Okay, it's time for me to throw my own two cents into this. Now, I will admit up front that I am friends with Teddy, while I've never even talked to Punk, so I might be a wee bit biased, but these are the facts, as far as I could gather them.
First of all, this is NOT a work. Not at all. No chance. The men known by the names Ted Hart and CM Punk genuinely do not like each other.
Secondly, Ted didn't get his ass whipped by Punk. I've heard from four different, unconnected people who saw the fight happen live, and their stories generally mesh. Ted raised his hand up as if to go for a handshake, Punk bitchslapped him, Ted knocked him down with a couple of punches, and then they were scrapping around on the ground for a second until Sabu broke them up (and accidentally caught a stray kick to his balls too). All this stuff is straight from people I know and trust, who were there at the White Trash Cafe (yes, that's really the place's name).