This is a rush transcript from "The O'Reilly Factor," July 31, 2008. This copy may not be in its final form and may be updated.

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BILL O'REILLY, HOST: The top story tonight: putting the [Ludacris-Obama] story into perspective. Joining us from Washington, Jane Hall, and from North Carolina, Bernie Goldberg. Both are FOX News analysts.

Bernie, you know, this story got a little bit of coverage in some newspapers. Very little on cable news. FOX did a little bit, but the others didn't do anything. I think this is a major story. What do you think?

BERNARD GOLDBERG, FOX NEWS ANALYST: Yes, I think it's important, because even though you cannot blame Barack Obama because a fool like Ludacris decided to write a song about him, and the campaign politically did the right thing by denouncing the song, what Ludacris managed to do, and this is why it's important, is he introduced race into this.

When he talks about painting the White House black, and then the next line is "that's going to frighten them," well, who do you think that them is? The them is white people. And white, blue-collar guys especially, when they hear this, you know, they're not going to like it.

O'REILLY: No.

GOLDBERG: And it may not matter in the long run, but in a close race, it can matter a lot.

O'REILLY: What do you think, Jane?

JANE HALL, FOX NEWS CONTRIBUTOR: Well, I think it is important. You know, he can't be held accountable as if he co-wrote those lyrics. And you are one of the few people who also pointed out that he was critical of the image of women and not wanting his girls to watch it.

I think it is an issue, because it's video. It's going to be replayed by his critics. They're going to say, here, let's link together Reverend Wright, and oh, by the way, he might have known these people in Chicago who were in the Weather Underground, and you should be afraid of this man. That is what his opposition and people who were concerned about him are going to say. And you were so right in that it is a dynamic where people don't feel they know enough about him. So guilt by association could have some impact.

O'REILLY: Yes, I mean, one weirdo, you know, one weirdo after another is being trotted out as somewhat familiar with Barack Obama. Here's what I do, Bernie...

HALL: Well, yes, but I mean, did he...

O'REILLY: No, it's not Barack Obama's fault. I mean...

GOLDBERG: Right.

O'REILLY: ...he can't control...

HALL: Yes, but I think the media are trying to link a lot of things together. The people that are opposed to...

O'REILLY: But Jane, Jane, Jane...

HALL: ...him in the media are trying to link a lot…

O'REILLY: If I were John McCain's campaign, and I go 10 points down, which is possible in November — in September...

HALL: Yes.

O'REILLY: ...here's what I'd do. Here's what I'd do. If I am John McCain's campaign chairman, and I'm down 10 points in mid-September, I take the theme from "Friends," the show "Friends," OK, and I play that theme...

HALL: Yes.

O'REILLY: ...for 30 seconds, and I run in Wright, Pfleger, the Chicago Weathermen nuts, Ludacris, and every other clown that I can think of that has any connection to Barack Obama.

Now Bernie, that may be unfair, but that's politics, correct?

GOLDBERG: You know, that's a pretty good idea now that I think about it. But you know what else he could do? That one line in the song — I mean, it's a disgraceful song about how the only chair that Senator McCain belongs in is a wheelchair if he's paralyzed and the other stuff. But the one line, I mean, we talked about this, and I don't think we should underestimate the power of this line. Ludacris says he wants the White House painted black after Obama is elected president. That is not going to sit well, I'm telling you, with those Reagan Democrats.

O'REILLY: No, I know, I know.

HALL: But you know...

O'REILLY: And Bernie, Bernie, but you got to be fair, Bernie.

GOLDBERG: Well...

O'REILLY: It's not Obama's fault.

GOLDBERG: I am not blaming — listen, I am not only not blaming Obama for that, I am not blaming him a bit for that. Nonetheless, that kind of thing doesn't help him at all.

O'REILLY: No, no, we all have agreed that.

HALL: But you know, Bill, you — what you're proposing is, you know, plays into the worst fears. And I can guarantee you there are hate Web sites that are already out there, you know, questioning Obama. He doesn't need Ludacris to do this.

O'REILLY: But he's got them.

HALL: I mean, we are in agreement about that.

O'REILLY: But he's got them, Jane. He's got them.

