We know that al-Qaeda was in Afghanistan, Pakistan, Iran, Egypt, Saudi Arabia, Syria, Somalia, Libya, Mauritania, Kashmir, Malaysia, Indonesia, The Phillippines, etc.
Does your friend contend that the only Muslim country where al-Qaeda was not was Iraq?
Yes he does maintain that A-Q was not in Iraq. I've already gone around with him on this subject, but he doesn't want to believe what's in front of his nose. He's one of those people who hates Bush so much, he can't stand the prospect that Bush was right about Hussein.
And I have other friends and co-workers just like him (as I'm sure you do). They could have argued that Hussein was contained (he obviously wasn't), and no severe threat. Arguing as they do that he had no ties to Islamist terrorists just makes them look stupid. My friend is no dunce, but never underestimate the power of Bush-Rage.