ooby_dooby: alexy, very few people know the history of how Palestine was cut up to create the state of Israel by the UN in 1948. This is the root of all the problems we face in the middle east today which also includes 9/11 the embassy bombings, the USS Cole OBL, etc. It all can be traced back to that one event.

Hey, hows it going?
Yes, I think the big mistake took place when they accepted Israel as a new Nation State, before having a Palestinian Nation State formed. When they were redrawing the borders and deciding who got what, they should have made sure it developed at the same time, and recognized both as independent Nations States at the same time.
I think the United Nations should control Jerusalem, because I don't it is fair to give the city to either Israel or Palestine. And you can't really divide the city in half, that doesn't work. So, I think Jerusalem should become an international city under the UN. Jerusalem is a holy city in Judaism, Islam, and Christianity, so I don't believe any of these religions have a more valid claim to the city. They equally deserve the city. So, to make it International would be best, in my opinion.
And then think the United Nations should look at their older resolution of what the borders of Israel and Palestine are suppose to be, and that should be implemented. It is important for the United State to back the UN resolutions as well. Obviously, leaving the border negotiations to Israel and Palestine is not working out.
Obviously, this solution is full of problems too...but well, its only a suggestion

After all this situation is complicated, so if we could solve it in a couple of forum posts, I am sure they would have solved the issue years ago

But, its still worth trying to find a solution