The first step is to resolve the Hamas issue. Peace talks will never occur unless Hamas changes its position on israel's legitimacy. The rest of the world will not insist that Israel negotiate under such circumstances. The pre 1967 boundary is a good basis for peace discussion but Israel's total protection from an invasion through Jordan has to be guaranteed and the viability and safety of the settlements must be guaranteed and protected for the foreseeable future. Figure out a way to do that (not with the UN wihich is untrustworty and incompetent) that Israel can live with and you are well on your way to an agreement. The issue of the 1967 borders only confuses the issue. Israel's protection and safety within the West Bank is the issue and the border only confuses the matter. the border should not be the issue for Israel and Netanyahu and Obma are both confused. Simply deal with Israel's safety from attack and the continued viability of the settlements, which are the issues. There are ways to deal with E Jerusalem that provides something for the Palestinians although it won't be ownership..
Israel passes law sanctioning force-feeding prisoners (Haaretz)
from the article: G8 leaders omit mention of 1967 borders in Middle East statement