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CNN Wolf Blitzer Reports

Noreaster Ready to Hit Upstate New York; U.S. Continues to Prep for War in Persian Gulf

Aired December 25, 2002 - 17:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


WOLF BLITZER, CNN ANCHOR: Happening right now bracing for winter's worst parts of Upstate New York are preparing for as much as 20 inches of snow as a Noreaster works its way up the East Coast.
This situation is getting worse in Massachusetts where forecasters call for near blizzard conditions and snowfall as heavy as three inches an hour. And, it's a similar scene in neighboring New Hampshire with officials urging people to stay off the roads. We'll have live reports on the latest forecast as this powerful winter storm that started in the Midwest roars into the Northeast this Christmas Day, that and much more coming up on WOLF BLITZER REPORTS. That starts right now.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): White Christmas but more than they dreamed of. A blizzard blasts out of the plains and into the Northeast. They're far apart for the holidays. We're happy to help bring them together.

UNIDENTIFIED FEMALE: Merry Christmas. We miss you so much. We're so excited that we're able to see you today.

BLITZER: As the U.S. builds up its forces in the Persian Gulf, we'll show you what they may be up against. Is Iraq ready?

The ultimate holiday wish, a Powerball jackpot up for grabs just hours away.

And, he was a doctor, lawyer, and airline pilot, but it was all a scam. Now, he's the subject of a hot new movie, "Catch me if you Can." I'll catch up with reformed conman Frank Avignao (ph).

(END VIDEOTAPE)

BLITZER: It's Christmas, 2002. I'm Wolf Blitzer in Washington. Happy holidays to all of us viewers. A major winter storm is bringing tons of snow to millions of Americans this Christmas. Many areas are buried under more than a foot and others are bracing for even more. In just a moment, we'll go live to Upstate New York where the forecast calls for up to 20 inches of snow, but first at what we've seen so far.

(BEGIN VIDEOTAPE) BLITZER (voice-over): No need to dream of a white Christmas, a winter storm is reality for most of the Northeastern United States. From the Ohio Valley to New England, snow plows have no holiday. Buffalo, New York is used to white Christmases. A five to eight-inch blanketing pales though in comparison to what's expected farther east. Albany, New York is planning for ten to 20 inches for its first white Christmas since 1985.

Except for a dusting two years ago, Connecticut is seeing its first white Christmas since 1966. Snow is falling there at a rate of three inches per hour. Even Washington, D.C. sent out a Christmas card not seen there in years. The Christmas Noreaster blew in from the plains where it dumped more than a foot of snow yesterday and is being blamed for more than a dozen traffic deaths nationwide.

Light holiday traffic is helping road crews throughout the Northeast prepare the main roads for what will likely be a very messy and slippery day after Christmas.

(END VIDEOTAPE)

BLITZER: Now as promised, we go to Upstate New York. The area is no stranger to snow, of course, but with up to 20 inches in the forecast residents are on alert and preparing for the worst. CNN's Whitney Casey is in Malden, New York. That's near Albany, the state capital. Give us a little flavor. We can see it's a mess but tell us what's going on.

WHITNEY CASEY, CNN CORRESPONDENT: Well, we're well on our way up to 20 inches up here. As you can see, the wind is blowing very hard right now up to 30 miles an hour. We're standing right off the throughway and they've actually - we talked with the DOT. They've closed the throughway right now to traffic. We were just on the throughway headed up to Albany and actually there were tons of cars that were on the throughway with us. We counted 13 cars that had spun off the throughway all the way from Philly and Pennsylvania up here.

Now, I've been in four different states in the past 24 hours. Today, right now, actually in the past hour it's the worst. We're here at this Mobil station and just standing here in the past hour we've counted, it's been about seven inches of snow that is just pouring on the ground, and actually on the throughway right now there are very few cars that are going past on the throughway because when they shut it down, they've actually had an advisory out saying that it's just too perilous right now to get on the throughway.

So, what they're saying right now, if you do plan on going anywhere that you definitely want to wait until tomorrow morning because this is supposed to pass overnight and actually they're supposed to get about a foot of snow in the Catskills, which is a great ski resort just up the street from us about 20 minutes. But right now, Wolf, it is very, very treacherous out here as you can see, back to you.

BLITZER: Whitney, are you basically telling me you're stuck at that Mobil station near Albany, New York? Is that what you're saying? CASEY: Oh, yes we definitely are. We can't go anywhere for a little while at least because the wind is blowing so hard right now and a lot of the cars are spinning out on the throughway so they're trying to keep the traffic down so they can get some of the - excuse me, they can get on the freeway and get some of the snow cleared so that we can get back on.

BLITZER: How are people that you've been speaking to coping with this? What are they saying to you?

CASEY: Well, I asked a lot of people why they would get on the highway right now and they said because when they started like down in New Jersey or Pennsylvania, where we were, that it was raining and it's true. We were down in Stroudsburg and it was raining very hard and they thought oh yes, it's not going to snow. It's going to be rain and then they get on the freeway and they're halfway there and it's snow and they have nowhere to go because a lot of the hotels along the throughway here are already booked up, so they're stuck.

BLITZER: And you're stuck too. You better go inside pretty soon and get some warmth. Whitney Casey of CNN in Malden, New York, thanks very much for that report. We'll be checking back with Whitney later this hour. As for what's in store, let's check in with meteorologist Chad Myers at the CNN Weather Center.

(WEATHER REPORT)

BLITZER: Good advice from Chad Myers, thanks very much Chad for that forecast and the good advice. For more on this winter storm and how it's affecting millions of people, you can click onto our website, cnn.com/wolf. We'll link you immediately to the forecast once you're there.

In some other news in a development that's sure to trouble the White House, North Korea is giving new signals that it's preparing to restart a frozen nuclear reactor. As promised, North Korea has started moving fuel rods to that reactor that had been deactivated. Experts say it will take at least a month to get it back online. This week, North Korea removed some seals that had been in place at the site by international inspectors. The United States wants the reactor to stay mothballed fearing it will be used to make nuclear weapons. North Korea says it needs the facility to produce electricity.

Despite the Christmas holiday, U.N. inspectors in Iraq continued their hunt for evidence of mass destruction weapons. CNN's Rym Brahimi is in Baghdad.

(BEGIN VIDEOTAPE)

RYM BRAHIMI, CNN CORRESPONDENT (voice-over): No respite for the U.N. inspectors despite this being Christmas Day. At least 14 headed out today. A team is supposed to come back from the southern town of Bazra (ph) and the rest of the teams today went out to various facilities, missile facilities, different factories in and outside of Baghdad. Now, inspections here in Iraq have taken a new turn since yesterday when U.S. weapons inspectors went to Baghdad University of Technology to interview formally an Iraqi scientists for the first time since this round of inspections began four weeks ago.

Now, the scientist in question, Dr. Sabah Abdel Noor is an expert in nuclear research. He spoke to reporters and explained to them what he told the U.N. weapons inspectors that Iraq in his view has no more weapons of programs in the nuclear field.

SABAH ABDEL NOOR, BAGHDAD UNIV. OF TECH.: As I told you, since '91 we had nothing. We are totally stripped of all our facilities and materials. Now how can anybody losing all that establishments which has been built over 20 or 30 years resume work and finish such a dangerous and difficult program in one year?

BRAHIMI: Mr. Abdel Noor also explained to reporters that he had refused to be interviewed in private by the U.N. weapons inspectors because, he told them, it would be better for all of them. Now, he also said that he felt he had been 100 percent transparent in the interview, and when asked by reporters whether he would be prepared to leave the country for an interview should that come up, he said it was way too early to discuss that issue now.

Now, Christmas also the opportunity for President Saddam Hussein to send his Christmas message to Iraqis, maybe also to the entire world, repeating again that Iraq has no weapons of mass destruction and that if the United Nations weapons inspectors do a neutral job, a fair job he said, well that would expose what he said were the lies of the U.S. and the British administrations.

Rym Brahimi CNN, Baghdad.

(END VIDEOTAPE)

BLITZER: And, as Saddam Hussein deals with the threat of war, the U.S. finds out new information about where Iraq is deploying its troops. That story is coming up. Also, if you want to be a multimillionaire, you'd better hurry, the latest on the Powerball jackpot, that's coming up, but first our CNN news quiz. The odds of winning the Powerball grand prize are one in 120 million. But what are the overall odds of winning a prize, one in 10,000, one in 100, one in 75, one in 36, the answer coming up?

(COMMERCIAL BREAK)

BLITZER: Happy Holidays indeed, and even as the U.N. weapons inspections continue in Iraq, Washington and Baghdad are preparing for the possibility of war. CNN Pentagon Correspondent Barbara Starr is here to update us on what's going on -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Indeed, Wolf. U.S. intelligence has now laid out details of how Saddam Hussein is positioning his troops.

(BEGIN VIDEOTAPE) STARR (voice-over): With the U.S. planning a troop buildup in the Persian Gulf and the possibility of war looming, monitoring the location and capability of Iraqi troops is a top Pentagon priority. Intelligence officials say Iraq now has about 375,000 ground forces, one third pre-Desert Storm levels. One measure of Iraq's reduced capability they now have just 23 divisions compared to 70 before the Gulf War.

It is the elite Republican Guard that the U.S. is watching closely. They are better trained, better equipped than regular troops, more likely to fight, and draw U.S. soldiers into an urban war in the streets of Baghdad. It is Baghdad where Saddam Hussein and the Republican Guard are expected to make their last stand.

Today, there are three Republican Guard armored divisions deployed around Baghdad and another Republican Guard infantry division is southeast of the city. Intelligence sources say there are two infantry divisions in northern Iraq arrayed against the Kurds, each about 10,000 troops. West of Baghdad there are two special operations brigades, each with 3,000 troops, the Iraqis preparing to defend against a U.S. push from that direction.

