Thanks naked_turk, its time these little myths are put to rest. People see the word "Jihad" and they reel in horror. Arafat said the J word, so he is automatically a terrorist.
Sometimes also a defensive military struggle of the just. If attacked, an obligation to defend oneself from the agressors.
And the Palestinians are most definitely fighting a defensive war. Arafat has consistently voiced his support for Oslo and a peaceful agreement, but Israel (starting with Netanyahu) responded by more incursions and more settlements. What choice does Arafat have? They are under attack, so, he has a right, as specified in the UN charter, to defend himself. Hence the call to jihad.
So please, stop this little game of associating jihad with terrorism. Bin Laden may have misused the word, but most muslims understand its proper meaning, including the people who talk about jihad in Palestine.