The Arab states and the Palestinian government needs to recognise Israel's right to exist. This needs to be the first step. The Arab States and the Palestinian government must then recognise the UN resolution which established the State of Israel and the Palestinian State. Once this is done final status negotiations can begin. Until this is done everything else is just semantics.
Two security personnel killed by mine in southeast Turkey (Reuters)
from the article: After Rice / Creeping back to the unilateral