Fear that simulations were creating terrorists.

Documents given to The Australian show the inquiry was prompted by complaints from parents that background notes presented to the students gave positive descriptions of groups such as Hamas's Qassam Brigades and Palestinian Islamic Jihad.

Students were not told the groups are listed terrorist organisations and support for them is an offence under Australian law.

Somewhat related article from the Israeli perspective:
http://www.theaustralian.news.com.au/story/0,20867,20855151-28737,00.html