This story originally caught my eye because a University of Texas associate professor was involved. Since I haven’t read the book, and since I’m not very familiar with Muslim culture, I’ll refrain from making my own judgment, but you can get the general facts and see both sides (I think) in this Wall Street Journal op-ed piece:
You Still Can’t Write About Muhammad
I will say that I feel sorry for the author. It doesn’t seem like she had any bad intentions, and this must be a huge disappointment, not to mention a bit scary.