The regular army troops which surrendered by the thousands during Desert Storm are in poor shape. The Pentagon estimates Iraq's 17 regular army divisions are manned and equipped at half their required levels. The Iraqi Air Force has 300 aircraft but that is compared to 750 before the war, perhaps only half the current force fully combat capable. The Iraqi Air Force did shoot down a Predator unmanned aerial vehicle but it was judged a lucky shot by the U.S. military.

(END VIDEOTAPE)

STARR: But air defense remains a key Iraqi capability. Nearly 60 surface-to-air missile batteries are located around Baghdad, some of the most heavily defended airspace in the world and, Wolf that is a threat the U.S. is now watching around the clock.

BLITZER: There's also word that you've developed on a new deputy for General Tommy Franks who's the central commander. He's the man in charge of putting all the plans out there for the president to approve if he gives the order to go to war. Tell us about his new deputy.

STARR: Indeed, Wolf. CNN has learned that after the New Year, Lt. Gen. John Abizaid will be named deputy to General Tommy Franks, the head of U.S. Central Command. Now, General Abizaid will become the point man for operations inside Iraq and U.S. military relations with the Arab world. He is going to fill a job specifically created for him because of his military experience and, of course, his own family, cultural background. He is of Lebanese descent.

He is fluent in Arabic. He puts a unique Arab-American face on the U.S. military at the very highest levels. His military education again top-notch, a graduate of West Point, the armed forces staff college, Harvard, he also attended Stamford University and the University of Amman in Jordan, and Wolf, he also has extensive military experience. He served in northern Iraq. He has served in Bosnia, in Kosovo. He is someone very well known throughout Arab military forces.

BLITZER: About to get even better know.

STARR: Absolutely, look for him after the first of the year.

BLITZER: It looks like he's almost perfect for this job. His resume sort of cries out, get me to the scene.

STARR: Well, I must tell you we have asked the Pentagon is this the man that is going to head the U.S. military occupation of Iraq after any war, after any conflict. We are told no, not at the moment. This is not going to be the Douglas MacArthur of Baghdad, but certainly General Abizaid is being positioned for some very unique military tasks.

BLITZER: Our congratulations to him, good luck to him and thanks Barbara Starr for joining us.

STARR: Thank you.

BLITER: And, as President Bush celebrates Christmas, a major issue of course remains at the top of his concerns, what to do about what we've just discussed, namely Iraq. Will there be war or will there be peace? As CNN Senior White House Correspondent John King reports, experts say the issue could become a lot clearer just weeks from now.

(BEGIN VIDEOTAPE)

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): For the president, a quiet Christmas at Camp David, sobering decisions just ahead.

MICHAEL O'HANLON, BROOKINGS INSTITUTION: War has become almost inevitable and I think it will happen this upcoming winter.

KING: Senior administration officials say the critical decisions in the showdown with Iraq are a month or so away.

LAWRENCE EAGLEBERGER, FORMER SECRETARY OF STATE: The biggest challenge, I think, is going to be this question of how long the United States is prepared to wait to see what the inspectors can find. I think it would be a mistake for us to go in too soon.

KING: Weapons inspectors are now receiving some sensitive U.S. intelligence on Iraq's weapons programs and the White House is pushing the United Nations to take some Iraqi scientists out of the country for questioning.

O'HANLON: The third strike I think will be based on the weapons scientists in Iraq and whether they are able to give us information about stockpiles of weaponry that Saddam should not have.

KING: The U.S. military buildup continues and many view the question of war, not as an if but a when. EAGLEBERGER: The Iraqis have it in their hands to remove Saddam and go straight with the rest of the world but if they don't do that, I think it becomes very likely that there will be a war.

KING: U.S. officials say the general military plan is in place but some key decisions hinge on delicate diplomacy. Mr. Bush, for example, recently welcomed the head of Turkey's ruling party to the White House, part of an urgent effort to win greater access to Turkish military bases so that if there is a war, U.S. troops can quickly invade Iraq from both the south and the north.

Coalition building will be an urgent focus over the next several weeks as the president tries to sell his view that Iraq's declaration about its weapons program raised more questions than it answered.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We expected him to show that he would disarm, and as the secretary of state said, it's a long way from there.

KING (on camera): And, as the inspections continue, senior U.S. officials say one major challenge is making the point that the burden should be on Saddam Hussein to prove he does not have weapons of mass destruction, not on the United States to prove that he does.

John King CNN, the White House.

(END VIDEOTAPE)

BLITZER: And, of course, stay with CNN for all the late-breaking developments as far as the showdown with Iraq is concerned. Many Americans have dreams of millions dancing in their head right now around Christmas. Coming up, there are $280 million at stake and only a few hours left to go. We'll check in with the final rush to get the Powerball tickets and...

UNIDENTIFIED MALE: This is the first time I've been away from family.

UNIDENTIFIED MALE: Hi Daddy.

BLITZER: Some family members weren't able to make it home this Christmas but with the help of satellites, CNN was able to bring them together, an emotional reunion is straight ahead but first this news from around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): German sorrow, an honor guard looked on as seven peacekeepers killed Saturday in Afghanistan arrive home in Germany. There's still no word on the cause of the helicopter crash that killed them. Germany's defense minister told families of the victims, "All of German grieves with you."

Middle East violence, angry Palestinians marched in the West Bank city of Nablus after a senior Hamas member was killed in a raid by Israeli troops. Israel says the troops arrested a second Hamas activist in the same apartment and found guns, ammunition, and bomb- making equipment.

Back to work, Russian air traffic controllers have won a pay raise after resorting to an unusual tactic. Russian controllers are barred by law from staging a regular strike. Instead, they held a hunger strike that rendered them medically unfit for duty.

The pope on peace, Pope John Paul II used his annual Christmas message to warn against war. The pontiff acknowledged that the threat of terrorism feeds uncertainties and fears but he urged believers in all religions to work together to build peace.

The queen speaks, Britain's Queen Elizabeth says she's been saddened in the past year by the deaths of her mother and her sister Princess Margaret, but in her annual Christmas broadcast the queen said her sadness was tempered by the tribute she received for her Golden Jubilee.

Festive frostbite, continuing one of the world's stranger traditions, members of Britain's Serpentine Swimming Club went for a Christmas Day race in a frigid London lake. The winner covered 100 yards in just 57 seconds, which considering the temperature probably wasn't all that surprising, and that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: Earlier we asked what are the overall odds of winning a prize when playing Powerball, the answer one in 36, keep in mind those odds include winning as low as $3.00.

Gifts have been opened. Dinners are being consumed but many Americans are hoping the highlight of their Christmas is yet to come. They've been lining up to buy tickets in the multi-state Powerball lottery. The drawing for the $280 million jackpot is tonight, 10:59 p.m. Eastern, five and a half hours or so from now. CNN National Correspondent Bruce Morton visited a store earlier today here in Washington.

BRUCE MORTON, CNN CORRESPONDENT: It snowed earlier this morning, Wolf, as you know and the crowds here were small. Powerball has been very big in this store all week. They sell all sort of things here but Powerball the last few days has been the big draw. You can win after all up to $280 million, which is a lot of money.

The crowds were small this morning. They've built up now. There are suppose 20, 30, 40 people waiting in line here as the day winds down. Ma'am, tell me your name please and tell me why you came.

JILL BRANTLEY (ph): Jill Brantley and I came to play Powerball and I think winning, if I win, it's a heavy responsibility but I'm ready to assume it and I'd use part of the money for myself and part to fund progressive political causes and bring a Democrat back to the White House.

MORTON: What do you think, I mean 120 million to one, are you an optimist?

BRANTLEY: Yes. This is my act of faith. You know everybody has to keep the faith in their own way. This is my almost weekly prayer.

MORTON: Good luck.

BRANTLEY: Thank you.

MORTON: So, that's one woman who thinks she has a shot at it, 120 million to one, how can you beat those odds? Wolf.

BLITZER: I don't think you can beat those odds. I personally purchased $20 worth of those tickets. Let's see if I win. By the way, Powerball tickets are for sale in the District of Columbia, 23 states, as well as the U.S. Virgin Islands. People in those areas still have about five and a half hours left to go ahead and buy those tickets if, this is a huge if, if they can find an outlet that's open Christmas night. Good luck to all of you.

Here's your chance to weigh in on the story. Our web question of the day is this. If you won the Powerball jackpot, where would most of your money go, your bank account, your family and friends, charity? Vote at cnn.com/wolf. While you're there I'd love to hear from you. Send me your comments. I'll try to read some of them on the air each day at the end of this program. That's also, of course, where you can read my daily online column, cnn.com/wolf.

In just a moment a medical story made public this hour on a popular arthritis drug. You'll want to hear about this.

CASEY: And I'm Whitney Casey in Upstate New York where the winter storm is whipping through. We'll have an update live for you coming up.

BLITZER: All right, Whitney, we'll be with you shortly. And, catch him if you can, the man who inspired a blockbuster hit looks back with me on his teenage con years, stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back to CNN. I'm Wolf Blitzer. Coming up, a holiday gift to troops away from home that brought some emotional moments here in our studio but first let's take a look at some other stories making news in our CNN "News Alert."

(NEWSBREAK)

BLITZER: For the latest on the storm, we want to go back to Upstate New York. That's where CNN's Whitney Casey is standing by near Albany. Is it getting any better since we last spoke, Whitney?

CASEY: Well, what do you think? Look at this. No, it's not getting any better and I heard you say this was somebody's dream. Well, I'm going to have to have a talk with them because this is more like a nightmare out here. It is really, really windy. It's about winds gusting up to like 30 or 40 miles an hour out here and it's just blowing the snow all around right at our faces.

But, let me show you out here. We've got a snow plow. He's working it hard just in this parking lot trying to clear some of the snow that has fallen in the past hour. It's been about seven inches just in the past hour and the throughway is pretty much dead right now.

So, they've basically shut the throughway for now because they say that the road conditions are just not safe. This is a driver along the road here. I don't know if he'll talk with us but maybe he will while he's filling up his tank. Hi, sir.

