Just remember what CIA did to Iranian premier Mosadeq and their oil minister, Dr. Fatmi because they wanted more control over their oil and what the Shah did to the Iranian people for the next 25 years. That should shed some light on why they are angry at us. Angry people say outrageous things, particularly if they are weak, things they wish they could do, but have no power to do.  
I believe that it was Simon Weisenthal who, when asked what was the most important lesson he learned from the Holocaust, replied, "When someone says they plan to kill you, believe them."

I don't see this as an empty threat. But what can we do about it? It seems we're at the limit of our abilities in Iraq.

I read that some folks in the defense department are saying, "The war in Iraq is over, and Iran won."

Well said, George. What can we do about it indeed. I think that anyone who says that they have a solution to the problems in the middle east is fooling his/herself. There are NO SIMPLE SOLUTIONS!! Only hard work, co-operative work, humanitarian work etc. will bring the slighest glimpses of peace. Mr. Bush and his simplistic ideology have taken us up the proverbial waterway with no means of foward progression(oil-powered or otherwise.

Iran is looming dark on our horizon. My fear is that our gov't will be hell bent on a nuclear option for Iran without the availability of troop numbers. We're spread very thin. Hold on tight, this rides gonna be bumpy.