"The president has signed the Military Commissions Act, which he says is one of the most important laws passed during his administration. The law states that the military will be responsible for trying captured terror suspects. It works this way - a three-officer military panel will determine a detainee's status. If the person is deemed to be an enemy combatant, he can be held indefinitely. The military will also conduct trials for detainees accused of committing war crimes. If classified information is necessary, the detainee will not be able to see it, but he will get a summary of the evidence against him. Of course, a military lawyer will be provided to everyone charged. If convicted, the detainee cannot appeal. Obviously this is controversial - many liberals oppose the military justice system and want captured terrorists to be tried in civilian courts. One thing is very clear: President Bush believes terror can only be defeated by military means, and that if terror crimes are adjudicated in civilian courts we will lose the war. That is the crux of the issue."

Excerpts from Tuesday's installment of The Factor's interview with President Bush, beginning with the Military Commissions Act.

O'REILLY: Your administration has been accused of being fascist, violating human rights, ignoring the Geneva Conventions. It's been a fierce campaign against this policy. Why has it been so fierce?
BUSH: That's what observers of our society like yourself can help figure out. Look, after 9/11 I vowed to protect this country. And when we pick up someone on the battlefield we want to know what that person knows. And we can find information without torturing that person, and we have found useful information necessary to protect the American people. As you know, we picked up a fellow named Khalid Shaikh Mohammed. Intelligence folks suspect he was the person who masterminded the 9/11 attacks. I want to know what he knew in order to prevent another attack. Maybe there are some in this country who say, well they are not coming again and therefore all this is unnecessary. I believe they are coming again, and I believe it is the responsibility of the federal government to protect our people. And therefore we had a program in place that said we will question these people.
O'REILLY: Brian Ross of ABC reported that the CIA water boarded Mohammed. That is, dunked him in water, tied him down, and that broke him. Is that true?
BUSH: We don't talk about techniques, and the reason we don't talk about techniques is because we don't want the enemy to adjust.
O'REILLY: If the public doesn't know what is or is not defined as torture by the Bush administration, how can the public make a decision on whether your policy is right or wrong?
BUSH: What the American people need to know is that we've got a program in place to get intelligence from these people, and we've used it to stop attacks ... What's interesting about these votes that took place in the Congress is the number of Democrats that opposed questioning people we picked up on the battlefield. And I think that's an issue that they're going to have to explain to the American people.
O'REILLY: Let me read you what Hillary Clinton said about this bill that she voted against: "If enacted, this law would give license to this administration to pick people up off the streets of the United States and hold them indefinitely without charges and without legal recourse."
BUSH: I don't know who she's talking about, but this law will enable us to find people who would like to kill Americans - Al Qaeda and Al Qaeda affiliates - and be able to find out their plans and be able to protect this country. I have no idea who she's talking about.
O'REILLY: Do you think Hillary Clinton is soft on terrorism?
BUSH: It's very important for me to never question anybody's patriotism. I believe there's a group of people here in Washington, however, who have a different view of this war. They view it as a law enforcement matter. I view it as war ... and the American people have a choice to make coming this November. And I believe the choice is stark and clear, and I believe that my party and our candidates will be better positioned to put policies in place that enable us to protect the American people from an attack.

O'REILLY: The Taliban has obviously resurrected itself. Their sanctuaries are in Pakistan, and you recently had President Musharraf at the White House. Why can't Musharraf wipe these Taliban guys out?
BUSH: I had a very good discussion with both President Musharraf and President Karzai at the same dinner table. One of the topics we discussed was how do we deal with Taliban leaders who may be hiding in Pakistan, and the answer is good intelligence sharing. President Musharraf made the commitment that with actionable intelligence he will take care of the leaders of the Taliban.
O'REILLY: You really believe that? He hasn't done anything for years.
BUSH: That's not true, he's actually done a lot ... he understands it doesn't do his country any good to have extremists and radicals inside his country fomenting violence, whether it be inside Pakistan or outside Pakistan.
O'REILLY: I think bottom line is that this crazy insurgency by the Islamofascists, as I call them, is never going to end in our lifetime.
BUSH: I think this is the big ideological debate of the 21st century. That is extremists, Islamofascists as you call them, radicals aiming to topple moderate people. And it is a massive challenge for the free world, and for Muslims who want to live in peace. By far the vast majority of people want to have a peaceful existence ... I've been widely criticized for promoting liberty, but I believe it works as an antidote to the dark visions of these radicals.
O'REILLY: Some Muslims don't want democracy, they want to be in a theocracy, they want to be told what to do.
BUSH: Some do, but it's a small number compared to the vast majority of people who just want a peaceful life. They want to be able to practice their religion. This is not a struggle of religion, in my opinion. This isn't Christianity versus Islam ... I don't believe religious people kill innocent people. These are totalitarians who want to impose their vision on others and they use murder as a weapon to achieve it. The fundamental question facing all of the civilized world and facing nations in the Middle East is can we have systems in place and end up marginalizing radicals and extremists? It's really the call of this generation, Bill.

