Palestinians seek new paths to statehood. An Israeli investigation finds no crime was committed in the assassination of a Hamas leader in 2002 that caused many civilian casualties. Two Gaza men and a baby are wounded in Israeli attacks. Fouad Ajami says the Arabs have turned their shame into liberty. Israel builds a light railway along a venerable road in Jerusalem. Fatah sets new standards for cabinet appointments. Settlers clash with Israeli police. Hamas suppresses a pro-unity rally. DM Barak says Israel must look past its anxieties and towards peace. Israeli police arrest eight settlers. Jordan’s FM says Palestinian statehood is nonnegotiable. The PLO also opposes power-sharing with Hamas. Akiva Eldar says PM Netanyahu is exploiting Israeli anxieties to forestall peace, and the PM says he is wary about new international initiatives on negotiations. Neri Livneh says Jewish fundamentalists are as dangerous as Muslim ones. Palestinians use technology to avoid long lines at Israeli checkpoints. Few Israeli politicians are attending the J Street conference. Rabbi Eric Yoffie says Jews and Muslims should work together for peace and democracy. Abdel Monem Said says the US veto of UN resolution on settlements was “shameful.”