This Reuters story demonstrates Israel's determination to crack down on terrorism, even as the US pushes them to cool down.
For what it's worth, I feel the US position is wrongif we were in the same position, we would be cracking down as well. However, the US is attempting to reduce Arab instransigence towards operations against Iraq, and since Iraq and the Palestinian intifada are tightly linked, they hope that an Israeli drawdown will help ease anti-American sentiment.