UNIDENTIFIED MALE: Hi, how are you.

CASEY: You're out on the roadway, pretty perilous condition. What are you doing out here?

UNIDENTIFIED MALE: Just heading home.

CASEY: Heading home?

UNIDENTIFIED MALE: Yes up in the Adirondacks.

CASEY: Oh wow, you got a little way to go, huh?

UNIDENTIFIED MALE: Just a few more hours.

CASEY: Where are you coming from?

UNIDENTIFIED MALE: Which is normally from here it would probably be about an hour.

CASEY: Well, you seem to have a good attitude about it.

UNIDENTIFIED MALE: Well, what else can you do? It's kind of snowy and we're coming up from New Jersey, So a three-hour trip has turned into probably a 5 or 7 or 8-hour trip.

CASEY: Well, thank you so much, sir. You take care, good luck and drive safely. Take care. Merry Christmas.

Well that's what you got here. It's still windy and they say that it's going to be like this for the rest of the night. We should see a nice morning tomorrow and maybe those white Christmas dreams, like you said, Wolf, will be dreams. But for right now they are nightmares. Back to you.

BLITZER: CNN's Whitney Casey on the job for us. Today is her first day. We'll be seeing a lot more of her. Good work. Thanks for weathering that storm for us in Upstate New York, my old stomping grounds. If you get to Buffalo, say hi to my friends up there.

CASEY: Sure.

BLITZER: Thank you very much, Whitney Casey for all that information. Turning to U.S. forces stationed around the world. This holiday special forces units have been known to customize their uniforms to meet the needs of their secret missions. And Afghanistan's Bagram Air Base, they blended in -- look at this -- as Santa's helpers.

In the Kuwaiti Desert the local Santa says it's his third Christmas away from home but he helped the rest of the troops take a break from the standoff with Iraq and make the best of the holidays.

In the Persian Gulf, sailors and Marines about the USS Constellation had a holiday feast of roast turkey, baked ham and cornbread as yet another Santa Claus roamed the carrier's flight deck.

We want to go live to the USS Constellation now. Jason Van Pelt is joining us. He's an interior communications electrician, first class with the U.S. Navy. He's joining us no via video phone. What's it like to be aboard the Constellation on this Christmas, Jason?

FIRST CLASS JASON VAN PELT, U.S. NAVY: Oh, it's great. How are you guys doing there?

BLITZER: We're great over here. You look like you're happy. Are you happy over there?

VAN PELT: It's good to be connected to the United States.

BLITZER: Anybody special you'd like to say hi to on this Christmas day?

VAN PELT: Yes, I'd like to say hello to my whole family, including my wife Christy, and my children Jason, Callie and Haley. Hi, guys. Merry Christmas.

BLITZER: I'm sure they are saying hi to you right now even as we speak, Jason. What's it like to be away from home on this Christmas Day?

VAN PELT: Well, it's not easy, but out here it's just another day. You just got to take it one day at a time.

BLITZER: And did you have a good meal as we reported? Were we telling the truth? What your Christmas meal was?

VAN PELT: It was pretty factual. we had it Christmas Eve for us, but it was still good.

BLITZER: How much longer -- you're going to be on station, as they say, in the Gulf, what, for about six months now before you head back to your home base?

VAN PELT: Should be something like that.

BLITZER: First time away, though?

VAN PELT: No, this is my third deployment. BLITZER: Third deployment. Well, be safe over there. Thank your fellow sailors for us. Good luck to you. And we'll continue to talk to some of your fellow crew members aboard the USS Constellation. Jason, merry Christmas to you.

VAN PELT: Merry Christmas to you, too.

BLITZER: All right. Take care over there.

David Pounder is an Army officer deployed in the Persian Gulf. A short while ago, we were able to reunite him with his wife and his family here in Washington.

(BEGIN VIDEOTAPE)

BLITZER: Joining us now Captain David Pounder, United States Army. He's joining us from Qatar, from Doha, from the U.S. military base out in the Persian Gulf. Here in our Washington studio, his wife Anne, his brother Mike and two kids, 3-year-old Evan and 8-month-old Matthew. Thanks to all of you for joining us.

David, let me begin with you. What's going through your mind on this Christmas Day as you united with your family?

CAPT. DAVID POUNDER, U.S. ARMY: Well, it's really a great opportunity for me to be here and talk with my family and we're trying to have a good day today. And enjoy the Christmas spirit out here.

BLITZER: You obviously miss your kids. You miss your wife, your brother. Is this the first Christmas you've been away from home?

D. POUNDER: Yes, it is. This is the first time I've been away from family.

BLITZER: It's probably hard for you, too, Anne. What's going through your mind? You got your little boys on your lap over here.

ANNE POUNDER, WIFE: It was tough this morning when they opened their Christmas presents and he wasn't there, but he sent them each a special gift.

BLITZER: Let's ask Evan, did you get a special present, Evan from your dad?

A. POUNDER: Did you get a special present from Daddy?

EVAN POUNDER, SON: Yes, uh-huh.

BLITZER: What did you get?

E. POUND: I get a baseball set.

BLITZER: You got a baseball?

A. PONDER: Baseball set.

BLITZER: Baseball set, that's so nice.

Matthew, you are only 8 months old so I'm not going to talk to you, but Mike, you're the older brother, right?

MIKE POUNDER, BROTHER: Yes, I am.

BLITZER: So you're proud of your younger brother?

M. POUNDER: Oh, absolutely.

BLITZER: It's exciting to be talking to him on this day?

M. POUNDER: Oh, yes.

BLITZER: David, what's your job out there in the Persian Gulf?

D. POUNDER: What I do is I provide the command here recommendations on security and force protection.

BLITZER: At the As Saliyah military base?

D. POUNDER: That's correct, yes.

BLITZER: Tell our viewers and tell your family what's going through your heart right now as you see your boys, your wife and your brother.

D. POUNDER: I mean, this is obviously a very difficult time to be away from family and friends. Out here it's been very -- they've done their best to make it enjoyable, and put us all in the Christmas mood. Obviously we miss our families very much.

Everyone out here, the morale is very high and the people out here have done a good job supporting us. It's a tough time to be away from family. But I'm thankful for the support my family has given me. It lets me get through these tough times.

BLITZER: What's going through your mind, Anne?

A. POUND: Just that we're so excited that you had us on. It's so wonderful to be able to see Dave today, of all days, and it's just an important time for our country and it's important that we all get behind the men and women that are over there away from their families.

BLITZER: Talk to your husband right now and tell him what you want to say.

A. POUNDER: Merry Christmas. We miss you so much. We're so excited we're able to see you today. Evan says merry Christmas, Daddy. He got cranky from the Thomas the Tank Engine set today and that's his No. 1 favorite toy. We brought it to show you and we forgot.

BLITZER: Mike, what do you want to say to your brother?

M. POUNDER: Dave, proud of you. Mom and Dad say hi. BLITZER: It's an emotional moment for all of us, David. What do you want to say to your family as we wrap things up and you get back to work.

D. POUNDER: Merry Christmas. We love you all. It's great to get this opportunity to talk with you. I love you. I miss you.

I want to say hi to my parents. My mom was supposed to come down but got caught up in the snow, so hi to all my family and grandparents, my brothers. I thank you for the opportunity to talk with them, and, Anne, I love you, Evan, Matthew, I love you, too.

BLITZER: And how much longer are you going to be over there, David?

D. POUNDER: I'm here for between six months and a year.

BLITZER: Six months and a year. All right. Well, take care of yourself. Maybe Evan, you want to sing "Jingle Bells" for your dad before we let him go?

(SINGING)

BLITZER: On that note, Evan, you got a good voice. You can blow your dad a big hug and a kiss. All right. That's good. He's blowing you a big hug and a kiss. Your dad is blowing a big kiss back.

Merry Christmas to a wonderful family. Thanks for spending a few moments with us on this Christmas Day.

(END VIDEOTAPE)

BLITZER: These are heartbreaking moments for a lot of people out there. We're glad we can facilitate in letting these people at least say a little hello an this Christmas day. We'll continue to do that.

What stories do you think stood out in 2002? A flashback of the Top 10 when we come back. Also the events that didn't make the cut.

And later...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hands on your head.

UNIDENTIFIED MALE: That's a new IBM Selectic (ph). A print type in five seconds.

UNIDENTIFIED MALE: Shut up! Put your hands on your head!

(END VIDEO CLIP)

BLITZER: Catch the real story before you catch the movie. That troubled teen is now a grown-up. What does he think about his days of deception? Stay with us.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: To my wife Dawn, hi, baby. And my two kids Hunter and Caitlin and everybody else back home, we love you.

UNIDENTIFIED MALE: Hi, this is Staff Sargent George Howe (ph) from Tennessee. I'd like to say merry Christmas to everyone back in the states, especially family and friends.

UNIDENTIFIED MALE: I'm Captain Danny Ball from Scott Air Force Base. I'd like to wish everyone back home, Anne and Zach a merry Christmas and happy New Year.

UNIDENTIFIED MALE: Hi, my name's (UNINTELLIGIBLE) Adam Morrison. I would like to wish a merry Christmas and happy holidays to everybody back in Connecticut. All my family and my brother.

(COMMERCIAL BREAK)

BLITZER: 2002 was one of the most eventful years we've covered so it was more difficult than ever to come up with the "Top 10 Stories of the Year." These are the ones we felt stood out more than others in the year that was.

(BEGIN VIDEO CLIP)

RUDY GIULIANI, Gordon M. Ahmad Jr. (ph), Adel Mirro Abbad (ph).

UNIDENTIFIED FEMALE: Daniel Howe Christmas (ph).

BLITZER (voice-over): And emotional pull from last year's biggest story is at No. 10 on cnn.com's list for 2002. A year of grief culminated in some moving tributes at the sites where those four hijacked planes crashed on September 11, 2001. On the one-year anniversary, silence and solitude prevailed at those moments when chaos unfolded the year before.

