Apparently this is being misreported. The Olympia-Rafah Sister City Project just issued a news release, here is a copy via Alice Zillah of the OMJP olympiansforpeace@lists.riseup.net , written by Ron Eggleton:

From The Olympia-Rafah Sister City Project
NEWS RELEASE
FOR IMMEDIATE RELEASE
January 4, 2006
 
News reports stating that the parents of slain American human rights activist Rachel Corrie were the intended targets of an attempted kidnapping Wednesday in Gaza are incorrect.  According to Craig and Cindy Corrie, contrary to news reports, the Corries were never threatened with kidnapping, nor did gunmen burst into the house where the Corries were staying.
 
In the early morning of January 4, two Palestinian men visited three American members of the Olympia-Rafah  Sister City Project (ORSCP) in the home where they were staying in Rafah, a city on Gaza’s border with Egypt.  The two men reportedly wanted to hold the three foreigners in exchange for the release of a family member who was arrested by Palestinian security forces for an earlier  kidnapping. The Corries were staying in a nearby home and helped to talk the men out of going through with the plan.

Cindy and Craig Corrie, who are close friends with the ORSCP participants, were visiting Rafah after attending a Palestinian conference on nonviolence held last week in Bethlehem.

The Corries were visiting the Nasrallah family in Rafah. The Nasrallahs had lived in the house that Rachel died defending. Rachel was killed when she was crushed to death by an Israeli military bulldozer in front of the Nasrallah’s home in Rafah on March 16, 2003.  Rachel, who grew up in Olympia, Washington, envisioned a sister city project between Olympia and Rafah to promote cultural understanding. Five people from Olympia, friends of Rachel, arrived two months ago in Rafah to work toward that goal.  Three of them — Rochelle Gause, Will Hewitt and Serena Becker — were  in the apartment when the men arrived at 1:30 a.m.. One of the two men was carrying a weapon. The men arrived in two cars with other passengers who remained inside the vehicles.

ORSCP members had been asked by their Palestinian Rafah sister city counterparts not to travel without Palestinian escorts. Kidnappings have increased in Gaza in the run-up to the January 25 elections for the Palestinian Legislative Council (PLC), the first PLC elections that Palestinians in Gaza have been able to plan since 1996 due to the Israeli occupation. The three Americans in the apartment remained inside when the two men knocked on their door at 1:30 am, and called Dr. Nasrallah to tell him what was happening.

Dr. Nasrallah came and talked to the men and invited them to come down to his apartment. He learned that they, and the others in the two vehicles outside, were members of the family of Alaa al-Hamm, who had been arrested by the Palestinian police that evening on charges of involvement in previous kidnapping.

The Corries, who were staying at Dr. Nasrallah's home, got up and met the two men in the living room where they all drank tea together and discussed what they and the group of ORSCP participants were doing in Rafah. A neighbor, a Palestinian Authority security officer, also came over and joined the group. After a brief conversation with the security officer, the two men shook Craig and Cindy Corrie's hands, and, according to Cindy Corrie, told the Corries that they had "great respect for our daughter and for us" and then left..

Over the next few hours, ORSCP members from Olympia met with their Rafah partners to discuss the situation. "We weren't just concerned for our own safety," the ORSCP group said. "We were also concerned about being a burden on the people here who have put so much work into this project."

"There is a feeling that things will be calmer after the election," Cindy Corrie said. "People in the Olympia-Rafah Sister City Project say they plan on continuing their work in Rafah and will organize more people return to Rafah. We plan to visit again as well."

Palestinian authority vehicles and cars driven by ORSCP's Palestinian participants escorted the Corries and the five Olympia participants to Erez Checkpoint without incident Wednesday morning. "All the Palestinians that we worked with were going out of their way to make sure we all remained safe," Serena Becker said.  "We heard today and yesterday how embarrassed they were that these kinds of things were going on."

"We will continue to support the Palestinian struggle for freedom and human rights,