Though I have no opinion on this or its validity (like some cars at the BJ auction) here is an excerpt from one of many sites that have similar stories about Ted.
5. Q: Ted Nugent Served in Vietnam? A: False. For all his right wing rhetoric and tough talk during the Gulf War, Terrible Ted was a yellow-livered draft dodger. In fact Ted went to great lengths to fail his army physical. He fasted for a week and drank pot after pot of coffee to drive up his blood pressure. He didn't bathe for weeks and showed up with a turd in his pants and another in his hair. Uncle Sam found Ted unfit for military service.
http://www.havocrex.com/press/article/1/15
(this is the same old story that has been around for more than thirty years. I have even met people that told me they did something similar to stay home.)
Dont shoot the messenger