JERUSALEM - Israeli Prime Minister Ariel Sharon told Palestinian leader Mahmoud Abbas that Israel would hand over two more West Bank towns if the Palestinians take step to end violence, officials said Tuesday, after the leaders held their first summit since a cease-fire was declared. The meeting, which lasted more than two hours, was meant to step up coordination of Israel's planned withdrawal from the Gaza Strip, which is scheduled to begin in less than two months.
http://news.yahoo.com/fc/world/mideast_conflictOther stories linking to this include,
Palestinian PM Calls Sharon 'Difficult'
http://news.yahoo.com/s/ap/20050621/ap_on_re_mi_ea/israel_palestinians_6;_ylt=Aig9qRqwx2GIVqBIrL34wGYUvioA;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUlPalestinian hardliners slam Abbas for meeting Sharon in Jerusalem
http://news.yahoo.com/s/afp/20050621/wl_mideast_afp/mideastsummithamas_050621163033;_ylt=AhXKh5f6lxjKbfVZnGQp49MUvioA;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUlAlso, Jerusalem Post says there's to be an airport in Gaza.
So, it's slow and difficult but things are at least moving.