Ronald Reagan called Gaddafi the ï¿½mad dog of the Middle East,ï¿½ but you don't hear that kind of talk from the U.S. anymore. Recent history between the two countries is at the root of Condoleezza Rice's visit there now, and Libya giving up its ties with terrorism is a big part of that. Libya has also taken responsibility of the blowing up of Pan Am Flight 103 in Scotland in 1998 which killed 270 people. In return for its transitions, U.S. and U.N. sanctions have been lifted against Libya which is exactly what Libyans have been hoping for, says this U.S. diplomat in Libya. One sticking point remained though: Libya had paid most of an agreed settlement for families of victims to the Scotland bombing, but it was holding out on a final installment. This month the U.S. diplomat set up a final agreement which pays out the final installments and drops all lawsuits against Libya in U.S. courts. For the Bush administration, the Libyan turn about represents a significant success and should send a message to Iran. One realist view from Libya comes from Gaddafi's sons who said Libya should take steps to get rid of its sanctions, and so they did.