Reports from the authorities is Algeria, which has not recognized the legitimacy of Libya's transitional government following the ouster of strongman Muammar Gaddafi, claim that Gaddafi's wife and three of his children have reached Algeria, escaping revolutionary forces. The Guardian describes the developments as a major setback in the transitional council's attempt to bring the former ruling family to justice. 

From The Guardian:

The Algerian foreign ministry said Gaddafi's wife Safia, daughter Aisha and sons Hannibal and Mohammed and their children had entered Algeria at 8.45am on Monday, according to the state-run APS news agency.

Their fate remains unclear. Rebels have said that if any Gaddafi relatives escape to Algeria they will seek their extradition, but the outcome of such a move would be uncertain.

The Libyan rebel leadership will seek the return of the Gaddafi family to Libya, Reuters reports.

There is still no word on where Gaddafi himself is located. 

As the New York Times pointed out in a recent analysis, misinformation about the whereabouts of the former dictator and his family have severely clouded the reporting on the Libyan conflict:

A case in point was the rebels’ claim on Sunday that they had arrested Seif al-Islam el-Qaddafi, the leader’s son who is often talked of as the heir apparent. The claim was issued with such authority, even setting off a debate among rebels over what to do with the younger Mr. Qaddafi, that the International Criminal Court said he should be transported to The Hague.

By the wee hours of Tuesday morning, however, Mr. Qaddafi was squiring journalists around neighborhoods filled with Qaddafi sympathizers, saying the rebels who had rolled into the city had fallen into a trap.

Read more here and here.