That transcript is certainly missing quite a few of Elizabeth's comments. Yes, jessvegg, Elizabeth said on a couple of different occasions "fair and balanced........" And where is her comment about which shows she got her news from... in particular Hannity and Colmes because she likes their debates, etc? that's not a complete transcript at all.
And yes, Rosie's point appears to be that Elizabeth believes every last thing that appears on FoxNews... and how can she do so when this is the same station that deliberately twists what Rosie says. So how can Elizabeth understand that the Rosie comments are distorted and misguided but not recognize that all of the other comments might be, too.