So it seems as if the Iraqi police are dowsing for bombs and firearms, as covered in the New York Times and James Randi. They are doing this using a device they've purchased to the tune of \$80 million, and it works no better using a coat hanger!
I think the best quote which summarizes the danger and the bad thinking is:
Major General Jehad al-Jabiri is head of the Ministry of the Interior’s General Directorate for Combating Explosives. “I don’t care about Sandia or the Department of Justice or any of them,” he says. “Whether it’s magic or scientific, what I care about is it detects bombs.”
Of course, if it hasn't been shown to detect bombs by science, the other option is irrelevant.