Easy enough mistake to make. No worries.
Well, I can't cite chapter and verse, but I can tell you that these religions must be protected and guaranteed religious freedom in a Muslim society. Sorry I can't be much help; I'm not a religious scholar.
The issue is entirely political and is mostly restricted to the Arab world+(for now) Iran. Opposition to Israel (both of the kick-them-into-the-sea kind and the c'mon-can't-you-just-toss-the-Palestinians-a-bone kind) is very popular across the Middle East, regardless of other political and religious views. For Arabs it's a matter of nationalist pride: as far as most Arabs are concerned, the Zionists stole Arab land to create their state. Even those of us with more nuanced views of the subject still regard the establishment of Israel to be an extremely shady and sordid affair. In the Arab world, a strong move against Israel is a guaranteed way to gain popularity with the people in the street. All the Arab governments are scared witless of their own people, and they don't like cracking down to keep hold of their power. So when they can, they make some noises about Israel. The opposition--including the Islamist opposition, like Hizballah--plays the same game. Attacking Israel is a very popular move for very good historical reasons that have virtually nothing to do with Islam.
Iran is a special case, because frankly, the Iranian people didn't feel very strongly about the Palestinians until after the Revolution. The situation today is rather different. The cause of the Palestinians has become useful propaganda for the Iranian government, for several reasons. First, because most Palestinians are Muslim, the government gets to paint itself as the supporter of Islamic causes everywhere. This in turn hopefully pulls Iranians towards a more Islamic identity rather than the more secular Persian identity that the Shah had promoted. Second, Israel is probably Iran's top strategic rival, especially now that Iraq has been crippled as a regional power. Israel's formidable air force and nuclear arsenal form the most serious and direct threat to Iranian security. So it makes sense to try and get the people whipped up about Israel. Getting the people angry about an outside issue keeps them from causing trouble at home--this is a big issue in Iran, because a majority of the population was born after the Revolution, and in that time the economic situation in Iran has been consistently terrible. It also makes sense because Israel really is the greatest threat to Iran (as much as we bluster, Iran knows that they're too important for the US to just bomb and not important enough for us to just invade).
You will be no doubt interested to learn that almost all Muslim governments aren't actually Muslim--they are instead secular. Most of them are dictatorships, but they do not support terrorism--in fact, most terrorist groups were formed to destroy these dictatorships. The people who assassinated Anwar Sadat in 1981 were part of the same group that Ayman al-Zawahiri, Osama bin Ladin's Number Two and the brains behind Al Qaeda, got his start in. The people who carry out terrorism against the West are actually trying to knock down their own governments at home, because the United States, and to a lesser extent the European countries, actively back these dictatorial governments, providing them with guns, aid, and plenty of baksheesh. Most terrorist organizations do not have any governmental support at all, because even the governments that would like to see their neighbors suffer a coup or something are too afraid that it would embolden their own Islamist terrorists (and I must emphasize: most Islamists are not terrorists) at home.
There is one significant exception to this rule: Iran. However, Iran doesn't back any organization that attacks Western targets: these groups tend to be radical Sunnis who hate Shiite Iran almost as much as they hate the West. Instead, Iran backs movements that mix political Islam with nationalism: Hamas and Hizballah are the most notable. Both started as (and Hamas still is) resistance movements against Israeli occupation (for Hamas, the Occupied Territories, for Hizballah, Lebanon). These organizations are used as tools of foreign and domestic policy: to keep Israel off balance and distracted (thus keeping its planes safely far away from Iran) and to keep the people of Iran distracted (thus keeping them from trying another revolution). Syria theoretically gets into this game, too, but the Syrians are working for the Iranians and can be safely ignored.
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