Whatever chances there were that this Mosque would get built officially ended with this news, even if no one will admit to it yet.
That said, the White House has dug in. The same Imam is on a State Department sponsored junket all throughout the Middle East. Here's what the State Department said about the comments.
"We are aware of those remarks," said State Department Spokesman P.J. Crowley. "I would just caution any of you that choose to write on this that once again you have a case where a blogger has pulled out one passage from a very lengthy speech, if you read the entire speech, you will discover exactly why we think he is rightfully participating in this international speaking tour."