All Israel? - Rom. 11:25, 26

From 12/2/2006 reading:

"Some of the Jews have hard hearts, but this will last only until the complete number of Gentiles comes to Christ. And so all Israel will be saved." Rom. 11:25, 26

Am I the only one who has a hard time with these verses? Alice says it makes complete sense to her (?). It CANNOT be that literally ALL Jews are saved. Paul even said earlier that his heart "is filled with bitter sorrow and unending grief" for the Jews. But if the only Jews that are going to be saved are the ones who accept Jesus, then they are in exactly the same position as the Gentiles; if this is the case, what is the point of the verse above? How are the Jews different? Paul seems to indicate that because they are God's chosen people, they have some special advantage over the Gentiles, I just can't see what it is. Any input is welcome on this one.

Lord, regardless of the answer, thank you for grafting me into your vine.

12/2/06 reading: Rom. 9-12