In a repeat of what happened in April and May, the gunmen of Muqtada al Sadr are being killed or dispersed. The big difference now is that the Iraqis are doing more of the fighting, and Sadr's followers are having a harder time trying to take over neighborhoods in large cities like Baghdad and Basra. Now the police are often able to fight off the attacks by the Sadr gangs, and the reinforcements that show up to help the cops are often Iraqi troops. Sadr now says he will fight to the death, and American and Iraqi troops appear ready to accommodate him. 

Sadr's rebellion is only occupying a portion of coalition troops. For the last two weeks, there have been major efforts along the Syrian and Iranian border to keep out foreign fighters and military assistance.  Documents and material captured from Sadr fighters indicate lots of assistance coming from Iran.