landau is reading up on the koran MOGADISHU, Aug 9 (Reuters) -...

landau is reading up on the koran MOGADISHU, Aug 9 (Reuters) - Somalia's powerful Islamist movement seized a town on the Ethiopian border on Wednesday and said its fighters were advancing on a government stronghold, stoking fears of more clashes with the interim administration.

The Islamists said they attacked a government-appointed regional administration in Baladwayne, forcing the local governor and provincial commissioner to flee towards Ethiopia.

"Our Islamic courts (fighters) in Baladwayne have taken over the full administration of the city," said a source close to a senior Islamist leader in Somalia's capital Mogadishu.

"They attacked the government-appointed administration and forced them out," he told Reuters.

There were no immediate reports of casualties. Islamist fighters had occupied Baladwayne in June, but withdrew.

Islamist militia were also said to be advancing on Galkaayo, a town about 750 km (465 miles) north of the capital Mogadishu.

"Fighting can start anytime in Galkaayo, our militias are heading there," said Ali Hirsi, a member of the coalition of Islamic courts that seized Mogadishu and a strategic swathe of southern Somalia in June.

Galkaayo is on the border with semi-autonomous Puntland, home to President Abdullahi Yusuf of the interim government.

Hirsi said a warlord loyal to the interim administration, Abdi Awale Qaybdiid, arrived in Galkaayo earlier on Wednesday with dozens of "technicals" -- pickup trucks mounted with machine guns and anti-aircraft guns.

Qaybdiid was among the last warlords to surrender his militias to the Islamists in a clan-brokered deal in July.

Hirsi said 33 Islamist technicals were en route, but another Islamist militiaman who only gave his name as Ahmed denied his movement had plans to seize Galkaayo.

"We (couldn't) care less about Abdi Qaybdiid," he said.

"We have our militias in Galkaayo and plan to open an Islamic court there. We are for peace and come here to improve security. We have already removed so many checkpoints."

Qaybdiid, a native of the Galkaayo area, is believed to be against the Islamic courts setting up there.

Residents said the town was tense.

"Militias are on high alert and were patrolling the city last night. We are living in fear," said resident Leila Mohamed. "Most of the militias have been stationed outside the town to prevent any possible attack by the Islamic courts."

The Islamists oppose the interim government, based in the provincial town of Baidoa and threaten its limited authority.

The interim administration has Western backing but virtually no control over the Horn of Africa country of 10 million.