The last bit clearly ties into the courtroom scene earlier where Rhodey is remaining faithful to his government like a good soldier and they have called upon weapons expert Justin Hammer, played by Sam Rockwell, to modify the first wave Iron Man armor into something more suitable of either taking on or replacing Stark's Iron Man. Hammer walks up to the original Iron Man lying on a table asking what they did to it, which Rhodes says is classified then asks what Hammer is going to do for them. "I'm talking about firepower," he clarifies. Hammer says they're talking to the right guy and he starts pulling out all sorts of guns and weapons to retrofit on the armor, but doesn't seem to be getting much reaction from Rhodes or the general, even with something he calls "Uncle Gazpacho or Puff the Magic Dragon." Cheadle says "I think I'll take it..." and when Hammer asks which one, Rhodey responds, "All of it." And then we see our first look at the retrofitted Iron Man armor as WAR MACHINE, which looks BAD-ASS!!