This article is another example of horrific journalism, but since the headline (Archbishop says nativity 'a legend') was picked up by Matt Drudge, a lot of people will get the wrong impression.
The title is extremely misleading. It makes it sound as if Rowan Williams doubts the basic biblical presentation of the birth of Christ. In reality, the article simply separates biblical data from traditional legend. For example, regarding the '3 Kings of Orient,' Williams says, for the most part, what I said last year. There might not have been 3. They almost certainly were not kings. And they weren't from the Orient. Williams also rightfully dismisses the typical nativity scene of shepherds and magi together on a snowy December night as bad history. I think most everyone who has cared enough to investigate already knew this. No big news.
The article shows extreme bias in its usage of quotes. If you read the actual interview, you find Rowan Williams accepts all the biblical data as history and dismisses the extra-biblical legend as simply that. Unfortunately, most readers won't read the actual interview, they'll just go away thinking that the Archbishop doesn't believe the Bible's account of Christmas...like this guy! At best, these journalists are really dumb. At worst, they have an agenda to deceive.