Here is a concise explanation of Al-Hudayabiyah from an article posted by Joseph Farah on www.WorldNetDaily.com, May 23 (Thursday):

Hudaybiyah is a small oasis between Mecca and Medina where Mohammed fought a battle in the early years of Islam. When he saw he was fighting a losing battle, Mohammed signed a strategic 10-year peace agreement with the Quraish tribe who lived in Mecca. Two years later, when his forces were stronger and the Meccans were living securely and off their guard, Mohammed marched into the city and captured it (The residents of the city were slaughtered--my note). There is a principle in Islam known as Takiya (boldface is mine), the right to fake peace when you are weak for the purposes of defeating your enemy when you are stronger. This is the only principle at work in Arafat's notions of "peace." It has always been the only principle at work in his notions of "peace." Arafat has cited Hudaybiyah over and over again as the model for his special brand of false peace. (Joseph Farah, http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=27712 ).

While Arafat's most famous reference to Al-Hudaybiyah was a remark he made in English in a mosque in South Africa in 1994 (http://www.meforum.org/meq/sept99/lessons.shtml ), his most recent reference to Al-Hudaybiyah (in Arabic, of course) was on May 15:

"The Palestinian public opinion and the Arab public opinion have reached the conclusion that these operations (terrorism) do not serve our goals, and only incites numerous large sectors of the international community against the United States. ... These operations are causing a controversy. I call on your respected council to talk over this issue, which is now controversial in our Palestinian and Arab arenas." And here's the punch line: "Let us remember the truce of al-Hudaybiyah." "What we want is true freedom and full independence in the independent state of Palestine, with holy Jerusalem as its capital, whether they like it or not," he laughed. "Those who do not like it, they can go and drink from the Dead Sea." Some from the council corrected Arafat: "From the Gaza Sea." "No, it is more bitter in the Dead Sea," he joked. (Joseph Farah, http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=27712)