Just did a Google search, and apparently the term "pygmy" in reference to KJI is from a Newsweek account of a meeting of George Bush and a group of US senators. Evidently the White House denied that Bush used this term, and since the source is Newsweek then I'm not at all sure Bush actually used this particular terminology. Newsweek's coverage of the Bush White House is some of the most biased and distorted writing to be found anywhere. Thirty years ago it wasn't a bad magazine, but now it's just another totally predictable lefty journal.
If I were Bush, this is what I would have said: "No, I never called him a pygmy. Why would I insult perfectly innocent pygmies by making such a comparison? Kim Jong Il isn't a pygmy, he's a moral microbe."
I hope he said it though. For some reason it makes me think of the scene in Patton where a soldier calls out, "Where you goin', General" and he clls out "Berlin--I'm going to personally shoot that paer-hanging son of a bitch!"