The most recent attempt to paint Obama as a closet Muslim in based on a Jersualem Post article which reported on an interview Malik Obama gave to Israel Army radio. The article has since disappeared from the Jersalem post website, but the Google cache is here.
Barack Obama's half brother Malik said Thursday that if elected his brother will be a good president for the Jewish people, despite his Muslim background.
In an interview with Army Radio he expressed a special salutation from the Obamas of Kenya.
Leaving aside the multiple interpretations of what constitutes a "Muslim background", there's still really nothing there. See below the fold for more.
Note the lack of quotemarks in the article, suggesting the reporter paraphrased Malik's remarks. It is likely that the "despite his Muslim background" phrase was added by the reporter.
The Jewish newspaper Haaretz reported on the same interview here.
The half-brother of U.S. Democratic presidential candidate Barack Obama, Malik Obama, told Army Radio on Thursday that Obama would make a good president for Jews.
Malik Obama, a Muslim who resides in a small village in western Kenya, also requested to send a special blessing to the Jewish people around the world from the Obama family in Kenya.
I included the second paragraph of each article to show the slightly different wording used by each of the reporters. No mention of a Muslim background, but still no quotes either, so we still don't have a primary source. I have been unable to find a transcript of the interview, but I did find an article from 2004 where Malik talks about his famous brother here:
It was in the United States, in 1985, that he first met his 43-year-old half-brother Barack.
"He was best man at my wedding and I was best man at his," said Malik, who likes to point out that his younger brother's name is actually Barack Obama II, because their father was the original Barack Obama.
Their paternal grandfather, Onyango Hussein Obama, was one of the first Muslim converts in Nyangoma-Kogelo, Malik said. However, not all of his descendants are Muslim, Malik added. Barack is Christian.
Malik specifically points out that Barack is Christian. Also, since the two first met in 1985, Malik would be in no position to judge what religion, if any, Barack was raised in.
FWIW, Israel Army radio is the same outlet that reported on an imminent U.S. strike on Iran a few weeks ago.
[edited to add link to diary about Brit Hume's reporting on this subject]