At the event, according to AMCHA, the GUPS students set up tables with stencils for making posters with images of known terrorists as well as with the words “MY HEROES HAVE ALWAYS KILLED COLONIZERS,” which students displayed in the campus square.
The event was covered by the SFSU newspaper, but they didn't mention the hate posters. The comments do, though.
One fan of GUPS put the photo above on Indymedia, with the ironic subhead "Rejecting normalization is not incitement to violence." Well, this is.
Pro-Israel Bay Bloggers has been all over the story. And they have plenty of other examples of incitement and hate at SFSU.
Amcha has a sample letter to send to the president of SFSU. The only way that these disgusting actions can be banned is if there is enough pressure. It would be a very good idea to spend a couple of minutes to write to President Wong and cc: the appropriate California State University and government officials mentioned in the Amcha link.
UPDATE: Israellycool has the background on the slogan.
Bob K. in the comments identifies the person holding the sign as Hamdi Bazian.