Avenger air defense systems and YPR-765 APCs have been sent along with the tanks, with F16s flying air cover.
Egypt says the move is part of a continued effort to protect the border from insurgents, who three weeks ago killed sixteen Egyptian border guards.
However the deployment is in direct violation of Egypt's 1979 peace treaty with Israel, which does not allow any Egyptian military forces inside the Sinai.
Israel was asked for permission for the troops to enter the region, but did not give it.
Accusations have been made that the brand new Islamist government of Egypt is plotting against Israel, and that the incidents at the border were staged.
US Secretary of State Hilary Clinton is involved in negotiations between Israel and Egypt, in hopes of keeping the situation in control.
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