We were talking about Babylon, and my Sunday School teacher mentioned that it was in Iraq and that Saddam Hussein had had plans to rebuild it, or had rebuilt it, she didn't know which.
Yes it was in Iraq. Here is a good map that placed ancient cities and a few modern cities in Iraq [link|http://oi.uchicago.edu/OI/INFO/MAP/SITE/Iraq_Site_150dpi.html|University of Chicago]
It no longer exists in any form. When it was a living city it was on the Euphrates but the path of the river has shifted in the area. In fact, when Babylon existed the Euprates and Tigris rivers did not meet before entering the sea.
I have no idea what your teacher was thinking for the second part though, unless they had been reading silly apocalypse literature that link Saddam Hussein to the antichrist. Babylon figures heavily in apocalypse liturature and is usually linked to an existing city, one that is considered corrupt and decadent.
Jay