Guest: Congressman Charles Rangel

For an opposing view, The Factor turned to Democrat Congressman Charles Rangel of New York, a vocal opponent of the Military Commissions Act. "There's no question in my mind," Rangel declared, "that not only is the bill unconstitutional, but it was brought up on the eve of an election to give some feeling that the Republicans are tough on terrorism. Some of the things we've done at Abu Ghraib, some of the things we've done at Guantanamo, and some of the things we have no idea about what we are doing at secret camps around the world - is that America? We are creating so much hostility throughout the world that we're creating more terrorists." The Factor stressed that the water boarding of Khalid Shaikh Mohammed reportedly stopped attacks and saved American lives. "The only reason he gave up at least a dozen Al Qaeda associates is because they dunked him in water. Would you rather have thousands of people dead than dunk a guy in water? How would you get Khalid Shaikh Mohammed to give up his associates without coerced interrogation?"

Guest: Attorney Wendy Murphy

Attorney Wendy Murphy joined The Factor with a progress report on how America is protecting its children. She mentioned a worrisome new trend - suggestive Halloween costumes aimed at children. "Just seeing those gets me very nervous," Murphy declared. "The culture bombards kids with images of sexuality, especially little girls. And the most vulnerable population when it comes to rape and assault is teenage girls. Dressing your kids like that puts rocket fuel on the fire." The Factor placed much of the blame on parents. "I know parents who let their 9-year old girls go out with bare midriffs and nail polish and pierced ears. Maybe cowardly parents don't want to confront the situation, but there are other parents who think this is 'cool' and their kid will be popular if she dresses like Britney Spears or Paris Hilton."

Guest: Former Speaker of the House Newt Gingrich

According to a new report, Mexican drug cartels are better armed than Homeland Security officials. Fox News analyst Newt Gingrich called it one more reason to vote for his Republican party. "The answer is not to become weaker than President Bush, the answer is to become stronger. It's not to go towards a Dean-Pelosi strategy of weakness. I cannot imagine anything which liberal Democrats would do on the border that would make me more secure." Gingrich also commented on The Factor's interview with President Bush. "I don't remember very often seeing the president as comfortable and engaged. You managed to get him talking from the heart. Whether you like him or dislike him, this guy is telling you from his heart that this is what it takes to defeat people who want to destroy us. I thought it was very compelling."

Guest: Malcolm Lazin, Equality Forum

The Philadelphia School District has designated October "Gay and Lesbian History Month," which has incensed some traditional parents. Gay rights activist Malcolm Lazin claimed the goal is better education. "Ten or fifteen years ago there were people were against teaching black and Hispanic history. This is about teaching about gay and lesbian history and that's important. I don't think any parent should be able to dictate public education." The Factor offered an alternative that would benefit all children who are different. "Homosexuality is behavior - it is what you do, not who you are. I believe you have to protect gay children, and it's terrible that they are bullied in the schools. But that happens to fat kids and kids with bad complexions. Can't we have a 'tolerance' month for people who are different?"

Many of you commented on part one of The Factor's interview with President Bush. Some excerpts:

Ron Queen, Las Vegas, NV: "Bill, you asked the President tough questions and gave him time to answer. You will be severely criticized by liberals for this."

Ron Wirsing, Havre de Grace, MO: "Bill, you threw softball questions at President Bush. He is in complete denial and you let him get away with it."

Kim Chadwell, Stockton, CA: "Mr. O, you asked the tough questions that Americans want answers to. But you were respectful. Way to go."

Gill Daly, Bridgton, ME: "O'Reilly, you did not ask tough questions. Shame on you for not pushing for real answers."