What Rudy is saying (badly) in my interpretation, and I have gone on you tube and watched this several times, is that The right to restrict arms is not granted to the federal government. That is a correct statement. However, the thinks that States which according to the constitution are not bound be the restrictions on the federal government may have that right and it will be to use his words (If I remember them correctly) interesting to see how this works out.
Hes willing to let the Supreme court decide. Which IMHO is how it will be as well.
Links
Part 1: http://www.youtube.com/watch?v=VMAXw3ZZuYU
Part 2: http://www.youtube.com/watch?v=2bM-r3dDMd8
The reason his statements have been subject to such a wide range of interpretation is that those statements didn't mean anything at all . . . they were just mindless -- and deliberately evasive -- gum-flapping during the course of a "campaign appearance" on a cable news show.