After consulting with Brian from snapped shot, seeing the high res photos he was able to get, I was pretty much convinced he was correct in that the missile was real, as was the launch. I suspect that the UPI did a tiny bit of airbrushing and/or enhancement to make the missile look a bit sharper. And, here is more evidence that the missile launch was real
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Ynet News has a photo from the AFP, looks like the same missile without enhancement, however
Iran declared Wednesday that it had test-fired a new generation of surface-to-surface missiles, named Sejil, with a 2,000-kilometer (1,200-mile) range, capable of reaching Israel and US bases in the Gulf.
However, Western experts told the London-based Times it was probably just another name given to the Shahab 3 missile which had been test-fired on previous occasions. Â
So, real missile, probably old missile type repackaged.
On another note, it appears that Iran no longer wants unconditional, direct talks with the US. Heh! See Hot Air.