Do people really think "muslin" has something to do with "Muslim"?

My boss just floored me with a doozy of an assertion: he had me change someone's password, which contained the word "muslin", because "you can't go calling people Muslims in this day and age".

Yeah, jaw, meet floor; floor, meet jaw.

Anyway, so I looked up the etymologies, and sure enough, while both ultimately derive from Arabic words, that's as close as the relationship comes. But my boss was adamant: he believes that, all facts aside, people associate "muslin" the fabric with "Muslim" the religion. I certainly have never encountered such an association. Has anybody else?

I would definitely be niggardly in my vocabulary around this homo sapien. Otherwise, you might get into a niggling argument with him and end up jaculated out on your coccyx. Then you might have to switch careers. You could end up a thespian or a miner looking for cummingtonite. You might not even be able to find a job and resort to a life of crime. Which would, most likely, result with you in the penal system. I doubt you'll find any muslin sheets there.

Many many fabrics are named from the place of origin and many of these in turn are from the Arabic countries. Muslin does NOT come from the word Muslim but rather from the Iraqi town of Mosul. The fabric Gauze came originally from Gaza. Damask is named for Damascus, Syria. And from Europe we have Denim from the french, "De Nimes" {from [the city of] Nimes)

It appears to be relatively common. See http://eggcorns.lascribe.net/forum/viewtopic.php?id=57 and Google search for "muslin and muslim" (double whammy—both the results and the text at the top: "Did you mean: muslim and muslim").