The suspect has been identified as Clinton Chad Grainger, 23, of Snohomish. Police confiscated his gun, a 9mm Glock pistol.

Grainger was taken into custody after his gun went off, injuring two people, at about 6:30 p.m. Saturday, as thousands of people were enjoying the warm sunshine at the annual festival. Both victims were taken to hospitals with non-life threatening injuries.

Witnesses said the shooting occurred when a fight broke out near a drum circle.

"We were all hanging out and this guy tried to pistol whip another guy and the gun went off," said DeAnna Botello, who had gone to the festival with a group of friends and relatives.

A young woman, Sarah Thorsnes, was shot in the thigh and her boyfriend, Joshua Penaluna, was shot in the hand, but witnesses said neither was involved in the original argument.

Investigators later said both people were struck by the same bullet, and detectives were trying to determine whether the gun may have fired accidentally.

Seattle Police Communications Director Greg Schmidt said Grainger had a gun in an ankle holster and someone spotted the weapon and started arguing with him.

"We're not exactly sure how the firearm came out of the ankle holster," Schmidt said. "But at some point in time it did come out, and there was a fight over the firearm."

During that struggle, the single shot was fired.

The shot set off a panic.

"Then everybody ran," Botello said. "One poor little girl almost got run over."

Four people saw the suspected gunman running through the crowd, jumped him and held him until police arrived at what was by then a chaotic scene of screaming, fleeing people.

A band playing nearby, which had stopped when the gunfire erupted, picked up the music again, hoping to calm the crowd.

Grainger reportedly has a valid concealed weapons permit, officials said.

The Folklife Festival, now in its 37th year, annually draws many thousands of people to Seattle Center for music, dancing, food and other activities.

Police stepped up patrols at the Northwest Folklife Festival at Seattle Center after the shooting.

Authorities also blocked off an area of shady trees near the International Fountain where the shooting took place, which is prone to congestion during large events.

Although official attendance figures were not available, at least one man who has a booth at the annual festival said the Sunday crowds appeared to be much lower than they usually are - which he attributed to Saturday's violence.

"Anybody who was here yesterday is not here today," said Jonathon Blankenship, whose booth is near the scene of the shootings. "It's very sad. ... It's been 37 years of Folklife without anything like that ever happening."

But as the day went on, crowds returned. And other festival-goers said they weren't bothered by Saturday's shootings.

"I hadn't thought any more about it since we read about it on the bus and talked and I really hadn't given it another thought," said Carolyn Jones, who brought her grandkids to the festival.

Another festival-goer, Stephanie Hesburn of Puyallup, said she thought conditions were probably safer after the violence - not so much because of the increased police presence, but because people would be looking out for one another.

Leonardo Harrell was photographing musicians at the festivalon Saturday when he heard the gunshot behind him.

"I turned around and everyone was running," he said. "Dozens of people screaming and running in the opposite direction. By the time I actually saw the suspect the cops ran right past me and there were a handful of cops on him."

The man and woman were taken to a hospital to be treated, Witt said. Both are reported to be resting comfortably on Sunday.

Sarah Thorsnes cries out in pain after being shot in the leg