According to the Encyclopedia of Arda, and The Tolkien Companion, The Olog-Hai were not actually Orcs. They are a race of Trolls, (Olog means "Troll" in the Black Speech.) They were bred by Sauron to be more cunning and fierce, and to be able to tolerate the light of the Sun.
Interestingly, both the above sources say that the Uruk-Hai were not created by Saruman, but Sauron, and appear some 500 years before the events of LoTR. Saruman merely "improved" his own army of Uruk-Hais, and also created "half-orcs" a cross of Orcs and men, which it is best not to dwell on too much.
Tolkien suggests that the "Southerner" in Bree may have been one of these "Half-Orcs".
[ June 09, 2002: Message edited by: Birdland ]
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