UPDATE: Yahoo News has dropped the flash alert and replaced it with this story. Israeli tanks are still inside Israel proper and have not yet crossed into Gaza.
Palestinian security forces said Israeli tanks were moving near the Israeli village of Nahal Oz, a main Israeli staging area just outside Gaza, but that they had not yet entered Gaza.
In the Shajaiyeh neighborhood of Gaza City, not far from the border fence, armed militants took up positions across from the blaring headlights of Israeli vehicles, and Israeli attack helicopters hovered overhead. The militants told residents to leave the area.
Israeli military officials said a limited operation has been authorized for southern Gaza, aimed at "terrorist infrastructure." The officials spoke on condition of anonymity because they were not authorized to talk to reporters.
UPDATE: Jerusalem Post is now reporting a power plant has been hit as well as the bridges. Ha'aretz is running a headline ticker that say IDF forces did cross the border at 2:24 AM local time. IDF plans to take control of the Eastern sections of the Gaza strip. Whoever thought this kidnapping offensive was a good idea is definitely not the sharpest tool in the shed.
UPDATE: Ha'aretz has an article up now.
Israel Defense Forces tanks rolled into the southern Gaza Strip near Kerem Shalom before dawn on Wednesday, Palestinian sources said. The IDF intends to gain control of all open areas in the Strip east of the southern town of Rafah.
The operation is expected to put pressure on Palestinians to release abducted IDF soldier Corporal Gilad Shalit, after two days of failed mediation.
The night-time incursion came shortly after Palestinian security forces deployed near the border town of Rafah, site of Gaza's only airport, said they were ordered out by the IDF.
This section is the old post and will not be updated.
This is the intial flash report that has been removed 
Flash traffic on Yahoo News is saying that Israeli forces have crossed over the border into Northern Gaza. No details other than both air and ground forces are involved. Will update as soon as any details come out.)
UPDATE: Jerusalem Post reports Air assets have destroyed a bridge to stop Palestinians from moving the captured soldier, but IDF is denying that tanks have crossed – yet. Ha'aretz is also reporting the bridge stike but is not claiming the tanks have crossed – yet.
And the scum have abducted another Israeli. It’s bad enough that they fire wild, unguided and dangerous missles (some of which go off course and kill their own people), and that they perform suicide bombings. Now they are beginning an abduction campaign too. How can anyone side with these people? Noam Chomsky, defend your chosen friends, you morally bankrupt pinhead!
That is a completely offensive statement, Shawn. I demand you immediately apologize to the pinheads. They deserve better than that company.
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You’re right Gaius, I did insult pinheads everywhere. Olmert had said that if Israel took military action that they would consider the Hamas leadership to be legitimate targets. Here’s hoping they find a bunch of them and send them to hell.
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It’s ugly.
I wish to congratulate to the UN and the British for creating this marvelous situation.
I do wonder how long will it last. Another 50 years maybe?