I recommend the editorial in today's (10/4/07) Financial Times, "Blackwater and the outsourcing of war." A web link is:
http://www.ft.com/cms/s/0/94bc0252-71dd-11dc-8960-0000779fd2ac.html
Two main points are:
"...Privatising war is, in reality, financially, politically and militarily very expensive," and
"Neither [the Senate's nor the Pentagon's efforts to control Blackwater] has a chance, much less moral validity, unless the US and its allies adhere to the rule of law they claim their forces are there to defend."
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