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<i> Arts and entertainment reports from The Times, national and international news services and the nation's press</i>

That perennial Hollywood disease--creative differences--appears to have struck the Israeli set of “Rambo III” with a vengeance, resulting in the exit of director Russell Mulcahy, his entire camera unit, the property master, costume designer and unit publicist, production sources confirmed Thursday. Problems between Mulcahy and Carolco Pictures Chairman Andy Vajna led to the exodus, sources claimed, not differences with star Sylvester Stallone. Mulcahy’s replacement is second unit director Peter MacDonald.

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