If you haven't heard about this, he's been covering two points. First, that various terrorist groups are planning on making a series of big attacks in the U.S., with schools being preferred targets, and urging lots of muslims to, when the attacks happen, make their own attacks: cab drivers running over infidels, and so on. Second, he figures they hope for people here to react by burning mosques, attacking muslims, calls for internment, etc., so they can use that as propaganda to say "See! It's a war on Islam by the unbelievers!".
I don't doubt the first. On the second, I see two problems with how 'we must act with great restraint to avoid giving them a propaganda victory'. First, it really doesn't matter what we do, it'll be painted by the things as 'war on Islam'. If a bunch of terrorists attacked a school and fled into a mosque, and burned it down while fighting the police, it'd be painted as "See! The crusaders burn our holy places!" If the police caught them, they got a fair trial and received a proper islamic punishment(say, beheading the public square*), they'd still scream that our killing the terrorists means "We are victims of the war on Islam! Death to the infidels!"
Second is the mindset of the things and the muslims around the world who support them, and there's a lot of them. Let's say the things attack our schools, and we act with great restraint. They'll paint it as a demonstration of weakness on our part, and lots of muslims will believe it. "See, we rape and kill their children and the crusaders still do not have th courage to deal with us!"
So this may well be a 'lose-lose' scenario so far as many of the muslims around the world. Doesn't matter what we do or how we act, they'll still claim victimhood and justification for horrible acts.
And by the way: there are a lot of mosques in this country that are actively working with and for the terrorists. They gather money for them, preach in support of them, actively aid them: that makes the people in those mosques the enemy. That's putting it bluntly, and will undoubtedly cause various amounts of pants-wetting and hysteria, but there it is. If you actively work to assist the enemy, you ARE the enemy. And the fact that we don't act decisively against those doing this, is seen as another sign of weakness on our part. And they're right.
*I would add 'and buried in pig crap' to the sentance.