Mr Bush...said that Washington was ready for talks with Iran. “We are prepared to do that,” he said. “If the Iranians are ready to sit we are going to point out what they are doing to undermine Iraqi security.”

Yeah. Those talks will go far.

The Bush administration prefers a "diplomatic solution". Iraq-style, I suppose.

Edit: like the Iranians do not know for themselves how they undermine Iraq if they do.

Edit again: like Iraq insecurity was not inflicted by the occupation in the first place.