Okay, I received an email fro MERMI informing me that they had addressed this concern on their website with a follow-up notice.

The original dispatch that I posted the link above for is titled:
Special Dispatch Series - No. 1315, October 11, 2006
Islamist Websites Monitor No. 5

So, I located the "follow-up" that they mentioned in the email.
Special Dispatch Series - No. 1319, October 12, 2006
Follow-Up on the Islamist Websites Monitor No. 5

Unfortunately, this is all the follow-up has to say.

Follow-Up on the Islamist Websites Monitor No. 5

"In response to readers' comments to MEMRI regarding the content and details mentioned in the report "Apple's 'Mecca Project' Provokes Muslim Reaction," it should be emphasized that all content published by MEMRI is translated directly from the primary source. MEMRI's mission is to present material as originally written and read in the Arab world, that would otherwise go unreported."

Still no mention of their source and no link to confirm it. So, I will continue researching this and if I find anything else I'll you know.

well you know what they say give them aninch they take a foot