OK, this story is BS. Edit: I was mistaken. The story is true. Sorry. Update in my next post

There WAS no "Salute to Heroes Inaugural Ball" this year. There was a "Heroes Red, White and Blue Ball" which last year was NOT attended by Bush.

UPDATE

After filing this story earlier this week, the topic has taken on a life of its own, and has indeed gone “viral” on the internet. In the comment sections of the linked stories within the original post, there are those that claim the event “never took place,” and that this is indeed a “sham story originated by those on the Right.”

A sample comment, common to all the news stories carrying this:

Pajamas Media got punked with a fake story. ...

A simple check would find that the Legion gave a luncheon for MOHs that President Obama could not attend because he was committed to another luncheon of Americans grateful he could be with them. There was no Salute to Heroes Ball There was the Commander in Chiefs Ball, which Obama did attend. (Cedarford)

I was wrong. But here's the scoop.

The most likely reason that President Obama did not go to the "Salute to Heroes" inaugural ball is because it was held in the Renaissance Hotel which consists of 16 floors. There was an event called the "Illinois Party - Presidential Event" held at the Renaissance the night before that the then-President-elect did not attend either (I have a call in to the President's press office asking for confirmation of this information which was given to me by one of my sources for this story). Given the amount of time and resources it would have taken to clear a 16 floor hotel as well as protect it while President Obama was inside, I can only guess that he was advised by his Presidential Protection Detail not to attend either inaugural ball because of the building and the inherent problems in securing and then protecting it. The sheer number of people crowding the streets and staying in the hotel surely presented a formidable screening problem as well. But, there's your story... it's not as sexy as "Barack Obama Hates The Military" but it is the truth as best I can tell after talking to the organization responsible for hosting the event and doing some research and educated guesswork about why a security team wouldn't want to protect a principal in the Renaissance with more than 2 million extra people in Washington D.C.

Update: It would appear that, according to Stars & Stripes that Obama had some Medal of Honor recipients at an inaugural ball that he attended.

"We extended an invitation as we always do. There are numerous Balls
and we know he can't attend them all. Of course, we would have loved
for him to make an appearance, but he didn't. It's a logistical
nightmare. He did meet with the troops at the Commander In Chief's
Ball, and we are grateful for that. Our Ball wasn't about the
President; it was about the Medal of Honor recipients and the veterans
and families who were there. We are grateful that the Vice President
appeared, and our guests were very appreciative.

"That having been said, there are much more important issues to dwell
on, which we intend to do. We look forward to working with the new
administration on ensuring full and guaranteed funding for VA health
care services, and the very best treatment for our service people who
have been wounded, and on the quality of life of all members of the
Armed Forces and their families, as well as the maintenance of a
national security force that will deter any enemy from considering an
attack on America."