Let XX be a Deligne-Mumford stack and let XX \to X be a coarse moduli space. Suppose that X is smooth. Is XX smooth? If not, what is an example? What if XX is of finite type over C (the complex numbers)? What are conditions we can put on XX to make this true?
The answer is yes, a singular DM stack can have a smooth coarse space. Let U=Spec(k[x,y]/(xy)) be the union of the axes in A2, and consider the action of G=Z/2 given by switching the axes: x→y and y→x. Then take XX to be the stack quotient [U/G]. This is a singular Deligne-Mumford stack (since it has an etale cover by something singular), but its coarse space is A1, which is smooth.
I think if the coarse moduli space is smooth, so is the DM stack, because XX --> X is a gerbe, which is always smooth (since smoothness can be checked fppf locally on X, and B(G/X) is smooth over X). A stack (or a morphism of stacks, not necessarily representable) is defined to be smooth if one can find a presentation which is smooth over the base. And if it is smooth, then any presentation is smooth. That's why I got confused on Anton's example. Maybe someone can explain this to me. Thanks in advance.