The Danish newspaper Jyllands-Posten newspaper had every right to publish and say whatever they want about Muhammad. Every organization has the right to say whatever they want and people should be able to freely express their opinions and views about a person that is part of a religion. People do it every day when it comes to Jesus, so I don't see why writing something about Muhammad will be a problem.
Yes, the Danish paper was right to publish cartoons of Muhammad in 2005, because it was part of free speech. The cartoonist had something to say about current events and politics by publishing that cartoon. Even though it might have offended some people, he had a political point to make, and it was fair that he made that point, as long as he could deal with the criticism.
That is racist and that newspaper should have closed down! It had offended many people. And to all those saying 'it is free speech', does that mean I can make cartoons of the nasty treatment of Jews during the nasty Holocaust? "People do it to Jesus"- that is because in Christianity, you are enabled to draw Jesus while in Islam it is forbidden to draw any Prophet.