"It has arrived!"
How did the colonel find out about the Observers, and could he possibly have some connection to ZFT? More importantly, the end of the episode seems to suggest that the Observers are somehow connected to the other universe somehow. I was under the impression(due to later episodes) that the Observers are independent in their agenda and have no connection to either universe at all. The reason I am thinking they are somehow connected to the other universe is because this episode suggested that they want to destroy everyone in the main universe by gathering data on them, an agenda that is exactly the same as that of Walternate in the other universe. Let me know if I'm misinterpreting this or if I am completely wrong.
Cracking the Equation
Il was unclear what the colonel knew exactly, but IMO he simply misunderstands the (very suspect) behaviour of the observers , thinking they are linked to the menace to our universe, when in fact they're collecting data for other purpose (mainly, checking everything goes the way they want).
Personally, what I found really interesting in the colonel's sayings is when he says that "whatever is in the suitcase is gonna destroy our universe" (or something along those line, if I remember correctly). And.. what's in the suitcase ? Pictures showing Walter.