Oh Shit

Not able to verify this with more than the one source, but this is what Reuters is reporting:

Iraqi militants attacked a U.S. base and a local government building with mortar rounds and rockets in Ramadi, west of Baghdad, on Thursday, before holding ground on several central streets, residents said.

Around 400 heavily armed, masked men were patrolling the main thoroughfares of the city, long a focus of guerrilla activity, and had set up checkpoints at major entrance and exit points, residents from across Ramadi told Reuters.

Leaflets were distributed and posted on walls declaring that al Qaeda in Iraq, the group led by Jordanian militant Abu Musab al-Zarqawi, was taking over the city.

"They've taken control of all the main streets and other sections of Ramadi," a reporter there for Reuters said. "I've seen about 400 armed men controlling streets, some of which were controlled by Americans before," he said.

"Al Qaeda in Iraq is taking control of Ramadi," one of the leaflets read. "Its followers will burn the Americans and will drive them back to their homes by force. Iraq will be a graveyard for the Americans and its allies."

Tet, anyone?

Incidentally, Ramadi is a massive city smack in the middle of the Sunni triangle, and there are no coalition or Iraqi forces patrolling the streets. Yeah, things are going great.