"What were the five most important stories of 2006? Number one has to be the deepening chaos in Iraq. This war has brought pain and suffering to the nation and divided the country. To those of us who believed that removing Saddam and giving the Iraqi people a chance at freedom was noble, the continuing violence is distressing. So that was number one, and it directly led to the second most vital story, the Democrats taking control of Congress. So the Democrats now have a chance to make things better, and they deserve that chance. The third most important story was the rise of Iran as a danger to the world. The prospect of Iran getting nukes and expanding its influence into the oil-rich Persian Gulf is off-the-chart dangerous. Fourth was the confirmation of Samuel Alito to the Supreme Court. Remember, secular progressives who want major change in America are using the courts to institute that change because they lose at the ballot box. That brings us to the fifth most important story - a trio of victories brought about by public opinion. Jessica's law or a variation of it has now been passed in 40 out of 50 states; the folks also brought down O.J. Simpson and his media enablers in a stunning victory for decency; finally, the diminishment of Christmas was dealt a severe blow when Wal-Mart and other stores welcomed back Christmas into their advertising and marketing plans. The culture war in America saw some important traditional wins in 2006, much to the dismay of many in the S-P media. But like the war in Iraq, the culture war is still an intense and fluid situation. Both will rage on in 2007."

Guests: Former Ford speechwriter Ben Stein & Jon Meacham, Newsweek Magazine

The late Gerald Ford was honored in Washington Tuesday, just days after Saddam Hussein was hanged in Iraq. The Factor remarked on the stark differences between the men and their fates. "President Ford was a very decent man and a patriot, and he deserves this massive show of respect. Contrast that to the harsh execution of Saddam Hussein, and you can see the classic 'good versus evil' scenario on display. I don't think it's an accident that Ford and Hussein died within days of each other." But President Ford's former speechwriter Ben Stein worried that too many people are incapable of making similar moral distinctions. "Good and evil is being blurred astonishingly these days. People are comparing President Bush with terrible dictators. But this is what they did with President Ford - he was crucified by the liberal media when he was alive, and now he's being sanctified." Newsweek's Jon Meacham concluded that Americans can learn from President Ford's example. "The important thing is for us to take away from the Ford legacy and the remarkable pageant we saw Tuesday, which emphasized decency and human respect. We were providentially blessed that Ford was president when he was."

Related: Ford's Funeral Draws Array of Politicians and Dignitaries

Related: World leaders welcome, condemn Saddam Hussein's execution

Guests: Fox News analysts Kirsten Powers & Michelle Malkin

FNC analysts Kirsten Powers and Michelle Malkin joined The Factor with their top stories of the past year. Malkin's number one pick was the mainstream media's coverage of the war in Iraq. "2006 was a milestone," she explained. "The New York Times started the year blabbing about the NSA's surveillance program. You also had CNN broadcasting sniper video and a lot of people questioning which side of the war these mainstream media outlets have been on." Powers' choice for the top story was Saddam Hussein's execution. "It's such a rare thing in this world," she said, "that you actually see justice for people like Saddam Hussein. Even if you didn't support the war, you can say it's justice."

Malkin then named some of her other leading stories, including chaos on college campuses: "For parents, this trend of administrators coddling intellectual thugs and breeding a whole generation of intolerant people is a really big, important story. Across the country you have conservative speakers being intimidated, and this is an embarrassment to academia." Outrage from radical Muslims: "This was the year of perpetual Muslim outrage, and I think it's time that people see through this smokescreen." And here are some of Powers' other top stories: The Democrat takeover of Congress: "This led to Bush having to finally come out and admit that there was something going wrong in Iraq. Because they lost Congress, we're now having a debate based the real facts." Political apathy about Darfur: "We spend all of our time focusing on things that are irrelevant, when we have genocide in Darfur." Finally, Powers decried the rise of what she labeled "cultural skankification." "If I could just not have to look at Paris Hilton, Lindsay Lohan, Nicole Richie, and Britney Spears in their little prostitute outfits every single day."

Guest: Author Judge Robert Dierker

Judge Robert Dierker, a conservative jurist from Missouri, has written a book that is harshly critical of his colleagues on the bench. "There is an agenda on the liberal side," Dierker claimed, "that is consciously using the judiciary to promote itself and to suppress opposing viewpoints. There's a view that the judiciary has no limits on its power, and this has permeated the judiciary to a degree that I find very alarming." The Factor summarized Judge Dierker's premise. "You really believe there is a left wing agenda being promoted by the judiciary in this country. And if judges themselves start to make the laws, that's not the way it was set up."

Related: Judge's liberal-bashing book causes stir

Guest: Body language expert Tonya Reiman

Tonya Reiman, who specializes in interpreting body language, analyzed some recent news makers. First, Saddam Hussein in the gallows. "He has a very stoic expression," Reiman pointed out, "but I still see some nervousness. If you watch, you see deep breathing which indicates anxiety, but that's to be expected." Next, Reiman looked at both combatants in the Donald Trump vs. Rosie O'Donnell verbal feud. "When Donald Trump clasps his hands, one thumb gets tucked. Your thumbs are power. He's not as confident as he normally is. Rosie O'Donnell points her fingers, which shows that she definitely feels confident and superior." Finally, Reiman analyzed a tape of Dallas Cowboys' coach Bill Parcells, whose team has suffered a late-season collapse. "You can see the look of defeat in his body language. His eyebrows go in, which is a sign of sadness. He is definitely down and out, no doubt about it."

Related: Saddam hanging video (edited)

Related: Rosie O'Donnell video

Related: Donald Trump video

Related: Dallas Cowboys post-game press conference

Guest: Fox News correspondent Megyn Kelly

Finally, Fox News correspondent Megyn Kelly elaborated on the collapsing case against the Duke lacrosse players, reporting that the North Carolina Bar Association has lodged a formal complaint against DA Mike Nifong. "The bar association suggested he is guilty of fraud and misrepresentation. Basically he's been accused of withholding information from the defense. He had information that showed that the DNA of five different men was inside this woman, none of them Duke lacrosse players, and he withheld the information from the defense. The defense is going to push this judge to make Nifong step down from this case."

Related: Duke Lacrosse prosecutor faces disbarment

Your e-mails covered a wide variety of topics. Some excerpts:

Carl Langley, Aiken, SC: "Mr. O'Reilly, I know your ego gets in the way most of the time, but I beg you to stop making speeches and act more like Brian Lamb on C-Span."

Mark McKillop, Ontario, Canada: "Mr. O'Reilly, I agree with you that Donald Trump did not take the high road regarding Rosie O'Donnell. But if he succeeds in shutting her up, it was a trip to the gutter worth taking, no?"

John Van Der Voet, Suriname, South America: "Saddam should not have been killed. President Bush should take care of his own country and not other countries. I hate America."

Tom Beatty, Columbus, OH: "The local Tire Discounter store here has a sign that says: 'No Spin Zone.'"