Timorese army personell were sacked (claims of discrimination), they started rampaging, then gangs started rampaging and as you all know whatever hits the fan is not evenly dispersed. The adminstration called for help from Australia. Australian troops are there now trying to settle the place down after much gunfire and fighting. Now people are starving and looting to stay alive.
From what I read, Dili is currently infested with rampaging mobs which are moving in where Australian Troops aren't. Arson, Murder, Rape, gunfights, etc, with about 25000 people fleeing the capital - and now that 25,000 is starving to death. Australian Troops are semi-ineffective - they can't be everywhere at once, and where they aren't, mobs move in.