PM Fayyad says Palestinians are committed to green development as well as independence. Palestinian state building efforts extend into occupied East Jerusalem. The eviction of a Palestinian family by settlers in Jerusalem and new Israeli legislation requiring referendums on peace deals stir tensions. Palestinian courts differ on punishing land sales to Israelis. Occupation forces destroy a Palestinian home in Jerusalem. Pres. Abbas says PLO headquarters will eventually be in Jerusalem. Hamas officials say Fatah officials can only leave the Gaza Strip if Hamas operatives are released in the West Bank. Doubts persist about progress on peace. Israel's claims to Jerusalem leave it internationally isolated. Ha'aretz says Israel's leaders have handcuffed themselves to the extreme right. Amira Hass says Israeli generals and not just soldiers should face charges over the use of human shields. Palestinians clash with occupation forces over home demolitions. 100 leading Norwegians call for a cultural boycott of Israel because of the occupation. Alon Ben-Meir says Robert Wexler would make a good Mideast envoy. Palestinians might use the Kosovo model for a declaration of independence. The Forward profiles an Israeli Bedouin diplomat. PLO officials say they will insist on a complete settlement halt.