Gonzo,
The situation is somewhat complicated. The royals of Nepal actually helped to bring a certain amount of democracy into Nepal in the 1950s, when the then figurehead king fled to India - and then lead the overthrow of the heritary Prime Ministers of Nepal - the Rana clan, whose rule was rather oppressive.
But there have been problems in establishing democracy in Nepal, and the kings at various points in time since 1950s have taken greater control of the government. In the 1990s, a greater amount of democracy was again established and political parties were legalised once again (they had earlier been declared illegal [though personally I think that making political parties illegal might be a good idea universally..]).
Later in the 90s, the so-called Maoist insurgency began in full force. To a large degree the Maoists in practice act sort of as dacoits--'bandits', and exhort money, goods, food from the Nepalese peasantry. And they destroy property, enforce
bandhs (roughly 'strikes' or 'closures') of businesses under threat of violence, sometimes target Nepali businesses which accept 'capitalist' money (from the West), etc., etc. Though, to be fair, I think there are some of the Maoists who do truly think they are helping the people of Nepal. But a lot of them seem just to want to be in power themselves - without improving things for the people.
In terms of the peace negotiations, it is being said that both sides - Crown and Maoists, are being too inflexible. But I'm not so sure about this - the Maoists are demanding to have a new Constitution written which would make Nepal a Communist State, with the Nepali Royals deposed. The Crown is willing that the Constitution may be emended. So it seems to me that the Maoists are being much more inflexible.
here's the Maoists' website if you want to see some of their views:
http://www.cpnuml.org/
There's another factor of political parties, who have not been involved in the talks thus far. Lots of people are saying that they should be - again, I don't know - that may just further confuse matters. The present King of Nepal removed the 'elected' Prime Minister about a year ago after that Prime Minister kept postponing elections. I think the King felt that the Prime Minister (and the political parties in general) were impeding negotiations/resolutions between the Govt and the Maoists.
That's my two paise on the situation. I'm sure there are many other points of view on the matter.
by the way, on the topic of not hearing much about Nepal (and other places) on the news, I find the BBC website gives good, fairly unbiased, succinct reports:
http://news.bbc.co.uk/
and they have various sections which focus on areas of the world, e.g.:
South Asia (India, Nepal, etc.) -
http://news.bbc.co.uk/1/hi/world/south_asia/default.stm
East Asia/Far Orient -
http://news.bbc.co.uk/1/hi/world/asia-pacific/default.stm
Europe -
http://news.bbc.co.uk/1/hi/world/europe/default.stm
Middle East -
http://news.bbc.co.uk/1/hi/world/middle_east/default.stm
Americas -
http://news.bbc.co.uk/1/hi/world/middle_east/default.stm
Africa -
http://news.bbc.co.uk/1/hi/world/africa/default.stm
other good online sources for South Asian news (and different points of view on world news) are:
Times of India (the largest English daily in the world)
The Hindu (India)
Nepali Times