actually you are right, India is frustrated as to what is to be done with Pakistan. The fact is historically no one, neither the British in pre-independence India nor the post-independence Pakistan could establish clear sovereignity over NWFP. The tribals are too fiercely independent and that is the home of the new groups of radicals to enroll members from a large populance of afghan origin which has seen nothing except war since they were born 1977 on. It is this rich pool of experienced, unskilled (in any other profession) fighters that the terror groups found foundations for itself. Also ISI and elements of PA implemented what they saw succeeding in Afghanistan, against India, but lacking the foresight to see the impact of radical training and encouraging war in name of Islam and Jihad. The rallying point was religion, but this is derivative of Wahabism, something which is new in concept and not as ancient and rich as the Koran. These radicals in PA and ISI have become so indoctrinated, that they have absolutely gone agaisnt any sane advice and as it is, democracy in Pakistan is a joke. Your army rules in reality and that is too far ahead in radicalisation for your present government to do anything.
Second factor to see is that the President Mr Zardari and PM Mr Gilani are taking strong steps (for them) now itself as these two men are far sighted and realise the peril to Pakistan as it stands isolated, bankrupt and in jaws of terror itself. Mr. Zardari himself claimed, and rightly so, that Pakistan has nothing to fear from India. I agree. What his aim is, and what India wants to help him in, is to make Democracy and Economy in Pakistan so strong, that fundamentalism is eradicated. It is in our interest for Pakistan to remain strong, independent and democratic, and no governement of india will weaken Mr Zardari by mobilising or fighting. The solution lies with yourself only