At No. 9, a direct result of September 11, the biggest reorganization of the U.S. government in more than half a century. President Bush signed a Homeland Security Bill, a 170,000-person department was created, all to protect American soil from another September 11-style attack.

From parishes throughout the U.S. to the Vatican, the sex scandal that brutalized the image of the Catholic Church makes No. 8 on cnn.com's list. Top church officials were accused of covering for priests who molested children and teenagers by discreetly moving them around to different parishes. The scandal led to criminal charges for some well-known priests and a downfall of Boston's Archbishop Cardinal Bernard Law.

A post-September 11 recession, the prospect of more terrorist attacks, and a rash of devastating corporate scandals pushed the U.S. economy through a roller coaster year, the seventh biggest story of 2002. The battered markets reflected in many CNN polls, which showed Americans more worried about the economy than the confrontation with Iraq. The making of political history made its way into the top 10 at No. 6. The Republicans took control of the Senate and strengthened their hold on the House, marking the first time in nearly 70 years that a sitting president's party made gains in off-year elections of its first term.

The list reads like a "Who's Who of Corporate America" and their collective downfall makes our list at No. 5. Charges of mismanagement and corruption brought down giants like Enron, Arthur Andersen and WorldCom. Decorating guru Martha Stewart faced an investigation of insider trading and Congress moved to rein them all in with tougher regulations.

A war that began in 2001 got into the trenches and caves in 2002. At No. 4, the U.S.-led war in Afghanistan. Still being fought as coalition troops try to root out pockets of Taliban and al Qaeda. While they pursue the world's most wanted man, Osama bin Laden. Bin Laden's al Qaeda remained effective in 2002.

And at No. 3 on CNN.com's list, the collective rein of terror that slept through the Middle East and elsewhere. The year's bloodiest incident, October 12 in Bali, Indonesia. More than 180 people died when two bomb exploded in a crowded nightclub district.

A different brand of terrorism captured our attention in October. And comes in as the year's second biggest story. Sniper attacks in the Washington metropolitan area killed 10 people, wounded three others, and crippled the region before suspects John Allen Muhammad and his 17-year-old counterpart John Lee Malvo were captured.

Rated as this year's top story by cnn.com: the showdown with Iraq. The Bush White House accuses Saddam Hussein of developing chemical, biological, and nuclear weapons. Baghdad counters with charges of warmongering by the U.S. American pressure intensifies. Iraq is warned of serious consequences if it does not cooperate with U.N. weapons inspectors.

The tension is palpable as we end the year and the showdown leaves us as possibly the biggest story of 2003 as well.

(END VIDEOTAPE)

BLITZER: We shall certainly see about that.

Some other stories that did not make the top 10, the Pennsylvania mine rescue, Britain's royal scandals, and the winter Olympics and this summer's wildfires.

You can build your own top 10 list and see the stories others choose on our Web site. Go to cnn.com/wolf.

If you met him during his teenage years you'd be conned. Up next meet the man whose life story is now a major Hollywood movie. Learn his secret before you catch the flick.

(BEGIN VIDEO CLIP) FRANK ABIGNALE, SUBJECT OF "CATCH ME": I truly believe that I been 21, 25 years old, I would have never been able to pull it off.

(END VIDEO CLIP)

BLITZER: Also, a holiday no-no? Why Wal-Mart is taking a Barbie doll off its shelves. Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hello, Carl.

UNIDENTIFIED MALE: You are going to get caught.

UNIDENTIFIED MALE: The house always wins.

(END VIDEO CLIP)

BLITZER: You may not know the name Frank Abignale, but if you air movie buff you may become familiar with his life story. He's a reformed con artist and renowned charmer. His capers are the focus of the new movie "Catch Me if You Can." It opens today. Leonardo DiCaprio stars as Frank Abignale and Tom Hanks plays the FBI agent out catch him. Earlier, I spoke with him about his life and the film.

(BEGIN VIDEOTAPE)

BLITZER: Frank Abignale, thanks so much for joining us. I know you've seen the movie. Give us your review. Thumbs up or thumbs down?

ABIGNALE: Both thumbs up. It was absolutely great. They did a magnificent job.

BLITZER: There is some concern maybe out there that your past, you cashed about $2.5 million in fraudulent checks posing as all sorts of characters out there. Does it glorify that kind of behavior?

ABIGNALE: No, and I would have been very concerned about that, except that Steven Spielberg directed and produced this film. And I don't think he'd ever make a film that would glorify the past.

I think he saw a lot more in the film and basically when I walked away from the film there was a great deal of undertones that I walked away with some very important messages out of the film.

BLITZER: What is the most important message that a viewer, somebody who goes in the movies and watches this film will leave with?

ABIGNALE: Well I think what the movie's about -- it's about divorce and how some children are devastated by their parents' divorce. It's about the innocence of the time when back the 1960s you told somebody you were somebody, they believed you. It's about that if you break the law, there are consequences to pay and sometimes very severe. Most of all, most important to me personally, is it's a movie about redemption. You can take and make mistakes in your life and turn around and do something very positive with your life.

I think it says a lot to people who are alcoholics, drug addicts people who have gotten in trouble with the law and think because they have had a mistake in their life they think they can't turn their life around. The movie brings home the point you can. We live in a great country, America, where you can always have a second chance and do something positive with your life.

BLITZER: You lecture occasionally at the FBI academy. You teach FBI agents how to deal with the potential of fraud. What's the most important lesson you try to convey to them?

ABIGNALE: Well what I try to do is teach them to think out of the box. I've been teaching at the academy for about 25 years and I teach agents in the field, both new agents and agents returning for training. I try to teach them a little bit to think outside of the box and not out of the textbook.

Of course today, all types of white collar crimes, counterfeiting, forgery, financial crimes, cost the American consumer $400 billion a year, which is more than the national defense budget. Obviously we try to cut into that by teaching agents how to find these crimes and deal with those crimes.

BLITZER: When you were engaged in this kind of fraud, were you just very, very clever or are the American people basically gullible?

ABIGNALE: Well, I don't think -- people always say I was brilliant, I was intelligent. I don't think that. I think what I was is I was an adolescent and very much an opportunist.

I really didn't think about the consequences. I never sat and analyzed what I was doing. I never thought about what if? I just acted on impulse and being 16, 17, 18 years old, it allowed me to do that and justify some of my actions through the eyes of an adolescent.

I truly believe had I been 21, 25 years old, I would have never been able to pull it off. I probably would have analyzed it to death and certainly the innocence of the time, back in the '60s you couldn't even find a security guard at the airport let alone a policeman. We had no bombings and hijackings and when you told somebody you were somebody they believed you. They didn't ask you to prove it.

BLITZER: Does Leonardo DiCaprio do a good job portraying you? Will the viewers of this movie think that he is in effect you?

ABIGNALE: He did an incredible job. In the beginning, when they first mentioned that Leo would play me I was a little concerned would the audience believe that Leo could pull off being a pilot? Would he have that charm? But after working with Leo and spending time with Leo and then of course watching the film, he did an absolutely incredible job of starting out in the film as a 15, 16-year-old boy and aging through the film and he is absolutely incredible in the part and very believable.

BLITZER: What's your favorite scene in the movie?

ABIGNALE: Well, my favorite scene is actually the opening of the film about my mother and my father because to be honest with you, it was so surreal to me that when I watched it in the theater by myself, I actually thought I was back home with my mother and father and 16 years old on Christmas sitting in my living room.

They played my parents so well, Christopher Walken, my father and Nathalie Baye, my mother. They did such an incredible job that it was so real to me, and that was really my favorite part of the movie.

I liked the little airline stewardesses and posing as a pilot. My favorite part was that opening part of the movie because I guess it was so real to me.

BLITZER: The movie is "Catch Me if You Can." Frank Abignale, thanks so much for joining us.

(END VIDEOTAPE)

BLITZER: Experts say the movie could earn 50 times the $2.5 million Abignale swiped during his crime spree.

Tom Hanks is certainly doing something right on the big screen. He's now America's favorite movie star. That's according to the Harris Polls' annual survey. Hanks replaces Julia Roberts who fell to third. In second is Mel Gibson. Harrison Ford is fourth and Sean Connery fifth. Good for Sean Connery.

Now to a holiday controversy. One toy not appearing under some Christmas trees this morning: Pregnant Midge. Wal-Mart pulled the doll from store shelves this month citing complaints from customers. Midge is part of Mattel's popular Barbie line. Pregnant Midge comes complete with a wedding ring and a husband but that apparently isn't enough to satisfy some parents who think it promotes teenage pregnancy.

There's also been some recent criticism of, get this, Lingerie Barbie, a version of the Barbie doll that comes with garter stockings and stiletto heels.

All right, enough of that.

An unusual stocking stuffer is "Our Picture of the Day" up next.

And time is running out for your turn to weigh in our "Web Question of the Day." If you won the Powerball jackpot where would most of your money go. Log onto cnn.com/wolf to vote. And we'll have the results immediately when we come back. (COMMERCIAL BREAK)

BLITZER: Time for "Our Picture of the Day." You might call it the ultimate stocking stuffer. Newborns leaving a Long Beach Memorial Medical Center in California this holiday are sent home in Christmas stockings. It's a 43-year-old tradition at the hospital, which is the second largest on the West Coast. Nice tradition.

Now here's how you're weighing in on "Our Web Question of the Day." We've been asking you this: if you won the Powerball jackpot, where would most of your money go? Forty-seven percent of you chose your own bank account, 37 percent chose your family, 1 percent chose friends, 15 percent chose charity. Remember, this is not a scientific poll. Good luck to all of you buying those tickets.

