But Karsnia did not buy Craig's denials, saying, "Well, you're not being truthful with me. I'm kinda disappointed in you, senator. I'm real disappointed in you right now."
The officer grew audibly frustrated toward the end of the interview, saying, "I guess I'm gonna say I'm just disappointed in you, sir. I'm just really am. I expect this from the guy that we get out of the 'hood. I mean, people vote for you."
Craig challenged the officer's account of events one last time, insisting , "All right, you saw something that didn't happen." An exasperated Karsnia concluded the post-arrest interview saying, "Embarrassing, embarrassing. No wonder why we're going down the tubes."
During his Aug. 28 appearance before reporters in Boise, the senator reiterated, "I am not gay. I never have been gay," and pointed a finger at an Idaho newspaper for engaging in a "witch hunt." The staff of Boise's Idaho Statesman had extensively researched Craig's background and published a lengthy report about the senator the day after the incident was publicized.
Craig has faced speculation on his sexual orientation and alleged clandestine encounters since the early 1980s, when he preemptively denied involvement in a sex and drug abuse investigation clouding the congressional page program in a report aired on ABC News. In 2006, a Washington-based gay activist blogger published an anonymous account from a man claiming he had a sexual encounter with Craig in a bathroom at the city's Union Station.
Craig had said Aug. 28 that he would announce his 2008 re-election plans in September and apologized to his constituents for bringing "a cloud over Idaho." His political career started in 1974 with a seat in the Idaho State Senate. Six years later, he was elected to the U.S. House of Representatives, winning re-election four times before a successful bid for the U.S. Senate in 1990. Craig was re-elected in 1996 and 2002.
Idaho Gov. C.L. "Butch" Otter is now responsible for naming Craig's replacement.
ABC News' Z. Byron Wolf and Teddy Davis contributed to this report.