I don't think Phelps is crazy... I do think he's probably vendictive, mean, and souless though.
As Ripley has said in the past, and I think she has a good point... Phelps protesting is having the reverse effect and making people who otherwise would not care, be sympathetic to the cause and people Phelps is protesting against. Like she said in another thread, she's half compelled to send him a thank you card and tell him to keep up the good work!

Phelps is too smart to really believe in what he's doing... there's another motivation behind it... the one I came up with seems to be the only one that makes sense at this point.
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I find it interesting, that he waits til someone is dead to critisize them. Here we have poor Heath Ledger, who has died and cannot defend himself, and they rant about him, but live and well Jake Gallenhal is not being touched at all. I find that not only cowardly, but underhanded.
And the fact, that yes Fred Phelps does seem like he's sick, but he's dragging most of his family into this.
This is a really good example of what I'm talking about... You're right, Phelps doesn't go after Gyllenhal for one reason... it's because he IS alive, but it's not cowardly... it's smart on Phelps part. If Phelps went after someone alive, he'd be liable for slander, harassment, and other things. He was a civil rights attorney once upon a time, he knows the law.