Don't you find it curious, when Djibouti was screaming blue murder about being invaded, this was issued in the AFP.
And Eritrea's statement "It's a fabrication...We decline the invitation to go into another crisis in the region."

“A military source said French forces based in Djibouti had carried out a reconnaissance on Thursday at the government’s request but had not been able to confirm an incursion.”

http://www.thetimes.co.za/News/Article.a spx?id=753588
http://www.isria.info/RESTRICTED/D/2008/JUNE_13/diplo_14june2008_2.htm

Eritrea said, "We decline the invitation to go into another crisis in the region."

However, if someone knows what the Eritreans undergone because of the injustice imposed on them, he/she knows that these fabrication are nothing but bias.

Eritreans have been wondering what tactics will be used this time by the US as a continuation of creating crises in the area and vilifying Eritrea. Little did we expect it would be our good friend and neighbor Djibouti in conjunction with a country we've never had any problems with before - France. Not even an attempt at camouflaging it this time, such is their contempt for the Rule of Law, morality, and all the good things our creator and forefathers taught us. WOW!

From the above-referenced New York Times story by Jeffrey Gettleman of May 25—the only piece the Times has run on the crisis:

The disputed zone includes a hill called Gabla, or Ras Doumeira, and a small island called Doumeira, deserted except for the occasional fishermen who use it as a pit stop. It is all sand out here — miles of it, trimming a Windex-colored sea. The wind regularly whips the grit into your face, and temperatures routinely soar past 110 degrees.

Despite the fact that these two countries barely register on the map, it is the map itself that is part of the problem. Scholars say that the border area was never properly demarcated, and that the best guidance as to who owns what goes back to a vague communiqué between France and Italy more than 100 years ago. They were the colonial powers at the time, with France occupying what is now Djibouti and Italy controlling what is now Eritrea.

According to John Donaldson, a research associate at the International Boundaries Research Unit, a British institute that studies border disputes, France and Italy agreed in 1901 that no third country could rule the Doumeira area, and that specific border issues would be dealt with later.

"It's very complicated,” he said. "But the question was basically left up in the air."

Djiboutian officials said the Eritreans made a play for this area in the mid-1990s, producing old documents and saying that the territory was theirs. But Djiboutian officials said that their trump card is an 1897 treaty between Ethiopia and France that clearly states that the Doumeira area was French.

According to the Djiboutian government, the Eritreans asked in January if they could cross the border to get some sand to build a road. Instead, they occupied a hilltop and started digging trenches.

"In one word, they cheated," said Col. Ali Soubaneh Chirdon, who commands the Djiboutian soldiers lined up on the border.

The move seemed to be part of Eritrea’s less-than-neighborly relations with just about all of its neighbors. In the 1990s, Eritrea clashed with Yemen over the Hanish Islands in the Red Sea; battled Sudan-backed rebels on its western frontier; and fought Ethiopia, the second most populous country in sub-Saharan Africa, over a little border town called Badme. That conflict killed 100,000 people and is still not resolved.

Some diplomats fear that Doumeira could prove to be Eritrea's undoing. By taking on Djibouti, Eritrea is also taking on France, which has a defense agreement with Djibouti, and the United States, which uses Djibouti as hub for its Africa operations and has already threatened to list Eritrea as a state sponsor of terrorism. Actually, many countries have an interest here because fighting at the narrow mouth of the Red Sea could threaten oil supplies from the Persian Gulf to much of the industrialized world.

"This is a suicide mission for Eritrea," said Mahmoud Ali Youssouf, Djibouti’s foreign minister, who said on Thursday that the Eritreans had given the Djiboutians an ultimatum to leave the border area.

The International Boundaries Research Unit at Durham University has this to say (updated June 16):

Fighting erupts along the disputed Djibouti-Eritrea boundary
After two months of tension at the Djibouti and Eritrea border fighting erupted between their armed forces on Tuesday 10 June. The clashes occurred along the northern section of the boundary at Ras Doumeirah where a simmering boundary dispute has led both states to position troops within yards of one another.

According to sources in Djibouti, the fighting broke out when Eritrean troops began to shoot deserting soldiers who attempted to flee towards Djibouti territory. Djiboutian soldiers respond to the firing and during the ensuing skirmishes at least 6 Djiboutian soldiers were killed and over 50 wounded. Arab and Western nations as well as the U.N. Security Council and the Arab League called on Eritrea to immediately withdraw its troops from the disputed areas and invited both sides to resolve their boundary claims through diplomatic means.

Although the cross-border clashes had subsided by the following day, the risk that this diplomatic crisis could turn into a large scale conflict is still high.

Eritrean anything is completely opposite what the rest of the world sees. For example they see Ethiopian history as their history. Ethiopian leaders as theirs(selectively). It makes sense they would see a region that was part of Ethiopia and which was leased to France in 1897 and subsequently granted its autonomy(by both countries) as, of course theirs. Thats Eritrean logic after all. The Hanish Islands were never theirs. They were Ethiopian. And the Ethio Yemen treaty stipulated that if Ethiopia ever gave up its rights to them that they would revert to Yemen. So on independence what does Eritrea, who should have first made sure its interests were protected by its big brother done. Proceeded clamly. This was a nation that had volunaritly allowed Eritrea to cesseed. It had transported a number of its industries, a portion of its arms and its budget for the region for the next 3 years. Ethiopia is not a rich country by any means. IT is probably second from the bottom. But these were their cousins and brothers if they wished to chart their own course after destroying Mengistu's brutal dictatorship no one imposed anything on them. Heck when Eritrea chose to attack Yemen, Ethiopia bound by its mutual defense treaty came to this assistance with Helicopter gunships and fighter aircraft. What does Eritrea do even before the Yemeni crisis was over ? Turn its guns on Ethiopia. If this country and its rabid leader are not 3 million of the crazierst people on the planet no one is. Now they are in Djibouti. They are sending mercenaries to Somalia, arms to Yemen rebels and attacking Saudi Arabia. I say more power to them. All these countries were giving money and weapons to Issayas Afewerki and Mohammed Ziad Barre when they were killing Ethiopians.