Joel Belz of World Magazine sets the record straight. A still more definitive answer may be found in Norman Podheretz's "Who is Lying About Iraq?"
Update: 1/12/06 - See the article Bush Understated Saddam's Threat which discusses the treasure trove of materials found in Iraq (over 2 million items!), including the names of 8,000 or more terrorists who trained in Iraq from 1999-2002 under Saddam. This article in turn builds on Stephen Hayes' 1/16/2006 piece that appeared in the Weekly Standard. Only 2% of the materials have so far been translated but they are amazing and totally discredit the accusations that President Bush lied about Saddam's threat.