The 10 will start to cycle with those fish in there and they just won't make it. You would be far better off if you could find a friend or lfs that would board them for you until your tank is cycles. As to the damsels and all ethical questions aside no it really won't work well at all. The tank will be cycled for 2 damsels and as you add other stock it will go through mini cycles. Damsels are also VERY hard to catch especially in a tank with l.r. I would take out most of my l.r. and put it in some sort of holding container with plenty of water circulation and maybe some light if it has critters growing on it. Then throw a cocktail shrimp or 2 in your tank and let it go. You could also throw in the shrimp with most of your l.r. in your tank. You would have a somewhat quicker cycle but, you will loose a lot of the beneficial inverts on your rock.
hth
Chris