In relation to the turmoil and divisions in the Middle East, where does origins of such conflicts lie? Within Sunni and Shias division on faith or is it based more on ethnic divisions (Arabs, Persians Turks and Kurds)?

Trying to identify a well defined boundary between religious and ethnical lines is not at all accurate. Islam is for over a millennia the core of the arab, Persian, Kurdish and Turkic cultures. And Islam took another form under each culture in the same way Christianity was formulated in many different denominations to be adapted by the major christian nations i.e. Catholicism for the West, Protestantism for the North, Orthodoxy for the East. In that way the glorious Islam of the ottoman caliphate bears different artistic elements (see baroque mosques in Istanbul for instance) than the arabic sunni Islam. Ottoman Islam ( Turkish and turkic alike) coexisted with orthodoxy under the byzantine, ottoman and russian empires, and as such it is completely european in nature along with islamic sects like the alewites.  Whilst arabic sunni islam is very middle eastern in essence, very competitive with the persian shia islam. So religion and nationality intermingle in this conflict , as it is impossible to separate one from another. What is very interesting is the issue of the caliphate. For centuries the one indisputable caliph (for the sunnis as Shia have the Imam) was only the ottoman sultan and after the fall of turkish monarchy, the juristiction of the caliphate along with the secular powers of the sublime gate passed to the turkish great national assembly . It would be very interesting to see the turkish reaction in all this.

This will sound a bit generalized but it's the most comprehensive/simple versions. The devide is ethnical and cultural with different versions of Islam although intermixing still following the ethnic pattern. Persian teretory Iran Afghan Tajikistan Iran - Strong Shia establishment. Where most Persian remaining population sided with Shia version. Arabs appear to have picked Sunni Islam as a guiding  principal, Saudi, United Arab Emirates, Kuwait and so on. Otoman empire seemed to gone Sunni but maintain relations with both Persian Shia and Sunni Arabs. Some got additional ethnic undertones as well as yet another version of Islam. Syria and Saudi are examples of "alternative" Islam... Not the term is like to use but I can't think of agg other. Kurds are some indigenous population of that part of the world that somehow lost its cultural center and teretory to one of the larger empires now struggling to regain some independent state or self ruled autonomy.

