The Pentagon denies the story. Scott Horton says it's true (read his whole post):

These descriptions come on the heals of a British report yesterday about the photographs that contained some of these revelationsand whose credibility was questioned by the Pentagon.

The Daily Beast has obtained specific corroboration of the British account, which appeared in the London Daily Telegraph, from several reliable sources, including a highly credible senior military officer with first-hand knowledge who provided even more detail about the graphic photographs that have been withheld from the public by the Obama administration.