Its so funny that everytime a crackpot makes a fool of himself he immediately says he was misquoted, taken out of context or mistranslated.
It is not the first time Iran has said things like this. The first time I think was in 2005 when several experts reviewed the statements.
Reviewing the controversy over the translation, of the October 26 2005 statement, New York Times deputy foreign editor observed that "all official translations" of the comments, including the foreign ministry and president's office, "refer to wiping Israel away".
Using Farsi translations from Dr. Denis MacEoin, a former lecturer in Islamic studies in the United Kingdom, wrote that "the Iranian president was not just calling for “regime change” in Jerusalem, but rather the actual physical destruction of the State of Israel," and asserted that Ahmadinejad was advocating the genocide of its residents as well.
So there!!!