Yes, that is correct.
I will now ansawer question 2:
2) Does Palestine have a set army, or just rebel groups/militias?
The Palestinians have many diffrent militias, but baisically no real army. The major groups are the PLO and Hammas. The PLO, Palestine Liberation Organization was esteblished in 1959 by Yasser Arafat, and is a Arab-Socialist movement witha political wing and a Military wing. The PLO has many "regiments", "forces" and "sections" in it. Such are the "El Aktza Regiments", responsible for many mortar and rocket attacks. The PLO is where the Palestinian Autherity draws its power from and almost all of the Palestinian Police are PLO members. Arafat's own guard unit, "Force 17", is comprised of the most loyal PLO gunman, and they are known to be envolved in the more specialized terror and gurrila attacks. The PLO probably has 50000 members(educated guess).
Hammas is a Suni-Fundamentalist Organization, that started it's path as a part of the Muslim Brothers movement in the Territories. Israel allowed the movments activeties in the late 80' because it was mainly humanterian and educational. Turns out they were gathering support and by the eary 90' they became a powerful political and military org. They are more fanntical than the PLO, and were the first to use suicide bombers, which remain their weapon of choice(although they now preform rocket and mortar attacks). Hammas probably counts in by the thousends.(again a guess).
I will adress a part of question 3 now: Palestinian weapons.
4 years ago the PLO had a rgiment of BRDM APCs, a couple of helicopters, and some Patrol Boats. These were destroyed by Israel early on, using air and sea attacks. Right now there are no AFVs used by the PLO or any other Palestinian organiztion in the territories. They do however posses many light and medium range weapons.
SMG- Alot of Uzi SMGs were smuggled in and some were taken from Israeli casualties. Other 9mm SMGs are not uncommon, mainly smuggled in. I saw some pictures of what looked to me like self made 9mm SMGs, but Im not a great expert.
Rifles- Mainly they use AK47 rifles. 30000 were given to the Palestinian Police by Israel in 1994. Others were smuggled in from egypt and Jordan, and by sea into Gaza. They also have M16 and Galil rifles captured rom Israeli Troops or smuggled in. They also have other rifles smuggled in.
MGs- They Some russian made DshK HMGs, Browning 0.5 HMGs. They also have many PK LMGs and FN/MAG MMGs in service. They smuggled those in in diffrent ways, or stole them from IDF storage.
AT- They have many, many RPG launchers, and soem LAWs. They also have homemade AT rockets of diffrent sizes and capabilitys, mostly junck. Some say they have ATGMs, but as to now ive never heard of them using them or displaying them.
Anti-Aircraft- They use their heavy MGs to fire at IDF helicopters, but so far non were shot down(although many were hit). Its believed they have Strela and Redeye Anti-Aircraft Shoulder Launched Missiles, but they never used them to my knmowledge, probably fearing a painfull reprisel by the IDF.
Artillary- They do not any real artillary, only mortars. But they make their own Qassam rocktes with a range of about 5-6 miles and a payload of 20 pounds. They are working on making larger rockets. There were talks about Katyusha Rockets with a range of 20 miles being smuggle in, infact some were captured on the "Karine A" a ship that was heading to Gaza and was stormed by Israely commados at sea. The problem is that there are only two targets in those higher ranges that are worth shooting at: Ariel Sharons private farm, and the city of Ashdod, with the power station that produces 40% of Israel's electricty(yes, I know its only one powerstation, but its a small country and we only have 2 other power stations...
)...Any attack on these targets will meet witha painful reprisal.
So, thats it for that Q.