ABUD, WEST BANK, FEB. 28 -- Two Palestinians were killed in this West Bank village as rioting youths were confronted by Israeli Army troops and armed Jewish civilians from a nearby settlement, residents and Israeli military spokesmen reported today.

The violence, which villagers said lasted from last night through early this morning, marked a reemergence of vigilante actions by Jewish settlers in the face of persistent stoning by Palestinians protesting Israel's 20-year occupation of the West Bank and Gaza Strip. Although Army officers have sought to discourage vigilantism in the past, residents here said the settlers who entered Abud were seen firing weapons alongside regular troops.

One settler was arrested in connection with the shootings, Israeli state radio reported.

The killings of the two Palestinians, ages 17 and 23, pushed the death toll in 11 weeks of angry demonstrations to more than 70 Palestinians, according to U.N. and Israeli counts. No Israelis have been killed in the clashes. The killings, most of them by Israeli Army gunfire, and the protests have intensified since Secretary of State George P. Shultz began his Middle East peace mission last Thursday.

Meanwhile, a military spokesman said a Navy gunboat off the Lebanese city of Tyre fired on a dinghy manned by guerrillas trying to launch an attack on Israel. According to news agencies, Palestinian sources in Lebanon said two guerrillas, from the Fatah faction of the Palestine Liberation Organization, were killed and three swam to shore after the attack. The sources said the guerrillas meant to attack a military base at Nahariya.

Responding to leaflets and broadcast appeals for protests against Shultz's effort, Palestinian youths have stepped up protests in the past five days, leading to at least 11 deaths.

The Army announced it is investigating the killings here at Abud, a village of about 3,000 that lies 20 miles northwest of Jerusalem.

A military spokesman in Jerusalem said armed Jewish civilians, reportedly from nearby Neve Zuf settlement, were in the village with Army troops at the time the youths were killed. But he said the Army did not know whether the two were killed by gunfire from troops or whether settlers were responsible. "It is very difficult to say who shot because the settlers and the Army have the same weapons," he said.

Witness accounts of the confrontation here could not be obtained because the Army closed off the village to reporters today and barred residents from leaving.

Hassan Barghuti, a cousin of the victims, was one of few who could be interviewed. He returned to his house at the edge of the village after visiting the home of the youths who had been killed. Barghuti said that last night he saw about 15 vehicles, military jeeps and civilian sedans, drive into the village about 9:30 p.m., preceded by a bulldozer shoving aside stone barricades erected by village youths. Shooting was heard until about 3 a.m. and Barghuti said family members told him settlers and soldiers had been firing.

The Army spokesman in Jerusalem said there is no formal rule against soldiers operating with armed settlers.

Barghuti said family members told him that settlers had burst into their home and shot his cousin, 17-year-old Raed Barghuti. He quoted the family as saying that the other victim, Ahmed Barghuti, 22, had been shot in the street outside.

Mustafa Rabakh, another resident questioned as he walked to his home on the fringes of the community, said the troubles began when Palestinian youths erected barricades and stoned the cars of Jewish civilians. A report from the Palestine Press Service, a pro-PLO agency that provides information on the West Bank and Gaza Strip, said the settlers tried to enter the village and the Army intervened after residents resisted by throwing more stones.

Israel's state radio reported the first youth was killed by a settler who fired after a fellow settler was hit over the head with a board. Another settler told investigators he slipped and fell, setting off his gun, as he pursued stone throwing youths, the radio said.

The question of vigilante killings by Jewish settlers -- about five have been reported by Palestinian sources since the disturbances began in early December -- is embarrassing for the Israeli Army. Officers have defined their mission as maintaining order.

The military prosecutor for the Central Command, meanwhile, said he plans to bring charges of cruelty and aggravated assault against two soldiers and a battalion commander in connection with an incident Feb. 5 in which four Palestinians were buried by a bulldozer at the West Bank village of Salim. That incident, and television film last week of soldiers methodically beating two Palestinians, have helped generate widespread criticism of Israel's handling of the disturbances.

Israel's West Bank commander, Maj. Gen Amram Mitzna, today vowed that the Army would not become "a mob force" as he made Army commanders watch a 40-minute film by a CBS television crew of soldiers using rocks to try to break the limbs handcuffed Palestinians. Four soldiers have been jailed for the incident and their commanding officer suspended.

An edited version of the CBS film was shown on Israeli television, with the more graphic scenes removed.

Two conservative ministers, Chaim Corfu and Moshe Katsev, proposed today that reporters be barred from troubled areas because their presence hampers the Army's work.

Morris B. Abram, chairman of the Conference of Presidents of Major American Jewish Organizations, told a news conference here that U.S. Jews are "anguished" by news of excessive violence by Israeli troops. He added that Americans are aware Israeli government policy does not condone such actions but said that if such conduct continues, "there could be a problem."

{Two Norwegian soldiers in the U.N. peace-keeping force in southern Lebanon were wounded in a mine explosion near their post, The Associated Press reported. U.N. spokesman Timur Goksel said the soldiers underwent surgery at a U.N. field hospital near the Israeli border. A Norwegian officer said the leg of one of the soldiers had to be amputated.}