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Kathy Griffin Cracks On Dancing With the Stars' Nancy Grace: "She Does Old-School Drag!"

Nancy Grace, Kathy Griffin ABC/ADAM TAYLOR; Gregg DeGuire/PictureGroup via AP IMAGES

Move over, Michelle Bachman.

Kathy Griffin has a new target—Nancy Grace!

You're not going to believe what the funnylady had to say about the television legal eagle's turn on Dancing With the Stars...

READ: Did Bethenny Frankel Fake "Lost At Sea" for Reality Show?

"You may not approve of her, but you watch her," Griffin said last night during the Best in Drag benefit for Aid for AIDS at L.A.'s Orpheum Theatre. "You watch her because she does old-school drag. She's got those 17 hairs that she just teases up. She's working those 17 hairs on her head into a fine, fine helmet."

Griffin said that Grace tweeted her when the My Life on the D List star began calling her "T-t Mom" on Twitter after her apparent nip slip.

"She wrote back, 'I firmly deny the alleged nip slip and I demand Kathy Griffin come to Dancing With the Stars to launch a full investigation,'" Griffin said. "She's f--king throwing down. Then I wrote back something like 'LOL' because I'm f--king scared of her. If she teams up with...Jane Velez-Mitchell and they go against me, it's f--king over for me."

Started about 20 years ago, Best in Drag is a Miss America-like pageant for amateur drag queens. Last night's event raised more than $250,000 and included celebrity judges Griffin, Melanie Griffith, Dot Marie Jones, Vanessa Williams, Rita Wilson, Lisa Rinna, Harry Hamlin and Kim Coles.

Miss Minnesota, aka Ivy Drip, won but not until after Williams was crowned an honorary Best in Drag winner because it was the late creator of the event Alexis Pittman's dream to have the Desperate Housewives star judge the cross-dressing competition.

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