In a tangentially related story (at least, as far as fake propaganda goes):

From Haaretz this morning:

Did Netanyahu’s office distribute a fake video against Gaza flotilla?

YouTube video features man who claims he is a gay and human rights activist who was denied joining Gaza flotilla because his group does not serve interest of organizers.

Did Prime Minister Benjamin Netanyahu’s office distribute a fake anti-flotilla video? This is exactly what some American bloggers have been claiming, after probing a video that was uploaded to YouTube on Sunday.

The video, nearly three minutes long, featured a young man who called himself Marc and claimed to be a gay and human rights activist. The man recounted a story in which he asked the organizers of the upcoming Gaza flotilla to join their mission, and claimed that his request was allegedly denied on the grounds that participation of the gay and lesbian group with which he was affiliated would not serve the flotilla’s “interests.”

Blumenthal seems to have an obsession with finding media hoaxes.