Sounds like pure anti-Catholic drivel. I've read extensively on the Crusades, from both Catholic and anti-Catholic perspectives and have never even heard of this before. One thing I do know, however, is that Muslims in Jerusalem persecuted, tortured and murdered Christians regularly.
A favorite Islamic torture for Christians was to open their bellies with a knife, pull out their bowels and nail them to a stump. Then they would whip the Christian, forcing him to walk away and disembowel himself. This atrocious, satanic practice was one of many reasons for the Crusades. When Western Europeans heard of this torture it, needless to say, incited them to battle against Islam.