Yes, it is true that she used her status of an American citizen, so as other international members of ISM did.

In this case, it was hypocritical for her to burn a mock U.S. flag.

Because Israeli army cannot use force against American or European citizents, it cannot shoot rubber bullets at them, e.t.c.

A foreigner who enters a war zone should expect to be caught in crossfire.

But the way, was there any official response from the "buldozer" side?

Read the Wikipedia article: http://en.wikipedia.org/wiki/Rachel_Corrie