An Islamic bookstore in Birmingham, which was today cordoned off by police in a massive anti-terrorism raid, was exposed by The Times just days after the July 7 bombings as selling 'incendiary works' glorifying suicide bombing and anti-Semitism.

Maktabah, in Stratford Road in the Sparkhill district, was revealed by an article on July 23, 2005 to have stocked "a selection of disturbing literature" including one book, by a British Mujahid, hailing guerrilla warfare in Kashmir and saying that "terror works and that is why the believers are commanded to enforce it by Allah".

The store was also revealed to sell a DVD, 21st Century CrUSAders, which shows injured and dead children in Iraq and the Palestinian territories, describes Britain as a "police state" and distorts Tony Blair’s face into that of Satan.

Footage of the 9/11 attacks is shown, with a poem that says: "Suddenly their storms arise to demolish their fortresses and proclaim to them we shall not stop our raids until you abandon our lands." Al-Qaeda leaders are shown in the DVD speaking from a cave, while pictures of Jews praying are subtitled: 'Brothers of pigs and monkeys.'

A sequence of "recent war footage from Iraq" shows vehicles and aircraft being bombed, some with dead bodies. It ends with a gleeful Iraqi rebel declaring: "We love death just as they love life".

Today, no-one was answering the phone when The Times Online telephoned the bookstore, as anti-terror police ringed the building.

But in the July 23 Times article, the Maktabah shop owner, who declined to be named, said: "The books you have highlighted are easily available at 90 per cent of Islamic bookshops around the country. We have a duty to sell books that express a variety of viewpoints. All of the publications are legal and have been checked by our barrister and our media specialists."

Asked about the CD showing the apparent glorifying of attacks against coalition troops in Iraq, he added: "I cannot see why anyone would have a problem with the sale of this DVD. Yes it contains disturbing footage of the Iraq war but so do Fahrenheit 9/11 and news shows like Panorama.

"It is a documentary about what happened in Iraq, about America’s crusades. The film is biased but when you see footage of children who have died in war it is hard not to be."

Today, an employee of Sparkhill Freight and Travel, which is opposite the bookstore, said police had cut through the shop's closed shutter to enter the building. He said: "This is shocking. You don't know your neighbour now, but we've never had any problems with them."