Answering my own question..... http://www.eonline.com/News/Items/0,1,8950,00.html
Excerpt: Dino Ignacio, the first to digitally pair Bert with evildoers as a lark, denies any affiliation with the Bert-bin Laden image. "I am as shocked to see it as we all are," Ignacio says. "I haven't updated the site 'Bert Is Evil' since 1998 after it won the Webby awards...I am assuming someone in Bangladesh found the image on the Internet and found it amusing and decided to put it on a poster collage of bin Laden. I don't think it's a hoax. I think its a freaky example of reality imitating art." Ignacio isn't the only one shocked. Sesame Street producers aren't finding the Bert-bin Laden pictures very funny. "Sesame Street has always stood for mutual respect and understanding," read a statement from the Children's Television Workshop. "We're outraged that our characters would be used in this unfortunate and distasteful manner. The people responsible for this should be ashamed of themselves."
