Yes, the FBI is looking for terrorists - domestic terrorists! Are they likely to find the next Timothy McVeigh by harassing people who are protesting the war? Somehow I think not! The official line is, "What we're concerned about are injuries to convention participants, injuries to citizens, injuries to police and first responders." Basically, if you show up at a protest and a cop skins his knuckles punching you, well, they want to stop that by getting you to not protest.
Go, destruction of First Amendment rights! Hello, McCarthy America II!
And yes, the build is not working, which is why I'm reading the New York Times (looking for pictures from the Florida hurricane).