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Does Laura KNOW the difference between LEGAL and ILLEGAL? ====================

Yes, she does, if you had read the transcript, like half of the others here who obviously haven't, you'd know she respects the law (not to say that she has actually read it, but then, she is not, nor ever has been, an ELECTED OFFICIAL):

WALLACE: Well, I have to ask you, since you brought it up, are you unhappy with the Arizona law?

BUSH: Well, not necessarily. I mean, I think we have to have the immigration laws. And you know, that's a really important part of it. It's just that the debate about the immigration laws, about Arizona's law, end up targeting someone — a group of people.

WALLACE: Do you worry that it...

BUSH: And it's — this is not new in American history. There have been many groups of immigrants who've been targeted over all of our history — the Irish, for instance, when a lot of Irish immigrants, including my family, came to the United States — other times — and it's just that it's a trait of nativism that shows up in American — in American history in a lot of different ways.

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Like many Americans who tire of politics, she is bothered by some of the crass discourse. Enforce the law!! We've brought this on by not enforcing our own laws and by not holding our government officials accountable to their sworn duties.

It's just that the debate about the immigration laws, about Arizona's law, end up targeting someone — a group of people.

Your transcription of this sentence is correct, while the transcription at IrishCentral.com is wrong. The latter says:

It's just that the debate about immigration laws, about Arizona's law in targeting someone, a group of people...

In the correct transcription she says that "the debate" is targeting a group of people, while in the IrishCentral version, "Arizona's law" is doing the targeting. So, in the second version, her subsequent comments seem to imply that the law is problematic.

Here's the video.

So I think you have a point when you say that Freepers have misinterpreted her words, but in the end I doubt that watching the video would change many Freeper opinions.

Exactly who is generating her ugly debate? She implies that it is coming from "Nativists," meaning conservatives. To Bush, the problem is not that leftist media shills relentlessly lie about the law, but that those damn Nativists won't shut up. Is she getting her talking points from the DNC? She seems to be primarily worried about protecting the delicate sensibilities of immigrants, not about securing the border. That is not a set of priorities that will endear her to conservatives.

Like many Americans who tire of politics, she is bothered by some of the crass discourse. Enforce the law!!

I wish she had said that, but she did not. After watching the interview, I doubt she believes it. But I could be wrong.