Hadarim Prison, Israel ? Young Palestinian activists from the ruling Fatah Party rejected a call for unity Thursday, determined to push aside the corrupt old guard associated with Yasser Arafat and form their own party for January parliamentary elections.

The decision, made after a meeting with their imprisoned leader, deepened a crisis for Palestinian leader Mahmoud Abbas and threatened to give a boost to Islamic Hamas militants.

In another blow to Fatah, Hamas swept to victory in elections in the West Bank’s largest city, Nablus, according to official results announced early today.

Marwan Barghouti, who is serving five life terms in an Israeli prison for involvement in deadly attacks, rejected Abbas’ efforts to patch up their differences, said Sufian Abu Zaydeh, a close associate of Barghouti.

Registration for the Jan. 25 election closed Wednesday, with the young guard presenting its own list – running under the name “The Future” – while Fatah registered its candidates separately.

Nuns look at a decorated Christmas tree near the Church of Nativity, believed to be the birthplace of Jesus Christ, Thursday in Bethlehem. Despite windy weather and a car bomb that didn't explode, Palestinians lit up a Christmas tree in Bethlehem's Manger Square.

Meanwhile, violence continued Thursday at a relatively low level, a day after Israel killed four Gaza militants in an airstrike.

Palestinians fired at least six rockets at Israel from Gaza. One exploded near a beer warehouse outside the Israeli city of Ashkelon. Israel hit back with an artillery barrage at northern Gaza where militants launch the rockets. No one was hurt.

In Bethlehem in the West Bank, Palestinian security tipped Israeli police about a car bomb. The Israelis found the abandoned car next to a bypass road used by settlers and blew it up harmlessly.

Around the same time, Bethlehem officials lit the town’s Christmas tree in a ceremony marking the holiday season in Jesus’ birthplace.

Early today, Israel hit back with a missile attack on northern Gaza. Residents said two Palestinians were hurt.