in case anyone's interested, someone made a sign generator out of this picture:
http://www.ryano.net/iraq/
i'd have to say it's real; to me the biggest tip-off is the arabic at the bottom. i speak some arabic, i can confirm that it does indeed repeat the message on the sign. i find it unlikely that an arab speaker would go to the trouble to doctor a picture like this...
then again, this picture could be from a broadcast of the already doctored image. *shrug*.