Mu'ammar Gadhafi (Qadhdhafi, Gadafi, Ghadhafi, etc.) has decided that civil war is an option preferable to resignation.
Meanwhile, reading between the lines, it seems that the western establishments are hoping for a palace revolution, i.e., a murdering gangster they can do business with. British Intelligence people have in the past cultivated members of Mad Gad's inner circle, but such 'assets' are not likely to have a long shelf life.
The Libyan people may get rid of Gadhafi, but all that lovely oil will ensure that they are never rid of the influence of the advocates of 'stability'.