Is what is taught under the term "Radical Buddhism" consistent with Buddhist values? Recently, so-called "radical Buddhists" like the monk Wirathu from the 969 Buddhist Nationalist movement in Burma, incited unrest and preached violence against minorities like Muslims. (See, for example, Special Report: Myanmar gives official blessing to anti-Muslim monks.)

Is there any part of Buddhist teaching or literature that supports these views or is it like a "wolf in sheep's clothing"?
According to my understanding (in Theravada tradition) and with the context of your question (Violence in the context of "radical Buddhism"), there is no room for any form of violence. Buddhist teaching does not encourage violence by any means even in solving human conflicts and social problems. 

For example in Dhammapada there are several verses discourage the violence acts. 

Verse 129:  


  All are afraid of the stick, all fear death. Putting oneself in another's place, one should not beat or kill others.


Verse 130: 


  All are afraid of the stick, all hold their lives dear. Putting oneself in another's place, one should not beat or kill others.


Verse 131: 


  He who seeks his own happiness by oppressing others, who also desire to have happiness, will not find happiness in his next existence.


Verse 132:


  He who seeks his own happiness by not oppressing others, who also desire to have happiness, will find happiness in his next existence


In fact Buddha teach that the sensual desire is the main cause for creating dispute and violence. 

Ref: 
http://www.tipitaka.net/tipitaka/dhp/verseload.php?verse=129
http://blogs.dickinson.edu/buddhistethics/files/2010/12/Deegalle.pdf