BEIRUT, Lebanon - Hezbollah's leader praised an Israeli government report that said Israel's summer war against the guerrillas was a failure. But the Lebanese government criticized the findings, saying the report did not address the massive destruction wrought on this country.

The conflicting comments Wednesday from Hezbollah leader Hassan Nasrallah and Prime Minister Fuad Saniora underlined Lebanon's own internal political struggle between the militant group and the government. Nasrallah, who also criticized his own government's handling of the war, said the Israeli commission reviewing the Lebanon war vindicated his claim that Israel had been defeated.

"The first important outcome of this commission is that it has finally and officially decided the issue of victory and defeat," Nasrallah said.But he also gave his enemy unprecedented praise.

TEL AVIV (AFP) - Israeli Prime Minister Ehud Olmert faced a new battle on Thursday, with tens of thousands of protestors expected to call on him to quit at the first mass street rally since a scathing Lebanon war report. Several thousand people had filled Tel Aviv's Rabin Square by early evening to call for Olmert to resign in the wake of a government inquiry that roasted his handling of the 34-day war last summer.

"You have failed, go home," read a huge sign behind a stage from which activists and entertainers were to address the crowd."This demonstration is an occasion for people to show a red card to Ehud Olmert and (Defence Minister) Amir Peretz and tell them that they should step down," reserve General Uzi Dayan, an organiser of the protest, told army radio.The demonstration is being closely watched as it will indicate whether Israelis, which two thirds of whom polls say want Olmert to resign, are willing to take their discontent to the streets.

JERUSALEM (Reuters) - A member of Ehud Olmert's cabinet quit on Tuesday, opening the first crack in Israel's government after the prime minister vowed to ride out a scathing reprimand by an inquiry into last year's costly Lebanon war. Announcing he was stepping down, Eitan Cabel, a minister without portfolio from the Israeli leader's main governing partner, the Labour Party, told a news conference: "I cannot sit in a government headed by Ehud Olmert."

Cabel said Olmert "must resign" after the Winograd Commission probing the conflict with Hezbollah gunmen listed severe failings on the part of the premier, Defence Minister Amir Peretz of Labour and the army chief, who has already quit.The panel said the government had rubber-stamped the decision to go to war but Olmert bore "supreme responsibility" for launching the air, sea and land offensive without a proper plan after Hezbollah seized two Israeli soldiers on July 12.

By Kim Ghattas, In the southern suburbs of Beirut, pictures of Ayatollah Ruhollah Khomeini, founder of Iran's Islamic revolution, are not an uncommon sight.

This is a stronghold of Hezbollah, the Iranian-backed Shia guerrilla movement and political party which looks to Iran and its supreme leader Ayatollah Ali Khamenei for spiritual guidance and more. In the aftermath of the summer 2006 war between Hezbollah and Israel, the group distributed around $300m dollars in aid, in crisp dollars bills. The money was thought to originate from Tehran.

In one apartment in the area, the television is playing a song in Farsi and in a corner there's a big Iranian flag. These are the offices of Iranian engineer Hussam Khoshnevis, sent to Beirut by the Iranian President Mahmound Ahmadinejad, to help rebuild south Lebanon after the war. With his team, he is repairing some 50 bridges, 60 schools and 150 kilometres of highway and 30 places of worship, including churches - all destroyed by Israeli shelling.