Kashmir Problem - my doubts..

Lots of appreciation is pouring in for Musharraf as if he had nullified the border between India and Pakistan. According to my perception this issue is in a deadlock situation and cannot be resolved. India claims LOC as border which Pak refuses to accept and there is a seperate hurriyat group which says that we want Independent Kashmir. To whom India is going to talk with to get the issue resolved is my question -
1) whether is it with Mushraff(who exists by killing democracy in his own country)
2) Whether is it with the Terrorists outfits such as Jaish e mohammed, or all those Jehadi groups.
3) or the Hurriyat which says that they need a seperate country status for Kashmir.

one more intriguing question I have in mind, we fought two wars against Pakistan once during Nehru period and another during Indira gandhi period(forgive me if i'm wrong as im reallly poor with history), inspite of winning the two wars how come so much of Kashmir is still lying with Pakistan?? Did we really win the war, if yes what we got out of it?

As such Kashmir is more or less Pakistanised, the real aborigines of the soil were already driven out and those who remain are mostly against India. How come all the parties ruling in India making a political gimmick saying that they are going to resolve the issue at this stage by their so called Confidence Building Measures.