State of Palestine
The State of Palestine was unilaterally declared on November 15, 1988 in Algiers at an extraordinary session in exile of the Palestine National Council, the legislative arm of the Palestine Liberation Organization. Legal justification for this act was based on United Nations General Assembly Resolution 181 (II) of 29 November 1947, which provided for the termination and partition of the British Mandate for Palestine into two states.
At the time, the PLO did not have control over any part of Palestine (or any other territory), and therefore the State of Palestine failed to meet one of the main defining aspects of a real state - namely, occupying a territory.
The State of Palestine was recognized immediately by the Arab League and several other Islamic nations, at the expense of recognition of Israel. It maintains embassies in these countries (which are generally simply Palestine Liberation Organization delegations).
Currently 130 United Nations member states have formally recognized Palestine as a state, stretching from Africa to Asia, Europe to Latin America.. Around 150 countries maintain diplomatic relations with the Palestinians in one form or another... In October, 2011, Palestine was granted full membership at the U.N. cultural organization, UNESCO, in a diplomatic victory won despite stiff resistance from the United States and Israel. 
A pro-Arab website expresses the Palestinian view concerning the border of Palestine by declaring they want a border which existed prior to the Six-Day War:
The value of a UN resolution recognizing an independent state for the Palestinian people, with its borders running exactly along the 1949 Armistice line, which was the border between Israel and the West Bank until June 4, 1967, should not be undermined.
Pro-Israel advocates typically point out that Israel has repeatedly had to defend itself against attacks by neighboring Arab states and counter that reverting Israel's border to borders which existed before the Six-Day war would not allow Israel to have defensible borders.
The Israeli government of Prime Minister Benjamin Netanyahu is openly opposed to the proposed Palestinian statehood and is threatening retaliatory action. US officials, notably Secretary of State Hillary Clinton are also opposed.