So I got into the first town Rivenwood or whatever its called. Went to the inn and accidentally hit the innkeeper lady. The bartender, the lady, and another guy attack me so I run out. So happens that it saved the game when you enter or exit a building, so im basically stuck in a loop where I'm surrounded by 3 guys who crush me in like 5 seconds. Also they chase me outside of the inn so theres no way for me to get away and i just keep on dying repeatedly. Is there anyway out of this or do I have to just start all the way over from scratch?

I dunno. Maybe try changing the difficulty temporarily to the easiest setting so you don't get owned in 5 seconds? Not sure if that'll work, but that's what I would try.

This same exact situation happened to me years ago in Tomb Raider 2. Lara's sliding down some ramp or something, and I saved just as she started to slide. So of course there's a spike trap at the bottom of the ramp. Oops, had to start that particular level all over.

im shure you can out run the npc's if you just run out of the village

Well if you had made multiple saves, you could have reloaded an earlier save point. if you haven't then yes start over. No worries I have to restart because of Alvor not completing the quest to keep going. ALWAYS make multiple saves for TES games, its much safer. I started doing it after losing a level 72 character in Morrowind due to a storm corrupting the save, since then I don't take chances.

Try putting your weapon away in front a guard, it may not work but if it does they will try to arrest you. Then just pay the fine or go to jail, everything should go back to normal then.