That's bullshit, though. Mass gatherings of any kind are a public safety issue, and an organized nation-wide protest with anarchist overtones is hardly the least likely to result in violence and property damage. For police to not gather and share information on what to expect would be stupid.
You may get tons of warm fuzzies thinking about OWS, but it still involved thousands of angry people gathering in one place, which is not something any reasonable person expects the police to be wholly ignorant of.
Similarily, Westboro Baptist Church protests are public safety issues, because they provoke large angry gatherings. How does the FBI handle that? Do they collaborate with corporations and local police departments to systematically discredit, propagandize against, and wage psychological warfare against the WBC?
Or do they do striaghtforward police work, provide a detail of officers at protests and counterprotests just in case anything gets out of hand, and generally behave reasonably?
There is a very far divide between "wholly ignorant" and "actively subverting." There is also a far divide between that and "sharing information on what to expect."
See also: undercover police excesses in the UK and US, including having children with activists to maintain cover.
Or do they do striaghtforward police work, provide a detail of officers at protests and counterprotests just in case anything gets out of hand, and generally behave reasonably?
According to the documents Naomi Wolf (your link!) cites, this is pretty much what happened. Try reading them for yourself instead of ignorantly complaining about "propaganda".
That is something I would expect, as the grandparent indicates, in the USSR. I don't expect it in the United States.