In order to effectively discuss security and an end to the conflict, the borders need to be defined FIRST! It's ludicrous to expect the Palestinians to discuss - or agree - to anything without that...because for THEM, it's THAT which will determine everything else. Otherwise, it takes no genius to see, that when the time comes that Israel says "okay, this little slice of swiss cheese is the territory we're proposing to yield for your state", then THEY'LL be accused by Israel of reneging on the "security" agreements and letting "yet another opportunity for a Palestinian state slip by". But even without this...it makes absolutely no sense to discuss anything without first defining the borders.
Four Libyan soldiers said killed in battle with Islamists in Benghazi (Reuters)
from the article: Israel and Palestinians clash over agenda for direct peace talks