Absolutely this requires more than a retraction.
NSF-16: can you send this to the Ombudsman at the NYT AND as a letter to the editor to the NYT & to Hannity (and Colmes) and maybe to David Asman at FNC (try: asman@foxnews.com
....just a guess; Asman was in the Navy and has a Marine son, IIRC). You might want to expand and write it out as clearly as possible for civilians.
Just to hedge your bets, maybe send it to some of the bloggers who get a lot of readers/links.....Michelle Malkin, for example.
I have contacted the blogger and suggested that he come to the post and read the responses.
I left a message at his site to send to NYT. I know that Hugh Hewitt and Instapundit read him, as well as Captains Quarters.
Maybe you all can go to his site and leave a message at the post.