As I mentioned in a couple of posts back, O'Donnell was spouting bullshit and has hence said "I'm sorry".
This is what has always happened with these stories. Unnamed source drops some bombshell that gets widely publicized. Soon thereafter, bombshell turns out to be false. Retraction is whispered. Liberals go nuts, conservatives feel vindicated, public discourse is degraded, media make lots of money.
This is the fourth time I've seen this mass hysteria happen in my lifetime. The first was the USSR is behind all the world's terrorism, then there was the Satanism scare, then WWD/Iraq is in league with terrorists.