I think we handled ourselves amazingly well. Contrary to Host's insistence that Bush wants another war, we've ran into similar situation before.
The Navy taught us on multiple occasions there is a balance (especially with Iran) in self defense and caution in confusion. Last time a similar incident happened ended in many wounded and a heavily damaged ship (USS Cole).
The time before is a little less known. The US fleet had an incoming aircraft with is IFF (Identification Friend or Foe) turned off, which in itself is considered a hostile act. The aircraft was headed directly towards the Carrier (the lifeblood of the fleet), and did not reply to multiple US attempts to determine intent or have it alter it's trajectory. We assumed it was a hostile aircraft attempting to attack our ships (very soon after the Kadafi's Circle of Death incident), so we shot down the aircraft. Turns out it was an airliner taking pilgrims to Mecca.
All in all it's a very weird situation, we handled ourselves well. Personally if I was the Captain I would have opened fire at 200 yards, but this Captain's decision was the correct one (thankfully).
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"Smite the rocks with the rod of knowledge, and fountains of unstinted wealth will gush forth." - Ashbel Smith as he laid the first cornerstone of the University of Texas
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