An exact algorithm for the steiner tree might look like the one given
in this paper:

"An Exact Algorithm for the Uniformly-Oriented
Steiner Tree Problem" Benny K. Nielsen, Pawel Winter, and Martin
Zachariasen

http://www.springerlink.com/(ilim4245kwp0q545vzj1b345)/app/home/content.asp?referrer=contribution&format=2&page=1&pagecount=0


According to the abstract of the text, the algorithm is not useless,
solving (easy?)instances with 10k 'teminals' optimally.

The general 'steiner tree problem' is np-complete, meaning there is no
known polynomial-time algorithm to solve it. (see wikipedia)

-A way to generate approximations is by creating the minimum spanning
tree of the vertices. (using the euclidian distance as cost). this can
be done in time O(n ln n) with n the number of vertices. This
guarantees to find solutions not more than  15.5% longer than needed.
(see "the Algorithm Design Manual" Steven S Skiena, I think this text
is available on the net somewhere too)


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