"And now we have a show down in Najaf, a "war" between those loyal to their country and we, the Americans who can't stop the train wreck that's on it's way. Is this nihilism on their part and OURS?"

I suppose being loyal to their country [Iraq?] is using a holy mosque as a miltary fortress? I suppose being loyal to our country is refusing to face a trial in which you are accused of murdering another cleric? I suppose being loyal to their country is refusing to accept the reality that Iraq is now a democracy in many aspects and is moving towards a election which establishes a full democracy at "federal level". I suppose being loyal to their country is being a junior cleric ignoring a more senior cleric:
"Al-Sistani called the militias to leave Najaf immediately and hand over the city to the Iraqi government describing the presence of militias as illegitimate and that the presence these militias inside the shrine is desecrating its holiness.
Sistani had also stressed on the necessity to hold the elections according to the declared schedule saying that the results of the elections will decide who has the right to lead Iraq.
Sistani added “the coalition forces came and helped Iraqis to get rid of a brutal tyrant that murdered Iraqis and destroyed Iraq’s economy and they didn’t come to kill Muslims or attack Islam”.
http://iraqthemodel.blogspot.com/

I suppose being loyal to your country is killing Iraqi policemen and citizens who would like to live peaceful in their holy city. And I suppose being loyal is to be someone who only claim to fame is he is the son of a respected cleric that Saddam killed, who fights against the Coalition which is responsible for removing Saddam from power and enabling Saddam face the justice according to the will of the Iraq people.

Nihilism is the doctrine, that claims that there are no values- no right or wrong. No loyality or disloyality. No such thing as justice. No real difference between say, murder and jay walking or murdering and shaking someone's hand or saying "hello". Not only does Nihilism says God does not exist, but there really isn't a existance. Nihilism is a life of denial of everything. A true nihilism who is more a "realist", ignores the children who want to pour gasoline on a cat and lit it on fire. A true nihilism who has been radicalized is more active in seeking ways to bring about destruction. But a "true nihilist" wouldn't last long- suicide is merely having enough nerve. Instead the world is mostly composed of all these half-assed nihilists- too lazy, fearful, and stupid to understand anything.
The only reason nihilist has any "weight" is because ignorant people associate it with an ancient spiritual "movement" [see Buddhism- or actually, any of the great religions].