Actually, it’s more like an incineration (the audience reaction shots are priceless).  The complete video is here and a clean transcript is here.

UPDATE: my mother, the former intrepid journalist, emailed me on Colbert:

Can
you believe how great this guy was—and can you believe how many
stories have been written by the msm on how "out of line" and "unfunny"
he was??  Oh my, he really let those flacks have it, didn’t he?

Just when you think there’s no hope at all, someone actually gets in
front of the Washington powers and press (I’ve attended that function
several times, by the way) and quite simply pulverizes them with the
most deliciously devastating irony I think I’ve ever seen or read.

Nicely said, Mer!  Would that there were more like you were.

UPDATE 2: Of course, the NYT (your favorite "liberal" newspaper) didn’t even mention Colbert—by any reasonable standards, the story of the evening—in its coverage of the dinner.  Benj notes that that’s because "Kneepads" Bumiller wrote the article.