By Ahmad Pathoni

DILI, April 11 (Reuters) - East Timor's election commission will meet on Thursday to discuss calls for a vote recount, as the tiny nation faces a presidential run-off between Prime Minister Jose Ramos-Horta and the ruling Fretilin Party's candidate.

Monday's polls were mostly peaceful but a drawn-out election period and allegations of irregularities will raise concerns about fresh instability in the impoverished nation that still has deep divisions five years after independence.

Overnight dozens of people in the predominantly Roman Catholic country, once a Portuguese colony, held a candlelit vigil near a statue of the Mother Mary in Dili to pray for peace.

Martinho Gusmao, the election commission spokesman, said the commission would meet candidates to discuss voting disputes. But he said there would not be any major shift in the results.

"If there's a change it won't be drastic. No candidate will win more than 30 percent."

If no one wins more than half the vote, a run-off will be held on May 8.

Gusmao said it was almost certain Ramos-Horta and parliament chief Francisco Guterres of Fretilin, who is also known by the guerrilla nickname "Lu'olo" he had during the fight against the 24 years of Indonesian rule that followed Portugal's withdrawal, would contest a run-off.

Preliminary vote counting showed Guterres, whose well-organised Fretilin Party has bigger support in rural areas, had 29 percent of the vote, while Ramos-Horta, a Nobel peace prize winner who spearheaded an overseas campaign for independence from Indonesia, had 23 percent.

The election commission spokesman said, however, that there were still disputes over the validity of 30 percent of the votes.

"We must understand that we are not well prepared for this election and things are a bit chaotic."

Five candidates, including Fernando de Araujo of the Democratic Party, called for a recount on Wednesday, alleging widespread irregularities.

COUNTER CLAIMS

Ramos-Horta said there had been many flaws in the polls.

"I think there should be another count because there are serious allegations," he told reporters.

But he said if there was no recount he would accept the results to contribute to stability. He accused police in some districts of acting as thugs for Fretilin.

National election commission chief Faustino Cardoso Gomes said final results were expected on April 16 or 17.

Fretilin's secretary general said there had been a "well mounted campaign against Fretilin" that he linked to Ramos-Horta and outgoing President Xanana Gusmao.

"This campaign includes disinformation, abuse of power and intimidation," said Mari Alkatiri, who was replaced as prime minister by Ramos-Horta last year after taking much of the blame for the chaos that emerged in East Timor last year.

A regional split erupted into bloodshed last May after the sacking of 600 mutinous troops from the western region. Foreign troops had to be brought in to restore order.

"I have no doubt we will win the next round," said Alkatiri.

EU observer chief Javier Pomes Ruiz said on Wednesday that the election had mostly gone smoothly with a high turnout.

"The opinion of the EU observation mission in general is that the level of violence and intimidation is not enough to change the opinion of a peaceful and orderly process," he said.

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