Blackwater aren't allowed in Iraq anymore as private-soldiers (not like Pte's, as in privately-paid) becuase the eye-racky's got fed up with their killing sprees and what not.
However, Iraqi law is unable to stop Blackwater acting as bodyguards to US diplomats. Which is what I believe is going on.
I got an e-mail to my ArmyNet (f--k knows how they got my address) asking me to work for Blackwater. Tell you what, a hundred grand is pretty tempting for 6 months of sodding about. albeit you run the risk of being burnt alive and hung from a bridge.