#2: Indeed, an MSU member sent an e-mail to the MSU list concerning whether graduating students should wear sashes which say "shahada" (the Arabic word for suicide bomber).
Shahada is actually the Arabic word for "witness" (I think), and it means someone who has taken the vow to become a Muslim. Some Palestinian groups have used the word "Shahada" to describe suicide bombers, but that is not its primary meaning.
"Shahada" is the term used for the public profession of faith made by Muslims. It's structure is actually rather similar to the Nicene Creed (although the content is MUCH different).