I would imagine if he had for example set off a bomb coated in DU, the explosion would have caused casualties, but the radiation would not have. From what i've seen DU is simply nowhere near radioactive enough.
You're right though, it would cause a good amount of fear, especially when the news networks begin pondering what might have been if it was a maniacal muslim with real radioactive waste from Pakistan's or Iran's nuke program..
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