The Two of Diamonds is in U.S. custody.

Heavily armed U.S. Army forces stormed into a village near Saddam Hussein's hometown of Tikrit (search) before dawn Thursday, seizing more than 260 prisoners.

Pentagon sources confirmed later in the day that one of the prisoners was Adil Abdullah Mahdi, who was on the 55 most-wanted list of former Iraqi officials.

Mahdi was described as a member of the Baath Party (search) Regional Command, Dhi Qar District.

The troops encountered no resistance during the five-hour sweep, officers said. About 230 of those detained were being released later in the day, the military said.

Elsewhere, soldiers from the 101st Airborne Division shot and wounded a looter in Mosul after being fired upon, U.S. military officials said. The shooting came a day after military officials, who had been criticized about the continued lawlessness in Iraq, denied issuing a shoot-on-sight policy against looters.

Also Thursday, new U.S. civilian administrator L. Paul Bremer (search) held his first news conference, saying American forces are working hard to improve security and promising to fight remnants of Saddam Hussein's regime. He said 300 criminals have been arrested around the country this week.

In Umm Qasr (search), British forces formally turned over control of the port city to a civilian government, the first such handover since the war ended.

Tikrit is Saddam Hussein's hometown, and the region around it is a hotbed of Baath Party (search) supporters.

Five Iraqi special security forces offers also were caught in the raid — including two army generals and a general from Saddam's security forces who had disguised himself as a shepherd.

"We're going to continue to hunt them until they get so tired of running that they give themselves up or we catch them," said Maj. Mike Silverman, operations officer for the 1st Brigade of the 4th Infantry, the Army division that staged the raid.

"I think it was very successful," Silverman added. "We got one top-55 guy and about a dozen fairly bad guys off the street. And again we sent the message that we know the shadow regime is out there and it won't be tolerated."

Commanders for the 1st Brigade had been planning the raid, dubbed "Operation Planet X," for a week after receiving a tip the men were living in the area.

About 2 a.m. Thursday, U.S. troops formed a cordon around the outer perimeter of a nine-block area. The military operation involved more than 500 soldiers, who sealed off the village and went from house to house. About 200 houses and outlying buildings were searched before the sweep ended at 7 a.m.

Silverman said no one shot at U.S. forces during the maneuver.

Among the 200 people taken into custody were some teenage boys and elderly men. Each was zip-cuffed — had their hands tied with plastic — and ordered to sit or kneel on the roads outside their homes. Many were kept in custody outside a large mansion with high walls.

Eighteen Bradley fighting vehicles, 12 Howitzers and 35 armored Humvees secured the area as forces moved in. Six boats patrolled the nearby Tigris River during the maneuver, and Apache helicopters hovered.

Seventeen bricks of plastic explosive were seized from one house, military officials said, and one man was apprehended in a sniper's perch toting an AK-47 assault rifle.

A large stack of brand-new Iraqi currency was found at another house, the military said. At another, a soldier emerged carrying a camouflage military uniform top.

Two explosions were heard after the raid from an area close to the village. Military officials said they believed they were mortar rounds but the blasts caused no damage.

"It went a lot smoother than we thought," said Lt. Col. Mark Woemper.

Patrols had been discreetly combing the streets of the village to gather intelligence, while a drone surveillance aircraft has been providing up-to-date photographs and real-time video of the area for two days.

Silverman said the raids should make clear to people in areas around Tikrit what they should do.

"If they don't want their lives disrupted, they can just tell us where the bad guys are," he said. "Because it's our job to find them, one way or another."

In other developments:

— U.S. forces on the Tigris River north of Tikrit fired a warning flare at a boat after it was seen being loaded early Thursday with cases of unidentified materials. The Americans said they came under fire from the boat and fired back, killing everyone on the vessel.

— In Mosul, a group of looters fired on 101st Airborne Assault Division soldiers early Thursday, U.S. military officials said. Soldiers returned fire, in accordance with the rules of engagement, wounding one of the looters; four others escaped, it said. The soldiers sustained no casualties.

— Late Wednesday, a V Corps soldier was grazed by a gunshot after responding to gunfire at a Mosul bus station, the military said. The gunman, who also wounded two Iraqi civilians, fled, military officials said. The soldier was able to return to duty.

— Lt. Gen. David McKiernan, commander of U.S. ground forces, said Thursday coalition forces would begin arresting people possessing or selling firearms. He said the new administrators of Iraq will soon decree a set of laws aimed at re-establishing law and order throughout the nation.

Tens of thousands of firearms, ranging from pistols and revolvers to Kalashnikov assault rifles, were distributed by Saddam's government to close supporters in the runup to the war. Many people purchased guns as the war approached, and thousands more guns were looted from abandoned armories in the aftermath of the regime's collapse.

The Associated Press contributed to this report.