The captured Israeli soldier is a big deal, mainly because the Israelis will go to greater lengths than the Palestinians to save the lives of their soldiers. Negotiation is normal in these situations, and Israel will typically release hundreds of Palestinian prisoners to retrieve one of their own. But if the negotiations fail, the Israelis will use troops, and be very aggressive doing so. For that reason, no Palestinian group has admitted they have the captured soldier. The Egyptian government has already started negotiations with the kidnappers, who are being very cautious. Israel has a good intelligence network in Gaza, and can eventually find out where the captured soldier, who is apparently wounded, is being held . The capture of an Israeli soldier is considered a major victory for the Palestinians, although in practical terms, it's nothing. It's all about propaganda and media spin, as the Palestinians have very little economic, military or diplomatic power.
June 25, 2006: About eight Palestinian terrorist came out of a tunnel they had dug past the Gaza security fence and into Israel. The Palestinians attacked an Israeli army checkpoint, killing two soldiers and capturing one. Three of the attackers were killed. When pressed about involvement in this attack, Hamas admitted that the political leaders of Hamas did not have complete control over the "military wing."
June 24, 2006: Israeli troops entered Gaza to arrest to Hamas terrorist leaders. Also seized were documents and computers.
June 23, 2006: Several more Kassam rockets were launched from Gaza into Israel. There were no injuries.
June 22, 2006: In Gaza, Hamas and Fatah continue to maneuver their security forces, with neither really being in complete control. Both groups are smuggling in cash, in order to pay their gunmen something, and thus keep their loyalty.
June 21, 2006: Israel's informant network and electronic intelligence operations in Gaza appear to be functioning well, for missile attacks continue on key terrorists, especially the leaders. In response, the terrorist leaders restrict their movements, and try to stay in areas thick with civilians, especially women and children. That way, the Israelis are forced to risk civilian casualties when they fire their missiles from helicopters or fighters. Dead civilians allow Palestinian allies in Europe (especially leftists and religious fanatics) to play to the media about how the evil Israelis kill innocent women and children. If you do this right, the media stories don't mention (much or at all) the Palestinian terrorist attacks on Israelis.