SYNONYMS
deva-dviñäm—of those who were envious of the devotees of the Lord; nigama—the Vedas; vartmani—on the path of; niñöhitänäm—of the well situated; pürbhiù—by rockets; mayena—made by the great scientist Maya; vihitäbhiù—made by; adåçya-türbhiù—unseen in the sky; lokän—the different planets; ghnatäm—of the killers; mati-vimoham—bewilderment of the mind; atipralobham—very attractive; veñam—dress; vidhäya—having done so; bahu bhäñyate—will talk very much; aupadharmyam—subreligious principles.

TRANSLATION
When the atheists, after being well versed in the Vedic scientific knowledge, annihilate inhabitants of different planets, flying unseen in the sky on well-built rockets prepared by the great scientist Maya, the Lord will bewilder their minds by dressing Himself attractively as Buddha and will preach on subreligious principles.

PURPORT
This incarnation of Lord Buddha is not the same Buddha incarnation we have in the present history of mankind. According to Çréla Jéva Gosvämé, the Buddha incarnation mentioned in this verse appeared in a different Kali age. In the duration of life of one Manu there are more than seventy-two Kali-yugas, and in one of them the particular type of Buddha mentioned here would appear. Lord Buddha incarnates at a time when the people are most materialistic and preaches common-sense religious principles. Such ahiàsä is not a religious principle itself, but it is an important quality for persons who are actually religious. It is a common-sense religion because one is advised to do no harm to any other animal or living being because such harmful actions are equally harmful to he who does the harm. But before learning these principles of nonviolence one has to learn two other principles, namely to be humble and to be prideless. Unless one is humble and prideless, one cannot be harmless and nonviolent. And after being nonviolent one has to learn tolerance and simplicity of living. One must offer respects to the great religious preachers and spiritual leaders and also train the senses for controlled action, learning to be unattached to family and home, and enacting devotional service to the Lord, etc. At the ultimate stage one has to accept the Lord and become His devotee; otherwise there is no religion. In religious principles there must be God in the center; otherwise simple moral instructions are merely subreligious principles, generally known as upadharma, or nearness to religious. (Srila A.C. Bhaktivedanta Swami Prabhupada. Srimad Bhagavatam 2:7:38. text and purport.)

http://www.vedabase.com/
 

As usual there is minor controversey over informations that are found, and due to contextual reporting over vast areas of time confusion often arrises. Actual controversy is very minimal, usually it's our linited vision and experience that causes it due to immaturity, etc. So we are not trying to introduce conflicting ideas here, rather we are trying to see the overall picture and conlusive understanding of who is who, and why it is said to be so or otherwise. What stand you take on the issue that is not contested.

"This verse shows that Lord Buddha was an incarnation of the Supreme Being who would appear in Gaya, a town in central India. Nevertheless, some historians may point out that Buddha, Siddhartha Gautama, was actually born in Lumbini, Nepal, and that his mother was Queen Mahamaya. Therefore, they might fell that this verse is innacurate. But Siddhartha became the Buddha after he attained spiritual enlightenment during his meditation under the Bo tree in Gaya. This means that his spiritual realization was his second and most important birth. Futhermore, Siddhartha's mother, Queen Mahamaya, died several days after Siddhartha's birth, leaving him to be raised by his grandmother, Anjana. So the prediction in the Bhagavatam is accurate."(Stephen Knapp. 1997. THE VEDIC PROPHECIES: A NEW LOOK INTO THE FUTURE", page 4.)

Where seeming controversy enters is for instance the Book of Samskara, page 27, says: "This is the Buddha we all know, namely Sakya Muni, who took birth 563 BC in Kapilavastu (now in Nepal), as the son of Queen Maya devi. This Buddha is not the avatara described in the Srimad-Bhagavatam as the son of Anjana, born in the province of Gaya (Bihar)(S.B. 1.3.24), who taught the original Buddhism. Unfortunately, Sakhya Simha Buddha is now considered THE Buddha, although he was just a scholar with some inner realizations who later spread atheistic and nihilistic philosophies."

In reading "Vaisnava Vijaya: The Life History of Mayavadism" by Srila Bhakti Prajnana Kesava Maharaja and there he argues that there are two Buddhas. He bases his argument primarily on the fact that the Bhagavatam mentions the birthplace and parents of the Visnu-avatara Buddha and that these differ from those of Siddhartha Buddha (or Sakya Singha Buddha). Visnu-avatara Buddha was born in Gaya; Siddhartha took birth in Kapilavastu, Nepal and went to Gaya for enlightenment.
 The author argues that Sankaracarya deliberately made the two Buddhas out to be one-and-the-same. Although, interestingly, he says that references to a Buddha in Visnu Purana, Vayu Purana, Garuda Purana, Skandha Purana, and Devi Bhagavata "without an exception [...] are all only referring to and mentioning Sakya Singha and not Visnu Avatara Buddha." So either the Puranas are also confused, or they are prophecysing a mundane--yet highly influential--philosopher. There's a precedent for the latter, I guess, in Canakya's mention in Twelth Canto of the Bhagavatam.
 On page 24, the author states: "Our revered gurudeva, Srila Prabhupada Bhakti Siddhanta Sarasvati Gosvami revealed that Sakya Singha Buddha was merely a vastly learned person who had attained some inner realizations." We also recall reading years ago in Satsvarupa Maharaja's "Journals and Poems" an account of Maharaja's preparations to visit Japan. He was reading about Buddhism but was informed by someone (HH Bhakti Caru Maharaja) that Srila Bhaktisiddhanta Saraswati Thakura considered the Buddha of modern Buddhism to be different from Visnu-avatara Buddha.

