Israel's government sits at Jerusalem, Palestine's government sits at Ramallah. Looking at this logically, only Israel should be able to claim Jerusalem as their capital. I don't really care where they put Palestine's capital, but there's no logical reason not to put Jerusalem as Israel's capital, if only as "West Jerusalem".
Suspect Bangkok bomber arrested, found with possible bomb-making materials (Reuters)
from the article: On BBC's Olympics website, Jerusalem is the capital of Palestine