One Captain is worth about what, 80 insurgents? Time to break out the big guns.
Stuff like this is what happens when you try to fight a politically correct war!
I've always said, go neighborhood by neighborhood. Seal it off, announce you are going to blow it off the face of the earth, but you will allow everyone to leave, check them as they leave for weapons. Anyone who stayed behind has something going on and deserves what they get. Have a flight of B-52's fly over and level it. Then we can rebuild that neighboorhood and let everyone move back in. I figure we are rebuilding nearly everything anyway, this won't cost too much more, and will be more than worth it to save US lives.