That is what I heard as well.
As for the international waters... I agree, that was a mistake on Israels part. However, there is a big difference to being boarded for no reason and being boarded because your ship is headed directly at a blockade and you refuse to alter course. Again, Israel should have waited until they were in territorial waters (at this point I am not aware how close/far away the flotilla was from territorial waters).
Bottom line... the 'humanitarians' knew exactly what was going to happen if they tried to run the blockade. They knew exactly how the Israeli's would respond if they were attacked. The fact that the other ships were boarded without incident shows the intent of both parties. The Israelis were there to make sure weapons did not enter Gaza. The 'humanitarians' were there to start a fight.