Islam promotes "Jihad" to spread Islam by the sword and and kill all unbelievers:

The word Jihad stems from an Arabic word which means "to strive." Other related words include "effort," "labor," and "fatigue." Essentially Jihad is an effort to practice religion in the face of oppression and persecution. The effort may come in fighting the evil in your own heart, or in standing up to a dictator. Military effort is included as an option, but as a last resort and not "to spread Islam by the sword." The word Jihad stems from the Arabic root word J-H-D, which means "strive." Other words derived from this root include "effort," "labor," and "fatigue."

Essentially Jihad is an effort to practice religion in the face of oppression and persecution. The effort may come in fighting the evil in your own heart, or in standing up to a dictator. Military effort is included as an option, but as a last resort and not "to spread Islam by the sword" as the stereotype would have one believe. The Qur'an describes Jihad as a system of checks and balances, as a way that Allah set up to "check one people by means of another." When one person or group transgresses their limits and violates the rights of others, Muslims have the right and the duty to "check" them and bring them back into line. There are several verses of the Qur'an that describe jihad in this manner. One example: "And did not Allah check one set of people by means of another,the earth would indeed be full of mischief;but Allah is full of Bounty to all the worlds"-Qur'an 2:251 Islam never tolerates unprovoked aggression from its own side; Muslims are commanded in the Qur'an not to begin hostilities, embark on any act of aggression, violate the rights of others, or harm the innocent. Even hurting or destroying animals or trees is forbidden. War is waged only to defend the religious community against oppression and persecution, because the Qur'an says that "persecution is worse than slaughter" and "let there be no hostility except to those who practice oppression" (Qur'an 2:190-193). Therefore, if non-Muslims are peaceful or indifferent to Islam, there is no justified reason to declare war on them.

The Qur'an describes those people who are permitted to fight: "They are those who have been expelled from their homesin defiance of right, for no cause except that they say,'Our Lord is Allah.'Did not Allah check one set of people by means of another,there would surely have been pulled down monasteries, churches,synagogues, and mosques, in which the name of God is commemoratedin abundant measure..."-Qur'an 22:40 Note that the verse specifically commands the protection of all houses of worship. Finally, the Qur'an also says, "Let there be no compulsion in religion" (2:256). Forcing someone at the point of a sword to choose death or Islam is an idea that is foreign to Islam in spirit and in historical practice. There is absolutely no question of waging a "holy war" to "spread the faith" and compel people to embrace Islam; that would be an unholy war and the people's forced conversions would not be sincere.

Suicide Bombers
"And fight in the way of Allah those who fight you. But do not transgress limits. Truly Allah loves not the transgressors."
- Qur'an, Surah Al-Baqarah (2:190)
The dangerous escalation of violence in the world is disturbing to all people of conscience, from September 11 to the Middle East battles, and other random acts of violence perpetrated at innocent civilians.

In Islam, several things are clear:
Suicide is forbidden. "O ye who believe!... [do not] kill yourselves, for truly Allah has been to you Most Merciful. If any do that in rancour and injustice, soon shall We cast him into the Fire..." (Qur'an 4:29-30).

The taking of life is allowed only by way of justice (i.e. the death penalty for murder), but even then, forgiveness is better. "Nor take life - which Allah has made sacred - except for just cause..." (17:33).

In pre-Islamic Arabia, retaliation and mass murder was commonplace. If someone was killed, the victim's tribe would retaliate against the murderer's entire tribe. This practice was directly forbidden in the Qur'an (2:178-179). Following this statement of law, the Qur'an says, "After this, whoever exceeds the limits shall be in grave chastisement" (2:178). No matter what wrong we perceive as being done against us, we may not lash out against an entire population of people.

The Qur'an admonishes those who oppress others and transgress beyond the bounds of what is right and just. "The blame is only against those who oppress men with wrongdoing and insolently transgress beyond bounds through the land, defying right and justice. For such there will be a chastisement grievous (in the Hereafter)" (42:42).

Harming innocent bystanders, even in times of war, was forbidden by the Prophet Muhammad (peace be upon him). This includes women, children, noncombatant bystanders, and even trees and crops. Nothing is to be harmed unless the person or thing is actively engaged in an assault against Muslims.
The predominant theme in the Qur'an is forgiveness and peace. Allah (God) is Merciful and Forgiving, and seeks that in His followers. Indeed, most people who spend time on a personal level with ordinary Muslims have found them to be peaceful, honest, hard-working, civic-minded people.
"O ye who believe! Remain steadfast for Allah, bearing witness to justice. Do not allow your hatred for others make you swerve to wrongdoing and turn you away from justice. Be just; that is closer to true piety."
- Qur'an, Surah al-Maidah (5:8)