Guest: Stephen Moore, Wall Street Journal

"There's no question that chaotic illegal immigration has damaged this country. While it is certainly true that most illegal aliens are good people, the federal government has failed to uphold the law and has put all Americans at risk. Enter the Wall Street Journal, which editorialized that Republicans got clobbered partly over illegal immigration. The paper criticized the 'GOP restrictionist message' and advised the president 'not to follow Lou Dobbs, Bill O'Reilly and the editors of the National Review magazine.' It's partly my fault the Republicans lost? Talking Points is simply amazed. It's hard to believe most Americans, even Hispanics, would object to the feds stopping illegal aliens and drug dealers from entering the country, requiring all aliens already here to register, and demanding that employers stop hiring illegals. Are those things unreasonable or demagogic? So what is the Wall Street Journal talking about? The bottom line is this - Republicans lost because of Iraq and because they didn't fix the illegal immigration fast enough, and I had nothing to do with it."

The Factor welcomed The Wall Street Journal's Stephen Moore, who explained his paper's position. "We want a more open border and a more generous legal immigration system so more people could stay. A lot of them are doing the kind of 'grunt' work Americans don't want to do, and illegals are coming today for the same reasons they've always come. The point of our editorial was political - that the most strident anti-immigrant Republicans were the ones who lost." The Factor disagreed with Moore's analysis. "You pinheads have got to wise up. The reason the Republicans took it on the chin was that they didn't solve the problem. They had six years and they didn't do jack!"

Guest: Ellen Johnson, American Atheists

Some best-selling books contend that belief in God is foolish, while high profile individuals such as Ted Turner and Elton John denounce people of faith. Atheist Ellen Johnson argued that religion is a malign force in American politics. "Religious people's politics are anti-progressive and anti-enlightenment, and more people are becoming less religious. Because of that, more people are turning to the government to prop up religion. Legislation is being introduced all the time to benefit the religious." The Factor reminded Johnson of polls showing that Americans are among the most religious people on Earth. "People aren't going to church as much as they used to, but this is still a very religious nation. You may be enlightened, but I believe you're a bigot. You're bigoted against people who believe."

Guests: Parents Debra and Daniel Dunham

Corporal Jason Dunham, who died in Iraq while saving the lives of at least two fellow Marines, will receive the Congressional Medal of Honor, the nation's highest military award. His parents told The Factor about their son and his service. "We have four children," Debra Dunham said, "and we couldn't afford to pay for all of them to go to college. Jason chose to join the Marines so he could take advantage of the GI Bill. He was very proud to wear the uniform and I'm very proud of Jason." Daniel Dunham agreed that Jason embodied Marine ideals. "It's about the closeness of the Marines and their brotherhood, about giving your life for someone else. Jason died so people could have the freedom of their speech." The Factor praised the Dunhams and their late son. "The Congressional Medal of Honor is your son's legacy, and it's an amazing achievement. We honor him and appreciate his sacrifice."

Guest: Body language expert Tonya Reiman

As Senator Hillary Clinton gave her victory speech last week, her seemingly proud husband Bill looked on. But body language expert Tonya Reiman observed that other feelings were involved. "I noticed a lot of patting going on, which demonstrates a lack of affection. He still feels like the dominating force between the two of them." Reiman also evaluated the meeting between President Bush and incoming Speaker Nancy Pelosi. "When Nancy started to talk about how they could work together, he leaned back and closed his legs, indicating he doesn't agree with what she has to say. She was much more comfortable than him, and she was the power player." Finally, Reiman analyzed Donald Rumsfeld's body language as he stood next to his successor Robert Gates. "Rumsfeld used all the nervous gestures and had a nervous grin across his face. He didn't want to be there and he was very uncomfortable in that situation."

Guests: Fox News contributors Michelle Malkin & Kirsten Powers

Now that Nancy Pelosi has endorsed the aggressively anti-war John Murtha for Majority Leader, Fox News analysts Michelle Malkin and Kirsten Powers debated whether the Democrats are already drifting to the left. "These folks cannot help themselves," Malkin declared. "Pelosi is being true to her ideological far-left roots, and the rest of the leadership is doing nothing to restrain themselves. The top three items on the Democratic agenda are going to be obstruction, obstruction, and obstruction." Powers disagreed, saying Democrats will follow the will of the people. "They believe the message is that American people want to get out of Iraq as soon as possible. The leadership is going to have to work with conservative Democrats and be moderate. They're going to have to show they can get things done." The Factor expressed surprise at Pelosi's quick action. "She comes right out of the chute and endorses John Murtha. What happened to moderation? This is playing to their base and their money people, but behind the scenes they know they have to at least present a moderate face to the country."

Guests: Author Peter Shankman & Julie Reem, Wal-Mart

After the much-debated "war on Christmas" in 2005, some retailers have apparently been infused with a new Christmas spirit, encouraging their employees to return to traditional greetings. Wal-Mart's Julie Reem explained her store's change of heart. "We did make a change because last year our customers told us saying 'Merry Christmas' was much more meaningful than 'Happy Holidays.' We always listen to our customers, and we've encouraged our employees to greet people with whatever glad tiding they wish." Public relations expert Peter Shankman advised stores to use a wide variety of greetings. "Say 'Merry Christmas,' say 'Happy Hanukah,' say everything." The Factor reported that other stores are following Wal-Mart's lead but at least one retailer, Best Buy, is again avoiding the "C" word. "I don't understand the holdouts. To tell your employees we're not going to say 'Merry Christmas,' that is suicidal."

Your e-mails covered a variety of recent segments. Some excerpts:

Dave Bacigalupo, Sacramento, CA: "Mr. O'Reilly, your anger over late-term abortion has you spinning like crazy. There are many people who truly believe that a woman is not a reproductive factory and, until the baby is born, only she has the right to decide its fate."

Stephanie Hamilton, Bedford, TX: "Mr. O'Reilly, I am the mother of a 3-month-old baby and am horrified by the brutal murder of ten-week-old Jason Midyette. I am disgusted that DA Lacy has taken no action. Please, don't let up."

Troy Von Roem, Boulder, CO: "Hey, Bill, are you aware that the Midyette family owns much property here? If you don't stay on this case, nothing will be done."

Dr. Joe Varallo, Brigantine, NJ: "'Culture Warrior' should be required reading at all American colleges."

Deborah Barron, Yorkshire, England: "Bill, how is it that anyone who you consider to be left of center is a 'nutcase'?"