Here is what Rosie said
O’DONNELL: …… I just want to say something. 655,000 Iraqi civilians are dead. Who are the terrorists?HASSELBECK: Who are the terrorists?
O’DONNELL: 655,000 Iraqis — I’m saying you have to look, we invaded –
HASSELBECK: Wait, who are you calling terrorists now? Americans?
O’DONNELL: I’m saying if you were in Iraq, and the other country, the United States, the richest in the world, invaded your country and killed 655,000 of your citizens, what would you call us?
I dont' believe that she thinks our troops are terrorists, however, she sure as heck implies it in that quote. So, how did Fox spin it? They used the words directly out of Rosie's mouth.
Maybe she should be a bit more clear with what she is saying so that she doesn't have to worry about people taking it the way she did not intend it. Maybe she should be the one to explain what SHE meant instead of expecting other people to do it for her. She made the mess, she should clean it up.