He wrote that Allah had 3 daughters Lat Uzzar and Manat, 3 rock-idol (as in idols who were rocks...not heavy metal rock goddesses). It's implied that Allah was the cheif god of the pagan arabs and represented the moon, In Islams first years of creation it's implied that Mohammed, getting no converts to the religion, accepted that he would have to allow the pagans to keep some of their gods and that the three pebbles above were chosen.
There is a alleged removed surah that says Allah told Mohammed to say "Lat Uzzar and Manat, these are exalted females and their intercession is to be hoped for"
After finding some problems with this it's alleged that the surah "What! Sons for yourselves and only daughters for him!" was revealed and the "Satanic verses" were scrapped. Other people point to "If a surah is caused to be abrogated, we bring one better" as connected to this.
Sir Rushdi wrote a very boring badly written novel about all this and people knew absolutly nothing about it, he was a nobody. Irans ayatollah put a death sentance on him and the next day, everyone bought the book because it was suddenly interesting to try and discover what was so bad about it.
Rushdi in my opinion is a idiot. As a person he is a slimeball. Certainly not a good enough author to be knighted.
weather what he wrote is true or not...decide for yourself!