On March 19th 1920 the Senate refused to ratify the latest form of the Treaty of Versailles and sent it back to the President. Please, will anyone explain why? What was wrong with it? Or was this internal politics in the US, the Senate just setting itself against the President ?

At that time in history, believe it or not, the US was extremely isolationist. Americans did not want to get involved in other people's wars and certainly not another European one. The Treaty of Versailles included the notion of a League of Nations. Although it was President Wilson's idea, the senate didn't like the idea because of implications that it could drag the US into other people's wars again.

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Originally posted by FredPuli:
What was wrong with it?

The extreme punishment of Germany (which went far beyond Wilson's suggestions in his 14 points) combined with the inability (or unwillingness) of other European nations to enforce such harsh restrictions are often cited as principal reasons for Hitler's ability to gain popularity and power in Germany. The suffering experienced in post-war Germany made a radical like Hitler able to catch people's attention, and then once in power, his stunning ability to defy the unpopular treaty with no negative consequences made the man look like a savior for his first few years in power. Some historians argue that the extremely harsh and yet ultimately unenforced treaty was one of the factors that led to World War II.