Here's what the Wiki says about it:
"False Newscast Controversy
In January 2009, video[1] surfaced on YouTube of multiple takes and outtakes of a Gulf War newscast by Jaco for CNN purported to come live from Saudi Arabia. The video includes a pan of an apparent indoor studio as well as off-air talk wherein Jaco comments, "Oh, I love this country so much," while an off-camera voice adds, "...guys just don't have a clue."
Jaco threatened legal action in a letter[2] to Mike Flynn, editor of the PunchingKitty.com website, which carried the YouTube video. In his letter, Jaco responded to the YouTube video's allegations of false journalism:
First the facts of the case: our coverage was on the roof of a hotel and military facility near the intersection of the two main runways at the Dhahran Air Base, Western Province, Kingdom of Saudi Arabia. The plywood background was erected as a guard against sand and wind storms. The clowning around on the video is just that. We used black humor to deflect the tension of covering SCUD missile assaults."
- But this whole thing could be resolved if some other news organization would just go back and take a look at some passports, etc. I don't think CNN would go as far as to fake such a broadcast. Jaco was pretty respected (again, I looked to Wikipedia for the reference) before this video.