http://jerusalempost.com : Jerusalem Post - this is the online version of the Jerusalem Post newspaper

http://www.jerusalem-times.net - The Jerusalem Times - this is based in East Jerusalem and has Palestinian & Arabic news, though their website is often hacked so there's not much to read there

http://www.sderotmedia.com - Sderot Media - news and info about the city of Sderot which is targeted regularly and constantly by missiles from Gaza. myth busting site - here you can see that Israel actually helps Gaza residents and counter arguments against the propaganda that the media portray about the area.
articles with people living in Sderot

http://www.israelnationalradio.com - English radio documentaries and programs

http://www.israelnationalnews.com - Arutz Sheva - Israeli news site. you can receive daily email summaries of articles

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articles

What's so special about Independence Day? - describes in simple terms the importance of the Jewish State of Israel

http://www.eufunding.org.uk/Textbooks/default.html - Palestinian text books & site keeping track of where the EU funding is going