"It's a good time to think about what went wrong and what went right in 2006. The absolute worst was Iraq. I believe the USA tried to do a good thing in that country, tried to bring freedom to those people and establish a nation that would be an example to other Middle Eastern countries. So far we have not succeeded in doing that, even though we have liberated millions of people. We have 3,000 dead Americans, we've spent billions, and the terrorists are still killing people. So that is the big negative. On the positive front, the economy remains strong, most of us have comfortable lives, and the culture war is turning our way. The Factor, of course, is right in the middle of the culture war and we've had a good year. 40 out of 50 states now have Jessica's Law or a variation. Because of The Factor's aggressive coverage of loopy judges, other judges all over the nation have gotten the message. We also dealt with a number of other bad guys this year. O.J. Simpson got what he deserved, scorn. Air America's bankrupt. Christmas has made a big comeback from the secular assault against it. That's all good, and we're happy we could help. So overall 2006 is a mixed bag. 2007? We're ready for the fight."

Guest: Donald Trump

Rosie O'Donnell and Donald Trump are engaged in a war of words that has reached unprecedented depths. O'Donnell mocked Trump's marital infidelities and advised him to "sit and spin," while Trump ridiculed O'Donnell's weight, looks and lesbianism. Although O'Donnell declined an invitation to appear, Trump told The Factor his side of the story. "She said I went bankrupt," Trump complained, "but I never went bankrupt. If you look at her performance on The View today, it was a disaster. Rosie was an absolute mess, and you know why? Because she's concerned I'm going to sue her and take a lot of money away from her, and she probably can't afford it. Rosie is a bully." The Factor urged Trump to take the high road. "She smears and slimes you, she started it. But calling her 'pig face' and getting into her sex life makes you look bad. Don't do any more personal attacks."

Guest: Political analyst Dick Morris

Looking ahead to the presidential race of 2008, political analyst Dick Morris predicted dirty tricks galore, most likely perpetrated by Hillary Clinton. "The Democratic race will be a filthy race. Hillary Clinton's m.o. is to hire private detectives to go after the personal lives of her opponents. One of the things that caused me to break with Hillary was when she hired private detectives to go after four women who accused Bill of infidelity. We're going to learn stuff about Barack Obama we never dreamed of, we're going to learn things about her Republican opponent we never dreamed of."

Guests: Attorney Nicole DeBorde & Fox News chief judicial analyst Judge Andrew Napolitano

Kansas authorities are investigating abortionist George Tiller for allegedly failing to report underage abortion victims who may have been rape victims. Fox News analyst Andrew Napolitano explained the legal details. "There is no situation under which a 12-year old girl can legally become pregnant. It was either forcible rape, statutory rape, or some form of sexual abuse, and every health care provider is required to report it. If it hasn't been reported in Kansas, it's a crime." But attorney Nicole DeBorde argued that medical ethics should sometimes take precedence over the law. "If there is a teenager who goes to a medical professional and says 'I need this medical treatment,' the medical professional has taken an oath to help this person. You have to have medical treatment available so people are not afraid to go to the doctor."

The Factor, a frequent target in 2006, showed excerpts from a few of the past year's noteworthy confrontations. David Letterman and Rosie O'Donnell both refused to answer Bill's direct question: "Do you want the United States to win in Iraq?" Bill also asked Matt Lauer, "do you want the ACLU protecting your family and your kids?" Again, the question went unanswered. Then there was left-wing billionaire George Soros, who accused Bill of undermining "the principles of open society." On the lighter side, Jon Stewart implied that three Guantanamo Bay inmates killed themselves because they had to endure a visit by Bill, and joked about Bill's next book, "The O'Reilly Factor for Kurds."

Guests: Fox News analysts Bernard Goldberg & Jane Hall

Fox News analysts Bernard Goldberg and Jane Hall weighed in on the Rosie O'Donnell vs. Donald Trump verbal brawl. "This stuff sells," Goldberg complained, "it's as simple as that. Trump was on your network four times today. Henry Kissinger could come up with a cure for cancer tomorrow and it won't get as much attention." Hall agreed that both combatants are getting the attention they crave. "The problem is that this is very entertaining. I look forward to the pay-per-view mud wrestling between the two. He's getting attention, she's getting attention, but there are people of accomplishment who don't get any attention in our culture." The Factor raised one point that has been overlooked in this sordid episode. "Both O'Donnell and Trump have children. Those children go to school, and in the school tomorrow every kid will know what the parents were called. That's cruel."

Guest: Dr. Robi Ludwig, psychotherapist

Just days after Miss USA Tara Conner's drinking and partying made news, Miss Nevada Katie Rees, was stripped of her title when salacious photos of her surfaced. According to psychotherapist Robi Ludwig, these young women have received all the wrong messages from our celebrity-obsessed culture. "This is how celebrities act. When adults act like perpetual adolescents, how do we expect adolescents to act? There used to be different rules and different boundaries, and this is what these girls see all the time." The Factor added that too many young people grow up without values or guidance. "The younger generation has always been about 'me,' but what they are not taught today is that there is a right and a wrong. The secular progressive movement has wiped out all notions of right and wrong."

Your e-mails covered various recent subjects. Some excerpts:

Chad Thompson, Brownsburg, IN: "Bill, you said you shook so many hands in Iraq, your own hand swelled up. I hope it wasn't as swelled as your ego. Maybe you should go back to Iraq and run for king."

Gene Laughrey, Henrico, NC: "O'Reilly, an old Vietnam vet wants to thank you for visiting the troops!"

Rob Dempsky, Norwich, CT: "Bill, you let Ambassador Holbrooke, a Clinton appointee, blame Bush for hollowing out our military. Clinton cut Army divisions almost 50%."

Dave Spahr, Paducah, KY: "Bill, don't you know Holbrooke is so much smarter than you? When will you understand?"

Ron Clark, Mukilteo, WA: "O'Reilly, there are two things I'm sure of: Christmas is coming and Hillary will never come on the Factor."

Bernard Grandy, Annapolis, MD: "Considering the way President Clinton was ambushed on Fox News, why should Hillary ever come on?"