I remember seeing it on snopes: http://www.snopes.com/photos/space/eyeofgod.asp
The Eye of God
Claim: Photograph taken by the Hubble Telescope shows the ‘Eye of God.’
Example: [Collected on the Internet, 2003]
Origins: This is a real photograph of the Helix Nebula, although it’s technically not a single photograph but rather a composite image formed from several photographs taken by NASA’s orbiting Hubble Space Telescope and a land-based telescope at the Kitt Peak National Observatory near Tucson, Arizona.
This image was NASA’s “Astronomy Picture of the Day” for 10 May 2003. The picture’s “Eye of God” appellation appears to have been a title coined by an admirer of the photo due to the nebula’s resemblance to a human eye, not something designated by NASA.