Israel could be preparing a heavy response to the rocket threat
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Israeli troops have begun a major incursion into the Gaza Strip as Palestinian militants launched a fresh salvo of homemade rockets into Israel.
About 24 armoured vehicles moved into the area around Beit Hanoun, which was used for a deadly rocket attack on the nearby Israeli town Sderot on Monday.
A fresh barrage of home-made rockets hit Sderot on Tuesday as Israeli Prime Minister Ariel Sharon was visiting.
Two people were reportedy hurt, but Mr Sharon was at a safe distance.
Extensive action
Mr Sharon is reported to have ordered a heavy response after Monday's rocket strike on Sderot, which killed a three-year-old boy and a 49-year-old man.
"We are determined to take extensive action to ensure that what happened will not be repeated - not now, before we have moved out of the Gaza Strip, and not after we leave," Mr Sharon said - referring to the attack - after meeting local officials.
Palestinians have been trying to escape the Israeli incursion, fleeing along back roads.
One man has died in the raid, while two Israelis were wounded when at least five rockets hit Israeli territory.
The Palestinian sources spoke of an intense barrage of machine-gun fire preceding the advance of about two dozen tanks and bulldozers. There was no immediate comment from the Israeli military.
Reports say the dead Palestinian is Rasem Adwan, a top commander of the Hamas militant group that fired the missiles.
According to a reporter for Israel radio, the government plans to launch more ground operations and demolish houses used by militants.
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AUDIO GALLERY
Sderot: Israeli town in the firing line

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Mr Sharon plans to withdraw troops and settlements from the Gaza Strip, but the rocket attack on Sderot - less than a kilometre from Beit Hanoun - has strengthened arguments that a pullout will not fulfil Israel's security demands.
Militants have often fired crude rockets into Israel from Gaza but Monday's attack was the first time any Israelis have been killed by them.
Israeli army helicopters reportedly directed heavy machine-gun fire at the Gaza Strip area adjacent to Shaar Hanegev in response
to Tuesday's barrage.