shipley tellhami says the u.s. should be prepared to drop that insistence when it comes to political parties if it hopes to broker a peace deal. >> i think we should insist that any palestinian government-- whether it's hamas or whoever it is-- meet certain conditions including being against terrorism, meeting its international obligations with parties we never insist they meet certain obligations and i think we're going to have to reassess. the environment has changed. if there's still time far two-state solution we're on the last leg. >> warner: why the last leg? >> israelis and arabs no longer believe in the two-state solution. >> warner: during our recent trip in january, we found many palestinians who've lost belief in the peace process. nasser hantuni owns birds of peace, a pet shop just inside the west bank. he works in site of the security wall israel erected during second palestinian intifada, or uprising, in the early 2000s. >> ( translated ): we feel very frustrated. for the past 20 to 22 years we've had