Vandals daubed a road sign with a slogan urging coalition forces to kill Iraqi civilians.
Police launched an investigation after receiving complaints from offended members of the public.
Pamela Lee, of Twittens Close, Southwick, was horrified when she spotted the graffiti on the sign near her home.
It read: "The war is right. Kill all civilian Iraqis."
Mrs Lee said: "I found it really offensive and wanted it removed quickly.
"What really upset me was that whoever was responsible should want to kill ordinary Iraqi people who have done nothing wrong.
"I lived in Baghdad for three years when I worked at the British Embassy and made many friends while I was there.
"I have friends in this country who are refugees from Iraq and it is just incomprehensible anyone could have such feelings towards them."
Mrs Lee, 69, said she would rather Britain and the United States had found a more peaceful means of ousting Saddam Hussein.
However, she said now the war had begun she fully supported British troops.
The grandmother-of-two said: "I spent six years in the Army so I have such strong feelings for both sides. I felt very sad when I saw what had been written on the sign."
Police removed the sign and it is now awaiting forensic examination.
Officers will test it for possible DNA samples and fingerprints to see if they match any held on police records.
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