Speaking in Israel, President Bush said this:

(BEGIN VIDEO CLIP)

PRESIDENT GEORGE W. BUSH: Some seem to believe that we should negotiate with the terrorists and radicals, as if some ingenious argument would persuade them they have been wrong all along.

We've heard this foolish delusion before.

(END VIDEO CLIP)

Now the Bush people say those remarks were not directed at Senator Obama, but his campaign isn't buying it:

(BEGIN VIDEO CLIP)

ROBERT GIBBS, OBAMA COMMUNICATIONS DIRECTOR: This is an unprecedented political attack on foreign soil. It's quite frankly sad and astonishing that the president of the United States would politicize the 60th anniversary of Israel with a false political attack.

(END VIDEO CLIP)

Now the root of the disagreement is about procedure. Barack Obama wants to speak directly with the Iranian government, while the president and John McCain believe that's foolish:

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN, R-ARIZ., PRESIDENTIAL CANDIDATE: Why does Barack Obama — Senator Obama — one to sit down with a state sponsor of terrorism? What does he want to talk about with Ahmadinejad, who said that Israel is a stinking corpse?

(END VIDEO CLIP)

Now this skirmish is important for all of us. The next president will have to fight Islamic fascism, but the battle plan has to be smart.

Is Senator Obama correct in wanting more direct engagement with our enemies? Or Senator McCain right when he says Obama's strategy would indicate weakness on the part of the USA and would empower Iran and the terrorists it supports?

That is a huge issue in this campaign.

Talking Points believes the Bush administration's tough tactics have worked against the Taliban and Al Qaeda, but failed in Iraq until the recent surge. There's no question Al Qaeda has been badly damaged and is holed up in some remote part of the world, unable to move freely or finance itself to any large degree. That's the truth.

But it's also true that Iran, without a hostile Saddam on its border, is stronger. And will have to be dealt with because of its hatred of Jews and Americans.

Now I'm glad President Bush put this on the table, because Americans have to seriously think about this ongoing terror war, which includes Iran.

Lately, gas prices and health care have somewhat obscured the danger we all face from overseas. But now, it's back in play.

And that's The Memo.

Pinheads & Patriots

The New York Daily News this week showed a woman from Morocco as an example of achieving the American dream. Fouzia Bouanane used to clean offices and now has worked her way up to — ready — a top makeup artist at "The Factor."

In fact, it is Fouzia who transforms your humble correspondent into a vision of loveliness and that is obviously not an easy job.

Fouzia has become an American citizen and she is a patriot.

On the pinhead front, the crazy raspberry ants are on the march in Texas and nobody can stop them. Scientists believe these ants arrived aboard a cargo ship from the Caribbean six years ago and now they're all over the place in the Lone Star State.

They bite. They also eat the vicious red fire ants, so there is an upside.

Nevertheless, the crazy raspberry ants are pinheads — each and every one of them.

You can catch Bill O'Reilly's "Talking Points Memo" and "Pinheads and Patriots" weeknights at 8 and 11 p.m. ET on the FOX News Channel and any time on foxnews.com/oreilly. Send your comments to: oreilly@foxnews.com