FUBAR - "fouled" up beyond all repair
SNAFU - Situation normal, all "fouled" up
We could trade the old stand-bys all day long, but I think we're looking for new or obscure military slang here. No offense intended, Mr. Plus.
I've always assumed that the Iraqis and other Mid-Eastern Muslims out there would take it as a mocking use of one of their religious terms
They probably would, but I've never heard it used when speaking to them, only when speaking about them with other Americans.