"Red Eye" host Greg Gutfeld marvelously blasted the insufferable Keith Olbermann Friday for his "homoerotic obsession with Bill O'Reilly."

This deliciously came hours after the "Countdown" host bashed former Nixon administration figure Chuck Colson for having the nerve to speak out in favor of California's Proposition 8 which defined marriage as a union between one man and one woman.

What really caught the ire of Gutfeld and company was a false assertion Olbermann made on air Wednesday about what transpired on a recent "Red Eye" (video embedded right, partial transcript below the fold):

KEITH OLBERMANN, HOST: But our winner Bill O. or somebody working on his behalf, FOX's show "Red Eye" he's sometimes very funny, sometimes very crass, sometimes very stupid and last night it was very censored internally. Check out this clip from David Bienenstock, the senior editor of "High Times" magazine guesting on the program, the guy who gets censored here is "Red Eye" writer and producer Bill Schultz.

(BEGIN VIDEO CLIP)

DAVID BIENENSTOCK, "HIGH TIMES" SENIOR EDITOR: Well, a couple minutes ago I was in your greenroom and it definitely lived up to the name so I'm ready to go. FOX news has the best weed in the world. I was really surprised by that.

BILL SCHULTZ, WRITER/PRODUCER: ( bleep ) does not like it when you get into his personal stash. I'm calling security.

(END VIDEO CLIP)

OLBERMANN: Bienenstock says what he heard bleepy Schultz say was "Mr. O'Reilly does not like it when you get into his personal stash sir, I'm calling security" and they bleeped his name. The dark side here, these "Red Eye" guys don't need me defending them, they work for FOX, they got enough problems. But in bleeping the obvious joke about Bill O., there's the unintended bright side. Somebody somewhere heard that and just assumed that what Schultz had said had been so horrible that it had to have been bleeped must have been "Mr. Murdoch does not like it when you get into his personal stash, sir." Billo the bleep. Today's worst person in the world!

The problem is that O'Reilly had nothing to do with this bleeping, and Gutfeld on Friday called Olbermann out for making this assumption (h/t Johnny Dollar):

Yah gotta love it!

As an interesting postscript, Olbermann for more than a month has been chiding California voters, and anybody else that had the nerve to support that state's Proposition 8.

He did one of his infamous "Special Comments" about this matter on November 10, and has addressed the proposition at least ten times since including Thursday:

Mr. Bush has handed out 24 more presidential citizens medals created nearly 40 years ago to honor Americans who have performed exemplary deeds of service for the nation. Muhammad Ali got one. So did Bob Dole and Archibald Cox and Chuck Colson from Watergate, Richard Nixon's special counsel, a primary figure at the committee to re-elect the president. The guy who hired Howard Hunt and Gordon Liddy to break into the office of Daniel Ellsberg psychiatrist. Then wanted to bomb the Brookings Institution, then planned out the Watergate break-in, then became the first Nixon Administration figure to go to prison. That Chuck Colson.

It's OK because he later found religion. And as a minister he advised Governor George W. Bush, coordinated political moves with James Dobson and Pat Robertson, signed a cleric's letter supporting the invasion of Iraq and spoke out in favor of Prop 8. To paraphrase Woody Allen, I didn't know they gave out awards for that kind of person, just earplugs.

Makes you wonder if Gutfeld is right about the cause of Olbermann's obsession with O'Reilly, not that there's anything wrong with that.

*****Update: The Daily Gut has a transcript of what Gutfeld said Friday morning, including what was bleeped. It's NOT what Olbermann thought!

—Noel Sheppard is the Associate Editor of NewsBusters. Follow him at Facebook and Twitter.