HALL: Yes.

O'REILLY: OK?

HALL: Yes.

O'REILLY: And the real bottom line on this is both Ludacris and Wright couldn't care about Barack Obama.

HALL: Yes.

O'REILLY: Ludacris knew...

HALL: And Obama's...

O'REILLY: ...that this would hurt Obama. And all Ludacris cares about is getting attention selling his stupid records.

HALL: Yes.

O'REILLY: So he doesn't care. And everybody should know that, that both Wright and Ludacris — but then I say to Barack Obama, if I ever get a chance to talk to him, you know, are these your pals you hang around? He's not hanging around with Ludacris…

HALL: Yes, but Bill...

O'REILLY: …but certainly hung around with Wright. Go ahead.

HALL: Can I just say one thing? I do think that black politicians are called on to disavow people more than white politicians in this country. And I think we can question whether that's really a valid question.

O'REILLY: Jane, don't be...

HALL: It's true.

O'REILLY: Jane, don't be a pinhead, all right?

HALL: I'm not. I'm being a patriot, Bill.

O'REILLY: If John McCain said, or anybody close to John McCain said, "Jane, when we get to be president of the White House, we're going to paint it even whiter..."

GOLDBERG: Exactly.

O'REILLY: Jane, come on, Jane.

HALL: There are — I'm...

O'REILLY: Come on.

HALL: There are people who are supporting John McCain with hate speech on the Web, and he's not being called to the same account. That's all I'm trying to say.

O'REILLY: Who is supporting...

HALL: I mean, there are stealth stuff there about Obama that is very ugly, that is not supported by John McCain.

O'REILLY: All right. OK, but it's not...

GOLDBERG: By morons in the darkest corner of the world wide web.

O'REILLY: Right, there's no organized cabal like...

GOLDBERG: Ludacris has a record label.

O'REILLY: ...MoveOn or something like that.

GOLDBERG: And Ludacris has a record label. Ludacris...

HALL: Right, I agree with you.

GOLDBERG: ...I mean, he's a fool, but he's well known.

HALL: And he's also a misogynist.

O'REILLY: OK, OK. I got one other bone to pick with both of you guys. Now last week with the "Bernie & Jane" segment, we had a discussion about a No. 1 record in America having to do with a girl on girl kiss.

GOLDBERG: Right.

O'REILLY: And you guys both pooh-poohed it. And you said ah, no big deal.

GOLDBERG: Correct.

O'REILLY: I got a lot of mail from conservative, traditional Americans, who said to me, look, we understand this isn't some big deal, but we don't want our children subjected to this. And we don't want homosexual activity mainstreamed on the media that kids see. That is a legitimate point. So guess what happens? Roll the tape.

(BEGIN VIDEO CLIP)

ELISABETH HASSELBECK, CO-HOST, "THE VIEW": It's been No. 1 on the Hot 100 list for five weeks in a row. This is the song of the summer.

Whoopi Goldberg, come on up.

(END VIDEO CLIP)

O'REILLY: OK, so now we have "The View," daytime television, and there's a smooch, Whoopi Goldberg. You know, so what I'm trying to tell you is that conservative, traditional people have a point. The end game is legitimize, promote homosexual behavior as absolutely the same as heterosexual. And some people don't want to see that.

GOLDBERG: Bill, with all due respect to the people out there, the decent people out there who are troubled by this, let me make clear that I'm a conservative who isn't troubled by this. A couple of weeks ago, we talked about the two guys kissing in the Heinz commercial. Last week, we talked about the two girls kissing. Now we have Whoopi Goldberg in it. It's all about creating a buzz and breaking through the clutter. And it's the exact same reason that FOX News promo'ed this kissing segment all day today, to break through the clutter.

O'REILLY: All right. Jane, what do you say? Last words.

GOLDBERG: So whatever their motives, it's the same as our motives at FOX.

HALL: All I'll say, and this will get you some mail, is that women are more comfortable, in my experience, playing with the idea of sexuality and humorous take she put it than guys are.

O'REILLY: All right. I wouldn't know anything. Thank you very...

GOLDBERG: Thank God.

O'REILLY: All right. I think there's a legitimate point here. Thanks very much.

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