Albright is clueless. She had no clue that they were developing a bomb, why should we believe her when she says they did not have one? She apparently even believed them when they launched the ICBM over Japan in 1998 and claimed that it wasn't an ICBM but rather that they were getting into the satellite business.
My guess is that Hillary got upset that Albright let the remark by Card stand, leaving the viewers with the assumption of fact. The Colmes interview was a set up, specificly designed to get that denial out there.