JOHN McCAIN has hurled fresh allegations about Barack Obama's associates, saying the Democrat had fraternised with a man linked to the Palestine Liberation Organisation, the former Chicago academic Rashid Khalidi.

Hamas has popular and electoral legitimacy among Palestinians.

Leading Palestinian militant groups Hamas and Islamic Jihad are making moves towards joining the Palestinian Liberation Organisation - a step that would require them to implicitly recognise for the first time the state of Israel.

Many politicians met the PLO leader, but none knew what to expect, write Tyler Marshall and Mary Curtius.

Work and food have become higher priorities than statehood for thousands of unemployed Palestinians, who have taken to the streets to demand PLO leader Yasser Arafat find jobs for them.