Is Bush lying? Depends on what your definition is 'is' is.

Bush Speech Overstated Iraq Report (washingtonpost.com)

Bush did not indicate that the consensus of U.S. intelligence analysts was that Hussein would launch a terrorist attack against the United States only if he thought he could not stop the United States from invading Iraq. The intelligence report had said that the Iraqi president might decide to give chemical or biological agents to terrorists, such as al Qaeda, for use against the United States only as a "last chance to exact vengeance by taking a large number of victims with him." And it said this would be an "extreme step" by Hussein.