Near the town of Prizren, plumes of dark grey smoke from hundreds of fires can be seen rising over the countryside.

BBC correspondent Clive Myrie, who is in the area, says the attacks appear to be reprisals by Kosovo Albanians, seeking revenge after months of violent repression at the hands of the Serbs.

Local people say they believe the fires were started by Kosovo Albanians, an accusation supported by a unit commander from the Kosovo Liberation Army.

The BBC's Clive Myrie: "The war may be over, but Kosovo continues to burn"

Some other accounts say the Serbs are also starting fires to prevent Kosovo Albanians from living in their homes after they leave.

Despite appeals by Nato and their own leaders to remain in the province, up to 50,000 Serbs have fled since Kosovo Albanian refugees began returning over the weekend.

At the same time, the Yugoslav troop withdrawal continues to progress rapidly, with the last of the forces expected to leave Kosovo ahead of the Sunday night deadline.

The international peacekeeping force, K-For, says 5,000 at most remain and they are expected to leave by midday on Sunday.

(Click here to see a map showing timetable of Serb withdrawal and Nato's planned movements)

Kate Adie witnesses British troops dealing with two men armed with a grenade and machine gun

As the Serbs leave, there have been numerous incidents of looting reported, including the buildings on the land of an abandoned 16th century monastery in Musutiste.

Many Serbs say they cannot trust K-For peacekeeping troops to protect them, and fear the KLA will not hand over its weapons.

Reshaping the KLA

Pristina KLA leader Lirak Celaj: "It will be a police of Kosovo not just of Albanians"

A spokesman for K-For, Brigadier Bill Rollo, says an agreement is close on a new role for the KLA after the Serbian military withdrawal is completed.

The KLA have agreed in principle to a 90-day demilitarisation programme, and not to wear uniforms or carry weapons in public.

A KLA soldier is frisked, disarmed, and detained

The rebel army says it wants to be transformed into a national guard organisation, and to contribute to a new police force made up of both Kosovo Serbs and Albanians.

In Prizren, where the German peacekeepers have allowed a substantial armed KLA presence, correspondents say no Serbs remain.

In Pristina, where British troops have operated a far stricter regime, many Serbs have stayed.

New dispute with Russia

At the G8 summit in Cologne, where aid to Kosovo is under discussion, an American delegate on Saturday reiterated the Nato view that Yugoslavia should receive no international financial aid as long as it was led by someone indicted for war crimes.

But Russia argued that Yugoslavia should not be excluded from economic aid even if President Milosevic remains in power.

The matter is likely to be discussed further when Russian President Boris Yeltsin arrives at the summit on Sunday.

The main dispute between Russia and Nato over Russia's role in the peacekeeping effort has been cleared up, with an agreement that was signed on Friday night.

Under the terms of the deal, 3,500 Russian troops will be spread across three sectors of the province in the areas under American, German and French control.

The Russians will not have their own sector of control.

But 750 troops will be stationed at Pristina airport, where a small contingent has been based since their surprise move into Kosovo last weekend.

British K-For troops have taken up positions around the airport after the Russians asked for protection against sniper fire from the KLA.

• A refugee's tragic return
• Role agreed for Russian troops
• Analysis: Moscow muscles in
• More refugees injured by mines
• Picture gallery: The Serb exodus