In the tradition of Madhwacarya, Sri Vadiraj Tirtha says:

OM srI bhuddhAya namaH, OM srI kalkIne namaH

buddhAvatArakavi baddhAnukaMpakuru baddhAJNjalau mayi dayAm.h  |
shauddhodanipramukha saiddhAntikA sugama bauddhAgamapraNayana  |
kruddhAhitAsuhR^itisiddhAsikheTadhara shuddhAshvayAnakamalA  |
shuddhAntamAMruchipi maddhAkhilAN^ga nija maddhAva kalkyabhidha bhoH  || 32||

There was a time, when the whole world (kaliyuga) was full of divine culture and vaidic (sacred) environment and at the same time many demons (asuras) were also born and started following the divine culture and learning divine knowledge.  Because of this dharma started decaying (spoilt) in their hands.

During that time for the king of Shakya by name Shudhodhana a baby was born. It is understood that Sri Paramathma in the form of this baby started talking and preached that this world is void (shunya, empty) and all things which are happening are all miseries.  This is suppose to be Bhuddha philosophy. (Sri Hari who is in the form of Baby has preached this).

In order to prove this philosophy is true to the people Sri Hari has swallowed all the weapons which devataas has attacked to the baby.  After seeing these wonders and these incidents the King Shuddodaka and his followers started believing the new philosophy and started practising the same, by leaving aside the vedic philosophy.

After sometime the Paramathma who was in the form of baby has disappeared and Shuddodaka son appeared again.  Shuddodaka son grown up as Bhudda started preaching Bhudda philosophy which Paramathma has publicised previously.  Even in Devaloka (adobe) Sri Paramathma has preached devataas (demi gods) the real essence of Bhudda philosophy which he has preached as Bhudda in this world.  Sri Paramathma preached demi gods the essence of Bhudda philosophy which is publishised as 'Prashanthavidya' which even Shuddodaka's son Bhudda and his followers cannot understand this philosophy.

By this prayer the saint Sri Vadiraja is praying Sri Hari who is in the form of Bhudda to be kind to him by doing bhuddanjali.

Sri Vadiraja is praying Sri Hari who is in the form of Sri Kalki as one who is destroying (killing) bewildered enemies and one who is wearing (holding) sword and shield and sitting on top of the pleasant horse. His body with all organs of the body are shining like splendour and Sri Vadiraja is praying that he is his own person who has to protect him.

NOTE: The original preaching of Bhudda philosophy was preached and publisised by Sri Narayana in the form of Bhudda. The teachings are meant in two ways. The original meaning was told to demi-gods or devataas by Himself in deva loka (adobe).  But the sinful asuras or demons had taken (understood) His teaching with wrongful meaning and started practising the same by blaming the vaidic dharma. Due to this the Paramathma (Lord Narayana) will incarnate to get love from everyone, from the Asuras (demoniac) to Devataas (demigods and devotees), this has been foretold in Bhagavatha prathama scanda chapter 32 shloka 24., refered to below as Bhagavata Purana 1:3:24.

In order to attract the Asuras who are enemies of devataas Sri Hari will incarnate as Bhudda as son of Jinana in the place called Gaya in the land of Magadha. This has been told in Mahabharata Tatparya Nirnaya Chapter 32 shloka 139.

Further, it has also been told that after completing 1000 years of Kaliyuga when all the devataas who were there in that yuga reached adobe and one who is killed by (destroyed by) Rudra by name Tripurasura was reborn in this world. At that time even Sri Vedavysa has already disappeared from our vision and the divine culture of Vaishnavaism was existent only by removing all faulty practices. At that time even demons had the opportunity to learn divine knowledge. But devataas and Paramathma did not like the idea of demons gaining divine knowledge. All devataas went to the ocean of milk where Sri Hari is residing and prayed him to bless them the solution for the above scene. During the same time in the place called Gaya (land of Magadha) Tripurasura was born to Shuddodana or Jinana. Paramathma disappeared the new born child and incarnated as a child.  When Shuddodaka started doing ritual for the new born baby, the baby started smiling. They all stunned by the happening and the baby started preaching the new siddhanta called Bhudda sidhanta. Because of the prevailing situation ie divine culture they all did not believe the new philosophy, Paramathma remembered (called) his devataas and those devataas started launching different weapons on the new born baby. But that baby swallowed all the weapons like trishula etc and even when Vishnu attacked the baby with his discuss (chakra), even that the paramathma in the form baby made it as its seat and sat. On seeing the wonders of this child, Shuddodana and his followeres started believing and accepted the new philosophy by leaving divine culuture which they were following. After that the Paramathma disappeared from there and preached the real meaning of the new philosophy to the devataas, but demons were attracted by this new preaching and started following the same.

Even before this incident there is mention in Bhagavatha that Bhudda manifested earlier to attract Tripurasura's wives.

The Bhudda who was born during 3000 AD is therefore accrding to him, not the incarnation of Sri Narayana. Goutama Bhudda is one who has publicised the Bhudda philosophy which was preached by Sri Narayana as a child. It should be assumed that Goutama Bhudda is not the manifestation of Sri Narayana (Madhusudhan Rao. 24th June 1997. Madhva Cyber Sanga.)(Acharya Saanur Bhima Bhattaru. 1995. Sri Vadiraja Virachita Sri DashAvatAra Stutih. Published by Sri Parimala Samshodhana and Publishing Mandira Nanajangud - Bangalore)