Yeah, the whole story behind that video is very strange. Produced by an ex-con multiple felon, he tricked the various actors into thinking they were in some stupid B-movie called "Desert Warrior" then overdubbed their lines with various anti-Muslim stuff.
http://en.wikipedia.org/wiki/Innocence_of_Muslims
It's totally retarded. I think the producer got thrown in jail again for parole violations related to one of his old fraud convictions.
If I were a moderate Muslim, I'd be pretty embarrassed about the diehards of my religion who freak out over incompetently insulting videos (or Mohammed-oriented cartoons, etc). We have plenty of Christian idiots here in the West but at least they can handle semi-comical insults created by idiots.