Amid Shelling, Mideast Peace Talks Drag.

JERUSALEM -- Peace talks between Israel and the Palestinians shifted to home turf here on Wednesday, amid a rain of mortar shells on southern Israel and with no sign that the two sides had broken an impasse over Israel's moratorium on the construction of Jewish settlements. In a gesture to the Israelis, the president of the Palestinian Authority, Mahmoud Abbas, traveled to Jerusalem for a two-hour meeting with Prime Minister Benjamin Netanyahu of Israel at his official residence, and Mr. Netanyahu returned the favor by welcoming him with a Palestinian flag. [ABSTRACT FROM AUTHOR]