US Presbyterians call on US to suspend aid to Israel until all settlement activity ceases. Pressure builds for direct negotiations. Former Israeli and Palestinian negotiators agree talks should not start from scratch. Libya is the latest country to organize an aid flotilla for Gaza. Israeli society faces increasing challenges from ultra-Orthodox. Philip Smucker points out that the issue of Palestine is a major selling point for terrorists. Pres. Abbas says there must be progress on borders and security before direct talks can begin. Israel's initial investigation into the Gaza flotilla attack cites poor planning. A senior PLO official calls Jerusalem “a time bomb” between the parties. A Palestinian village is to be entirely encircled by the next phase of the West Bank separation barrier. The US asks Syria not to hinder direct negotiations. Israel orders an investigation into the death of a nonviolent Palestinian protester. The head of Israel's internal security visits the West Bank for security coordination talks. Salman Masalha says Gilad Shalit's family should be allowed to visit him. Ahmad Tibi says the situation is worsening for Palestinian citizens of Israel. The BBC profiles a Gaza smuggling millionaire. Palestinian refugees in Syria are talked about their homeland. Raghida Dergham says Pres. Obama needs new strategies in dealing with Israel. ATFP President Ziad Asali warns that if the Israeli-Palestinian conflict is not resolved in the foreseeable future, it could lead to a holy war.