TRADEMEET SPOILERS
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You can definitely kill Lord Alibakkar with no problem. Just wait until you have got the mantle & handed it over to the mayor, then go and backstab Alibakkar, and there you have it, 1 nice shiny green suit of elven chain.
An illigal way of getting some, is to use CLUACONSOLE - I don't know the code for elven chain, I got it once by calling up Aran Linvael, CTRL Q, and voila, that suit is mine... (I don't cheat, oh no. Nothing to see here, move along...)
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Time is an illusion. Lunchtime doubly so.
Epona of The Laughing Hyenas