Great commentary in the Guardian Unlimited by Karen Armstrong. She argues that we must find a better label than "Islamic terrorists." Here’s a quote that puts the matter into high perspective.
We rarely, if ever, called the IRA bombings "Catholic" terrorism because we knew enough to realise that this was not essentially a religious campaign. Indeed, like the Irish republican movement, many fundamentalist movements worldwide are simply new forms of nationalism in a highly unorthodox religious guise.