Unfortunately, the answer to your question is no, they can't share. Both the Jews and the Muslims feel that they have a claim to the city of Jerusalem's holy cites.
But here's the real. The Palestinians had been living in Palestine for hundreds of years. The Nation-state of Israel wasn't created until the late 1940's after WWII. The world powers reeling over their ignorance and avoidance over the atrocities committed against European Jews by the Nazis, decided to give these Jews their own place to live where they could govern themselves. The problem is that the Palestinians had been living there for hundreds of years. All of a sudden, land that they had control over (i.e. Gaza Strip, West Bank, Golan Heights) was now under Israeli control. So in other words, their land was taken from them. Not only that, but their land was taken by people who did not share the same religion that they so dearly adhere to. The whole situation is messed up. You have Palestinians, who are throwing rocks and whatever else they can get their hands on, fighting against U.S. trained, Israeli troops who are sniping protesters and children from helicopters and tanks. Meanwhile, the U.S media portrays the Palestinians as savage terrorists who are stirring up trouble. Really, they just want their land back.