This is a partial transcript from "The O'Reilly Factor," August 21, 2006, that has been edited for clarity.

Watch "The O'Reilly Factor" weeknights at 8 p.m. and 11 p.m. ET and listen to the "Radio Factor!"

BILL O'REILLY, HOST: In the "Personal Story" segment tonight: an anti-war activist, named Dan Frazier, has been selling T-shirts with the names of 1,700 military killed-in-actions on them. Also on the shirts, the words, "Bush lied, they died."

That action has outraged Judy Vincent, whose son, Marine Corporal Scott Vincent, was killed in Iraq. She believes Frazier is doing a terrible thing.

"Factor" producer Jessie Watters caught up with Frazier in Flagstaff, Arizona.

(BEGIN VIDEO CLIP)

JESSIE WATTERS, PRODUCER, 'THE O'REILLY FACTOR': Don't you think it's shameful to be selling these T-shirts using the names of dead soldiers without their families' permission?

A lot of people think this is really disgusting. How do you react to that?

I mean, these people aren't political victims. Why are you trying to exploit their sacrifice?

Dan, are you going to answer any of our questions? A lot of these family members are pretty upset. Don't you see you are just causing more pain?

You're a creative guy, you don't think you can figure out a different way to personalize the war?

How much money have you made marketing death like this? I mean, common decency says that when some family member asks you to take the name off the shirt, that's what you do.

(END VIDEO CLIP)

O'REILLY: All right. Joining us now from Folks, Oklahoma, is Judy Vincent. Did you ask this guy to take the name of your son off the shirt?

JUDY VINCENT, SON KILLED IN IRAQ: I attempted to talk to him twice, and I never could through to him. His line was either busy or there was no answer.

O'REILLY: Were you able to — were you able to leave a message or anything?

VINCENT: No. I didn't.

O'REILLY: This didn't go through. You saw him. I mean, you wouldn't ask for any of our questions, and you know, he's a fanatic. We know that.

When did you first — when were you first made aware of this, and then how did it hit you when you found out your son's name was on the shirt?

VINCENT: We all became aware of it in June of 2005 when he got his site up and running to sell his wares on the Internet. And when I seen it, I was outraged and just sickening. And...

O'REILLY: How much is he charging for the shirts?

VINCENT: He sold the last batch, marked them down to $10.

O'REILLY: They were $18 — $18 originally. Nobody's buying them. I don't think a lot of people are buying these things.

VINCENT: Well, he's printing new ones, now.

O'REILLY: Yes.

VINCENT: He's added more names to the shirt, a total of more than 2,500. And he's back selling them for $18.

O'REILLY: You took your anger to the Oklahoma legislature. What happened?

VINCENT: I took my anger to my state representative, and we got together and they drafted a bill. And the Oklahoma governor signed the bill into law in May of this year.

O'REILLY: What does the law say?

VINCENT: And — it's illegal to use the [names of the] fallen without our permission.

O'REILLY: Illegal to use anyone killed in combat without a family member's permission for profit — for profitable gain? Is that it?

VINCENT: Yes, sir, that's right.

O'REILLY: OK. I think Louisiana also has a law like that. It may be unconstitutional, because it's free speech. -- We don't know yet. But he operates out of Arizona, this guy. And, as you said, he's selling off the Web site. So you'd have to get him on a federal beef. Unless he came through Oklahoma or Louisiana. Then you could arrest him. Because the law did pass. It is in play.

VINCENT: Yes.

O'REILLY: Are the feds going to do anything about it?

VINCENT: Congressman Boren introduced a law into Washington July 11 of this year. And currently, they are on recess, so we're just waiting to see...

O'REILLY: How it goes.

VINCENT: ... how it would go very...

O'REILLY: OK. Now, I'm not going to speak for Frazier, because he could have spoken for himself. We sent our guy out there to get an interview with him, and you saw he wouldn't answer any questions. But I'm sure he would say, "Listen, I'm just doing this to save lives. I'm an anti-war guy. I want to save lives."

And how would you answer that?

VINCENT: I don't think what he's doing is the voice of everybody else. It's his own personal opinion. He can use his opinion, but he doesn't need to use the fallen in any way, shape or form.

O'REILLY: Do you feel it's insulting to the memory of your son for him to do this?

VINCENT: I think it's a dishonor. He states, too, that it's a memorial. Well, I don't think it's much of a memorial, putting my son's name on an $18 T-shirt.

O'REILLY: All right. We're sorry for your loss. Thank you very much for appearing [on "The Factor."]

VINCENT: Thank you.

O'REILLY: And this Frazier guy, well, you saw him...

Copyright 2006 Voxant, Inc. (www.voxant.com), which takes sole responsibility for the accuracy of the transcription. ALL RIGHTS RESERVED. No license is granted to the user of this material except for the user's personal or internal use and, in such case, only one copy may be printed, nor shall user use any material for commercial purposes or in any fashion that may infringe upon Fox News Network, LLC'S and Voxant, Inc.'s copyrights or other proprietary rights or interests in the material. This is not a legal transcript for purposes of litigation.