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Let's repeat what Paul says. He says the same thing lots of the rest of us have been saying since this bill was passed:

Many have suggested that section 244(i) grants "amnesty" to illegal aliens, but this is not true. In fact, it only applies to that group of people who meet the following criteria: they are eleligilble for permanent residency status have lived in this country since Dec. 2000 their application is based on a family relationship that existed prior to Aug. 15, 2001 or on an application for labor certification that was processed before Aug. 15, 2001.

It's not an amnesty!

To be fair, most of you at least got the name of the Section right... 245(i).
Ron Paul has never been an icon of any sort to me, and his statement amounts to either spin and dissembling, or outright confusion.

Once again...

INS Memo: Sec. 245(i) filings
Section 245 of the Act allows an alien to apply for adjustment of status to that of a lawful permanent resident (LPR) while in the United States if certain conditions are met. The alien must have been inspected and admitted or paroled, be eligible for an immigrant visa and admissible for permanent residence, and, with some exceptions, have maintained lawful nonimmigrant status. The alien must also not have engaged in unauthorized employment.
Section 245(i) of the Act allows an alien to apply to adjust status under section 245 notwithstanding the fact that he or she entered without inspection, overstayed, or worked without authorization.
LINK.

President Bush's desired 245(i) extension was specifically about illegals.
Letting Illegals stay = Amnesty for those Illegals.
Here's more...

How Do I Benefit From Section 245(i)?
(from INS website)
Our immigration laws allow qualified individuals to enter the United States as lawful permanent residents ("green card" holders) after they obtain immigrant visas from a consulate or embassy outside the United States or, for many immigrants already lawfully in the United States, through a process called "adjustment of status." If you entered the United States unlawfully, if you entered with permission but did not stay in lawful status, or if you worked without permission, you normally would have to leave the United States in order to apply for an immigrant visa. Special rules under section 245(i) may allow you to apply to adjust status without leaving the United States.

You might need section 245(i) if you:

Entered the U.S. without being inspected by an INS official.

Stayed in the U.S. longer than allowed by INS.

Entered the U.S. as a worker on an aircraft or ship (crewman).

Entered the U.S. as a "Transit Without Visa."

Failed to continuously maintain a lawful status since your entry into the US.

Worked in the U.S. without INS permission.

Entered as an "S" nonimmigrant (relates to witnesses about criminal or terrorism matters).

Are seeking a work-related visa and are out of status at the time of filing the application to adjust status (Form I-485).

Worked in the U.S. while being an "unauthorized alien."

LINK

Here's a nice refutation by Michelle Malkin of the embarassing Wall Street Journal editorial, "Immigrants and Terrorists," that so many of FR's Bush apologists and Amnesty Deniers were clinging to earlier this month.

Whatever you do, don't believe your lying eyes.