Israeli forces entered the West Bank town of Tulkarem, on Monday, in reprisal to last week's terrorist attacks by Palestinian militants.
The attacks included an assault on an Israeli banquet hall in which a Palestinian gunman from Tulkarem killed six Israelis before being shot dead.
At about 3 a.m. (0100 GMT) Monday, dozens of Israeli tanks and armored personnel carriers, backed by helicopter gunships, entered Tulkarem.
Palestinian gunmen shot at Israeli troops, drawing return fire, with the heaviest fighting coming from the adjacent Tulkarem refugee camp, where many gunmen had fled after Israeli troops took over the town.
Doctors said one civilian was killed, a second critically wounded and that fourteen more were wounded by gunfire.
The governor of Tulkarem, Izzedine Sharif, urged residents over mosque loudspeakers to defy the curfew and resist Israeli troops.
Troops took over eight buildings, including a local college and the villa of the mayor, sandbagging rooftops and raising Israeli flags.
Witnesses said soldiers also commandeered the police operations room and detained two Palestinian policemen.
Israeli troops went from house to house looking for suspected militants, including members of the Al Aqsa Brigades, a militant group linked to Palestinian leader Yasser Arafat's Fatah movement.
Tanks also encircled the nearby Tulkarem and Nur Shams refugee camps.
Gunmen gathered in the alleys of the Tulkarem camp, shooting at Israeli tanks and drawing Israeli machine gun fire.
In 16 months of fighting, Israeli troops have repeatedly entered Palestinian cities, taking control of several neighbourhoods for limited periods.
Monday's raid into Tulkarem was the largest and marks the first time that Israeli forces have occupied an entire town.
