"They should allow us to demolish the American embassy because they have blasphemed against our holy Prophet."

"They" = the police in Islamabad, Pakistan. The line is spoken by a student protester, who also says:

"Our policemen are not any better than the Americans because they are trying to stop us. They are in the same league as them, they are heretics like them...

"The police are also becoming an accomplice of blasphemers.... "

According to an al Jazeera article linked by Drudge (who uses the headline "US Embassy in Pakistan Under Seige"). More from al Jazeera:

In Muzaffarabad, the capital of Pakistani Kashmir, over two hundred protesters set fire to an effigy of Barack Obama, the US president.

"We will make known it by burning the effigy of Obama and his allies that a blasphemer deserves to be burnt to death," said Maulana Mehmood ul Hassan Ashraf, secretary general of Jamiat-e-Ulema-e-Islam.