Zizek on Crossdressing to the Sound of Music

Although Zizeks accent was strong and it was hard for me to clearly hear some of his points he was trying to make, he was trying to talk about the metaphors of the sound of music by referring to it as a "cheap shot." He says the the Nazis were impersonating the jews all along and that the Jews were taking over politics, banking, and ultimately the whole world. Basically, that the Nazis wanted to be like the Jews. He uses the term "cross-dressing" to explain how the Nazis wanted to look and have control over the Jews. I was very confused by the video clip, but i do belive there is some relevance to the art world today.

1. What role did this musical have in terms of WW2?
2. What kind of Nazi propaganda is still alive today?
3. Are many people offended by the Sound Of Music?