Complex sentence: Delgaudio acknowledged that his organization was the source of the email but said that it looked like paint to him and that the homosexual lobby had doctored his rainbow-colored image, changing it to red.
Split into simpler sentences: Delgaudio acknowledged that his organization was the source of the email and the image. When asked about it, Delgaudio said that it looked like paint to him and that the homosexual lobby had doctored his rainbow-colored image, changing it to red.