That's all the time we have today. Please join me again tomorrow at 5:00 p.m. Eastern. Don't forget "SHOWDOWN IRAQ" noon Eastern every weekday. Until then, thanks very much for watching. I'm Wolf Blitzer in Washington. Merry Christmas. "LOU DOBBS MONEYLINE" is up next.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





Prep for War in Persian Gulf>


Aired December 25, 2002 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: Happening right now bracing for winter's worst parts of Upstate New York are preparing for as much as 20 inches of snow as a Noreaster works its way up the East Coast.
This situation is getting worse in Massachusetts where forecasters call for near blizzard conditions and snowfall as heavy as three inches an hour. And, it's a similar scene in neighboring New Hampshire with officials urging people to stay off the roads. We'll have live reports on the latest forecast as this powerful winter storm that started in the Midwest roars into the Northeast this Christmas Day, that and much more coming up on WOLF BLITZER REPORTS. That starts right now.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): White Christmas but more than they dreamed of. A blizzard blasts out of the plains and into the Northeast. They're far apart for the holidays. We're happy to help bring them together.

UNIDENTIFIED FEMALE: Merry Christmas. We miss you so much. We're so excited that we're able to see you today.

BLITZER: As the U.S. builds up its forces in the Persian Gulf, we'll show you what they may be up against. Is Iraq ready?

The ultimate holiday wish, a Powerball jackpot up for grabs just hours away.

And, he was a doctor, lawyer, and airline pilot, but it was all a scam. Now, he's the subject of a hot new movie, "Catch me if you Can." I'll catch up with reformed conman Frank Avignao (ph).

(END VIDEOTAPE)

BLITZER: It's Christmas, 2002. I'm Wolf Blitzer in Washington. Happy holidays to all of us viewers. A major winter storm is bringing tons of snow to millions of Americans this Christmas. Many areas are buried under more than a foot and others are bracing for even more. In just a moment, we'll go live to Upstate New York where the forecast calls for up to 20 inches of snow, but first at what we've seen so far.

(BEGIN VIDEOTAPE) BLITZER (voice-over): No need to dream of a white Christmas, a winter storm is reality for most of the Northeastern United States. From the Ohio Valley to New England, snow plows have no holiday. Buffalo, New York is used to white Christmases. A five to eight-inch blanketing pales though in comparison to what's expected farther east. Albany, New York is planning for ten to 20 inches for its first white Christmas since 1985.

Except for a dusting two years ago, Connecticut is seeing its first white Christmas since 1966. Snow is falling there at a rate of three inches per hour. Even Washington, D.C. sent out a Christmas card not seen there in years. The Christmas Noreaster blew in from the plains where it dumped more than a foot of snow yesterday and is being blamed for more than a dozen traffic deaths nationwide.

Light holiday traffic is helping road crews throughout the Northeast prepare the main roads for what will likely be a very messy and slippery day after Christmas.

(END VIDEOTAPE)

BLITZER: Now as promised, we go to Upstate New York. The area is no stranger to snow, of course, but with up to 20 inches in the forecast residents are on alert and preparing for the worst. CNN's Whitney Casey is in Malden, New York. That's near Albany, the state capital. Give us a little flavor. We can see it's a mess but tell us what's going on.

WHITNEY CASEY, CNN CORRESPONDENT: Well, we're well on our way up to 20 inches up here. As you can see, the wind is blowing very hard right now up to 30 miles an hour. We're standing right off the throughway and they've actually - we talked with the DOT. They've closed the throughway right now to traffic. We were just on the throughway headed up to Albany and actually there were tons of cars that were on the throughway with us. We counted 13 cars that had spun off the throughway all the way from Philly and Pennsylvania up here.

Now, I've been in four different states in the past 24 hours. Today, right now, actually in the past hour it's the worst. We're here at this Mobil station and just standing here in the past hour we've counted, it's been about seven inches of snow that is just pouring on the ground, and actually on the throughway right now there are very few cars that are going past on the throughway because when they shut it down, they've actually had an advisory out saying that it's just too perilous right now to get on the throughway.

So, what they're saying right now, if you do plan on going anywhere that you definitely want to wait until tomorrow morning because this is supposed to pass overnight and actually they're supposed to get about a foot of snow in the Catskills, which is a great ski resort just up the street from us about 20 minutes. But right now, Wolf, it is very, very treacherous out here as you can see, back to you.

BLITZER: Whitney, are you basically telling me you're stuck at that Mobil station near Albany, New York? Is that what you're saying? CASEY: Oh, yes we definitely are. We can't go anywhere for a little while at least because the wind is blowing so hard right now and a lot of the cars are spinning out on the throughway so they're trying to keep the traffic down so they can get some of the - excuse me, they can get on the freeway and get some of the snow cleared so that we can get back on.

BLITZER: How are people that you've been speaking to coping with this? What are they saying to you?

CASEY: Well, I asked a lot of people why they would get on the highway right now and they said because when they started like down in New Jersey or Pennsylvania, where we were, that it was raining and it's true. We were down in Stroudsburg and it was raining very hard and they thought oh yes, it's not going to snow. It's going to be rain and then they get on the freeway and they're halfway there and it's snow and they have nowhere to go because a lot of the hotels along the throughway here are already booked up, so they're stuck.

BLITZER: And you're stuck too. You better go inside pretty soon and get some warmth. Whitney Casey of CNN in Malden, New York, thanks very much for that report. We'll be checking back with Whitney later this hour. As for what's in store, let's check in with meteorologist Chad Myers at the CNN Weather Center.

(WEATHER REPORT)

BLITZER: Good advice from Chad Myers, thanks very much Chad for that forecast and the good advice. For more on this winter storm and how it's affecting millions of people, you can click onto our website, cnn.com/wolf. We'll link you immediately to the forecast once you're there.

In some other news in a development that's sure to trouble the White House, North Korea is giving new signals that it's preparing to restart a frozen nuclear reactor. As promised, North Korea has started moving fuel rods to that reactor that had been deactivated. Experts say it will take at least a month to get it back online. This week, North Korea removed some seals that had been in place at the site by international inspectors. The United States wants the reactor to stay mothballed fearing it will be used to make nuclear weapons. North Korea says it needs the facility to produce electricity.

Despite the Christmas holiday, U.N. inspectors in Iraq continued their hunt for evidence of mass destruction weapons. CNN's Rym Brahimi is in Baghdad.

(BEGIN VIDEOTAPE)

RYM BRAHIMI, CNN CORRESPONDENT (voice-over): No respite for the U.N. inspectors despite this being Christmas Day. At least 14 headed out today. A team is supposed to come back from the southern town of Bazra (ph) and the rest of the teams today went out to various facilities, missile facilities, different factories in and outside of Baghdad. Now, inspections here in Iraq have taken a new turn since yesterday when U.S. weapons inspectors went to Baghdad University of Technology to interview formally an Iraqi scientists for the first time since this round of inspections began four weeks ago.

Now, the scientist in question, Dr. Sabah Abdel Noor is an expert in nuclear research. He spoke to reporters and explained to them what he told the U.N. weapons inspectors that Iraq in his view has no more weapons of programs in the nuclear field.

SABAH ABDEL NOOR, BAGHDAD UNIV. OF TECH.: As I told you, since '91 we had nothing. We are totally stripped of all our facilities and materials. Now how can anybody losing all that establishments which has been built over 20 or 30 years resume work and finish such a dangerous and difficult program in one year?

BRAHIMI: Mr. Abdel Noor also explained to reporters that he had refused to be interviewed in private by the U.N. weapons inspectors because, he told them, it would be better for all of them. Now, he also said that he felt he had been 100 percent transparent in the interview, and when asked by reporters whether he would be prepared to leave the country for an interview should that come up, he said it was way too early to discuss that issue now.

Now, Christmas also the opportunity for President Saddam Hussein to send his Christmas message to Iraqis, maybe also to the entire world, repeating again that Iraq has no weapons of mass destruction and that if the United Nations weapons inspectors do a neutral job, a fair job he said, well that would expose what he said were the lies of the U.S. and the British administrations.

Rym Brahimi CNN, Baghdad.

(END VIDEOTAPE)

BLITZER: And, as Saddam Hussein deals with the threat of war, the U.S. finds out new information about where Iraq is deploying its troops. That story is coming up. Also, if you want to be a multimillionaire, you'd better hurry, the latest on the Powerball jackpot, that's coming up, but first our CNN news quiz. The odds of winning the Powerball grand prize are one in 120 million. But what are the overall odds of winning a prize, one in 10,000, one in 100, one in 75, one in 36, the answer coming up?

(COMMERCIAL BREAK)

BLITZER: Happy Holidays indeed, and even as the U.N. weapons inspections continue in Iraq, Washington and Baghdad are preparing for the possibility of war. CNN Pentagon Correspondent Barbara Starr is here to update us on what's going on -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Indeed, Wolf. U.S. intelligence has now laid out details of how Saddam Hussein is positioning his troops.

(BEGIN VIDEOTAPE) STARR (voice-over): With the U.S. planning a troop buildup in the Persian Gulf and the possibility of war looming, monitoring the location and capability of Iraqi troops is a top Pentagon priority. Intelligence officials say Iraq now has about 375,000 ground forces, one third pre-Desert Storm levels. One measure of Iraq's reduced capability they now have just 23 divisions compared to 70 before the Gulf War.

It is the elite Republican Guard that the U.S. is watching closely. They are better trained, better equipped than regular troops, more likely to fight, and draw U.S. soldiers into an urban war in the streets of Baghdad. It is Baghdad where Saddam Hussein and the Republican Guard are expected to make their last stand.

Today, there are three Republican Guard armored divisions deployed around Baghdad and another Republican Guard infantry division is southeast of the city. Intelligence sources say there are two infantry divisions in northern Iraq arrayed against the Kurds, each about 10,000 troops. West of Baghdad there are two special operations brigades, each with 3,000 troops, the Iraqis preparing to defend against a U.S. push from that direction.

