Inside the New Hezbollah

Hezbollah is proving to be something altogether new, an Arab guerrilla army with sophisticated weaponry and remarkable discipline. Its soldiers wear body armor and use satcoms to coordinate their attacks.

How did Hezbollah morph from its terrorist roots 20 years ago to the formidably organized force of today? The short answer is: experience, leadership, and Iran.

By Israeli estimates Iran has underwritten Hezbollah with $100 million a year. But Hezbollah also gets contributions and "tax" payments from wealthy Shiites in Lebanon and abroad, and revenues from both legal and illegal businesses worldwide.

According to terrorism expert Magnus Ranstorp at the Swedish National Defense College, its shopping list included night-vision goggles, Global Positioning Systems, advanced software for aircraft design, stun guns, nitrogen cutters, naval equipment, laser range finders, and even ultrasonic dog repellers.