OK. As it turns out that was taken from a single paragraph of a draft for the 9/11 Commission Report and two media outlets, The New York Times and Washington Post ran with the story. Chaney defended his position and called the newspapers claims outrageous.
Here is a story about it from National Review Online from July 23rd, 2004.
Link.
Excerpt:Boogie to Baghdad:
What the 9/11 Commission says about Iraq and al Qaeda.
"Both the Times and the Post based their reporting on a single paragraph, written by the staff of the September 11 Commission, which conceded a few ties between Iraq and Al Qaeda but said there was no "collaborative relationship" between the two. The findings, revealed in the commission's last hearing on June 17, were preliminary, and the apparent rush by some in the press to deny any Iraq-al Qaeda relationship left commission vice-chairman Lee Hamilton baffled. "I must say I have trouble understanding the flack over this," Hamilton told reporters. "The Vice President is saying, I think, that there were connections between al-Qaeda and Saddam Hussein's government. We don't disagree with that. So it seems to me the sharp differences that the press has drawn, the media has drawn, are not that apparent to me."
Now, with the release of the commission's final report, it is clear what Hamilton and Cheney were talking about. The final report details a much more extensive set of contacts between Iraq and Al Qaeda than the earlier staff statement. It also modifies the original "no collaborative relationship" description, now saying there was "no collaborative operational relationship" (emphasis added) between Iraq and Al Qaeda. And it suggests a significant amount of contact and communication between the regime of Saddam Hussein and the terrorist organization headed by Osama bin Laden.
The report describes a time in 1996 when bin Laden, newly arrived in Afghanistan, could not be sure "that the Taliban would be his best bet as an ally." In 1997, the report says, bin Laden began making his Taliban sponsors nervous with a number of flamboyant and militant statements. At the time it seemed possible that bin Laden, who had gone to Afghanistan after being forced out of Sudan, might find himself at odds with his new hosts. What then? The report says bin Laden appears to have reached out to Saddam Hussein:"