Of course the CIA, NSA, and FBI would have the place surrounded in hours. They would set up a perimeter and snipers and watch towers surrounding the entire area. We wo0uld have satelite locations of all the terrorists and hostages from thermal signatures. A representative from one of the above listed government organizations (oxymoron, heh) would make contact with the group. He would distract them while a group of soldiers of some kind would try a rescue misson. After this fails, I'm not sure.
I know what I'd do. I'd try to intercept all transmissions they have made, be sure that you have complete control over the information they get. Cut off all cellular phone use with jamming devices and disconect them from whoever would tell them that the plan has succeded. Then you fake a transmission. Say that we are giving into their demands. This is a mighty risk, but it has a better chance of saving some of those innocent kids then the soldiers. Have a famous tv news anchor break the story and make sure that all the tvs and radios in the school picked up on the report. Then say that we will allow them safe passage. Get the kids out. That has to be priority one. After that, we capture all of them and take compromising photos of them with soldiers.
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