1. Inside Pakistan, Taliban leader Baitullah Mehsud has issued an ultimatum to the government of the North West Frontier Province demanding the government resign within 5 days or “face the consequences.”

2. The Hamdan military trial - war crimes charges against the former driver for Usama bin Laden - could begin as soon as Monday at Guantanamo Bay.

3. Kuwait has named its first ambassador to Iraq since Saddam’s brutal 1990 invasion, another sign that the young Iraqi democracy is not only progressing, but is perceived as such within its own region.

AL QAEDA
Former Bin Laden Driver Hamdan Set for Gitmo Trial - ABC
Hamdan: I’m Happy to Report I Was Wrong - NRO
Al-Qaeda: Winning or losing? - The Economist

EGYPT
Weapons and contraband tunnels found in Egypt’s Sinai - AFP

IRAN
Iran expects progress in forthcoming nuclear talks in Geneva - Jerusalem Post

IRAQ
Al-Qaeda’s losing relevance in Iraq war outcome - MSNBC
Iraqi Army Patrols Sadr City During Friday Prayers - ABC
Progress Pic of the Day - PrairiePundit

ISRAEL
Israel arrests six for ‘al-Qaeda links’ - The Age

KUWAIT
Kuwait names first ambassador to Iraq since 1990 - Los Angeles Times

NORTH KOREA
Top Diplomats in Six-Party Korean Nuclear Talks to Meet - VOA

PAKISTAN
Taliban issues ‘five-day ultimatum’ to NWFP government - Dawn
Pakistan Army says it has driven militants from Hangu villages - Daily Times
Pakistan Army Reports 10 Militants Killed During Offensive in Northwest - VOA
Poll: 86% think Pakistan headed in wrong direction, say Impeach Musharraf - Dawn

1. With word of a possible US diplomatic presence inside Tehran and William Burns’ presence at EU-Iran negotiations, questions arise about a possible change in Washington’s stance towards Iran.

2. With another province handed over to Iraqi control (10 of 18 now), overall security in Iraq has improved dramatically. Still, another car bombing is carried out killing Iraqi civilians and the US rolled up an IED network leader suspected of having ties and training with Iran and Hizballah.

3. US forces are massing along the Afghan-Pakistani border in reaction to increased attacks from within Pakistan. The US has called for Pakistan to effectively police its side of the border, a call that has been made publicly and privately since 2001.

4. With the Hizballah-Israeli prisoner exchange executed, one of the most violent terrorists released - Samir Kuntar - vowed in Lebanon to continue in Imad Mugniyeh’s footsteps. The Israelis received corpses in the exchange.

AL QAEDA
Why Some Terrorists Make the Choice to Leave al Qaeda - US News and World Report
SOURCE DOC: Combating Terrorism Center: Sentinel - West Point
Judges Rejects al-Qaeda Delay Request in Guantanamo Trial - New York Sun
Hamdan Ruling: A Win for the Administration … But Maybe Very Temporary - NRO

AFGHANISTAN
Coalition troops mass at border - The Australian
More: Afghanistan: Force Consolidation Offensive or Defensive? - ThreatsWatch
Afghan Surge Could Start in Weeks - AP
Brit Special forces kill Taliban leader Bishmullah in ‘critical blow’ to insurgency - The Guardian
Taliban release photos of beheaded Afghan ‘prostitutes’ on Internet - AKI

IRAN
U.S. to establish presence in Tehran: report - Washington Post
Iran and U.S. Signaling Chance of Deal - Washington Post
Columbia University won’t invite Iran’s Ahmadinejad this time around - NY Daily News

IRAQ
US military captures suspected bomb network chief with alleged Iranian training, Hizballah ties - IHT
Iraq’s security ‘remarkably better’ - Washington Times
Canada expels an American who deserted during the war in Iraq - IHT
Car Bomb in Iraq Kills 18, Including Kids - ABC

ISRAEL
Kuntar: I’ll continue Mughniyeh’s legacy - Jerusalem Post

LEBANON
Lebanon celebrates release of five prisoners - al-Bawaba

PAKISTAN
NATO forces use gunships, artillery to attack targets inside Pakistan - Daily Times
Pakistan Must Do More to Police Tribal Zone, Defense Leaders Say - DefenseLink
US Calls on Pakistan to Control Afghan Border - VOA
Militants ready for a war without borders - Asia Times
Pakistani Investors Riot as Stocks Plunge - VOA

1. Within the historical context of overstating its conventional military capabilities, the widely published image of this week’s Iranian missile launch is found to have been digitally edited to cover up a missile misfire. Meanwhile, a major French energy firm has canceled a deal originally made with the Iranian regime for development.

2. In Israel, embattled PM Olmert has been questioned a third time by Israeli police over charges of inappropriately accepting money while in government.

3. Egypt has uncovered new tunnels along the Gaza-Egypt border and seized multiple weapons caches.

4. The International Criminal Court is expected to issue an arrest warrant next week for Sudan president Bashir on charges of war crimes in Darfur.

NEW FISA LAW SIGNED
Bush Signs Spy Bill, ACLU Sues - Wired
President Signs Electronic Surveillance Legislation; Lawsuits Expected - CQ Politics

CENTCOM, MNF-I COMMANDS
Senate Confirms Petraeus for CENTCOM, Odierno for MNF-I Commands - DefenseLink

COLOMBIA
US, Colombia choked rebel communications network - Washington Post

IRAN
French Energy Giant Cancels Gas Deal in Iran - NY Times
Picture: Iran ‘fakes’ missile launch after misfire - Times Online
Iran’s Enriched Uranium Supply Grows with Steady Production - Newsweek

IRAQ
Bodies of 2 missing U.S. soldiers found, relatives say - Los Angeles Times
Battle Over Sadr City Defines Apache Helicopter Regiment’s Tour in Iraq - The Long War Journal
Obama’s Iraq Withdrawal Plan: Mission Impossible? Commanders Warn of Troubles - ABC

ISRAEL
Police question Olmert third time on ‘money envelopes’ - M&C

GAZA STRIP
Hamas claims arrests PA-aligned al-Aqsa Martyrs Brigades members for rocket fire - AFP
Egypt uncovers three tunnels, weapons caches on border with Gaza strip - Haaretz
2 killed in tunnel collapse on Gaza-Egpyt border - AP
Logistics: The Lucrative Tunnels Of Gaza - Strategy Page

LEBANON
Hizballah-Israel prisoner swap set for next Wednesday - Haaretz
Lebanese leaders agree on national unity cabinet - M&C
France Develops Relations with Syria in Favor of Lebanon - an-Nahar

PAKISTAN
Taliban: Pakistan hostages will be slain if insurgents are not released - International Herald Tribune
Senior Taliban Commander Arrested in Northwest Pakistan - VOA

RUSSIA
Russian FM Says Iran Missile Tests Prove US Shield ‘Not Needed’ - VOA

SUDAN - DARFUR
ICC Arrest warrant likely for Sudan president Omar Hassan Ahmad Bashir - IHT

SYRIA
U.S. tightens sanctions on Syria - Reuters

TURKEY
Gunmen Who Killed Three At US Consulate In Istanbul Linked To al-Qaeda - Sky News

YEMEN
Yemeni security forces blanket Aden on war anniversary - The Long War Journal