A revolutionary fighter fires at Gadhafi loyalists in downtown Sirte, Libya, Tuesday, Oct. 18, 2011. About 1,000 Libyan revolutionary troops have launched a major assault on Moammar Gadhafi's hometown, surging from the east to try to capture the last area under loyalist control. (AP Photo/Manu Brabo)
A revolutionary fighter fires at Gadhafi loyalists in downtown Sirte, Libya, Tuesday, Oct. 18, 2011. About 1,000 Libyan revolutionary troops have launched a major assault on Moammar Gadhafi's hometown, surging from the east to try to capture the last area under loyalist control. (AP Photo/Manu Brabo)
A revolutionary fighter fires a rocket-propelled grenade at Gadhafi loyalists in downtown Sirte, Libya, Tuesday, Oct. 18, 2011. About 1,000 Libyan revolutionary troops have launched a major assault on Moammar Gadhafi's hometown, surging from the east to try to capture the last area under loyalist control. (AP Photo/Manu Brabo)
In this Monday, Oct. 17, 2011 photo, revolutionary fighters run across the street under heavy sniper fire carrying Bangladeshi children who were trapped in Sirte, Libya, during the entire siege of the city. Revolutionary fighters pushed hard on Monday to clear the remaining pockets resistance in Sirte but their efforts to advance were hampered severely by the well trained snipers still loyal to the Gadhafi regime. (AP Photo/David Sperry)
A revolutionary fighter looks on during fighting with Gadhafi loyalists in downtown Sirte, Libya, Tuesday, Oct. 18, 2011. About 1,000 Libyan revolutionary troops have launched a major assault on Moammar Gadhafi's hometown, surging from the east to try to capture the last area under loyalist control. (AP Photo/Manu Brabo)
U.S. Secretary of State Hillary Rodham Clinton meets Libyan soldiers at the steps of her C-17 military transport upon her arrival in Tripoli in Libya, Tuesday Oct. 18, 2011. The Obama administration on Tuesday increased U.S. support for Libya's new leaders as Secretary of State Hillary Rodham Clinton made an unannounced visit to Tripoli and pledged millions of dollars in new aid, including medical care for wounded fighters and additional assistance to secure weaponry that many fear could fall into the hands of terrorists. (AP Photo/Kevin Lamarque, Pool)
SIRTE, Libya (AP) ? Libyan revolutionary forces fought building by building Wednesday against the final pocket of resistance in Moammar Gadhafi's hometown ? the last major city in Libya to have been under the control of forces loyal to the fugitive leader.
While Libya's transitional leadership worked to consolidate control over the entire country, the country's acting prime minister warned in a newspaper interview that Gadhafi can still cause trouble from his hiding place.
Mahmoud Jibril was quoted by the pan-Arab Asharq Al-Awsat paper Tuesday as saying that the ousted leader is moving between Niger, Algeria and the vast southern Libyan desert and has been trying to recruit fighters from Sudan to help him establish a separate state in the south, or to march to the north and destabilize the new regime.
The report could not be confirmed, but it underscored fears that the inability to catch Gadhafi, who escaped with two of his sons after revolutionary forces swept into Tripoli in late August, would allow him and his supporters to wage an insurgency.
"Gadhafi has two options: either to destabilize any new regime in Libya or to declare a separate state in the south," Jibril was quoted as saying, adding there was evidence about this but he didn't elaborate.
Suggesting that the U.S. also was concerned about the possibility, Secretary of State Hillary Rodham Clinton said during a visit to Tripoli Tuesday that she hoped Gadhafi would be captured or killed.
Although two months have passed since Gadhafi fled the capital, Libya's new leaders have refrained from declaring national "liberation" until the fall of Sirte, which Gadhafi transformed from a fishing village into a modern city after he seized power in 1969.
Revolutionary forces on Tuesday pushed from the east into the small pocket of the city under the control of Gadhafi loyalists and captured a vegetable market, though they came under heavy fire from snipers and rocket-propelled grenades on the rooftops of residential buildings and homes along major streets.
On Wednesday, Wissam bin Hmade, the commander of one of the revolutionary brigades from the eastern city of Benghazi, said they had the Gadhafi supporters corralled in a 700 square meter residential area but were still facing heavy rocket and gunfire from snipers holed up in surrounding buildings.
It took the anti-Gadhafi fighters, who also faced disorganization in their own ranks, two days to capture a single residential building.
Another commander, Khaled al-Maghrabi, said 15 fighters were killed in a friendly fire incident.
It is unclear whether loyalists who slipped out of the besieged cities of Bani Walid, which was captured this week, and Sirte might continue the fight and attempt to organize an insurgency using the vast amount of weapons Gadhafi was believed to have stored in hideouts in the remote southern desert.
Unlike Iraq's Saddam Hussein, Gadhafi had no well-organized political party that could form the basis of an insurgent leadership. However, regional and ethnic differences have already appeared among the ranks of the revolutionaries, possibly laying the foundation for civil strife.
Gadhafi has issued several audio recordings trying to rally supporters. Libyan officials have said they believe he's hiding somewhere in the vast southwestern desert near the borders with Niger and Algeria.
The whereabouts of two of his sons also remain unknown, although commanders have said they believe Muatassim and Seif al-Islam are hiding in Sirte and Bani Walid, respectively. Seif al-Islam had been Gadhafi's likely choice to succeed him as Libya's leader.
Anti-Gadhafi fighters combed Bani Walid on Tuesday for signs of Seif al-Islam and other high-level regime figures in the desert enclave, 90 miles (140 kilometers) southeast of Tripoli.
"Seif was seen on Thursday. He was eating in a desert village close to the city," one field commander, Said Younis, said.
The Netherlands-based International Criminal Court has charged Seif al-Islam, his father and Gadhafi's former intelligence chief Abdullah al-Senoussi with crimes against humanity for a brutal crackdown on the uprising.
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Associated Press writer Maggie Michael contributed to this report from Cairo.
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