I agree that ACORN has every right to sue for libel/slander/defamation on this one since the guys did alter the vids in a way that was certainly defamatory, aside from grossly unethical and completely dishonest. I'm not trying to give them a free pass on this one. I wouldn't be surprised to see Fox sued over this, too, and if they knew the vids were fake and did nothing, they are in very hot water, as is any other news organization that did the same thing.
There are three different issues on this--should Acorn be allowed to return as a gov't contractor? Nope, not with the gross systemic fraud they were committing aside from this issue. Any other organization that commits voter registration fraud, conservative or liberal, should not be allowed gov't contracts. I don't want my tax dollars paying for a company who doesn't care about doing the job in a legal manner.
Issue two--should the guys who created fraudulent videos be brought to task? Absolutely. This behavior should be squashed so hard that the roaches are nothing left but little smears on the sidewalk.
Issue three--should the news organizations be brought to task for not doing their own fact-checking, and just posting this crap without verifying it? Definitely, and especially Fox, and specifically Hannity, who used it non-stop in his anti-Obama rants. Those guys owe Acorn and Obama a huge apology.