You guys might want to read the book "People of Nepal" by Dor Bahadur Bista. It has described origins of almost all the Nepalese ethnic groups including Newars. I tried to copy and paste the whole section on Newars; however, sajha only permits upto 6000 characters. Anyways, if you have time, take a look in your local libraries. Let me give a preview... Note: The following excerpt about the Newars has been directly taken from the book called "People of Nepal" by Dor Bahadur Bista. The Newar people are the indigenous inhabitants of the valley of Kathmandu. They are the people seen in the greatest numbers in the capital city, and they are found in great numbers in every market town and village in the outlying districts, the hills and the Terai. They are small shopkeepers, big businessmen, importers, exporters, farmers, craftsmen and so on. Among them you will find artisans and caste groups ranging from the lowest to the highest, from sweeper to priest, both Buddhist and Hindu. They are a unique and interesting people, and one of the oldest known groups in Nepal. ... Because of the complexities in the composition of Newar society, scholars in the past have developed various interesting theories about their origins. The Newari language, although greatly influenced by Sanskrit, is still distinctly a Tibeto-Burman tongue. Thanks, Six Strings