The actual quote from the Pope:

"In the past few weeks other deplorable events have come to light which have troubled the civic and religious conscience of all, and made more difficult a serene and resolute commitment to shared human values," the pope said.

"In the absence of such a commitment neither war nor terrorism will ever be overcome."

For anyone interested, the transcript of the official comments can be found here. I don't know exactly where the quoted remarks came from, but it seems to have been in a conversation with Bush.

This becomes "Pope denounces events in Iraq to Bush" which Donald morphs into "Pope Denounces Bush."

Of course, this is pretty much par for the course. Recent news headlines on the internet:

Bush's Pope visit backfired
Pope Presses Bush on Iraq Violence
Pope Blasts Bush on Recent Events in Iraq
Pope To Bush: 'Deplorable Events'
Pope admonishes Bush; demos fizzle out in fortress Rome
Bush Late for Vatican Meeting With Pope
Pope Presses Bush on Iraq Amid Muted Rome Protest
Pope tells Bush to end Iraq unrest
Bush hears pope's sharp words on Iraq
Protests and Pope Greet Bush in Rome
Pope admonishes Bush and demos fizzle out in fortress Rome
Pope admonishes Bush on Iraq / Police in Rome bar protesters from president
Pope admonishes, encourages Bush
Pope tells Bush situation in Iraq must be "normalized"
Pope chides Bush over abuse
Pope Pressures Bush on Iraq Amid Rome Protests

A variety of responses around the world are listed in this story. Of course, the BBC gets to pick the headline.