The regular army troops which surrendered by the thousands during Desert Storm are in poor shape. The Pentagon estimates Iraq's 17 regular army divisions are manned and equipped at half their required levels. The Iraqi Air Force has 300 aircraft but that is compared to 750 before the war, perhaps only half the current force fully combat capable. The Iraqi Air Force did shoot down a Predator unmanned aerial vehicle but it was judged a lucky shot by the U.S. military.

(END VIDEOTAPE)

STARR: But air defense remains a key Iraqi capability. Nearly 60 surface-to-air missile batteries are located around Baghdad, some of the most heavily defended airspace in the world and, Wolf that is a threat the U.S. is now watching around the clock.

BLITZER: There's also word that you've developed on a new deputy for General Tommy Franks who's the central commander. He's the man in charge of putting all the plans out there for the president to approve if he gives the order to go to war. Tell us about his new deputy.

STARR: Indeed, Wolf. CNN has learned that after the New Year, Lt. Gen. John Abizaid will be named deputy to General Tommy Franks, the head of U.S. Central Command. Now, General Abizaid will become the point man for operations inside Iraq and U.S. military relations with the Arab world. He is going to fill a job specifically created for him because of his military experience and, of course, his own family, cultural background. He is of Lebanese descent.

He is fluent in Arabic. He puts a unique Arab-American face on the U.S. military at the very highest levels. His military education again top-notch, a graduate of West Point, the armed forces staff college, Harvard, he also attended Stamford University and the University of Amman in Jordan, and Wolf, he also has extensive military experience. He served in northern Iraq. He has served in Bosnia, in Kosovo. He is someone very well known throughout Arab military forces.

BLITZER: About to get even better know.

STARR: Absolutely, look for him after the first of the year.

BLITZER: It looks like he's almost perfect for this job. His resume sort of cries out, get me to the scene.

STARR: Well, I must tell you we have asked the Pentagon is this the man that is going to head the U.S. military occupation of Iraq after any war, after any conflict. We are told no, not at the moment. This is not going to be the Douglas MacArthur of Baghdad, but certainly General Abizaid is being positioned for some very unique military tasks.

BLITZER: Our congratulations to him, good luck to him and thanks Barbara Starr for joining us.

STARR: Thank you.

BLITER: And, as President Bush celebrates Christmas, a major issue of course remains at the top of his concerns, what to do about what we've just discussed, namely Iraq. Will there be war or will there be peace? As CNN Senior White House Correspondent John King reports, experts say the issue could become a lot clearer just weeks from now.

(BEGIN VIDEOTAPE)

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): For the president, a quiet Christmas at Camp David, sobering decisions just ahead.

MICHAEL O'HANLON, BROOKINGS INSTITUTION: War has become almost inevitable and I think it will happen this upcoming winter.

KING: Senior administration officials say the critical decisions in the showdown with Iraq are a month or so away.

LAWRENCE EAGLEBERGER, FORMER SECRETARY OF STATE: The biggest challenge, I think, is going to be this question of how long the United States is prepared to wait to see what the inspectors can find. I think it would be a mistake for us to go in too soon.

KING: Weapons inspectors are now receiving some sensitive U.S. intelligence on Iraq's weapons programs and the White House is pushing the United Nations to take some Iraqi scientists out of the country for questioning.

O'HANLON: The third strike I think will be based on the weapons scientists in Iraq and whether they are able to give us information about stockpiles of weaponry that Saddam should not have.

KING: The U.S. military buildup continues and many view the question of war, not as an if but a when. EAGLEBERGER: The Iraqis have it in their hands to remove Saddam and go straight with the rest of the world but if they don't do that, I think it becomes very likely that there will be a war.

KING: U.S. officials say the general military plan is in place but some key decisions hinge on delicate diplomacy. Mr. Bush, for example, recently welcomed the head of Turkey's ruling party to the White House, part of an urgent effort to win greater access to Turkish military bases so that if there is a war, U.S. troops can quickly invade Iraq from both the south and the north.

Coalition building will be an urgent focus over the next several weeks as the president tries to sell his view that Iraq's declaration about its weapons program raised more questions than it answered.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We expected him to show that he would disarm, and as the secretary of state said, it's a long way from there.

KING (on camera): And, as the inspections continue, senior U.S. officials say one major challenge is making the point that the burden should be on Saddam Hussein to prove he does not have weapons of mass destruction, not on the United States to prove that he does.

John King CNN, the White House.

(END VIDEOTAPE)

BLITZER: And, of course, stay with CNN for all the late-breaking developments as far as the showdown with Iraq is concerned. Many Americans have dreams of millions dancing in their head right now around Christmas. Coming up, there are $280 million at stake and only a few hours left to go. We'll check in with the final rush to get the Powerball tickets and...

UNIDENTIFIED MALE: This is the first time I've been away from family.

UNIDENTIFIED MALE: Hi Daddy.

BLITZER: Some family members weren't able to make it home this Christmas but with the help of satellites, CNN was able to bring them together, an emotional reunion is straight ahead but first this news from around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): German sorrow, an honor guard looked on as seven peacekeepers killed Saturday in Afghanistan arrive home in Germany. There's still no word on the cause of the helicopter crash that killed them. Germany's defense minister told families of the victims, "All of German grieves with you."

Middle East violence, angry Palestinians marched in the West Bank city of Nablus after a senior Hamas member was killed in a raid by Israeli troops. Israel says the troops arrested a second Hamas activist in the same apartment and found guns, ammunition, and bomb- making equipment.

Back to work, Russian air traffic controllers have won a pay raise after resorting to an unusual tactic. Russian controllers are barred by law from staging a regular strike. Instead, they held a hunger strike that rendered them medically unfit for duty.

The pope on peace, Pope John Paul II used his annual Christmas message to warn against war. The pontiff acknowledged that the threat of terrorism feeds uncertainties and fears but he urged believers in all religions to work together to build peace.

The queen speaks, Britain's Queen Elizabeth says she's been saddened in the past year by the deaths of her mother and her sister Princess Margaret, but in her annual Christmas broadcast the queen said her sadness was tempered by the tribute she received for her Golden Jubilee.

Festive frostbite, continuing one of the world's stranger traditions, members of Britain's Serpentine Swimming Club went for a Christmas Day race in a frigid London lake. The winner covered 100 yards in just 57 seconds, which considering the temperature probably wasn't all that surprising, and that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: Earlier we asked what are the overall odds of winning a prize when playing Powerball, the answer one in 36, keep in mind those odds include winning as low as $3.00.

Gifts have been opened. Dinners are being consumed but many Americans are hoping the highlight of their Christmas is yet to come. They've been lining up to buy tickets in the multi-state Powerball lottery. The drawing for the $280 million jackpot is tonight, 10:59 p.m. Eastern, five and a half hours or so from now. CNN National Correspondent Bruce Morton visited a store earlier today here in Washington.

BRUCE MORTON, CNN CORRESPONDENT: It snowed earlier this morning, Wolf, as you know and the crowds here were small. Powerball has been very big in this store all week. They sell all sort of things here but Powerball the last few days has been the big draw. You can win after all up to $280 million, which is a lot of money.

The crowds were small this morning. They've built up now. There are suppose 20, 30, 40 people waiting in line here as the day winds down. Ma'am, tell me your name please and tell me why you came.

JILL BRANTLEY (ph): Jill Brantley and I came to play Powerball and I think winning, if I win, it's a heavy responsibility but I'm ready to assume it and I'd use part of the money for myself and part to fund progressive political causes and bring a Democrat back to the White House.

MORTON: What do you think, I mean 120 million to one, are you an optimist?

BRANTLEY: Yes. This is my act of faith. You know everybody has to keep the faith in their own way. This is my almost weekly prayer.

MORTON: Good luck.

BRANTLEY: Thank you.

MORTON: So, that's one woman who thinks she has a shot at it, 120 million to one, how can you beat those odds? Wolf.

BLITZER: I don't think you can beat those odds. I personally purchased $20 worth of those tickets. Let's see if I win. By the way, Powerball tickets are for sale in the District of Columbia, 23 states, as well as the U.S. Virgin Islands. People in those areas still have about five and a half hours left to go ahead and buy those tickets if, this is a huge if, if they can find an outlet that's open Christmas night. Good luck to all of you.

Here's your chance to weigh in on the story. Our web question of the day is this. If you won the Powerball jackpot, where would most of your money go, your bank account, your family and friends, charity? Vote at cnn.com/wolf. While you're there I'd love to hear from you. Send me your comments. I'll try to read some of them on the air each day at the end of this program. That's also, of course, where you can read my daily online column, cnn.com/wolf.

In just a moment a medical story made public this hour on a popular arthritis drug. You'll want to hear about this.

CASEY: And I'm Whitney Casey in Upstate New York where the winter storm is whipping through. We'll have an update live for you coming up.

BLITZER: All right, Whitney, we'll be with you shortly. And, catch him if you can, the man who inspired a blockbuster hit looks back with me on his teenage con years, stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back to CNN. I'm Wolf Blitzer. Coming up, a holiday gift to troops away from home that brought some emotional moments here in our studio but first let's take a look at some other stories making news in our CNN "News Alert."

(NEWSBREAK)

BLITZER: For the latest on the storm, we want to go back to Upstate New York. That's where CNN's Whitney Casey is standing by near Albany. Is it getting any better since we last spoke, Whitney?

CASEY: Well, what do you think? Look at this. No, it's not getting any better and I heard you say this was somebody's dream. Well, I'm going to have to have a talk with them because this is more like a nightmare out here. It is really, really windy. It's about winds gusting up to like 30 or 40 miles an hour out here and it's just blowing the snow all around right at our faces.

But, let me show you out here. We've got a snow plow. He's working it hard just in this parking lot trying to clear some of the snow that has fallen in the past hour. It's been about seven inches just in the past hour and the throughway is pretty much dead right now.

So, they've basically shut the throughway for now because they say that the road conditions are just not safe. This is a driver along the road here. I don't know if he'll talk with us but maybe he will while he's filling up his tank. Hi, sir.

UNIDENTIFIED MALE: Hi, how are you.

