There is now another version of this story about a Dartmouth student who received a visit from Homeland Security after requesting an original version of Mao's Little Red Book. The latest version takes place at University of California/Santa Cruz and mentions History Professor Bruce Levine. I emailed Levine to see if he could verify the story, but my email was the first he'd heard about it. He was a bit amused, as his specialty is Civil War history, and curious about his name got tacked on to the story. ALA's Public Information Office is digging into the story as well. More details as they become available!
Update: 12/19 22:45 GMT by R :Jessamyn contacted the reporter of the original, Dartmouth story, and he's trying to confirm what he heard from the sources. What's clear is that the UCSC version of the story is a total rip-off of the Dartmouth story. Here's a cached page explaining that the UCSC story was bogus, and removed at the request of one of the professors mentioned in the story.