring her back to a powerful family. This is his only role. If you are trying to anolyze this quest, you have to factor out Kematu. Saadia tells you her story, being sought after by folks she outed back in Hammerfell. Kematu confirms her whole story. The real question to ask: "Is Saadia lying?"

yes, i really wanted that outfit too. and the swords. But there is good news! Radiant Rainment sells Alik'r Hood, Redguard Clothes, and Redguard Boots, and you get Scimitar's from the Dainty Sload north of Solitude. (follow the east path at the base of the hill until you see the docked ship, then kill some pirates. one on the deck has a scimitar, so you don't even have to enter the ship)