If I was an Iraqi leader, this is the kind of rumour you could circulate, to scare people out of mass surrenders. It sounds horrible, but is probably an Iraqi urban myth....
Think about the practicality...Iraqis in US uniforms are more likely to be shot and killed by their own people than surrendered to. It would be too much of a risk, just to be vindictive. it is a very effective story to keep your people in line, though and an indication of the brutality of the regime, if Iraqis buy it.
ozball