Back in the days of the Shah, the US sent top-of-the-line jet fighters to Iran. Iran paid through the nose for these.
No entirely Iranian crew , however, was allowed to pilot these: there was always a US or an ISRAELI pilot in the cockpit. This was seen quite rightfully as an insult to Iranian pride.
Ahmedinejad could actually give a sh*t about whether the Holocaust ever happened. Were there 5,999,999 Jews killed? 6,000,001? 3,000,000? 9,000,000? The fact is that the vast majority of the Jews and all of those who were adults when WWII began are dead now.
What this guy is doing is rattling the chains of ther Israelis and the Americans and even the Europeans. To his fellow Iranians, the message is "We are Iranians, Persians, and have nothing in our history to apologize for. If there was a Holocaust, it was not caused by Iranians, a peaceful people who have not started a war for a thousand years. Outrages done to the Jews are logically not a justification for robbing, torturing, discriminating against and starving our Palestinian brothers."
Iran seeks to prevent an attack by the US, who clearly has plans, some have said nuclear plans, for attacking Iran. Ahmedinejad is not crazy: his various campaigns are designed to unite Iran against a possible attack and/or invasion bu either the US or the Israeli (who would do this by proxy, as they attacked Lebanon recently), and to convince the US about what a really bad idea this would be.
The fact that Israel has been exceedingly unjust with the Arabs of the WB and Gaza is one thing that all Iranians (Persians, Azeris, Arabs, Turkmen and Balushis agree on. Think of this as the Republicans rallying against homosexual marriages and flagburning.
Basically, there is much truth to the assertion that a "two-state solution" would be very much like the Boer proposal of a prosperous White Republic of South Africa and a weak group of "native Homelands". The basic difference here is mainly that the Israelis are a majority for the moment in what is now Israel, and the Boers were a minority in the RSA.