Telegraph, £90m anti-terrorism project is fanning the flames of extremism , 9 Mar 09 "A new generation of Muslims is being radicalised using the very Government funds that are supposed to be fighting the problem, a new report by the Policy Exchange think-tank says."
The report link is here:
Policy Exchange, Shiraz Maher & Martyn Frampton, Choosing our friends wisely: Criteria for engagement with Muslim groups "Choosing our friends wisely: Criteria for engagement with Muslim groups is an authoritative analysis of Preventing Violent Extremism (PVE), the £90 million centrepiece of the government’s effort to stop the radicalisation of young Muslims."
PDF link is on this page.
Background on Policy Exchange (Wikipedia)
I haven't read this report yet.