Reverend Al isn't the sharpest knife in the drawer. He had words put in his mouth. I think what he was trying to say was that President Obama was elected to transform the country and that's what he's doing. I think many voted for him because the disgust for the Republicans was so (deservedly) high. Reverend Al doesn't have the same sensitivity to the negative connotation of the word "Socialism" that most other Americans have.
In other words, I think the Democrats and President Obama misread their mandate.