I just received this from Jeff Ballabon of the Coordinating Council of Jerusalem:

” a source I believe to be highly placed and reliable that Olmert and/or his surrogates not only are deep in the details of dividing Jerusalem but also are already agreeing in principle to a “Palestinian right of return”. The only specific I have heard is that they are contemplating about 100,000-150,000 but are considering whether spreading it out over 10 years will make it more palatable. “

Folks I will add to this post as I get more info