Falwell's remarks were delivered at a private meeting of the Values Vote Summit, but the Los Angeles Times obtained and transcribed a recording of the remarks. The summit focused on the upcoming mid-term elections and the 2008 presidential race.
Falwell drew cheers and laughter when he said, "nothing will energize my (constituency) like Hillary Clinton," the Times said Sunday.
"If Lucifer ran, he wouldn't."
Supporters called the remarks a joke while critics said demonizing the New York senator and former first lady offered a glimpse into how religious conservative leaders may inflame opposition to Democrats.
Several Republican presidential hopefuls -- including Govs. Mitt Romney of Massachusetts and Mike Huckabee of Arkansas, and Sens. George Allen of Virginia and Sam Brownback of Kansas -- stumped during the event.