I got this from the related thread:
Originally posted by tha stillz here
I haven't read this whole thread, but my buddy is an MP, he says Blackwater has been unbanned. He says the US military has threatened the Iraqi gov
that they would leave if Blackwater isn't allowed in, and the heads of the Iraqi mil. instantly buckled and gave in.
I haven't seen this substantiated, but thought I would share.

Thought I'd repost it here since it is very much related to this news, and explains why the ban has been lifted better than the news article.
Edit: included link to original post.
[edit on 21-9-2007 by Beachcoma]