About the Origin of Shia and Sunni?Shia Shiite Shi’ite shii'te shīʿah Shi’ite Shi’ites Shias all are the same word for شيعه which means follower [of someone]/ sect. in Shia/Sunni debates means "Shia of Ali". Shia is not limited to Shia of Ali S.A. and for example Shia of Muaviyeh existed in past but later only Shia of Ali S.A. remained in history.The word Shia شيعه in used in 3 verses of Quran and this can be considered as Origin of this word. [one verse][1] says Ibrahim S.A. was Shia of Noah S.A. وَإِنَّ مِن شِيعَتِهِ لَإِبْرَاهِيمَ[[37:83]][2] And indeed, among his sect was Abraham, Other verse says: ثُمَّ لَنَنزِعَنَّ مِن كُلِّ شِيعَةٍ أَيُّهُمْ أَشَدُّ عَلَى الرَّحْمَـٰنِ عِتِيًّا[[19:69]][3] Then We will surely extract from every sect those of them who were worst against the Most Merciful in insolence. And other verse is about Shia of Moses S.A: وَدَخَلَ الْمَدِينَةَ عَلَىٰ حِينِ غَفْلَةٍ مِّنْ أَهْلِهَا فَوَجَدَ فِيهَا رَجُلَيْنِ يَقْتَتِلَانِ هَـٰذَا مِن شِيعَتِهِ وَهَـٰذَا مِنْ عَدُوِّهِ ۖ فَاسْتَغَاثَهُ الَّذِي مِن شِيعَتِهِ عَلَى الَّذِي مِنْ عَدُوِّهِ فَوَكَزَهُ مُوسَىٰ فَقَضَىٰ عَلَيْهِ ۖ قَالَ هَـٰذَا مِنْ عَمَلِ الشَّيْطَانِ ۖ إِنَّهُ عَدُوٌّ مُّضِلٌّ مُّبِينٌ[[28:15]][4] And he entered the city at a time of inattention by its people and found therein two men fighting: one from his sect and one from among his enemy. And the one from his sect called for help to him against the one from his enemy, so Moses struck him and [unintentionally] killed him. [Moses] said, "This is from the work of Satan. Indeed, he is a manifest, misleading enemy." Also there are another verse with the same root and similar word but not exactly Shia. This verse is usually used by Sunnis against Shia for trying to disprove them: إِنَّ الَّذِينَ فَرَّقُوا دِينَهُمْ وَكَانُوا شِيَعًا لَّسْتَ مِنْهُمْ فِي شَيْءٍ ۚ إِنَّمَا أَمْرُهُمْ إِلَى اللَّـهِ ثُمَّ يُنَبِّئُهُم بِمَا كَانُوا يَفْعَلُونَ[[6:159]][5] Indeed, those who have divided their religion and become sects - you, [O Muhammad], are not [associated] with them in anything. Their affair is only [left] to Allah; then He will inform them about what they used to do. Also the word Sunni does not exist in Quran and this term was used later.according to Shia Muslims this verse does not include to Shia of Ali S.A. because this verse prohibit MAKING SECT and not belonging to a sect like Ibrahim S.A. belonged to Noah S.A. sect. in fact Shia consider its religion exactly the original religion of prophet and not a created sect. and consider the group who disobeyed the will of God for appointing Ali S.A. as Caliph at Ghadir the group who separated the order of prophet and created a sect.The reason is that according to Shia only God can select the Caliph and God selected his Caliph after prophet and he was Ali S.A. and Ali S.A. received divine knowledge of prophet to guide humans and prophet declared it in front of 120,000 Muslims at Ghadir at final Hajj of prophet and Abubakr and Umar and Uthman given Bayat (pledge of alliance) to Ali S.A. but when prophet died and Ali S.A. was at funeral of prophet they left the funeral and made a meeting at Saqifah Bani Saedeh and selected Abubakr as Caliph without any permission from God and prophet and cause misguide of all humanity.the conflict of Shia and Sunni started by death of prophet when Ali S.A. and more than 100 of Sahaba did not given Bayat to Abubakr because they believed [Allah and prophet declared Ali S.A. as Caliph][6] after death of prophet and Ali S.A. and also believed the Caliphet of Abubakr was not legimate. Those Sahaba wondered for selection of Abubakr while Ali S.A. was at funeral of prophet. And this conflict continued until today.Why 2 different group of Muslims is created?because one group believe Caliph can be selected only by God and other group believed Caliph can be selected by people by shura (meeting of leaders of tribes) or by will of past Caliph (like selection of Umar) or by voting (like demand of most of people from Ali S.A. to accept Caliphate after Uthman was killed by a group made of All groups Muslims)Allah didn't send us to live divided. No verse of Quran or Hadish suggest that as per my knowledge.I think Allah wanted this to test us in Ahl ul-Bayt. Quran says: ... Had Allah willed, He would have made you one nation [united in religion], but [He intended] to test you in what He has given you; so race to [all that is] good. To Allah is your return all together, and He will [then] inform you concerning that over which you used to differ. [5:48] Both the groups are driven by great scholars.Depends on what you define great scholar. According to Shia a scholar who ignore will of Allah and prophet in selecting Caliph is not a great scholar.They know Quran and Hadish very wellInshaAllah this be true."Still why they are leading to something that Allah does not likes?"It’s not leaded by scholars. It’s leaded by political Kings. Scholars are not free to decide about political aspects of Islam. Sunni scholars receive salary from governments (but Shia scholars do not receive salary from any government and talk independently). According to Islam there is only one nation of Muslim (Ummah) and only one Caliph. But if a King accept his should deliver the power to real Caliph of Allah and this is not what a King likes. For example you say this fact about Mubarak and Ghazafi who were two King in Islamic countries.Is there any political (government) involvement also?This matter is 99.99% political.According to Shia the current legitimate Caliph is [Imam Mahdi S.A.][7] who is alive and leading and supporting Muslims but for will of Allah is in hide. But exist among us and we see him but do not know him.Prophet Muhammad (PBUH) has two famous sayings about sects of Muslims:1) The Judaism nation after Moses (PBUH) became 71 sect that 70 of them are in Hell and 1 in Heaven and Christianity nation after Jesus (PBUH) became 72 sect that 71 of them are in Hell and 1 in Heaven and Islam nation after prophet become 73 sect that 72 of them are in Hell and 1 in Heaven.2) Truth is with Ali and Ali is with Truthrelated question:http://islam.stackexchange.com/questions/961/why-does-shia-islam-differ-so-much-regarding-abu-bakr-omar-and-othman-comparehttp://islam.stackexchange.com/questions/967/what-are-the-origins-of-shia-and-sunni-division/27811#27811