National Transitional Council (NTC) forces swept further into Kadhafi's hometown of Sirte as at least 6,000 fighters battled in and around one of the ousted despot's final strongholds.
An AFP correspondent reported two killed in fierce clashes at a roundabout in the town, one a medic, and at least four wounded.
"The situation at the roundabout is pitiful. There is no central command, we are retreating to regroup and re-enter again from three fronts," said Al-Dhahira Brigade commander Saleb Abu Shaala.
In the Bani Walid Kadhafi hold-out southeast of the capital, another AFP reporter quoted medical and NTC sources as saying six NTC fighters were killed on Friday and 20 wounded in the oasis town.
Commander Salem Jeha, a member of Misrata Military Council, told AFP by telephone of the fight for Sirte: "We are now concentrated in a handful of buildings in the city and on the outskirts including Wadi Abu Hadi where Kadhafi's forces are concentrated."
He said NTC combatants seized Sirte airport late on Friday, and added that there was "no possibility for them (Kadhafi's forces) to continue their resistance."
On the outskirts of Sirte, a medic with his face blown open was one of two dead brought in from the front lines.
"He was a civilian working in the ambulances," Dr Marwan al-Mubarak told AFP, adding that the second man was killed by a sniper bullet to the heart.
Western nations that were at the forefront of the push for sanctions and help for the rebels hailed the "historic" double breakthrough at the UN for the NTC.
British Foreign Secretary William Hague said in a statement it showed the international community's determination to support a "free future" for Libya.
The 15-member Security Council unanimously passed a resolution on Friday to ease an assets freeze and arms embargo against Libyan companies and the new government.
It maintained sanctions against Kadhafi and a no-fly zone which has been used to justify NATO air strikes against his forces.
Security Council resolution 2009 also established the UN Support Mission in Libya (UNSMIL) to go to Libya to help the interim government arrange elections and write a new constitution.
The resolution eases sanctions against major enterprises such as the Libyan National Oil Corporation, the central bank and the Libyan Investment Authority sovereign wealth fund in a bid to kick-start the economy.
The Security Council also expressed concern at the "proliferation of arms in Libya and its potential impact on regional peace and security."
However, the resolution allows arms supplies and technical assistance to the transitional government for the security of the authorities and for the protection of UN personnel, media and aid workers in Libya.
The Security Council passed resolutions in February and March allowing for sanctions and measures to protect civilians.
While agreeing to keep the no-fly zone in place, Russia's UN envoy Vitaly Churkin demanded that it be quickly reviewed, renewing accusations that NATO has acted outside the UN resolutions.
Earlier, the UN General Assembly voted by 114 countries to 17, with 15 abstentions, to let the interim government take up Libya's UN seat.
The UN vote allows NTC leader Mustafa Abdel Jalil to attend next week's UN gathering in New York, where he will meet US President Barack Obama and other world leaders on the sidelines of the General Assembly.
Some 90 countries now recognise the NTC, whose leaders moved to Tripoli this week.
While the former rebels have gained a major political victory, they have yet to dominate the battlefield completely.
Truckloads of ammunition headed for the front line from the Gate 30 checkpoint west of Sirte on Saturday, along with pick-ups bearing fighters and anti-aircraft guns.
"There may be houses and pockets of resistance, but they will not be able to overcome the rebels' massive forces," he said, adding that he had received reports that half of the city's civilians had fled.
The attacking fighters were trying to prevent civilian loss of life and were not seeking revenge: "We are not using heavy weapons except to protect our rebels when they are targeted."
Jeha added: "This matter is sealed, it's over. Our focus will now shift to free the south."
NATO said in an operational update on Saturday warplanes dealt "key hits" on 20 targets in the Sirte area the previous day.
These were five command and control nodes, three radar systems, four armed vehicles and eight air missile systems.
Columns of NTC fighters backed by tanks launched an early morning assault on Sirte on Friday, a day after a first attack was repulsed.
The NTC said its fighters had also entered Bani Walid, but they made a "tactical withdrawal" in the evening because of sniper fire.
In Tripoli, meanwhile, an NTC official said a new government to be announced on Sunday would have 30 members and be representative of all political groups and regions, and that women would be included.
Copyright AFP (Agence France-Presse), 2011