The beheading was a utterly dispicable act of barbrism, intended not only to scare us, but also to weaken our governments. The full implications of which have yet to be played out.
It is worth noting however this act is only one of many similar acts commited in recent years. The main difference is that the tape is now in the public domain, and can be seen by anyone with internet access.
Whilst the world is still a dangerous place, I do not believe it is anymore dangerous than it was before Nicholas Berg's death. Terrorism is mean't to strike terror into our lives. Whilst it only kills or injures a tiny minority its objective is to scare the majority.
We can't lock ourselves away in a bunker. Prepare by all means, but lets not run and hide - that would imply they are winning this terrible war.
May he rest in peace.
Martin