By now you've heard the story.
College students requests a book by Mao. College student reports being visited by agents of the Department of Homeland Security, who tell him that the book is on a watchlist of some sort. Newspapers pick up the story and report it mucho pronto without bothering to check any facts. College student's story has so many holes in it that it falls apart.
When confronted with the evidence, college student admits he made the whole thing up--and cries.
Here are some great articles on the topic:
http://littlegreenfootballs.com/weblog/?entry=18667_Reality-Based_Community_Falls_for_Hoax (comments 5 and 9 especially)
First there was fake hate crimes on campuses (done in order to draw attention to hate crimes on campuses), and now this. It must really tick off the left that reality doesn't live up to their paranoia.