CASEY: You're out on the roadway, pretty perilous condition. What are you doing out here?

UNIDENTIFIED MALE: Just heading home.

CASEY: Heading home?

UNIDENTIFIED MALE: Yes up in the Adirondacks.

CASEY: Oh wow, you got a little way to go, huh?

UNIDENTIFIED MALE: Just a few more hours.

CASEY: Where are you coming from?

UNIDENTIFIED MALE: Which is normally from here it would probably be about an hour.

CASEY: Well, you seem to have a good attitude about it.

UNIDENTIFIED MALE: Well, what else can you do? It's kind of snowy and we're coming up from New Jersey, So a three-hour trip has turned into probably a 5 or 7 or 8-hour trip.

CASEY: Well, thank you so much, sir. You take care, good luck and drive safely. Take care. Merry Christmas.

Well that's what you got here. It's still windy and they say that it's going to be like this for the rest of the night. We should see a nice morning tomorrow and maybe those white Christmas dreams, like you said, Wolf, will be dreams. But for right now they are nightmares. Back to you.

BLITZER: CNN's Whitney Casey on the job for us. Today is her first day. We'll be seeing a lot more of her. Good work. Thanks for weathering that storm for us in Upstate New York, my old stomping grounds. If you get to Buffalo, say hi to my friends up there.

CASEY: Sure.

BLITZER: Thank you very much, Whitney Casey for all that information. Turning to U.S. forces stationed around the world. This holiday special forces units have been known to customize their uniforms to meet the needs of their secret missions. And Afghanistan's Bagram Air Base, they blended in -- look at this -- as Santa's helpers.

In the Kuwaiti Desert the local Santa says it's his third Christmas away from home but he helped the rest of the troops take a break from the standoff with Iraq and make the best of the holidays.

In the Persian Gulf, sailors and Marines about the USS Constellation had a holiday feast of roast turkey, baked ham and cornbread as yet another Santa Claus roamed the carrier's flight deck.

We want to go live to the USS Constellation now. Jason Van Pelt is joining us. He's an interior communications electrician, first class with the U.S. Navy. He's joining us no via video phone. What's it like to be aboard the Constellation on this Christmas, Jason?

FIRST CLASS JASON VAN PELT, U.S. NAVY: Oh, it's great. How are you guys doing there?

BLITZER: We're great over here. You look like you're happy. Are you happy over there?

VAN PELT: It's good to be connected to the United States.

BLITZER: Anybody special you'd like to say hi to on this Christmas day?

VAN PELT: Yes, I'd like to say hello to my whole family, including my wife Christy, and my children Jason, Callie and Haley. Hi, guys. Merry Christmas.

BLITZER: I'm sure they are saying hi to you right now even as we speak, Jason. What's it like to be away from home on this Christmas Day?

VAN PELT: Well, it's not easy, but out here it's just another day. You just got to take it one day at a time.

BLITZER: And did you have a good meal as we reported? Were we telling the truth? What your Christmas meal was?

VAN PELT: It was pretty factual. we had it Christmas Eve for us, but it was still good.

BLITZER: How much longer -- you're going to be on station, as they say, in the Gulf, what, for about six months now before you head back to your home base?

VAN PELT: Should be something like that.

BLITZER: First time away, though?

VAN PELT: No, this is my third deployment. BLITZER: Third deployment. Well, be safe over there. Thank your fellow sailors for us. Good luck to you. And we'll continue to talk to some of your fellow crew members aboard the USS Constellation. Jason, merry Christmas to you.

VAN PELT: Merry Christmas to you, too.

BLITZER: All right. Take care over there.

David Pounder is an Army officer deployed in the Persian Gulf. A short while ago, we were able to reunite him with his wife and his family here in Washington.

(BEGIN VIDEOTAPE)

BLITZER: Joining us now Captain David Pounder, United States Army. He's joining us from Qatar, from Doha, from the U.S. military base out in the Persian Gulf. Here in our Washington studio, his wife Anne, his brother Mike and two kids, 3-year-old Evan and 8-month-old Matthew. Thanks to all of you for joining us.

David, let me begin with you. What's going through your mind on this Christmas Day as you united with your family?

CAPT. DAVID POUNDER, U.S. ARMY: Well, it's really a great opportunity for me to be here and talk with my family and we're trying to have a good day today. And enjoy the Christmas spirit out here.

BLITZER: You obviously miss your kids. You miss your wife, your brother. Is this the first Christmas you've been away from home?

D. POUNDER: Yes, it is. This is the first time I've been away from family.

BLITZER: It's probably hard for you, too, Anne. What's going through your mind? You got your little boys on your lap over here.

ANNE POUNDER, WIFE: It was tough this morning when they opened their Christmas presents and he wasn't there, but he sent them each a special gift.

BLITZER: Let's ask Evan, did you get a special present, Evan from your dad?

A. POUNDER: Did you get a special present from Daddy?

EVAN POUNDER, SON: Yes, uh-huh.

BLITZER: What did you get?

E. POUND: I get a baseball set.

BLITZER: You got a baseball?

A. PONDER: Baseball set.

BLITZER: Baseball set, that's so nice.

Matthew, you are only 8 months old so I'm not going to talk to you, but Mike, you're the older brother, right?

MIKE POUNDER, BROTHER: Yes, I am.

BLITZER: So you're proud of your younger brother?

M. POUNDER: Oh, absolutely.

BLITZER: It's exciting to be talking to him on this day?

M. POUNDER: Oh, yes.

BLITZER: David, what's your job out there in the Persian Gulf?

D. POUNDER: What I do is I provide the command here recommendations on security and force protection.

BLITZER: At the As Saliyah military base?

D. POUNDER: That's correct, yes.

BLITZER: Tell our viewers and tell your family what's going through your heart right now as you see your boys, your wife and your brother.

D. POUNDER: I mean, this is obviously a very difficult time to be away from family and friends. Out here it's been very -- they've done their best to make it enjoyable, and put us all in the Christmas mood. Obviously we miss our families very much.

Everyone out here, the morale is very high and the people out here have done a good job supporting us. It's a tough time to be away from family. But I'm thankful for the support my family has given me. It lets me get through these tough times.

BLITZER: What's going through your mind, Anne?

A. POUND: Just that we're so excited that you had us on. It's so wonderful to be able to see Dave today, of all days, and it's just an important time for our country and it's important that we all get behind the men and women that are over there away from their families.

BLITZER: Talk to your husband right now and tell him what you want to say.

A. POUNDER: Merry Christmas. We miss you so much. We're so excited we're able to see you today. Evan says merry Christmas, Daddy. He got cranky from the Thomas the Tank Engine set today and that's his No. 1 favorite toy. We brought it to show you and we forgot.

BLITZER: Mike, what do you want to say to your brother?

M. POUNDER: Dave, proud of you. Mom and Dad say hi. BLITZER: It's an emotional moment for all of us, David. What do you want to say to your family as we wrap things up and you get back to work.

D. POUNDER: Merry Christmas. We love you all. It's great to get this opportunity to talk with you. I love you. I miss you.

I want to say hi to my parents. My mom was supposed to come down but got caught up in the snow, so hi to all my family and grandparents, my brothers. I thank you for the opportunity to talk with them, and, Anne, I love you, Evan, Matthew, I love you, too.

BLITZER: And how much longer are you going to be over there, David?

D. POUNDER: I'm here for between six months and a year.

BLITZER: Six months and a year. All right. Well, take care of yourself. Maybe Evan, you want to sing "Jingle Bells" for your dad before we let him go?

(SINGING)

BLITZER: On that note, Evan, you got a good voice. You can blow your dad a big hug and a kiss. All right. That's good. He's blowing you a big hug and a kiss. Your dad is blowing a big kiss back.

Merry Christmas to a wonderful family. Thanks for spending a few moments with us on this Christmas Day.

(END VIDEOTAPE)

BLITZER: These are heartbreaking moments for a lot of people out there. We're glad we can facilitate in letting these people at least say a little hello an this Christmas day. We'll continue to do that.

What stories do you think stood out in 2002? A flashback of the Top 10 when we come back. Also the events that didn't make the cut.

And later...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hands on your head.

UNIDENTIFIED MALE: That's a new IBM Selectic (ph). A print type in five seconds.

UNIDENTIFIED MALE: Shut up! Put your hands on your head!

(END VIDEO CLIP)

BLITZER: Catch the real story before you catch the movie. That troubled teen is now a grown-up. What does he think about his days of deception? Stay with us.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: To my wife Dawn, hi, baby. And my two kids Hunter and Caitlin and everybody else back home, we love you.

UNIDENTIFIED MALE: Hi, this is Staff Sargent George Howe (ph) from Tennessee. I'd like to say merry Christmas to everyone back in the states, especially family and friends.

UNIDENTIFIED MALE: I'm Captain Danny Ball from Scott Air Force Base. I'd like to wish everyone back home, Anne and Zach a merry Christmas and happy New Year.

UNIDENTIFIED MALE: Hi, my name's (UNINTELLIGIBLE) Adam Morrison. I would like to wish a merry Christmas and happy holidays to everybody back in Connecticut. All my family and my brother.

(COMMERCIAL BREAK)

BLITZER: 2002 was one of the most eventful years we've covered so it was more difficult than ever to come up with the "Top 10 Stories of the Year." These are the ones we felt stood out more than others in the year that was.

(BEGIN VIDEO CLIP)

RUDY GIULIANI, Gordon M. Ahmad Jr. (ph), Adel Mirro Abbad (ph).

UNIDENTIFIED FEMALE: Daniel Howe Christmas (ph).

BLITZER (voice-over): And emotional pull from last year's biggest story is at No. 10 on cnn.com's list for 2002. A year of grief culminated in some moving tributes at the sites where those four hijacked planes crashed on September 11, 2001. On the one-year anniversary, silence and solitude prevailed at those moments when chaos unfolded the year before.

