The image displayed above was taken from Worth1000, a site devoted to hosting contests in which entrants show off their skills at manipulating photographs using digital editing programs. This particular picture was an entry from one of the site's "Archaeological Anomalies" competitions, in which entrants vied to create the most realistic archaeological hoaxes: "Your job is to show a picture of an archaeological discovery that looks so real, had it not appeared at Worth1000, people might have done a double take."
The basis for this image was a real photograph of an excavation site near Hyde Park, New York, where scientists were working to uncover the skeleton of a mastodon. Someone then linked the altered version of the image used for the Worth1000 contest entry with a fictitious backstory based on the Islamic account of the Prophet Hud, creating the hoax quoted above — which spread especially far after being published as a seemingly real news article on the web site of The New Nation, described as "Bangladesh's Independent News Source."
A May 2007 blog entry entitled "Bhima's son Gadotkach like skeleton found" (and attributed to a 22 April 2004 Times of India article) repeated the hoax, with the locale switched from Saudi Arabia to northern India and additional skeleton photos included.