I just saw a followup to this
story, which claims that Kurdish forces recently captured a secret shipment of C4 plastic explosives and possible chemical warheads. The follow up that I saw on Fox TV said that this looked like the makings of an al-Qaeda attack, not an Iranian operation. Also, it said that the Kurdish forces were trying to resell the weapons for a profit, and that the incident had not been reported to the Coalition Provisional Authority.
This kind of chemical attack could completely destabilize the entire region, not just Iraq, but also Iran and Turkey. The TV report I saw today said a chemical attack could easily kill thousands if successfully launched in Bagdahd or any other major city. If it is proved that Iran, which is already in major political turmoil was involved in any way, we would have no choice but to respond militarily, which would only make things worse. Also, the Kurds in Northern Iraq could easily try to push, either militarily or politically, for an independent state, which could also destabilize either Turkey or Syia.
I don't know why this story hasn't gotten any press, but it only underscores that Bush has taken a state that had no terrorist activity and created a huge security risk for both the United States and the entire Middle East.