My rewrite of the confrontation:

Jim: You did it to me, you said I don't believe in the constitution!

Jesse: Bye guys!

Jim: Bye, faggot.

Jesse: ...

Jim: purrs like a cat and stares him out

Jesse: T-thank you for your survice to our country .. pats Jim on shoulder

Jim: Thanks for touching me with your greasy Riff-Raff hairdo, heh

Jesse: How fucking dare you ..

Jim: You're bigger than me and stronger than me and I don't give a shit; touch me and I'll sue you.

Jesse: Fuck you, maggot.

Jim: Touch me and I'll sue you.

Jesse Ventura's face goes bright as a beetroot, he goes "ARRRRRGH" trying to hold in his urge to rip this little worm's head off

manages to hold in his rage and walk off

Jim Norton goes "Hmmm" in an almost sexually-satisfied way

turns back to the microphone

Jim: Pussy. Old, bald-headed, jock motherfucker pussy.

Jim Norton psyched out people he considered "jocks" for his own sexual pleasure on an almost weekly basis. He always won.