Yes, AZ was treated in one of Saddam's sons hospitals after he was injured in Afghanistan and well before we even went to war with Iraq. In fact, I think Powell even included this in his UN speech. Also remember that AZ was meeting (and helping finance) Ansar Al-Islam in N. Iraq, which started getting set-up before 9/11 even happened. People forget that AZ was a top Lt. in one of Bin Laden's Afghanistan's terrorist camps and he was trying to establish this AQ affiliate with Ansar before we even went into Iraq.
Here's a copy of the UBL indictment:
http://www.fas.org/irp/news/1998/11/98110602_nlt.html
It should also be noted for those libs who like to say that AZ and Ansar were a threat to Saddam...and that he would not work with them; The Clinton era indictment states this:
"Additionally, the indictment states that Al Qaeda reached an agreement with Iraq not to work against the regime of Saddam Hussein and that they would work cooperatively with Iraq, particularly in weapons development."