Matt Lauer, on the NBC Today show, declared the unpleasantness in Iraq to be a Civil War. He said two clearly defined groups within a country using violence to achieve political supremacy a Civil War makes.
NBC military analyst, Gen. Barry McCaffrey, backed him up agreeing the Sunnis are a group, so are the Shia, and they are using violence.
National Security adviser, Stephen Hadley, told Tim Russert on Meet the Press yesterday that things are going according to al Qaeda's plans.
So the Bush argument that it's not a civil war, seems to be that it's still a war against al Qaeda and we're losing.

"The unpleasantness in Iraq".
My vote for the 2006 Euphemism of the Year Award.