In the paper we discuss the process of regularization of the Hamiltonian
constraint in the Ashtekar approach to quantizing gravity. We show in detail
the calculation of the action of the regulated Hamiltonian constraint on Wilson
loops. An important issue considered in the paper is the closure of the
constraint algebra. The main result we obtain is that the Poisson bracket
between the regulated Hamiltonian constraint and the Diffeomorphism constraint
is equal to a sum of regulated Hamiltonian constraints with appropriately
redefined regulating functions.Comment: 23 pages, epsfig.st