I thought that their military capability consisted mainly of surrendering and hollering "help us" to the USA and Briton.
When the war in Europe starts, it'll be from within, from the Moslems in their midst. And it is going to start. It'll be a few years yet though. I'd say, the timetable has been set, and the street battles will begin early in 2008, the US election year.
By 2006, if Syria hasn't begun regime change, Egypt and Syria (and possibly Saudi Arabia) will attack Israel again, and the PLO terror groups will join the attack. I doubt that they will succeed; afterward, Israel will annex the "West Bank" and level every structure in Gaza, after demolishing the Egyptian and Syrian armed forces, and dropping (conventional) bombs on Cairo and Damascus.
Egypt has made an agreement with Israel to move Egyptian forces up to the border. That's one of the necessary steps. Egypt is seeking nuclear arms. Syria is developing missile systems. The planning has been going on for quite a long time.