introduced new kitten and...

my new sphynx kitten is home with us now and has met Diego our 7 month old sphynx. the new guy is wandering around investigating every nook and cranny and Diego is growling at him...sneaking up on him....slapping him in the head (without using his claws) what seems like his typical playful actions except that the baby is hissing. the baby slaps him back as well and doesn't seem timid but because Diego is so much bigger and towering over him a few of his slaps have knocked the wee one down and then he just closes his eyes and cowers to avoid being swatted. My loving sweet Diego is BULLYING the baby!!!!! Now at times, I see them playing without any hissing going on but for the most part it seems that Diego is so preoccupied with the baby that he won't leave him alone for a moment whether it be playful curiousity or for the bullying which I think might be sensory overload for the little guy.
I decided to seperate them for awhile, let Diego hang out with my hubby in the tv room and I'm allowing the baby to investigate without being harassed. He hasn't met the dog yet but thats no worry. Dags is alot nicer than Diego!
I took a different route with introducing the newcomer this time. I didn't isolate him for a few days because the breeder said it was not necessary. Plus i thought to see how they would react to one another first. Now there is no harm being done and Diego also runs away from the baby sometimes as well when he gets hissed at. Its more his size that seems to be the problem.
Should I let them acclimate to one another and figure each other out or should I seperate them to prevent stress. At the moment the baby is purring contently in my lap. It doesn't seem as if he is terribly bothered or frightened...more annoyed than anything...what do you think I should do??

before anyone suggests.....I did read the FAQ. I did follow those steps with Diego and our dog but it would be hard to accomodate the two cats in seperate living areas for a period of time thats why I followed the breeders suggestion and tried to introduce them quickly...also, I kind of trusted that it might work because of the experience I had when Diego first arrived here. Diego was in the seperate room for two days before I tried to introduce him to the rest of the house and dog and to be honest I don't think it made a difference. He was bold and brave just like this little one and adjusted very quickly. He meowed alot at the door of his room which was also a sign to me that he wanted out and didn't care that there were other animal smells in the house.

Well first off I don't think a breeder or anyone who is giving you a cat can tell you not to worry about introducing because it won't matter and all will go well. There is no possible way they could KNOW that for a fact. They need to take in to consideration how the other cat is going to react, the strange smells in the house, new people and everything!

However, they seem to be doing okay. There will be some hissing and growling and "fighting" but as long as no blood is being shed They will need to do this to determine who is alpha cat. As soon as they are neutered they won't compete anymore. I don't know if the older one is neutered yet but I would get on that because with 2 males in the house, there will be spraying AND agressive fighting.

Actually they are doing well... He is letting the little one know hay am boss you are the servent so step aside...

thanks ladies the cats are both neutered and there has not been any fighting. Just a bit of bossing around. Today it seems to be better. I did leave the little one in a private room over night so he could get some rest. But there is now another problem. The kitten is breathing loud as if he is gasping and sounds as if his nose is stuffed up...I'll take this one to the heath forum.....