From what little I've seen translated out of the Qu'ran and from lessons of it and Islam (among others) in world studies, I don't see it as actually meaning that, though religious texts are usually up for complete (mis)interpretation, even by those who speak its original language, just due to the passage of time.
For example, if I'm remembering right, Muhammed respected Jesus, a Jew (as yet another spoken to by God, not as the Messiah or Son of God), hardly indicating a command to hate all those of other beliefs or ways of life. What I remember of it is basically yet another interpretation of God (the same God as in Judeo-Christianity), combining faith and rules for daily life in a single document.
I've never sat down and read any of the translated copies of the Qu'ran (just like I don't sit around reading the Bible or Torah for fun), so I can't attest to anything on a larger scale than the tiny glimpse I've had (which of course can be just as "tainted" by (mis)interpretation).
In any case, I highly doubt that the intention Muhammed had was for his followers to hate the rest of the world and yell "ji'had" and start killing everyone else. Allah is a vengeful god, and those who die in a true ji'had for him will be rewarded in heaven, but just saying you are on ji'had doesn't make it so.
In summary: He's a radical idiot, in my opinion.
