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Yellow cake makes a fairly decent "dirty" bomb even if it isn't the best material for a true nuke.. It can be spread a lot of ways to contaminate a rather large area, especially when you take today's EPA in to account..
We actually knew about the yellow cake long before invading.. It was one of the materials that the UN knew about and demanded it be surrendered.. It wasn't.. And that refusal was one of the reasons listed to support the invasion..
Yes, it is possible to use this as a WMD.. But it isn't really considered one of the "smoking guns" because everyone already knew about it.. Which sort of confuses me.. If you know he has WMD material, and you decalre that as a reason to invade, and you find it, and remove it, why doesn't it "count" as a WMD??
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