Based on my research, it looks like the verbiage in the article Jack quotes is badly fractured by non-English speakers, in a way which unfortunately gives the knee-jerk deniers some traction.

To put it in plainer English: The US has admitted to using the MK77 incendiary device, but has tried to nitpick its way out by maintaining that it's not really napalm because its chemical formula is a bit different. The MK77 differs from napalm about as much as different brands of gasoline with trademarked additives differ: Same jellied kerosene with a polymer extender.

The US is also extensively using white phosphorus weapons in Iraq, and some people seem to confuse the two, both being incendiary devices with the similarly ugly quality of being hard to put out while they're burning up people. Phosphorus because of its innate chemical nature that thrives on water, napalm through the deliberate device of jelling the kerosone so that it clings to skin.

Ridiculing the notion of "napalm that doesn't burn clothes" may be a satisfying jape, but the truth may be that eyewitnesses were describing the effects of white phosphorus:

Effects of exposure to WP weapons

Incandescent particles of WP cast off by a WP weapon's initial explosion can produce extensive, deep (second and third degree), painful burns. Phosphorus burns carry a greater risk of mortality than other forms of burns due to the absorption of phosphorus into the body through the burned area, resulting in liver, heart and kidney damage, and in some cases multi-organ failure. [3] These weapons are particularly dangerous to exposed personnel because white phosphorus continues to burn unless deprived of oxygen or until it is completely consumed, in some cases burning right down to the bone. In some cases, burns may be limited to areas of exposed skin because the smaller WP particles do not burn completely through personal clothing before being consumed. According to GlobalSecurity.org, quoted by "The Guardian", "White phosphorus results in painful chemical burn injuries" [4] .

Wikopedia

The various assaults on Fallujah have been extensively documented, including the use of white phosphorus in both operations. US soldiers have written firsthand accounts of their use of white phosphorus in Fallujah, and an offical Pentagon spokesman has confirmed it. (Wikipedia)

There's plenty here that's real and verifiable.