So I asked my Muslim friend (Who is fluent in Arabic) what she thought of this.
?(3:118) O you who believe! Take not as (your) Bit?nah (advisors, consultants, protectors, helpers, friends) those outside your religion (pagans, Jews, Christians, and hypocrites) since they will not fail to do their best to corrupt you. They desire to harm you severely. Hatred has already appeared from their mouths, but what their breasts conceal is far worse. Indeed We have made plain to you the Ay?t?
This is the answer I got.
I believe that the underlying meaning of this ayat is about making sure that when you take advice from someone, or follow their lead, make sure it is consistent with islamic beliefs.
How can there be such a difference in the words and this interpetation? Sounds like wishful thinking to me.
Anyway, it reminded me of this Monty Python sketch.
http://www.dailymotion.com/search/monty+python+oscar+wilde/video/x3oe1r_monty-python-oscar-wilde_funBB