From "The Life of Muhammad" (page 744 in my scan)
The deputation of B. Hanifa came to the apostle bringing with them Musaylima b. Habib al-Hanafi, the arch liar (889). They lodged in the house of d. al-Harith, a woman of the Ansar of B. al-Najjar. One of the scholars of Medina told me that B. Hanifa brought him to the apostle 946 hiding him in garments. The apostle was sitting among his companions having a palm-branch with some leaves on its upper end. When he came to the apostle as they were covering him with garments he spoke to him and asked him (for a gift). The apostle answered: 'If you were to ask me for this palm branch (T. which I hold) I would not give it to you.'
A shaykh of B. Hanifa from the people of al-Yamama told me that the incident happened otherwise. He alleged that the deputation came to the apostle having left Musaylima behind with the camels and the baggage. When they had accepted Islam they remembered where he was, and told the apostle that they had left a companion of theirs to guard their stuff. The apostle ordered that he should be given the same as the rest, saying, 'His position is no worse than yours,' i.e. in minding the property of his companions. That is what the apostle meant.
Then they left the apostle and brought him what he had given him. When they reached al-Yamama the enemy of God apostatized, gave himself out as a prophet, and played the liar. He said, 'I am a partner with him in the affair,' and then he said to the deputation who had been with
According to S. his name was al-Mundhir and he got the name of 'The Deceiver' because he misled (gharra) his people in the apostate rising.
him, 'Did he not say to you when you mentioned me to him "His position is no worse than yours" ? What can that mean but that he knows that I am a partner with him in the affair ?' Then he began to utter rhymes in saj' and speak in imitation of the style of the Quran: 'God has been gracious to the pregnant woman; He has brought forth from her a living being that can move; from her very midst.' He permitted them to drink wine and fornicate, and let them dispense with prayer, yet he was acknowledging the apostle as a prophet, and Hanifa agreed with him on that. But God knows what the truth was.
I thought I remembered this guy being killed, but I don't see that mentioned. Also, is the Arabic quoted here any good? Is it eloquent?