Fox is after all, "fair-and-balanced" they would never do such a thing? Oh wait...that was pretty heavily cropped and edited. Ok, well does that make any worse than any other news outlet? Or is this a bit overboard?
Media Matters, the non profit group for research, monitoring and analysis for media misinformation thinks so. http://mediamatters.org

Personally, I've seen, heard & read news often skewed to benefit an agenda or to make a point, both on the right and on the left. This is nothing new.
I only hope Fox news addicts aren't just addicted to Fox News because then they would be both uninformed and misinformed.

“If you don’t read the newspaper, you are uninformed; if you do read the newspaper, you are misinformed.” - Mark Twain

Update: Murdoch admits to manipulating the news in the past so I guess, there is no story here http://www.youtube.com/watch?v=0K2pLo8JV5Y