The issue at stake is a section of Jerusalem, "East Jerusalem" where many Arabs have lived for many, many years.
However in 1967, Israel conquered this part of the city and claimed it as theirs-- a claim not yet recognized by the international community.
So, using the Israeli court system, Jews have been taking back this area, block by block, home by home.
It is the goal of Mr. Abbas to have this section of Jerusalem known as, "East Jerusalem" for the capital of Palestine. President Obama sees this as
a concession that Israel could make for the sake of peace in the region.
http://www.washingtonpost.com/wp-dyn...060100597.html
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