Kim Jong-il I doubt has any intentions of firing that missle at any target.
Whenever he pulls shit like this, its because he wants something. Intelligence reports from North Korea are showing that there's a famine going on there, again. The last one in the mid 90s killed 3 million people at least. I imagine Kim just wants more food, more oil, something.
However if there's an invasion into North Korea, I don't doubt that Kim will fire off every nuke as a last stand.