Either way, even if a Qur'an were burned, it's no reason to protest. People may feel defensive, but they should brush it off knowing that Allah probably cares more about the safety and control of the people than a print of the holy book.
If something like that didn't get to people so personally, you wouldn't have insults left and right making Muslims look bad [via the media] by reacting so much.
I think it's likely that it's propaganda, but really wouldn't be surprised if it actually happened. Americans can be extremely dense and ignorant, and a lot of the times, that's why they join the army in the first place.
To me, a set of priorities needs to be straightened out.
On both sides.