At No. 9, a direct result of September 11, the biggest reorganization of the U.S. government in more than half a century. President Bush signed a Homeland Security Bill, a 170,000-person department was created, all to protect American soil from another September 11-style attack.

From parishes throughout the U.S. to the Vatican, the sex scandal that brutalized the image of the Catholic Church makes No. 8 on cnn.com's list. Top church officials were accused of covering for priests who molested children and teenagers by discreetly moving them around to different parishes. The scandal led to criminal charges for some well-known priests and a downfall of Boston's Archbishop Cardinal Bernard Law.

A post-September 11 recession, the prospect of more terrorist attacks, and a rash of devastating corporate scandals pushed the U.S. economy through a roller coaster year, the seventh biggest story of 2002. The battered markets reflected in many CNN polls, which showed Americans more worried about the economy than the confrontation with Iraq. The making of political history made its way into the top 10 at No. 6. The Republicans took control of the Senate and strengthened their hold on the House, marking the first time in nearly 70 years that a sitting president's party made gains in off-year elections of its first term.

The list reads like a "Who's Who of Corporate America" and their collective downfall makes our list at No. 5. Charges of mismanagement and corruption brought down giants like Enron, Arthur Andersen and WorldCom. Decorating guru Martha Stewart faced an investigation of insider trading and Congress moved to rein them all in with tougher regulations.

A war that began in 2001 got into the trenches and caves in 2002. At No. 4, the U.S.-led war in Afghanistan. Still being fought as coalition troops try to root out pockets of Taliban and al Qaeda. While they pursue the world's most wanted man, Osama bin Laden. Bin Laden's al Qaeda remained effective in 2002.

And at No. 3 on CNN.com's list, the collective rein of terror that slept through the Middle East and elsewhere. The year's bloodiest incident, October 12 in Bali, Indonesia. More than 180 people died when two bomb exploded in a crowded nightclub district.

A different brand of terrorism captured our attention in October. And comes in as the year's second biggest story. Sniper attacks in the Washington metropolitan area killed 10 people, wounded three others, and crippled the region before suspects John Allen Muhammad and his 17-year-old counterpart John Lee Malvo were captured.

Rated as this year's top story by cnn.com: the showdown with Iraq. The Bush White House accuses Saddam Hussein of developing chemical, biological, and nuclear weapons. Baghdad counters with charges of warmongering by the U.S. American pressure intensifies. Iraq is warned of serious consequences if it does not cooperate with U.N. weapons inspectors.

The tension is palpable as we end the year and the showdown leaves us as possibly the biggest story of 2003 as well.

(END VIDEOTAPE)

BLITZER: We shall certainly see about that.

Some other stories that did not make the top 10, the Pennsylvania mine rescue, Britain's royal scandals, and the winter Olympics and this summer's wildfires.

You can build your own top 10 list and see the stories others choose on our Web site. Go to cnn.com/wolf.

If you met him during his teenage years you'd be conned. Up next meet the man whose life story is now a major Hollywood movie. Learn his secret before you catch the flick.

(BEGIN VIDEO CLIP) FRANK ABIGNALE, SUBJECT OF "CATCH ME": I truly believe that I been 21, 25 years old, I would have never been able to pull it off.

(END VIDEO CLIP)

BLITZER: Also, a holiday no-no? Why Wal-Mart is taking a Barbie doll off its shelves. Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hello, Carl.

UNIDENTIFIED MALE: You are going to get caught.

UNIDENTIFIED MALE: The house always wins.

(END VIDEO CLIP)

BLITZER: You may not know the name Frank Abignale, but if you air movie buff you may become familiar with his life story. He's a reformed con artist and renowned charmer. His capers are the focus of the new movie "Catch Me if You Can." It opens today. Leonardo DiCaprio stars as Frank Abignale and Tom Hanks plays the FBI agent out catch him. Earlier, I spoke with him about his life and the film.

(BEGIN VIDEOTAPE)

BLITZER: Frank Abignale, thanks so much for joining us. I know you've seen the movie. Give us your review. Thumbs up or thumbs down?

ABIGNALE: Both thumbs up. It was absolutely great. They did a magnificent job.

BLITZER: There is some concern maybe out there that your past, you cashed about $2.5 million in fraudulent checks posing as all sorts of characters out there. Does it glorify that kind of behavior?

ABIGNALE: No, and I would have been very concerned about that, except that Steven Spielberg directed and produced this film. And I don't think he'd ever make a film that would glorify the past.

I think he saw a lot more in the film and basically when I walked away from the film there was a great deal of undertones that I walked away with some very important messages out of the film.

BLITZER: What is the most important message that a viewer, somebody who goes in the movies and watches this film will leave with?

ABIGNALE: Well I think what the movie's about -- it's about divorce and how some children are devastated by their parents' divorce. It's about the innocence of the time when back the 1960s you told somebody you were somebody, they believed you. It's about that if you break the law, there are consequences to pay and sometimes very severe. Most of all, most important to me personally, is it's a movie about redemption. You can take and make mistakes in your life and turn around and do something very positive with your life.

I think it says a lot to people who are alcoholics, drug addicts people who have gotten in trouble with the law and think because they have had a mistake in their life they think they can't turn their life around. The movie brings home the point you can. We live in a great country, America, where you can always have a second chance and do something positive with your life.

BLITZER: You lecture occasionally at the FBI academy. You teach FBI agents how to deal with the potential of fraud. What's the most important lesson you try to convey to them?

ABIGNALE: Well what I try to do is teach them to think out of the box. I've been teaching at the academy for about 25 years and I teach agents in the field, both new agents and agents returning for training. I try to teach them a little bit to think outside of the box and not out of the textbook.

Of course today, all types of white collar crimes, counterfeiting, forgery, financial crimes, cost the American consumer $400 billion a year, which is more than the national defense budget. Obviously we try to cut into that by teaching agents how to find these crimes and deal with those crimes.

BLITZER: When you were engaged in this kind of fraud, were you just very, very clever or are the American people basically gullible?

ABIGNALE: Well, I don't think -- people always say I was brilliant, I was intelligent. I don't think that. I think what I was is I was an adolescent and very much an opportunist.

I really didn't think about the consequences. I never sat and analyzed what I was doing. I never thought about what if? I just acted on impulse and being 16, 17, 18 years old, it allowed me to do that and justify some of my actions through the eyes of an adolescent.

I truly believe had I been 21, 25 years old, I would have never been able to pull it off. I probably would have analyzed it to death and certainly the innocence of the time, back in the '60s you couldn't even find a security guard at the airport let alone a policeman. We had no bombings and hijackings and when you told somebody you were somebody they believed you. They didn't ask you to prove it.

BLITZER: Does Leonardo DiCaprio do a good job portraying you? Will the viewers of this movie think that he is in effect you?

ABIGNALE: He did an incredible job. In the beginning, when they first mentioned that Leo would play me I was a little concerned would the audience believe that Leo could pull off being a pilot? Would he have that charm? But after working with Leo and spending time with Leo and then of course watching the film, he did an absolutely incredible job of starting out in the film as a 15, 16-year-old boy and aging through the film and he is absolutely incredible in the part and very believable.

BLITZER: What's your favorite scene in the movie?

ABIGNALE: Well, my favorite scene is actually the opening of the film about my mother and my father because to be honest with you, it was so surreal to me that when I watched it in the theater by myself, I actually thought I was back home with my mother and father and 16 years old on Christmas sitting in my living room.

They played my parents so well, Christopher Walken, my father and Nathalie Baye, my mother. They did such an incredible job that it was so real to me, and that was really my favorite part of the movie.

I liked the little airline stewardesses and posing as a pilot. My favorite part was that opening part of the movie because I guess it was so real to me.

BLITZER: The movie is "Catch Me if You Can." Frank Abignale, thanks so much for joining us.

(END VIDEOTAPE)

BLITZER: Experts say the movie could earn 50 times the $2.5 million Abignale swiped during his crime spree.

Tom Hanks is certainly doing something right on the big screen. He's now America's favorite movie star. That's according to the Harris Polls' annual survey. Hanks replaces Julia Roberts who fell to third. In second is Mel Gibson. Harrison Ford is fourth and Sean Connery fifth. Good for Sean Connery.

Now to a holiday controversy. One toy not appearing under some Christmas trees this morning: Pregnant Midge. Wal-Mart pulled the doll from store shelves this month citing complaints from customers. Midge is part of Mattel's popular Barbie line. Pregnant Midge comes complete with a wedding ring and a husband but that apparently isn't enough to satisfy some parents who think it promotes teenage pregnancy.

There's also been some recent criticism of, get this, Lingerie Barbie, a version of the Barbie doll that comes with garter stockings and stiletto heels.

All right, enough of that.

An unusual stocking stuffer is "Our Picture of the Day" up next.

And time is running out for your turn to weigh in our "Web Question of the Day." If you won the Powerball jackpot where would most of your money go. Log onto cnn.com/wolf to vote. And we'll have the results immediately when we come back. (COMMERCIAL BREAK)

BLITZER: Time for "Our Picture of the Day." You might call it the ultimate stocking stuffer. Newborns leaving a Long Beach Memorial Medical Center in California this holiday are sent home in Christmas stockings. It's a 43-year-old tradition at the hospital, which is the second largest on the West Coast. Nice tradition.

Now here's how you're weighing in on "Our Web Question of the Day." We've been asking you this: if you won the Powerball jackpot, where would most of your money go? Forty-seven percent of you chose your own bank account, 37 percent chose your family, 1 percent chose friends, 15 percent chose charity. Remember, this is not a scientific poll. Good luck to all of you buying those tickets.

That's all the time we have today. Please join me again tomorrow at 5:00 p.m. Eastern. Don't forget "SHOWDOWN IRAQ" noon Eastern every weekday. Until then, thanks very much for watching. I'm Wolf Blitzer in Washington. Merry Christmas. "LOU DOBBS MONEYLINE" is up next.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





Prep for War in Persian Gulf>