Teribus - According to this article (2003), the Answar Islam group were not a threat to the U.S. but to the Kurds. Their goal was to set-up a Taliban type govt. in Iraq.

http://www.globalsecurity.org/wmd/library/news/iraq/2003/10/iraq-031030-22e685dc.htm

Since they were allowed by Saddam, how does this make them a terrorist group?

They became terrorists (working with the insurgency) after the U.S. invaded Iraq.

The U.S. invasion has created more terrorist groups than it has destroyed.

If you have other info, please give me a source.