From The Times
A Palestinian bulldozer driver who went on the rampage in Jerusalem killing one person and injuring at least 11 including two children, was shot dead before he could complete his attack.
In what appears to have been a repeat of events earlier this month in the city, the driver rammed into three cars on the main street in Jerusalem before an Israeli civilian opened fire on him.
The JCB driver, who is said to be a construction worker, carried out his attack in the exclusive area of Jerusalem crushing one car to half its size and completely overturning another.
The attack took place outside the King Soloman hotel and a short distance away from the hotel where Gordon Brown was staying last night before he flew out of the city this morning.
The scale of devastation in the previous bulldozer attack was averted by the actions of a civilian and the police.
A police spokesman said: “The bulldozer driver left a construction site, and hit two cars, a civilian who saw what was happening, shot him. The bulldozer continued on its way. A border police patrol ...continued to shoot and the terrorist was killed. Another person was wounded.” 
Courtesy of Rebecca I see that The Jerusalem Post reports in more detail.
Police spokesman Micky Rosenfeld said police sealed off possible escape routes into east Jerusalem and were searching for two suspects who fled the scene.
The attack took place in a busy part of downtown Jerusalem, several hundred meters from the luxury hotel where US presidential candidate Barack Obama is supposed to stay Tuesday night as he kicks off a visit to Israel.
The bus that was hit, No. 13, belonged to the same line of the bus that was overturned in the previous attack.
"I was driving on the main road when the (construction vehicle) hit me in the rear, on the right hand side," the driver of the bus, who was not identified, told Channel 10 TV. "After I passed him he turned round, made a U-turn and rammed the windows twice with the shovel. The third time he aimed for my head, he came up to my window and I swerved to the right, otherwise I would have gone to meet my maker," he said.
Witness Moshe Shimshi said the driver, who was wearing a large, white skullcap commonly worn by religious Muslims, slammed into the side of the bus, then sped away and went for a car. "He didn't yell anything, he just kept ramming into cars," Shimshi said.  The driver then headed for cars waiting at a red light "and rammed into them with all his might," he added.
Channel 10 TV said a mother and her baby were wounded. Israeli rescue services said they had evacuated one person whose leg was partially severed; Israel media said he was in the car that was overturned.