Calling the task ahead "daunting," the Iraq Study Group on Wednesday (December 6) released its findings, in which it called for an end to U.S. combat participation by 2008 and a shift toward training the Iraq Army instead of leading the fighting in the country. The harsh assessment also said President Bush's policy in the country is "not working."

"Our ship of state has hit rough waters, it must now chart a new way forward," former Democratic Congressman and Iraq Study Group Co-Chair Lee Hamilton said at a press conference in which the group announced its findings. "No course of action in Iraq is guaranteed to stop a slide toward chaos. Yet, in our view, not all options have been exhausted."

Group Co-Chair James Baker added that, "We no longer can afford to stay the course. ... If we do what we recommend in this report, it will certainly improve our chances for success."

The 79 recommendations in the 100-page report from the independent, 10-member bipartisan panel urged a change in U.S. strategy to combat what it described as a "grave and deteriorating" situation in Iraq. The recommendations include suggestions for changes to the U.S. role but not for binding legislation.

Though the suggestion to engage Iran and Syria in direct negotiations is one that President Bush has rejected in the past, after a meeting with the panel Wednesday morning, Bush promised to take its "very tough" assessment of the situation in Iraq seriously and to act "in a timely fashion." The report warned that a failure to stop the expanding violence in Iraq could create serious repercussions in the country, the region and the U.S., though it stopped short of recommending a timetable for withdrawal, which Bush has repeatedly said he will not accept.

Referring to the upcoming Democratic Party-led Congress, Bush said: "While they won't agree with every proposal — and we probably won't agree with every proposal, it, nevertheless, is an opportunity to come together and work together on this important issue." Bush called on Congress to take inspiration from the bipartisan nature of the group and to leave bickering behind in charting a new course in Iraq.

The two main recommendations — training Iraqi forces to allow U.S. soldiers to exit and engaging in regional diplomacy — came with a warning that Bush must make it clear to Iraqi Prime Minister Nuri al-Maliki that the American commitment of troops to the conflict is not "open-ended." The findings also pinpointed the deadly sectarian violence as the principal challenge to stability in the country, which runs counter to Bush's recent claims that al Qaeda is the major cause of the ongoing sectarian violence.

"If the situation continues to deteriorate, the consequences could be severe," the report warned. "A slide toward chaos could trigger the collapse of Iraq's government and a humanitarian catastrophe. Neighboring countries could intervene. Sunni-Shia clashes could spread. Al Qaeda could win a propaganda victory and expand its base of operations. The global standing of the United States could be diminished. Americans could become more polarized."

As parts of the report leaked over the past week, Bush made it clear that he would not agree to any timetable for U.S. withdrawal and that no talks with Iran will happen until the stalemate with the United Nations over its nuclear program is resolved. The study group suggested isolating the nuclear issue from efforts to convince Iran to help with the situation in Iraq.

Among the recommendations:

· An infusion of American forces whose mission will be to train and support Iraqi troops, with a goal of bringing home all combat brigades not needed for force protection by spring 2008. "By the first quarter of 2008, subject to unexpected developments in the security situation on the ground, all combat brigades not necessary for force protection could be out of Iraq," the report suggested.

· Reducing political, military and economic support for the al-Maliki government if it does not make "substantial progress toward the achievement of milestones on national reconciliation, security and governance."

· Dealing with the Arab-Israel conflict and regional instability, without which, the report states, "the United States cannot achieve its goals in the Middle East."

The report comes just a day after the Senate Armed Services Committee unanimously voted to send the confirmation of Robert Gates, Bush's choice to replace Secretary of Defense Donald Rumsfeld, to the full Senate; the Senate overwhelmingly approved Gates on Wednesday afternoon. Gates stirred up controversy during his mostly friendly questioning by the Armed Services Panel when he stated that, contrary to Bush's recent assessment, the U.S. is not winning the war in Iraq.

[This story was originally published at 1:33 p.m. ET]