Yeah, I'm a real fan of that failure of a man, Hans Blix.

Saddam had been working on getting the materials and technologies for nuclear weapons, and nuke delivery systems since the 1960's. Israel didn't think that was such a hot idea, and broke Iraq's new toy.

Osiraq - Iraq Special Weapons Facilities
"Iraq established its nuclear program in the late 1960s when it acquired its first nuclear facilites. Later, in the 1970s, Iraq was unsuccessful in negotiations with France to purchase a plutonium production reactor similar to the one used in France's nuclear weapons program. In addition to the reactor, Iraq also wanted to purchase the reporcessing plant needed to recover the plutonium produced in the reactor. Even through these requests were denied, France agreed to build a research reactor along with associated laboratories. Iraq built the Osiraq 40 megawatt light-water nuclear reactor at the Al Tuwaitha Nuclear Center near Baghdad with French assistance. Approximately 27.5 pounds of 93% U-235 was supplied to Iraq by France for use in the Osiraq research reactor."

Just because we didn't find the nukes does not mean he didn't want 'em.
PBS - frontline: gunning for saddam: saddam hussein's weapons of mass destruction
Quote from above article in regards to Iraq's nuke ambitions and capabilities:

"Between 1991 and 1998 the IAEA conducted more than 1500 inspections. IAEA released a report in 1997, with updates in 1998 and 1999, which it believes offers a technically coherent picture of Iraq's nuclear program.

In summary, the IAEA report says that following the August 1990 invasion of Kuwait, Iraq launched a "crash program" to develop a nuclear weapon quickly by extracting weapons grade material from safe-guarded research reactor fuel. This project, if it had continued uninterrupted by the war, might have succeeded in producing a deliverable weapon by the end of 1992.

The IAEA inspections revealed seven nuclear-related sites in Iraq. The IAEA reports that all sensitive nuclear materials were removed, and that facilities and equipment were dismantled or destroyed. Activities uncovered and destroyed included:

an industrial scale complex for Electromagnetic Isotope Separation (EMIS), a process for producing enriched uranium. The complex was designed for the installation of 90 separators; before the Gulf War, eight were functional. If all separators had been installed, the plant could have produced 15 kg of highly enriched uranium per year, possibly enough for one nuclear weapon.

a large scale manufacturing and testing facility--the Al Furat Project--designed for the production of centrifuges, used in another method of uranium enrichment.

facilities and equipment for the production of weapons components.

computer simulations of nuclear weapons detonations

storage of large quantities of HMX high explosive used in nuclear weapons.

According to former U.N. inspector David Kay, Iraq spent over $10 billion during the 1980s in an attempt to enrich uranium and build a nuclear weapon. However, the Agency concludes that as of December, 1998, "There were no indications to suggest that Iraq was successful in its attempt to produce nuclear weapons," or "that there remains in Iraq any physical capability for the production of amounts of weapons-usable nuclear material of any practical significance." However, the IAEA did find that "Iraq was at, or close to, the threshold of success in such areas as the production of [highly enriched uranium] ... and the fabrication of the explosive package for a nuclear weapon." Despite the fact that the facilities and nuclear material had been destroyed or removed, as early as 1996 the IAEA concluded that "the know-how and expertise acquired by Iraqi scientists and engineers could provide an adequate base for reconstituting a nuclear-weapons-oriented program."

Nuclear physicist and Iraqi defector Khidhir Hamza agrees. He told FRONTLINE that Iraq did not relinquish certain critical components of the nuclear program to the inspectors, and that it retains the expertise necessary to build a nuclear weapon. He believes that Iraq may have one completed within the next couple of years.

Note: IAEA was allowed back into Iraq in January 2000 and again in January 2001. But its inspectors were blocked from full access inspections."

Mr. C: No offense, but I'm a little put-off having to share the credit for a quote I wrote, but I do appreciate that someone reads my stuff, lol.