I'm going out on a big limb here, I think. But I am highly suspicious that this is an actual captured US soldier.
First of all it appears they have painted his face black or something. And remember this story the other day.... British troops reported uniforms had been stolen in Basra, Iraq.
If the US military identifies this soldier, I will take down this post immediately and issue an apology.
But I'm betting that the terrorists are now so desperate for a "show" that they will even resort to beheading one of their own that they dressed up to look like a G.I.
UPDATE: Drudge compares AP photo of "soldier" with a toy G.I. I guess I may be right after all....
UPDATE 2: The Corner has the original website of the "terrorists" holding (as NRO puts it) the "action figure." How pathetic.