I reckon that had a NATO sub or subs been involved,Russia would be only too happy to put the evidence on display, and show the rest of the world how horrible we all are in the west.
For that reason, my vote goes to a torpedo explosion. Apparently The Kursk was trialling a new kind of torpedo, so maybe something went wrong whilst loading. A warhead going off inside(rather than outside) the sub would do a hell of a lot of damage, and maybe lead to a chain re-action in the tubes leading to the sub sinking pretty quickly.
On the other Kursk thead I posted a link to the memorial site, they talk about possible reasons on there. It's quite a good read.
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