No, I'm not making this up; he said it. I'm not surprised by this statement, actually, since he has a great deal of difficulty with the English language ("nucular" always comes to mind). I will admit that I've make fun of this so often that I have to struggle to say "nuclear" myself.
Of course, this is just another Bushism, and I should give context. This weekend Bush is hosting French President Nicolas Sarkozy. Today, they had what the White House called “a casual family lunch,” which I'm pretty sure did not include either French or Freedom Fries. Later, both George W. and George H.W. Bush went for a spin with Sarkozy on the elder Mr. Bush’s cigarette boat.
Naturally this is just another day in Bush's current vacation. And now, to be fair, the context. When asked by a journalist if he could say something in French, Bush said “No I can’t, I can barely speak English.” Even with the context, I find it hilarious.