plm,
one of the main issues is israel and the treatment of the palestinians. as long as the US is so openly taking israels side the arabs will not trust the US.
regarding iraq - well now that the shit hit the fan the US has to stay there but has to give the control to the UN. the arabs trust the europeans more than the americans so this would improve the situation (which is thanks to the removal of hussein horrendously complicated however).
massive pressure could be put on the saudis, kuwaitis etc. to oust terrorists. why the US gov. is supporting these corrupt regimes is nto really understandable if one assumes bushs real concern lies with fighting terror and oppression.
PS: i have seen US media coverage and european media coverage of the middle east problem. the european is more in depth and way more balanced. what you get in the US is hollywood style coverage which many purpose is to be readily sellable to the public.