[mnehring]

Runners up in the photo category-
Katie Couric's miracle diet.

Reuters smoke.

..and then their was Piers Morgan (Celebrity Apprentice fame) who was sacked from the Daily Mirror for staging fake torture photos.
(still looking for the photo, but here is the culprit)

[andyandval]

How about this one...

NYTimes Photo Fakery

Residents displayed what they said was damage from U.S. airstrikes. Correction appended Jan. 17, 2006: A caption Saturday on NYTimes.com with a photograph of damage from a U.S. airstrike in Pakistan misidentified an item in the photograph. Agence France-Presse, the agency that provided the photograph, later changed the caption to report that the item appears to be an unexploded artillery shell, not a piece of a missile from Friday's attack.