Houllier admits that he was bitterly disappointed by what he saw as an attempt to cheat the referee by Taricco.
Houllier said:"I got a bit angry because in the first half - whether it was on purpose or not - Taricco looked as if he wanted to have him sent off, but fortunately the referee spotted it.
"I thought it was not a nice thing for a fellow footballer to do and that is why I had a word and asked them to do something at half time.
"I have never had one of my players try to get another sent off and after what happened at Celtic it was easy to pick on him. The crowd were on his back but he silenced them himself because he is a talented player.
"He has to expect that but he is mentally strong - like Eric Cantona was - and he can shut that out."
Glenn Hoddle, though, was quick to refute Houllier's allegations and admitted that he is baffled by the Frenchmans words.
Hoddle said: "That is absolute rubbish and I don't know where he is coming from. We never even spoke about Diouf - so I don't know why he is accusing anyone.
"For him to attack our player in the tunnel verbally, I don't think that is on. I didn't see anything wrong and we didn't even mention him in our team meeting before, so if he thinks we tried to provoke the situation he is wrong.
"The crowd gave him some stick but I think everyone knew that was going to happen. But there is no truth in what Gerard is saying whatsoever, Tano (Taricco) just got on with his game, and I don't what angle he is coming from to be honest."