Israeli warplanes have attacked the Lebanese port of Sidon, packed with refugees trying to escape the escalating conflict, while soldiers pushed into a village considered a Hezbollah stronghold.

It was the first time the Israeli military had attacked Sidon. Planes destroyed a religious complex in the city, apparently used by the Hezbollah militia.

Hospital officials told The Associated Press that four people were injured in the attack.

On Saturday, soldiers moved across the border into southern Lebanon and pushed into Maroun al-Ras. Armoured vehicles continued to travel in and out of the village.

Gen. Gal Hirsh of the Israeli military told CTV News that Hezbollah has built up a large stockpile of weapons in the town, allegedly brought into Lebanon from Syria and Iran.

"A lot of the ammunition is Syrian and Iranian, and they are well arranged actually -- they prepared themselves for that terror offensive against Israel for some years," said Hirsh.

It's believed most of the village's 2,300 residents fled before the troops arrived.

The military also confirmed Hezbollah attacked the Nurit army base near the Israeli town of Avivim  near the Lebanese border, wounding one soldier.

It marks the first time an Israeli soldier has been wounded on an Israeli base since the conflict began.

Military officials said the attack appears to have involved Hezbollah snipers who were firing from the Lebanese side of the border.

Meanwhile, Hezbollah's Katyusha rockets continue to rain down on northern Israel. Many residents are in underground bomb shelters.

"The Katyushas might come down and hit me," seven-year-old Anita, who lives in Carmiel, told CTV News. "I'm afraid of the rockets."

A large-scale Israeli ground invasion is looking more and more likely as scores of troops have been massing along the border, but it doesn't appear to have taken place yet, said CTV's Murray Oliver, reporting from the volatile border region.

"To some extent it seems that there is kind of a half invasion going on -- a few drops at a time," Oliver told CTV Newsnet.

"Israel moves into a community along the border zone with tanks and troops, hits hard, tries to work at opposition, and immediately falls back, or at least within a few hours. We take the word invasion to mean occupying and holding onto ground, taking villages and holding onto them. No, that hasn't yet happened."

However, that doesn't mean a full-scale invasion won't happen soon, said retired  U.S. Lt. Col. Tom Christianson.

"Certainly they are getting in a position where an attack would probably be called imminent, and perhaps the attack will occur within the next 24 to 48 hours, or perhaps they are just massing their troops there to urge the visit of Condoleezza Rice to do something to get things moving," Christianson told CTV Newsnet.

On Friday, Rice announced plans to travel to the region on Sunday with a plan to help broker peace between the two sides.

U.N. Secretary-General Kofi Annan told CNN he is afraid of a "major humanitarian disaster," as the increased fighting has left more than 700,000 Lebanese displaced.

At least 362 people have died in Lebanon so far, according to the Lebanese health ministry, although other reports put the total at 355. The vast majority of those are civilians.

Thirty-five Israelis have been killed, including 18 soldiers.

Troops trying to root out tunnels, weapons

The capture of Maroun al-Ras is the latest development in the Israeli campaign to root out Hezbollah tunnels and weapons caches and eliminate Hezbollah's rocket launching sites near the border.

In other developments:

• Israeli aircraft attacked a Hezbollah stronghold in Beirut, along with targets in the eastern Bekaa Valley.
• Israeli troops confiscated anti-tank missiles, a rocket launcher, as well as other weapons in a cross border raid into the border town of Marwahin.
• Israeli fighter planes blasted missiles at a television transmission station in the Keserwan mountains, knocking the Lebanese Broadcasting Corp. off the air. In another air attack, a transmission tower in northern Lebanon was damaged, according to police.
• More than 100 Hezbollah rockets struck northern Israeli towns, including Safed, Carmiel, Kiryat Shemona and Nahariya. Air-raid warning sirens also sounded in Haifa on Saturday.
• The body of a missing Israeli soldier was found Sunday. 
• Israel allowed shipments of aid to reach Lebanese ports, to prevent a possible humanitarian crisis from the flood of evacuees.
• Cypriot Foreign Minister George Lillikas said Cyprus will need financial assistance in order to continue helping thousands of evacuees arriving from Lebanon.
• Peace activists gathered in several European cities to protest the Israeli strikes on Hezbollah guerrillas, including a parade of 7,000 people in London.

Gaza militants announce ceasefire

In another development Saturday, militant groups in the Gaza Strip agreed to stop firing missiles at Israeli targets as of midnight Saturday, according to AP.

The goal of the unilateral ceasefire is to end the Israeli offensive into Gaza that began on June 28, just three days after militants raided an Israeli army post, killing two and capturing a third.

Since then, more than 100 Palestinians have been killed in daily strikes by Israel, and militants have fired hundreds of homemade rockets into Israel.

With files from CTV's Murray Oliver and The Associated Press