Did Our Own Government Conspire with Terrorists to Perpetrate the 911 Attacks?

In the above video, Fox News reports that Anwar Al Awlaki dined at the Pentagon within months (about two months after, I have heard) of the September 11th attacks.  Al Awlaki is now not only implicated in the September 11th attacks, but was also allegedly (according to the FBI) a conspirator in the "underwear" bombing, the Fort Hood incident and other terrorist attacks.  This "Al Qaeda region commander" is at the top of the list of the FBI's most wanted and he is the only American citizen on the CIA's "Wanted Dead of Alive" list.  This seems nauseatingly reminiscent of President Clinton's missed opportunity to nab Osama Bin Laden.  So what is really going on here?  Here are two possibilities:

1. The Pentagon itself conspired with terrorists to perpetrate the 911 attacks and possibly other Islamic terrorist attacks.  Or at least they were complicit.

2. The Pentagon is so incompetent, that you should not believe anything that it says.  If they say, "Our intelligence reports show...", you should not believe a word of it.  Our government is not competent to do anything to stop terrorism and you should not believe anything that any President from either party says about smoking guns, WMDs, supposed threats from Iran, plots to hijack aircraft, or plots to blow up the Super Bowl.  You should not believe anything they say about terrorist attacks being prevented with the help of roving wiretaps, waterboarding, or other violations of the Bill of Rights because they're idiots!  And you should especially not believe anything they say about the September 11th attacks.

3.  Al Alawki didn't actually do any of those things, but the Pentagon/CIA/FBI is implicating him just to justify their existence, since they don't seem to be doing anything right.

4. Al Alawki is an excellent chef and Pentagon officials just couldn't resist passing up his offer to serve them roasted lamb with a side of couscous.

5. Both Fox News and the Associated Press are lying about whole "dining at the Pentagon" incident.  In this case, you should believe anything THEY say.

Which one do you think is true?  If anybody reading this can think another possibility (other than some combination of the above), I would be glad to hear it.