Wow! I shocked that they admitted it so quickly, I thought they would drag it out longer:

In the most recent in a series of online controversies to take on the mainstream media, a series of Web sites discredited a Reuters photograph of the fighting in Lebanon, forcing the news agency to issue an apology and remove the image from their archives.
[…]
Reuters’ head of PR Moira Whittle said that “Reuters has suspended a photographer until investigations are completed into changes made to a photograph showing smoke billowing from buildings following an air strike on Beirut. Reuters takes such matters extremely seriously as it is strictly against company editorial policy to alter pictures.”