Instapundit has a great round-up. More than anything it looks like Italy didnt't want to admit to the US that they were going to donate a couple million to the terrorists in order to get this woman out safely.
THE GIULIANA SGRENA STORY: I keep getting emails from snarky leftists
saying that it proves Eason Jordan right. Except that if she were "targeted for
assassination" by the U.S. military, she'd be, well, dead, instead of
serving as an anti-American celebrity. I suspect that, beyond the accidental
parts, this story is about as genuine as the Jenin "massacre." Was it
shocking that she was fired at? By her own admission just
before it was fired on at the checkpoint the car was going so fast that it
nearly lost control. "The car kept on the road, going under an underpass
full of puddles and almost losing control to avoid them. We all incredibly
laughed. It was liberating. Losing control of the car in a street full of
water in Baghdad and maybe wind up in a bad car accident after all I had
been through would really be a tale I would not be able to tell."
This guy has an interesting take (a little out there but interesting nonetheless).