This bloodshed can be stopped if pakistan stops sponsoring terrorism accross the border.
By the way who is Musharaf to give a proposal? He doesn't have any control over the territories of his own country. Millitants r kidnaping pakistani army solfiers, NWFP is burning, ask him to sort out his home first.
When it comes to Kashmiris, even they are fed up with the bloodshed and want peace and want to live life. Let the foreign terrorists walk out of Kashmir and leave alone the indian kashmiris.
Its too late to redraw the border, be it kashmir or northeast or somewhere else. If anybody has any issues and concerned, sincere attempt can be made to address them. But forget about independence.