I heard that some high school teachers in the Dallas area were suspended for showing the video as well. Evidently it was voluntarily, students were able to choose whether they wanted to watch it or not. That wasn't good enough for some parents---they complained and there went the teachers.
I'll see if I can find a news link.
Here you go - here's a snippet from WFAA.com news site (You have to register to see the whole article. Moderators, feel free to remove if its not allowed to post from WFAA.com)
"Two Northwest High School teachers were suspended Monday after they showed students the videotaped beheading of American hostage Nick Berg.
Officials with the school, located in far north Fort Worth near the Texas Motor Speedway, are investigating why the teachers showed the tape to three classes. Officials said one teacher stopped the tape before the beheading of Berg occurred, but the other showed the complete video.
Students said another student downloaded the video from the Internet and brought it to school on a disk. The teachers then let students watch the execution as part of a history lesson...
...Counselors will be made available for students who saw the video. The teachers, who were not named, have been placed on administrative leave with pay."