"There are no transitional fossils."
To say there are no transitional fossils is simply false. Paleontology has progressed a bit since Origin of Species was published, uncovering thousands of transitional fossils, by both the temporally restrictive and the less restrictive definitions. The fossil record is still spotty and always will be; erosion and the rarity of conditions favorable to fossilization make that inevitable. Also, transitions may occur in a small population, in a small area, and/or in a relatively short amount of time; when any of these conditions hold, the chances of finding the transitional fossils goes down. Still, there are still many instances where excellent sequences of transitional fossils exist. Some notable examples are the transitions from reptile to mammal, from land animal to early whale, and from early ape to human. For many more examples, see the transitional fossils FAQ in the talk.origins archive, and see http://www.geo.ucalgary.ca/~macrae/talk_origins.html for sample images for some invertebrate groups.
The misconception about the lack of transitional fossils is perpetuated in part by a common way of thinking about categories. When people think about a category like "dog" or "ant," they often subconsciously believe that there is a well-defined boundary around the category, or that there is some eternal ideal form (for philosophers, the Platonic idea) which defines the category. This kind of thinking leads people to declare that Archaeopteryx is "100% bird," when it is clearly a mix of bird and reptile features (with more reptile than bird features, in fact). In truth, categories are man-made and artificial. Nature is not constrained to follow them, and it doesn't.