One other story that's not getting much play is Musharraf putting recognition of Israel into play. None of the South Asian Islamic countries recognizes Israel, and if Musharraf is seriously considering recognizing Israel, that would be a major victory. So far, he's just calling for a "national discussion," but Pakistan has a somewhat free press, and somewhat free democracy, and a whole lot of dependence right now on the US. Having thrown his lot in with us on the terror war, he may be finding himself dragged in directions he didn't count on. I certainly hope this is more than a "Come to George" moment that he's having - that he seriously thinks this is best for his country and Islam as a whole. But it would put Indonesia and Malaysia on the spot, and could set up momentum towards greater Arab recognition of Israel.
Bear in mind, however, Lebanon. Bashir Gemayal was killed for signing a peace treaty with Israel, that Syria later abrogated when they took over the country. There's no Syria waiting on Pakistan's border, but this may be fierce internal opposition, and if the movement leads to Musharraf getting killed, it certainly won't have been worth the loss.