Exclusive Updated Israel Reporting @ Commentary

(Note:This post will be updated as the news breaks)
Breaking: 8 Israelis Dead and 2 Soldiers Captured in Hizbollah Attack on it's Northern Border
Early this morning Israel time, Hizbollah opened up a northern front in the terrorist war on Israel. This might be connected to Israel's air strike late last night on top Hamas terrorist Muhammad Deif. This was a two pronged attack that included a Katyusha rocket attack on civilians and a well planned ambush on an Israeli tank in which two soldiers were captured and several seriously injured. INN reports:

"Around 8:30 a.m. Wednesday, explosives and mortar shell attacks by
Hizbollah on IDF positions, patrols and civilian targets along the
Lebanon-Israel border killed seven people, injured at least eleven others and
facilitated the kidnapping of two soldiers. An IDF spokesperson said that one of
the injured was in serious condition as a result of attacks on two military
vehicles. Those injured were ferried by helicopter to the Rambam Hospital in
Haifa and to the hospital in Nahariya. Residents of the northern town of Shlomi
were ordered into bomb shelters shortly after the first explosions were
reported.Details of the attack indicate that an army tank hit a land mine or a
roadside bomb, trapping soldiers inside, in addition to a Hizbullah mortar shell
that struck two Hammer jeeps. Rescue efforts were delayed because of fears that
the area was mined with more explosives planted by the terrorists."

Hopefully, Israel will finally eradicate every last terrorist where ever they live. The IAF has commenced a bombing campaign in southern Lebanon and there were reports of warplanes over Beirut. They have also begun a ground invasion, and Olmert's cabinet members are seeking a more comprehensive response. Read the full report here and here. Also, world leaders "condemn" the attacks but make their usual demands for "restraint".

Keep in mind, that this is taking place due to the lack of deterence of the IDF. Hamas in the south and Hizbollah in the north know that Olmert's leftist government is more concerned with deporting their own citizens than fighting terror. The lesson is that if you run away from Gaza, Gaza runs after you. You run away from Labanon, Hizbollah will come after you. Olmert must go immediately! The right wing in Israel must get their act together and topple the Olmert government. Here is a great editorial titled "Olmert and Peretz are gutless and inexperienced".
Update: Olmert has already signaled that he is open to restraint. He declared during a press conference:
"Israel's response will be restrained but very, very, very painful."
Unfortunately, we have heard this already numerous times. This is not the time to speak about restraint. It's the time to declare war and finally uproot terrorism at it's roots!
Update: DEBKA file reports:

" military sources: Israeli helicopters drop special forces over Beirut
area midday Wednesday to prevent Hizbollah kidnappers going to ground with
Israeli hostages in Shiite district. Arabiya TV claims the two kidnapped
soldiers are Druzes.
Israel reports 6 soldiers injured, 3 critically, and 11
civilians wounded.
Israeli reinforcements are streaming north. The Israeli
force is running into roadside bombs and heavy anti-tank rocket and missile fire
in the chase for the Hizballah kidnappers who snatched two soldiers early
Wednesday, 12 July.
Israel warplanes are striking bridges and Hizbollah
command posts. Naval ships are bombing Hizbollah coastal positions. "

Also, INN radio is reporting that Israel has approved an extensive operation. A full reserve division has been activated. Residents of northern Israel are being told to prepare to enter bunkers.
In other news: Al Aksa terrorists are threatening to launch rocket attacks from within the West Bank. WND has the full report. Top Aksa leader Abu Oudai said he does not fear Israeli retaliation for his group's planned rocket launchings from Judea and Samaria.

"I heard many time the expression of unprecedented response. The only
unprecedented thing is the frequency of the Israeli 'empty threats.' We are not
afraid and we have nothing to fear," said Abu Oudai. "

This is a very telling statement coming from a terrorist. Unfortunately, it appears that Hizballah is also receiving that message from Israel's leftists.

YNet has a roundup of responses from right wing MK's:

"MK Effie Eitam (National Union) called on Defense Minister Amir Peretz to
resign his post, claiming that "everything we have warned against is
materializing – from the escape from Lebanon to fleeing from Gush Katif. The
entire State is being blackmailed by abductions and rockets from the north and
south."
"There's no choice. The war has been forced upon us – we must
go to war and break the terror siege. We need a response that will rattle the
Lebanon government and the Hamas-led government," he stated. "

Unfortunately, there is no central figure in the right wing camp to stand up and challenge Olmert. Eitam is religous and could never become PM. Where is Netanyahu??
Update: Kofi the terrorist Anan condemns Israel's limitted strikes in Lebanon!! I'm so surprised.
Hizballah launches 5 more Katyushas into northern Israel. Also, the Lebanese PM called on the UN to stop Israel. It looks like they already are doing just that.
WND is reporting that this attack was coordenated together with Al Aksa and other Palestinian terrorists.
Update 1:30 PM: Condi Rice called the Lebanese PM by phone and demanded the release of the soldiers. Also,Nassan Nasarallah, the head of Hizbollah, announced that he is aware of the location of the captured soldiers and demanded the release of Palestinian terrorists from Israeli prisons. Why don't they kill this guy?
Meanwhile, on the southern front,Hamas continues to launch Kassams from the Gaza into Sderot.
Update 3:00 PM: All northern Israel residents were called into bomb shelters. IAF warplanes struck a PELP terrorist base in Beirut. I'm wondering what's up with Assad? Debka is now reporting that top Iranian officials just flew to Damascas for "emergency" meetings. This is clearly a Tehran based effort. They are also reporting that the total number of Israelis killed is 8. Three were killed in the ambush, four were killed while their tank struck a land mine, and the eighth was shot while attempting to rescue their bodies. YNet has a full roundup with video coverage.
Update 7:00 PM: Hamas continues to bombard Sderot with rockets throughout the night. Israel must throw out Olmert and elect a right wing government. They need to get to the root of the problem which is Damascas and Tehran. They are the hosts for both Hizbollah and Hamas along with Al Aksa and PELP. They need to issue an ultamatum: Hand over the soldiers within 24 hours or we will declare war on Syria, not Lebanon.
Here is a video of IAF warplanes from israelreporter.com
Update 8:00 PM: Lebanon's ambassador to the US, Farrid Aboud, was sent back after expressing pro Hizbollah sentiments. This guy should have been arrested.
Also, former Israeli Defense Minister Moshe Arens said during a WND interview that Israel has lost it's deterence:

"Israel's withdrawal from Gaza and the uprooting of Jewish communities
there was interpreted by Hamas and by the Palestinian people as a victory for
terrorism"

If only Arens would be the current DM instead of the Marxist pro Palestinian Peretz!
Update 11:30PM: JPost is reporting that the IAF just struch a runway at Beirut Int'l Airport. Israel Army Radio explained the strike to be a message that if there is no tourism in Israel there will be non in Lebanon either. INN explains:

"In the meantime, the northern resort areas are beginning to empty as visitors
to hotels, bed and breakfasts and the many other locales feel the situation is
too dangerous. Area operators on Wednesday night reported that cancellations for
the weekend were quick in coming as the news of the heavy fighting dominated the
airwaves during the day."

Hopefully, this will be the prelude to something more than a symbolic strike.