According to the Norwegian daily Dagbladet, Danish soldiers may have found warheads containing a skin reacting gas. 36 grenades were found and they are now being checked further to determine what the deal with the grenades are. The grenades are of a 120mm type, and were found near Basra covered in plastic and buried. The grenades were leaquing a fluid which were first checked by the Danish and Icelandic team and checked positive for ABC chemicals, and a later British report seems to support the first test. More advanced tests are being taken now. According to AP, the grenades are most likely from the Iran-Iraq war.
Hardly an immediate threat to America and it's allies however.
http://www.dagbladet.no/nyheter/2004/01/10/388090.html