According to an article in Israel Insider:
Jay McKinnon, a self-described Department of Homeland Security-trained document specialist, has implicated himself in the production of palpably fake Hawaii birth certificate images similar to the one endorsed as genuine by the Barack Obama campaign, and appearing on the same Daily KOS blog entry where the supposedly authentic document appears.
This article makes one strong point (which no one is really disputing): someone can fake an authentic looking Hawaiian COLB image using Photoshop that would easily fool the casual observer.
The misleading part of the story is that the writer makes the claim, by demonstrating certain document artifacts in common between his “blank birth certificate template” and the Obama image, that his template was the basis for Obama’s. I haven’t flyspecked what McKinnon did, but it should be obvious to anyone that any argument that demonstrates that McKinnon’s template was used to create Obama’s image works equally well in showing that Obama’s image was used to create McKinnon’s template.