The latest TDG at MilitarySpot.com:
http://www.militaryspot.com/tdg.htm
(Also see solutions for TDGs 1 and 2

TDG 3
It's early 1993 and you are Attorney General Janet Reno. A situation at a religious compound near Waco, Texas is necessitating your attention. A federal raid on the compound has gone bad. Armed militants within the compound repulsed the raid and killed several federal agents. Inside the compound are approximately 80 people. About 15 people are thought to be armed and dangerous. The rest - women, children and the elderly - are not considered dangerous, though they are considered to be brainwashed by David Koresh, the charismatic and demented leader of the compound.

The standoff is now dragging into the second month, and federal authorities on the scene want a resolution to the crisis. They want you to authorize military force against the compound to end the siege. Specifically, the authorities want you to authorize the use of military CS riot control agents within the walls of the compound. Do you authorize or deny the use of CS riot control agents within the compound?

According to the situation, I won't use CS or other chemicals. Rationale: Most of the people ine the compound are "victims", and the use of these agents wouldn't be the right choice to cope with this situation.
According to the Law in Hungary for example, the military does NOT have responsibilities in Civil Disturbance operations, unless the President calls for State of Emergency.
So in this situation the State Police and the Feds should work only, not the military. The use of military in this situation would be very nasty, and the political echo would be detrimenal for the Governor of that State, and even for the POTUS.
In conclusion
Military can be used as a last resolution, but normally it should be used abroad, on theaters of operations (Afghanistan, Iraq etc.) for coping with Civil Disturbance operations.
We have a good place for training these situation, called the National Education Centre within the Ministry of Internal Affairs, where for some deployments military personnel receives training.