Barcelona v Milan

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Can someone please explain to me why on earth Milan's goal was disallowed?

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from bbc:

"There was instant drama when Shevchenko headed home, but referee Markus Merk ruled the goal out, presumably for a foul."

on a related note. i know 1 referees name: markus merk, because in like the 10 or so games ive watched, he has made an absouletely terrible call to essentially ruin 3 of them. This game, him sending messi off in his debut for having another player pull him down from behind, and the deportivo vs porto where he gave a red to a guy for playfully kicking his friend on the other team. after even the player on the other team was pleading for it to not be a red merk gave it anyways. i cannot understand how someone with this poor of judgment could be called one of the best referees there is. he just seems like he an absouletely miserable, bottom of the barrel ref yet gets a lot of credit, whats the deal?

rj