Here's the Associated Press headline, "U.S. general: No evidence Iran is arming Iraqis
Pace contradicts claims by other U.S. military, administration officials.

Now here's what the General in question, Peter Pace, actually said:

Gen. Peter Pace, chairman of the Joint Chiefs of Staff, said U.S. forces hunting down militant networks that produced roadside bombs had arrested Iranians and that some of the material used in the devices were made in Iran.

"That does not translate that the Iranian government per se, for sure, is directly involved in doing this," Pace told reporters in the Indonesian capital, Jakarta. "What it does say is that things made in Iran are being used in Iraq to kill coalition soldiers."

So Pace says that Iranians are bringing Iranian made weapons into Iran that are killing American soldiers, but he can't say, "for sure," that the Iranian government is responsible. That's one hell of a long way from, "No evidence Iran is arming Iraqis."

He's certainly not explicitly denying that the Iranian government is arming the terrorists and contrary to the headline, he actually presented some evidence that they very well might be providing materials used in roadside bombs. Additionally, given his limited comments on the issue, he seems to be leaving open the possibility that being presented with more evidence might change his mind.

That's a far cry from what the Associated Press led people to believe with that headline.