It's utter bullshit. Someone ought to tell Penn & Teller about this one. Seems all the crap in france about it being banned in schools, and all the stories you hear about women refusing to take them off for driver's licenses; and how it's such an affront to Islam...all made up, and not that long ago.
Have a read:
http://www.townhall.com/columnists/GuestColumns/Taheri20030819.shtml