I’ve been following Al-Jazeera and BBC since the morning, and there seems to be several conflicting stories about the attack, which has ended few minutes ago, according to the news outlets.

Eyewitnesses are talking about two attackers who approached the embassy and then detonated a Lebanese-licenseplated car; others talk about exchange of gun fire and grenades.
But what’s confirmed up till now, is that the embassy has come under attack, and that at least one Syrian guard was killed according to Reuters.

I’ll update the posting later in the day, when more information is available.

UPDATE: Here’s a report from Al-Jazeera website…

Gunmen attack US embassy in Syria
Tuesday 12 September 2006

At least four armed men have attacked the US embassy in Damascus according to a witness.
A Syrian official said the attack has been repelled and that all diplomatic staff are safe.
The official said that all four attackers were killed along with one Syrian guard.
No-one has claimed responsibility for the attack.
An embassy guard said the mission came under attack on Tuesday as heavy gunfire and explosions were heard from the city’s diplomatic quarter.
The whole district has been cordoned off by Syrian security forces, witnesses and an AFP correspondent said.
Britain’s ambassador to Syria Peter Ford told CNN that the attack did not appear to be a “major al-Qaeda like operation, but an operation by a small group”.
The US embassy in the Syrian capital came under attack Tuesday, an embassy guard said, as blasts and heavy gunfire were heard from the diplomatic quarter of Damascus.
The explosions in the Ain Remmeneh district of Damascus where the US and several other foreign missions are located.
Aljazeera has reported eyewitnesses saying that around 15 rocket-propelled grenades have been fired in the area but no other details were immediately available.

UPDATE: More details from Al-Jazeera…

Deadly attack on US embassy in Syria
Tuesday 12 September 2006

Three armed men have been killed and one wounded after they attacked the US embassy in Damascus in what Syria has called a terrorist operation.
The men were chanting religious slogans as the approached the embassy compound on Tuesday and, according to Syrian television, they attempted to blow up a car outside.
A Syrian official said all US diplomats are safe while a witness said at least one Syrian security guard has been killed in the fighting.
Syrian security forces sealed off the Rawda area after heavy gunfire erupted.
The district also houses security installations and the homes of top government officials.
There was no word on the identity of the attackers, but Syrian forces clashed with Islamist fighters several times last year, usually in raids to arrest them.
The interior minister described the attack as “a terrorist operation” and told Syrian television that “investigations are underway to find out more details”.
Britain’s ambassador to Syria, Peter Ford, told CNN that the attack did not appear to be a “major al Qaeda-like operation, but an operation by a small group”.
The US State Department confirmed there had been an attack but said it “appears to be over”.
“We can confirm reports of an attack on our embassy in Damascus by unknown assailants. The event appears to be over. Local authorities have responded and are on the scene,” a US state department spokesman, Curtis Cooper, said.

The Syrian Muslim Brotherhood condemned the attack.