The gear was definitely down as this picture will confirm:
http://avherald.com/img/aires_b737_h...d_100816_4.jpg
From what I'm reading, sounds like they are looking at either a microburst, windshear or downdraft that caused it to land short of the runway by about 260 ft. The landing gear and engines where ripped off at the threshold of the runway. Initially, it was also reported that they where struck by lightening but now, one of the pilots says this was not the case.