Quote Originally Posted by luinrina
I've looked up and read quite some reference material on the Assassins (most powerful around the time of Saladin/Salahadin [no idea what's his real name in English >.>]). If I remember that correctly, the "usual" people have seen the capabilities etc. as something similar to witchcraft. Did they fear it to the point that Allah would let them burn in Hell if they followed it or even believed in it?
The Hashashin themselves were an Islamic sect, though other Muslims certainly viewed them with dread and would probably have considered them heretical. As usual Wikipedia has a a pretty good article, though you should take anything you read about the Assassins with a large grain of salt -- there really isn't a lot of historically verifiable information about them, so much of what is "known" about them is myth and legend. (Kind of like ninjas in Japan.)

And how is it today? Is witchcraft and wizardry seen as something demonic? How do you believe would a Muggle Muslim family treat a child that turns out to be a wizard/witch?
Witchcraft is definitely considered Satanic in Islam. On the other hand, most Muslim cultures still practice witchcraft and observe many superstitious (originally pagan) rituals -- they just relabel it and pretend it's actually a prayer to Allah or something. (Note that Christians and Jews and, indeed, every major religion, does the same thing, but "witchcraft" is probably more common in Muslim countries, as more Muslims actually believe in it than in most Western countries.)

A child who starts making objects fly, transforming things, and so on, would probably freak out a Muslim family. (Who wouldn't be freaked out?) How they'd react would depend on how strict their religious beliefs are as compared to how much they love their child. The reactions would probably range from rationalization (convincing themselves that these powers are a gift from Allah) to outright condemnation of the witch and outcasting, or even an attempt to kill him or her. (While certainly not true in all cases, I'm afraid the latter outcome would be much more likely if the child is a girl.)

It depends a lot on where they are from, though. An educated family from one of the wealthier countries would probably react more positively than peasants from a poorer region.