Signs of progress amid turmoil in Iraq

Cash for arms "will not be enough," he says. "But if [authorities] put their money where their mouth is, and start projects and give people work, then they could really win them over."

But while the Shiite revolt may be on hold - though US officials say they are unimpressed with the number of weapons handed in - Fallujah simmers along. Talks are so uncertain that Mr. Allawi warned: "If Zarqawi and his group are not handed over to us, we are ready for major operations in Fallujah." That threat came as a surprise to Fallujah negotiator Hatem Maddab, who told Al Jazeera television that he has seen no proof of Zarqawi's presence in the rebel-held city.

"Zarqawi is like the weapons of mass destruction that America invaded Iraq for," said Mr. Maddab. "We hear about that name [Zarqawi], but he is not here. More than 20 or 30 homes have been bombarded because of this Zarqawi ... but only women, children, and the elderly have been affected."

That violence has helped divide the foreign fighters of Zarqawi - who the US says is the Al Qaeda leader in Iraq - and the more typical anti-US resistance.

Fallujah residents "are definitely fed up with it, and think: 'Are we ever going to get a real life back?' " says the diplomat. "They realize - and it's taken them a long time - that these [extremists] are going to be against any government in Iraq, elected or not.

"Allawi is not gung-ho [for a military solution], but this just can't go on forever," he adds. "And it's clear that much of the terrorism emanates from Fallujah."

Indeed, when marines cordoned off the city for several weeks last April, a US military intelligence officer noted at the time, not a single car bomb went off in Baghdad. Marine commanders decided not to invade Fallujah then, concerned about the likely scale of US and civilian deaths.

"With Fallujah, it's not a question of hunger - they want a share of power," says Atiyyah. "Now force is being used, but there is a deep-seated anger. This needs a political solution. Allawi is willing. The question is: How much are the Americans willing to help him?"

Even if a peaceful solution is struck, it is not clear if Fallujans can expel the militants, who are reported to have worn out their welcome in the city, and even been killed in local disputes.

Arab extremists of the Salafi school, the same adhered to by Al Qaeda militants, claim that Iraqis not willing to carry arms are infidels. They "are the crux of our ailment. Most of them are Saudis, Syrians," according to a commander of native insurgents, identified as Abu Barra, who was quoted by The Washington Post. "It is the Zarqawis and his Salafi group who are going to lead Fallujah, Samarra, Baqubah, Mosul, and even some parts of Baghdad to disaster and death."

Some of the issues could have been solved more easily last year if Iraqis had had more say in ruling the country, says Michigan's Cole. National elections were postponed. Municipal elections in Najaf were cancelled.

"The process that's going on now is the kind of compromise that could have been made all along, if the Americans hadn't been such control freaks," says Cole. "[They] talked a good game, with regard to democracy ... but the Americans kept trying to jury-rig things, to make sure their guys got in."

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