Materials:
Several actors not afraid of making a BIG scene.
Access to flyer making materials.
One good HTML programmer
One Airhorn.
As many black trenchcoats as you can find.
At least 20 cartons of cigarettes.
One prepared speech on the evils of labelling and the use of language for hate.

Staging:
Create a fake racist group. give it a powerful sounding name like Purity's Hammer or something similar. Have your HTML Actor make a website for it. Make it similar to any of the racist sites and homophobe sites, but do not give out hate info. No need to disseminate hateful info. Make it vauge. Submit it to search engines. Get flyers made for this group and post them all around the target area announcing a 'Goodold fashioned Fag Burning'.
Announce it on the 23rd of a month on the steps of City Hall at 5 pm. Use a tag line like 'We'll teach those fags not to mess with us!' Have your actors place them in the gay districts.
Anonymously tip off local news to the 'Fag Burning' occuring on the steps of City Hall.
Hand out packs of cigarettes to all actors involved. Don't forget lighters.
If you have a contact in a gay rights group, notify them as to what's really going on. you might get several hundred actors :)

Performance:
Stage your actors all around City Hall in trenchcoats. The lead actor gets as close to the steps of city Hall as possible. The news crews wouldn't pass up an opporotunity like this. They'll be there.

At precicely 5 pm, the lead actor pulls the airhorn out of his jacket and sounds it. all actors proceed to light up a cigarette. Go to the news crews with a prepared speech on how language can be used to stereotype and label. You'll have a huge news audience. Announce that this has been a Guerilla Theatre action by 'Insert the name of your Theatre cell here'.

(For those not in the know, Fag is a british slang term for a cigarette)