Arafat has fired Jibril Rajoub - commander of West Bank "Preventative Security" - but Rajoub refuses to step down (report). Here's a good background article on Rajoub - included are two versions of the incident where Arafat is said to have pulled a pistol on him.

Update: Now there are rumors that Rajoub is planning to run against Arafat in elections (report). Maybe the US and EU can back him in the elections - as they backed left-leaning organizations in Israeli politics.

Update: The Haaretz article now says that it is Ghazi Jabali who will run for president. Either the article changed or I'm not sleeping enough. Rajoub and the governor of Jenin are supposed to trade places (report).