This story is no longer available. Apparently AP recycles URLs On the 25th this same link is about the trial of four for the assasination of the Israeli Tourism Minister. Sorry

Israel Confronts U.N. Fact-Finders on Jenin Probe
Two Palestinians inside the Church of the Nativity compound were shot Wednesday and one of them died as Israeli and Palestinian negotiators gathered next door for a second round of talks to end the standoff at one of Christianity's holiest sites.

The trouble at the church, built over a grotto where Christian tradition holds Jesus was born, began about dawn, when a Palestinian was shot and seriously wounded by an Israeli sniper. The Palestinian was standing by a window inside the church, the army and Palestinian witnesses said. He was armed, according to the Israeli army, and was evacuated to a Jerusalem hospital.

A few hours later, two Palestinians surrendered, walking out of the church with hands up and turning themselves over to Israeli soldiers. The two men were wearing civilian clothes but were Palestinian police, according to a Palestinian journalist who recognized them. The two men said they were ill.

The Palestinian who died was hit in shooting that erupted about 5 p.m., as the Israeli and Palestinian delegations were arriving to start the second day of negotiations at the peace center next to the church.

Afterward, one of the Palestinians negotiators and a priest emerged from the church, carrying a badly wounded man on a stretcher. At one point, the bloodied man fell to the ground. He was taken to a Jerusalem hospital, but died a short time later, the hospital said.

After the shootout, Israeli soldiers briefly detained five journalists, including an Associated Press photographer, and confiscated their press cards.
http://www.nytimes.com/aponline/international/AP-Israel-Palestinians.html?todaysheadlines&pagewanted=all