Finally, someone explains it!

Director Explains Madonna’s Bond Role
LOS ANGELES (AP) – No one who saw the new James Bond movie “Die Another Day” over the weekend had any doubt that there was Madonna playing the character Verity.
The movie’s director, Lee Tamahori, says Madonna was doing the title song and had mentioned she’d like to have a small part in the movie, just for fun.
Tamahori told her “‘there’s this great little part.” At the time he signed Madonna the character was “a little murky,” but he envisioned it as a “quasi-Lesbian, dominatrix fencing instructor.”
He says he thought that would be perfect for her. And, Tamahori told her he’d give her “a smashing costume.”
Tamahori enjoyed he cameo. “It’s nice when you can just slip someone into the picture and they just appear and people go ‘wasn’t that Madonna?'” the director said.