2002 Saudi Proposal:

US welcomed it
Israeli's were interested in it
Palestinian Authority were interested in it
Egypt was in favour of it
Jordan was in favour of it
Syria (+ their colony Lebanon) was against it
Iraq (in the form of Saddam Hussein) was against it
Iran (in the form of 12 old geezers of the ruling council) were against it
All Islamic terrorist organisations were against it

Doesn't sound much like a recipe for success, all those currently keen on indiscriminate murder and mayhem appear to want to go on killing people.

2004 Saudi Proposal (with a few modifications and incentives):

Summit Meeting:
Following to participate:
US
Israel
Palestinian Authority
Egypt
Jordan
Syria (+ their colony Lebanon)

Israel to withdrawn to 1967 line:
All troops/police to be withdrawn from settlements built on land occupied in the aftermath of the 1967 war. The inhabitants of those settlements can decide whether or not they want to live in the new seperate Palestine State. Israel's incentive to do this based on the clear message from the US, that failure to comply will result in total and immediate cessation of all US aid to Israel. Assets of those attempting to send funds to Israel where and when possible will be frozen.

Recognition by all participants of the right of the State of Israel to exist:

Security of Israel guaranteed by all participants:
Clear message from all participants that failure to observe this guarantee will result in direct action to protect Israel by all participants.

No right of return - no compensation:

Water rights throughout the region guaranteed: