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CNN Live At Daybreak

High-Tech Search for Osama bin Laden; Professional, College Sports on Defensive

Aired March 05, 2004 - 06:30   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.


CATHERINE CALLAWAY, CNN ANCHOR: British Prime Minister Tony Blair, meanwhile, has been delivering a speech this morning, once again defending his actions regarding the war in Iraq.
And U.S. Army General John Abizaid says that there were indications this week's deadly bombings in Baghdad and Karbala were going to happen. During an interview on PBS, he said that coalition forces warned members of the community and stepped up security there, but he adds it's impossible to be at all places all the time. At least 181 people were killed in those attacks.

And for two and a half years since September 11, 2001, he's been the world's most wanted man. But now, an all-out effort is being mounted to capture or kill Osama bin Laden, and the U.S. military's latest technology is joining that hunt.

From the Pentagon, here's Barbara Starr.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): CNN has learned the new strategy to catch Osama bin Laden includes high-tech surveillance to keep a 24/7 watch over the border region between Afghanistan and Pakistan. Officially, none of this is acknowledged.

GENERAL JOHN ABIZAID, U.S. CENTRAL COMMAND: Of course, you've read and heard in the press the idea that Osama bin Laden is surrounded, and we have him cornered, and we know where he is, et cetera, et cetera. And, of course, we don't know that.

STARR: But U.S. officials believe bin Laden may be feeling the heat from Pakistani military forces, now hunting him, and could start to move. So, around-the-clock surveillance could pay off.

As one official told CNN, we are putting the pieces in place to throw the net over him. Everything will be in position within days.

Those intelligence gathering centers include U-2 spy planes flying for hours at 70,000 feet or above taking pictures, using radars, and intercepting communications. Unmanned Predators will take a closer look. Flying at 25,000 feet, its cameras see vehicles and people. Special radars operate through clouds. Some may have Hellfire missiles.

Ground sensors may also be set along mountain passes listening for vehicles. Streams of data will be sent via satellite to analysts for quick action. The military has bought up satellite transmission capacity in the region, making sure it can respond quickly.

(on camera): If Osama bin Laden is spotted moving, waiting U.S. Special Forces will try to capture or kill him, but Osama bin Laden has slipped away before.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

(WEATHER BREAK)

CALLAWAY: Coming up, a look at the allegations of steroids swirling around homerun hitter Barry Bonds.

And, choosing a jury of his peers. Why are personal opinions so important in the Scott Peterson double murder trial? We'll tell you.

Also coming up, we'll tell you when and where Janet Jackson plans to make her comeback on network television.

(BEGIN VIDEO CLIP)

JANICE REVELL, WRITER/REPORTER, "FORTUNE": Most people are unaware of the fact that once your total compensation hits $90,000 a year -- that includes salary, commission, bonuses -- that the IRS considers you to be highly-compensated for the purposes of a 401(k) plan. And what that means in most companies is that the amount that you can contribute to your 401(k) plan drops, and it can drop dramatically.

And the issue is that a lot of people aren't aware of that until it actually happens. And you really need to think ahead. And the only recourse you have is to save more, unfortunately.

You can contribute to your IRA, if you're not already. The bottom line is to get that raised. If you think your compensation is going to be over $90,000, pick up the phone and call your benefits department and find out what you're going to have to do and how it's going to hit you, because it probably will.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

CALLAWAY: There is no shortage of scandals right now in sports. OK, when is there not a scandal in sports? But professional baseball has been rocked by widespread allegations of a drug distribution ring that supposedly provided steroids to some star players.

And, the University of Colorado is busy laying out some new recruiting rules after its football program has been accused of using sex and alcohol to lure prospective players.

Sports radio talk show host Chris Cotter is with me this morning. We're going to talk all about that first, but let's start with the University of Colorado and listen to what the president had to say -- of the college, that is -- about the new recruiting rules.

(BEGIN VIDEO CLIP)

BETSY HOFFMAN, PRESIDENT, UNIVERSITY OF COLORADO: There's no question that circumstances have thrust us into taking a national leadership role in reforming football recruiting and college sports recruiting. There is just no question about the fact that we have been pushed into that national role. I suspect that other universities will follow some of the leads we've taken.

(END VIDEOTAPE)

CALLAWAY: And some of the leads they have taken: Any recruit has to be accompanied by someone -- a parent, a coach -- at all times while on campus now, right?

CHRIS COTTER, RADIO TALK SHOW HOST: That's right. And that's just one of a bunch of rules that they're putting into place. And you think that this is going to be the start of something that might be nationwide; that other schools will incorporate some of their rules. You're thinking, you maybe hope, but you're not quite sure. This does not level the playing field for Colorado. Is it that much of a difference? No. But it will make some of a difference.

And one of the rules that I think very few people are talking about right now, but I think is a pretty serious rule, is that players cannot -- prospective players, recruits, can't visit the University of Colorado during football season.

CALLAWAY: Oh, really? I didn't know.

COTTER: That's huge.

CALLAWAY: That is huge.

COTTER: Because, you know, you've got to be able to see the atmosphere. You've got to be able to get there at the games and see how the campus reacts all week long before a game. That's a really big deal. I mean, the curfew was brought back to 11:00, and there has to be a coach or some type of parental supervision for all these players throughout their visit. And that's not that serious. But the fact that players can't come during the season, that is a really serious difference.

CALLAWAY: And watch a game.

What about Barry Bonds? I know the baseball commissioner is saying you can't talk about it...

(CROSSTALK)

COTTER: Put the kibosh on it, huh?

CALLAWAY: Yes, put the kibosh. But is it almost a scapegoat? Because, of course, they don't want to comment on it. COTTER: Well, much like what's going on at Colorado right now, it's an investigation. And yesterday, the BALCO attorneys, the attorneys for the people that are being indicted at BALCO, they fired back and said, hey, this is a lot of hearsay. It's a lot of innuendo. We have no proof of anything yet. And it's a lot like what happened with Gary Barnett at Colorado, too.

CALLAWAY: Right.

COTTER: He's coming out and saying, hey, let's let due process take its toll here. Let's let it go through the process before we start handing out fines or firing people on this or that.

So, that's what Bud Selig is saying in baseball. He's saying, look, let's just be quiet with this whole thing until it goes. The kangaroo court, the media, we're all going to talk about it. But there's no proof right now that Barry Bonds took anything. There's no proof that Barry Bonds got anything from anybody, or any of these other players. And I think to some extent Barry Bonds is being unfairly singled out right now.

CALLAWAY: You know what these two stories have in similar is the media fireball, you know, on how this has taken off.

COTTER: Right.

CALLAWAY: And are we going to see more now coming from the universities on new recruiting rules?

COTTER: I think we absolutely are, because I think Colorado is so embarrassed by this -- embarrassed, No. 1, on a national scale -- but also they're spending money; $450,000 that the school is spending just investigating this alone. And, you know, these state university programs, they don't have all that kind of money.

CALLAWAY: Right.

COTTER: They're struggling to make it as it is. So, this chunk of change right now is something that other schools are looking at and saying, hey, maybe if we would spend a little bit on the front end, we don’t have to do that on the back end. Maybe we avoid the embarrassment, and maybe we take care of our students at the same time.

CALLAWAY: And in the 'roid scandal, are we going to see the commission -- the baseball commission, you know, change the rules, make it a little bit more tougher? And, you know, on that subject, it's getting more difficult to detect some of these?

COTTER: Yes, and, you know, BALCO is a small, little laboratory...

CALLAWAY: Right.

COTTER: ... in the San Francisco Bay area. Think about all of the other small ones -- and even bigger ones nationwide -- that are also, you know, masking some of these steroid-type products. The NHL Players Association came out yesterday and said hold on, you know, we're not anywhere near changing the rules right now based on the collective bargaining agreements signed last summer.

CALLAWAY: Right.

COTTER: And we are nowhere near being, you know, loosening our restrictions in terms of allowing these athletes to be tested.

So, this is going to be a fight back and forth between the players association and Major League Baseball. You know, a lot of players like John Smoltz with the Atlanta Braves coming out here in the last few weeks...

CALLAWAY: Yes.

COTTER: ... saying, hey, I want to be tested, because I want this black cloud cleared from above me. It will be interesting to see how much pressure the players themselves put on the players association to go ahead and, you know, strengthen the testing process here, just to lift that black cloud.

CALLAWAY: And quickly, where is baseball compared to some of the other leagues?

COTTER: I think baseball is probably -- well, you know what? It's hard to say...

CALLAWAY: On the testing.

COTTER: Because baseball came out with a five percent...

CALLAWAY: That's right.

COTTER: On the testing?

CALLAWAY: Yes.

COTTER: The NHL has no testing, and the National Football League is very strong in their testing. So, the NBA tests for cocaine and marijuana and things like that.

CALLAWAY: Right.

COTTER: But steroids is not a part of it. So, it's interesting that you have different ways of doing things with all the sports.

CALLAWAY: Exactly.

COTTER: And until this Major League Baseball thing over the last couple of years, there was no testing in baseball either.

CALLAWAY: Things could change.

COTTER: They could.

CALLAWAY: All right, Chris, thank you very much for getting up early with us.

COTTER: Sure, no problem.

CALLAWAY: See you later.

Your news, money, weather and sports. It's time now for the headlines.

Iraqis are just about an hour away from getting an historic interim constitution. The signing ceremony was delayed for two days, while the nation mourned the 181 murdered victims of Tuesday's bombings in Baghdad and Karbala.

And some family members of 9/11 victims are upset that President Bush is using images of the terror attack in his campaign ads. But former New York Mayer Rudy Giuliani, a Republican, says that those images are relevant.

It's been billed as the largest collection of Jackson family memorabilia in the world, and it's been sold now to a European collector. The seller required it from the Jackson family when they defaulted on payments to buy his guitar company.

And in your money, you're not the only one worried about high gas prices. Energy Secretary Spencer Abraham says that the Bush administration is -- quote -- "extremely concerned about them." Those prices are likely to set a record high this month.

In sports this morning, the top-ranked Stanford basketball team remains undefeated, 26 wins in a row so far. Once again, they made it exciting. (UNINTELLIGIBLE) three-pointer at the buzzer for a 63-61 win over Washington State. Do you see it?

And in culture this morning, we're not sure if this is a reflection of the Japanese economy, but Godzilla is getting laid off. That's right. His bosses say that the latest Godzilla movie, the 28th in 50 years, will be the last for at least a decade.

In weather this morning, here's what the national weather looks like on the radar this hour: a line of rain stretching from Texas to Michigan and eastward to New England.

Those are the headlines for you. The next update will be on "AMERICAN MORNING" coming up at the top of the hour.

Well, if you are counting on the perfect Norman Rockwell vacation this summer, then you may want to act fast. Even though summer is months away, you're running out of time to lock in that house by the beach.

And CNN's Julie Vallese is in Ocean City, Maryland, with some tips that you shouldn't leave home without.

Good morning.

JULIE VALLESE, CNN CORRESPONDENT: Good morning, Catherine. We're out here alone. It's just the seagulls and the surf. The temperature isn't even 50 degrees yet. So, we're not suggesting that you trade in your snow boots for sandals quite yet. But come Memorial Day, this boardwalk, and vacation spots around the country, will be packed with people. And if you haven't started planning your summer vacation, you just might be out of luck.

(BEGIN VIDEOTAPE)

VALLESE (voice-over): They are the places where perfect pictures are made: America's vacation destinations. The forecast for 2004: booked.

UNIDENTIFIED MALE: Reservations are coming in pretty fast, a bit faster than last year. So, it's a good time to make your reservations as early as possible.

VALLESE: If at all possible by Easter. Rentals are expected to be up over last year by 8 percent. Overall, travel is also on the rise.

MICHAEL MCNAIR, AMERICAN ASSOCIATION OF TRAVEL AGENTS: The national parks would be a concern for the summer. The park campsites and lodges themselves book up pretty quickly.

VALLESE: So, it's decision time. How much do you want to spend? Where do you want to go? The beach, the Cape, or the trails? And when?

MCNAIR: And the most popular times, and summer being one of them, Christmas holidays, Thanksgiving, those deals are few and far between. It's the rest of the year that the deals really do exist.

VALLESE: But peak travel to prime destinations will likely cost more this year. So, saving money could mean the difference of just one week.

DONNA ABBOTT, TOURISM SPOKESWOMAN, OCEAN CITY, MARYLAND: Ocean City is a great place to be after Labor Day. The weather is still very mild here.

VALLESE: Travel experts say time is short, so don't gamble on your vacation, unless you're going to Vegas.

(END VIDEOTAPE)

Now, procrastinators could actually get the biggest payoff. The release of hotel blocks, cancellations and Internet bookings might mean a less expensive vacation, but it also might mean crossing your first choice off the list -- Catherine.

CALLAWAY: All right, getting away to anywhere is a lot of fun, Julie. Thank you very much.

"AMERICAN MORNING" is coming up at the top of the hour. Soledad and Bill are standing by to tell us what's coming up. SOLEDAD O'BRIEN, CNN ANCHOR: Good morning to you.

BILL HEMMER, CNN ANCHOR: Hello, Catherine. Happy Friday to you. It is...

CALLAWAY: Happy Friday to you.

HEMMER: Thank you. It's a significant day today in Iraq. The constitution is set to be ratified in about one hour. We'll talk to Paul Bremer about what this means for the Iraqi people, and what sort of reaction he's been picking up with the violence continuing, talking about this man, Zarqawi -- a lot of questions today for Paul Bremer.

O'BRIEN: Also this morning, we're going to talk about those campaign ads. The Bush administration just released them. Now, they're coming under a lot of fire from some family members of victims of 9/11, who say the images that are used in those ads are inappropriate. A man who truly has an interesting perspective on this is the former mayor of New York City, Rudy Giuliani. He's going to join us this morning.

HEMMER: Also, it is not life and death, but it is: a mascot battle.

O'BRIEN: Yes.

HEMMER: From Italy to Western Kentucky.

O'BRIEN: Well, I'm sure you know Gabibo (ph), the Italian character?

HEMMER: Yes.

O'BRIEN: Apparently, the Western Kentucky University claims that it's Big Red character...

HEMMER: There he is.

O'BRIEN: ... the mascot, has been ripped off by a news organization in Italy and turned into Gabibo (ph). And they're suing for a quarter of a billion dollars.

HEMMER: (UNINTELLIGIBLE) pretty fun, though, doesn't he?

O'BRIEN: Oh, of course, the Italians on the other side of it say Gabibo (ph) doesn't look anything like that; that it looks as much as like Elmo as Gabibo (ph) looks like Big Red. It's become -- yes, it looks nothing like it. Hey, I know Elmo. That doesn't look like Elmo.

But it's become this big legal battle, and this morning we're going to talk to the university president, who has also gotten involved in all of this.

HEMMER: Yes, good deal. Also, there's news from Mars today. We'll talk about that. And Jack has got a great e-mail question today, too.

O'BRIEN: OK.

HEMMER: It's Friday. See you at the top of the hour -- Catherine.

CALLAWAY: I think Elmo is offended officially now.

HEMMER: Oh, yes?

O'BRIEN: Elmo looks nothing -- come on!

CALLAWAY: No, it looks nothing like him.

O'BRIEN: That's a big, old, round jelly bean looking character.

CALLAWAY: Hey, I don't know what that is. Maybe you're right, Soledad. A jelly bean.

We'll be watching, guys.

HEMMER: Bye-bye.

CALLAWAY: Bye-bye.

Still to come on DAYBREAK, fame as defendant and now Emmy nominee. We'll see what's happening with the jury deliberations at Martha Stewart's trial.

And you can look out, but you can't look in. This restroom isn't as public as you might think.

(COMMERCIAL BREAK)

CALLAWAY: Time now for some legal talk. Potential jury members in the Scott Peterson case are being asked some interesting questions, and while it's another day of deliberation in the Martha Stewart case.

Let's turn to our legal analyst, Kendall Coffey, joining us live this morning from Miami.

Thanks for being with us this morning.

KENDALL COFFEY, CNN LEGAL ANALYST: Thanks, Catherine.

CALLAWAY: Lots to talk about in the Martha Stewart trial. The jury is deliberating another day today, and still the prosecution and defense arguing a little bit over notes being sent to the judge from the jury on things that they want re-read, testimony they want re- read. What was going on there?

COFFEY: Well, I think that what happened late yesterday was a note that's got a lot of concern on the defense camp, and particularly for Peter Bavanovic, maybe Martha Stewart too, because the jury is asking specific questions about the proof that's required to prove perjury on count six against Peter Bacanovic.

So, they're going to be back this morning arguing about how the judge should answer that case, but when a jury is really zeroing in like that, it looks like they're getting pretty close to a conclusion that maybe Peter Bacanovic is guilty. Not a good day at all for the defense.

CALLAWAY: No, it doesn't sound like it at all. So, what happens with the jury when they're waiting for, you know, an answer from the judge?

COFFEY: They're going to talk about other parts of the case. They've got a lot of information to be covering -- eight counts, two different defendants, who, in many ways, have been treated differently by the evidence.

Clearly, Bacanovic in worse shape than Martha Stewart, and it may be that Martha Stewart's lawyers are hoping that as they go through the specifics in the Bacanovic evidence, which includes a transcript where he was under oath, that may actually play better for Martha Stewart, because there is no precise transcript of what she said that was allegedly false, and, of course, she wasn't under oath at the time.

CALLAWAY: All right, you know, we need to get to Scott Peterson. We don't have a lot of time this morning. And you were right. You had said that questions that the jury were going -- jury members -- potential jury members were going to have to answer with things like how they felt about the death penalty, how they felt about infidelity -- these kinds of things.

You know, what exactly is the prosecution looking for? What kind of answers are they looking for? What's the defense looking for?

COFFEY: Well, I think this is a case where you don't have slam dunk direct evidence. There are so many different circumstances. So, what they're trying to do is they think of all of the different circumstantial evidence that's going to be relied upon, connect with how a jury might look at that.

One of the examples, Catherine, is going to be with respect to dogs, because there is critical evidence, the prosecution thinks, in the form of a Labrador retriever, Tremble (ph), that apparently signaled that Laci Peterson was on the same marina where Scott Peterson's boat left from, and that signal from the dog came four days after Laci Peterson disappeared.

CALLAWAY: Right.

COFFEY: Some jurors may have different attitudes about whether you would take evidence from a dog and put somebody on death row.

CALLAWAY: Wow! All right, Kendall, we're out of town -- out of time, rather. But how long do you think it's going to take a jury to be seated in this?

COFFEY: Four to six weeks is a reasonable estimate.

CALLAWAY: Wow! A long time. All right, Kendall, thanks for getting up early with us.

COFFEY: OK, thanks, Catherine.

CALLAWAY: Have a good day.

COFFEY: You, too.

CALLAWAY: Rob will be along for "The Lightning Round" in just a moment. First, the headlines.

(COMMERCIAL BREAK)

CALLAWAY: Eighty-one years old. Did you see that? Ed McMahon?

ROB MARCIANO, CNN METEOROLOGIST: Yes.

CALLAWAY: Wow! He doesn’t look 81 at all or act it.

MARCIANO: I haven't seen him in a while, though.

CALLAWAY: Yes.

MARCIANO: He looks good in that picture.

CALLAWAY: He's still out and about.

MARCIANO: Happy birthday, Ed.

CALLAWAY: Yes, happy birthday. And it's time for "The Lightning Round."

Janet Jackson returns to network television for the first time since her exposure during the Super Bowl. She will host "Saturday Night Live" on NBC coming up April 10. Good move on her part.

MARCIANO: That's the perfect spot to make your re- entry into network television.

CALLAWAY: Oh, I cannot even imagine what kind of skits they're going to have.

MARCIANO: It should be fun.

CALLAWAY: Fit for a queen. Despite reports to the contrary, Sunny, the foul-mouthed parrot, will remain on the HMS Lancaster when Queen Elizabeth tours the British warship today. Sunny is known for her vocabulary of four-lettered words.

MARCIANO: Really? I don't suppose we have any sound bytes this time.

CALLAWAY: No, we can't do that with the new FCC regulations, right? I wonder if she has an accent. All right, it's a cross between arts and potty humor. This public restroom is open to visitors every weekend outside of London's Tate Gallery. The one-way mirror glass provides privacy for the user and keeps passersby guessing. I don't know that much would get done in there. Will people...

MARCIANO: That's pretty cool. That's pretty fun. You don't need a newspaper there.

CALLAWAY: Oh!

MARCIANO: You know, you've just got everything going on behind you.

CALLAWAY: Interesting stuff. All right, Rob, have a great weekend.

MARCIANO: Hey, you, too, Catherine. I enjoyed it.

CALLAWAY: We're out of time. "AMERICAN MORNING" begins right now.

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





College Sports on Defensive>


Aired March 5, 2004 - 06:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CATHERINE CALLAWAY, CNN ANCHOR: British Prime Minister Tony Blair, meanwhile, has been delivering a speech this morning, once again defending his actions regarding the war in Iraq.
And U.S. Army General John Abizaid says that there were indications this week's deadly bombings in Baghdad and Karbala were going to happen. During an interview on PBS, he said that coalition forces warned members of the community and stepped up security there, but he adds it's impossible to be at all places all the time. At least 181 people were killed in those attacks.

And for two and a half years since September 11, 2001, he's been the world's most wanted man. But now, an all-out effort is being mounted to capture or kill Osama bin Laden, and the U.S. military's latest technology is joining that hunt.

From the Pentagon, here's Barbara Starr.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): CNN has learned the new strategy to catch Osama bin Laden includes high-tech surveillance to keep a 24/7 watch over the border region between Afghanistan and Pakistan. Officially, none of this is acknowledged.

GENERAL JOHN ABIZAID, U.S. CENTRAL COMMAND: Of course, you've read and heard in the press the idea that Osama bin Laden is surrounded, and we have him cornered, and we know where he is, et cetera, et cetera. And, of course, we don't know that.

STARR: But U.S. officials believe bin Laden may be feeling the heat from Pakistani military forces, now hunting him, and could start to move. So, around-the-clock surveillance could pay off.

As one official told CNN, we are putting the pieces in place to throw the net over him. Everything will be in position within days.

Those intelligence gathering centers include U-2 spy planes flying for hours at 70,000 feet or above taking pictures, using radars, and intercepting communications. Unmanned Predators will take a closer look. Flying at 25,000 feet, its cameras see vehicles and people. Special radars operate through clouds. Some may have Hellfire missiles.

Ground sensors may also be set along mountain passes listening for vehicles. Streams of data will be sent via satellite to analysts for quick action. The military has bought up satellite transmission capacity in the region, making sure it can respond quickly.

(on camera): If Osama bin Laden is spotted moving, waiting U.S. Special Forces will try to capture or kill him, but Osama bin Laden has slipped away before.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

(WEATHER BREAK)

CALLAWAY: Coming up, a look at the allegations of steroids swirling around homerun hitter Barry Bonds.

And, choosing a jury of his peers. Why are personal opinions so important in the Scott Peterson double murder trial? We'll tell you.

Also coming up, we'll tell you when and where Janet Jackson plans to make her comeback on network television.

(BEGIN VIDEO CLIP)

JANICE REVELL, WRITER/REPORTER, "FORTUNE": Most people are unaware of the fact that once your total compensation hits $90,000 a year -- that includes salary, commission, bonuses -- that the IRS considers you to be highly-compensated for the purposes of a 401(k) plan. And what that means in most companies is that the amount that you can contribute to your 401(k) plan drops, and it can drop dramatically.

And the issue is that a lot of people aren't aware of that until it actually happens. And you really need to think ahead. And the only recourse you have is to save more, unfortunately.

You can contribute to your IRA, if you're not already. The bottom line is to get that raised. If you think your compensation is going to be over $90,000, pick up the phone and call your benefits department and find out what you're going to have to do and how it's going to hit you, because it probably will.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

CALLAWAY: There is no shortage of scandals right now in sports. OK, when is there not a scandal in sports? But professional baseball has been rocked by widespread allegations of a drug distribution ring that supposedly provided steroids to some star players.

And, the University of Colorado is busy laying out some new recruiting rules after its football program has been accused of using sex and alcohol to lure prospective players.

Sports radio talk show host Chris Cotter is with me this morning. We're going to talk all about that first, but let's start with the University of Colorado and listen to what the president had to say -- of the college, that is -- about the new recruiting rules.

(BEGIN VIDEO CLIP)

BETSY HOFFMAN, PRESIDENT, UNIVERSITY OF COLORADO: There's no question that circumstances have thrust us into taking a national leadership role in reforming football recruiting and college sports recruiting. There is just no question about the fact that we have been pushed into that national role. I suspect that other universities will follow some of the leads we've taken.

(END VIDEOTAPE)

CALLAWAY: And some of the leads they have taken: Any recruit has to be accompanied by someone -- a parent, a coach -- at all times while on campus now, right?

CHRIS COTTER, RADIO TALK SHOW HOST: That's right. And that's just one of a bunch of rules that they're putting into place. And you think that this is going to be the start of something that might be nationwide; that other schools will incorporate some of their rules. You're thinking, you maybe hope, but you're not quite sure. This does not level the playing field for Colorado. Is it that much of a difference? No. But it will make some of a difference.

And one of the rules that I think very few people are talking about right now, but I think is a pretty serious rule, is that players cannot -- prospective players, recruits, can't visit the University of Colorado during football season.

CALLAWAY: Oh, really? I didn't know.

COTTER: That's huge.

CALLAWAY: That is huge.

COTTER: Because, you know, you've got to be able to see the atmosphere. You've got to be able to get there at the games and see how the campus reacts all week long before a game. That's a really big deal. I mean, the curfew was brought back to 11:00, and there has to be a coach or some type of parental supervision for all these players throughout their visit. And that's not that serious. But the fact that players can't come during the season, that is a really serious difference.

CALLAWAY: And watch a game.

What about Barry Bonds? I know the baseball commissioner is saying you can't talk about it...

(CROSSTALK)

COTTER: Put the kibosh on it, huh?

CALLAWAY: Yes, put the kibosh. But is it almost a scapegoat? Because, of course, they don't want to comment on it. COTTER: Well, much like what's going on at Colorado right now, it's an investigation. And yesterday, the BALCO attorneys, the attorneys for the people that are being indicted at BALCO, they fired back and said, hey, this is a lot of hearsay. It's a lot of innuendo. We have no proof of anything yet. And it's a lot like what happened with Gary Barnett at Colorado, too.

CALLAWAY: Right.

COTTER: He's coming out and saying, hey, let's let due process take its toll here. Let's let it go through the process before we start handing out fines or firing people on this or that.

So, that's what Bud Selig is saying in baseball. He's saying, look, let's just be quiet with this whole thing until it goes. The kangaroo court, the media, we're all going to talk about it. But there's no proof right now that Barry Bonds took anything. There's no proof that Barry Bonds got anything from anybody, or any of these other players. And I think to some extent Barry Bonds is being unfairly singled out right now.

CALLAWAY: You know what these two stories have in similar is the media fireball, you know, on how this has taken off.

COTTER: Right.

CALLAWAY: And are we going to see more now coming from the universities on new recruiting rules?

COTTER: I think we absolutely are, because I think Colorado is so embarrassed by this -- embarrassed, No. 1, on a national scale -- but also they're spending money; $450,000 that the school is spending just investigating this alone. And, you know, these state university programs, they don't have all that kind of money.

CALLAWAY: Right.

COTTER: They're struggling to make it as it is. So, this chunk of change right now is something that other schools are looking at and saying, hey, maybe if we would spend a little bit on the front end, we don’t have to do that on the back end. Maybe we avoid the embarrassment, and maybe we take care of our students at the same time.

CALLAWAY: And in the 'roid scandal, are we going to see the commission -- the baseball commission, you know, change the rules, make it a little bit more tougher? And, you know, on that subject, it's getting more difficult to detect some of these?

COTTER: Yes, and, you know, BALCO is a small, little laboratory...

CALLAWAY: Right.

COTTER: ... in the San Francisco Bay area. Think about all of the other small ones -- and even bigger ones nationwide -- that are also, you know, masking some of these steroid-type products. The NHL Players Association came out yesterday and said hold on, you know, we're not anywhere near changing the rules right now based on the collective bargaining agreements signed last summer.

CALLAWAY: Right.

COTTER: And we are nowhere near being, you know, loosening our restrictions in terms of allowing these athletes to be tested.

So, this is going to be a fight back and forth between the players association and Major League Baseball. You know, a lot of players like John Smoltz with the Atlanta Braves coming out here in the last few weeks...

CALLAWAY: Yes.

COTTER: ... saying, hey, I want to be tested, because I want this black cloud cleared from above me. It will be interesting to see how much pressure the players themselves put on the players association to go ahead and, you know, strengthen the testing process here, just to lift that black cloud.

CALLAWAY: And quickly, where is baseball compared to some of the other leagues?

COTTER: I think baseball is probably -- well, you know what? It's hard to say...

CALLAWAY: On the testing.

COTTER: Because baseball came out with a five percent...

CALLAWAY: That's right.

COTTER: On the testing?

CALLAWAY: Yes.

COTTER: The NHL has no testing, and the National Football League is very strong in their testing. So, the NBA tests for cocaine and marijuana and things like that.

CALLAWAY: Right.

COTTER: But steroids is not a part of it. So, it's interesting that you have different ways of doing things with all the sports.

CALLAWAY: Exactly.

COTTER: And until this Major League Baseball thing over the last couple of years, there was no testing in baseball either.

CALLAWAY: Things could change.

COTTER: They could.

CALLAWAY: All right, Chris, thank you very much for getting up early with us.

COTTER: Sure, no problem.

CALLAWAY: See you later.

Your news, money, weather and sports. It's time now for the headlines.

Iraqis are just about an hour away from getting an historic interim constitution. The signing ceremony was delayed for two days, while the nation mourned the 181 murdered victims of Tuesday's bombings in Baghdad and Karbala.

And some family members of 9/11 victims are upset that President Bush is using images of the terror attack in his campaign ads. But former New York Mayer Rudy Giuliani, a Republican, says that those images are relevant.

It's been billed as the largest collection of Jackson family memorabilia in the world, and it's been sold now to a European collector. The seller required it from the Jackson family when they defaulted on payments to buy his guitar company.

And in your money, you're not the only one worried about high gas prices. Energy Secretary Spencer Abraham says that the Bush administration is -- quote -- "extremely concerned about them." Those prices are likely to set a record high this month.

In sports this morning, the top-ranked Stanford basketball team remains undefeated, 26 wins in a row so far. Once again, they made it exciting. (UNINTELLIGIBLE) three-pointer at the buzzer for a 63-61 win over Washington State. Do you see it?

And in culture this morning, we're not sure if this is a reflection of the Japanese economy, but Godzilla is getting laid off. That's right. His bosses say that the latest Godzilla movie, the 28th in 50 years, will be the last for at least a decade.

In weather this morning, here's what the national weather looks like on the radar this hour: a line of rain stretching from Texas to Michigan and eastward to New England.

Those are the headlines for you. The next update will be on "AMERICAN MORNING" coming up at the top of the hour.

Well, if you are counting on the perfect Norman Rockwell vacation this summer, then you may want to act fast. Even though summer is months away, you're running out of time to lock in that house by the beach.

And CNN's Julie Vallese is in Ocean City, Maryland, with some tips that you shouldn't leave home without.

Good morning.

JULIE VALLESE, CNN CORRESPONDENT: Good morning, Catherine. We're out here alone. It's just the seagulls and the surf. The temperature isn't even 50 degrees yet. So, we're not suggesting that you trade in your snow boots for sandals quite yet. But come Memorial Day, this boardwalk, and vacation spots around the country, will be packed with people. And if you haven't started planning your summer vacation, you just might be out of luck.

(BEGIN VIDEOTAPE)

VALLESE (voice-over): They are the places where perfect pictures are made: America's vacation destinations. The forecast for 2004: booked.

UNIDENTIFIED MALE: Reservations are coming in pretty fast, a bit faster than last year. So, it's a good time to make your reservations as early as possible.

VALLESE: If at all possible by Easter. Rentals are expected to be up over last year by 8 percent. Overall, travel is also on the rise.

MICHAEL MCNAIR, AMERICAN ASSOCIATION OF TRAVEL AGENTS: The national parks would be a concern for the summer. The park campsites and lodges themselves book up pretty quickly.

VALLESE: So, it's decision time. How much do you want to spend? Where do you want to go? The beach, the Cape, or the trails? And when?

MCNAIR: And the most popular times, and summer being one of them, Christmas holidays, Thanksgiving, those deals are few and far between. It's the rest of the year that the deals really do exist.

VALLESE: But peak travel to prime destinations will likely cost more this year. So, saving money could mean the difference of just one week.

DONNA ABBOTT, TOURISM SPOKESWOMAN, OCEAN CITY, MARYLAND: Ocean City is a great place to be after Labor Day. The weather is still very mild here.

VALLESE: Travel experts say time is short, so don't gamble on your vacation, unless you're going to Vegas.

(END VIDEOTAPE)

Now, procrastinators could actually get the biggest payoff. The release of hotel blocks, cancellations and Internet bookings might mean a less expensive vacation, but it also might mean crossing your first choice off the list -- Catherine.

CALLAWAY: All right, getting away to anywhere is a lot of fun, Julie. Thank you very much.

"AMERICAN MORNING" is coming up at the top of the hour. Soledad and Bill are standing by to tell us what's coming up. SOLEDAD O'BRIEN, CNN ANCHOR: Good morning to you.

BILL HEMMER, CNN ANCHOR: Hello, Catherine. Happy Friday to you. It is...

CALLAWAY: Happy Friday to you.

HEMMER: Thank you. It's a significant day today in Iraq. The constitution is set to be ratified in about one hour. We'll talk to Paul Bremer about what this means for the Iraqi people, and what sort of reaction he's been picking up with the violence continuing, talking about this man, Zarqawi -- a lot of questions today for Paul Bremer.

O'BRIEN: Also this morning, we're going to talk about those campaign ads. The Bush administration just released them. Now, they're coming under a lot of fire from some family members of victims of 9/11, who say the images that are used in those ads are inappropriate. A man who truly has an interesting perspective on this is the former mayor of New York City, Rudy Giuliani. He's going to join us this morning.

HEMMER: Also, it is not life and death, but it is: a mascot battle.

O'BRIEN: Yes.

HEMMER: From Italy to Western Kentucky.

O'BRIEN: Well, I'm sure you know Gabibo (ph), the Italian character?

HEMMER: Yes.

O'BRIEN: Apparently, the Western Kentucky University claims that it's Big Red character...

HEMMER: There he is.

O'BRIEN: ... the mascot, has been ripped off by a news organization in Italy and turned into Gabibo (ph). And they're suing for a quarter of a billion dollars.

HEMMER: (UNINTELLIGIBLE) pretty fun, though, doesn't he?

O'BRIEN: Oh, of course, the Italians on the other side of it say Gabibo (ph) doesn't look anything like that; that it looks as much as like Elmo as Gabibo (ph) looks like Big Red. It's become -- yes, it looks nothing like it. Hey, I know Elmo. That doesn't look like Elmo.

But it's become this big legal battle, and this morning we're going to talk to the university president, who has also gotten involved in all of this.

HEMMER: Yes, good deal. Also, there's news from Mars today. We'll talk about that. And Jack has got a great e-mail question today, too.

O'BRIEN: OK.

HEMMER: It's Friday. See you at the top of the hour -- Catherine.

CALLAWAY: I think Elmo is offended officially now.

HEMMER: Oh, yes?

O'BRIEN: Elmo looks nothing -- come on!

CALLAWAY: No, it looks nothing like him.

O'BRIEN: That's a big, old, round jelly bean looking character.

CALLAWAY: Hey, I don't know what that is. Maybe you're right, Soledad. A jelly bean.

We'll be watching, guys.

HEMMER: Bye-bye.

CALLAWAY: Bye-bye.

Still to come on DAYBREAK, fame as defendant and now Emmy nominee. We'll see what's happening with the jury deliberations at Martha Stewart's trial.

And you can look out, but you can't look in. This restroom isn't as public as you might think.

(COMMERCIAL BREAK)

CALLAWAY: Time now for some legal talk. Potential jury members in the Scott Peterson case are being asked some interesting questions, and while it's another day of deliberation in the Martha Stewart case.

Let's turn to our legal analyst, Kendall Coffey, joining us live this morning from Miami.

Thanks for being with us this morning.

KENDALL COFFEY, CNN LEGAL ANALYST: Thanks, Catherine.

CALLAWAY: Lots to talk about in the Martha Stewart trial. The jury is deliberating another day today, and still the prosecution and defense arguing a little bit over notes being sent to the judge from the jury on things that they want re-read, testimony they want re- read. What was going on there?

COFFEY: Well, I think that what happened late yesterday was a note that's got a lot of concern on the defense camp, and particularly for Peter Bavanovic, maybe Martha Stewart too, because the jury is asking specific questions about the proof that's required to prove perjury on count six against Peter Bacanovic.

So, they're going to be back this morning arguing about how the judge should answer that case, but when a jury is really zeroing in like that, it looks like they're getting pretty close to a conclusion that maybe Peter Bacanovic is guilty. Not a good day at all for the defense.

CALLAWAY: No, it doesn't sound like it at all. So, what happens with the jury when they're waiting for, you know, an answer from the judge?

COFFEY: They're going to talk about other parts of the case. They've got a lot of information to be covering -- eight counts, two different defendants, who, in many ways, have been treated differently by the evidence.

Clearly, Bacanovic in worse shape than Martha Stewart, and it may be that Martha Stewart's lawyers are hoping that as they go through the specifics in the Bacanovic evidence, which includes a transcript where he was under oath, that may actually play better for Martha Stewart, because there is no precise transcript of what she said that was allegedly false, and, of course, she wasn't under oath at the time.

CALLAWAY: All right, you know, we need to get to Scott Peterson. We don't have a lot of time this morning. And you were right. You had said that questions that the jury were going -- jury members -- potential jury members were going to have to answer with things like how they felt about the death penalty, how they felt about infidelity -- these kinds of things.

You know, what exactly is the prosecution looking for? What kind of answers are they looking for? What's the defense looking for?

COFFEY: Well, I think this is a case where you don't have slam dunk direct evidence. There are so many different circumstances. So, what they're trying to do is they think of all of the different circumstantial evidence that's going to be relied upon, connect with how a jury might look at that.

One of the examples, Catherine, is going to be with respect to dogs, because there is critical evidence, the prosecution thinks, in the form of a Labrador retriever, Tremble (ph), that apparently signaled that Laci Peterson was on the same marina where Scott Peterson's boat left from, and that signal from the dog came four days after Laci Peterson disappeared.

CALLAWAY: Right.

COFFEY: Some jurors may have different attitudes about whether you would take evidence from a dog and put somebody on death row.

CALLAWAY: Wow! All right, Kendall, we're out of town -- out of time, rather. But how long do you think it's going to take a jury to be seated in this?

COFFEY: Four to six weeks is a reasonable estimate.

CALLAWAY: Wow! A long time. All right, Kendall, thanks for getting up early with us.

COFFEY: OK, thanks, Catherine.

CALLAWAY: Have a good day.

COFFEY: You, too.

CALLAWAY: Rob will be along for "The Lightning Round" in just a moment. First, the headlines.

(COMMERCIAL BREAK)

CALLAWAY: Eighty-one years old. Did you see that? Ed McMahon?

ROB MARCIANO, CNN METEOROLOGIST: Yes.

CALLAWAY: Wow! He doesn’t look 81 at all or act it.

MARCIANO: I haven't seen him in a while, though.

CALLAWAY: Yes.

MARCIANO: He looks good in that picture.

CALLAWAY: He's still out and about.

MARCIANO: Happy birthday, Ed.

CALLAWAY: Yes, happy birthday. And it's time for "The Lightning Round."

Janet Jackson returns to network television for the first time since her exposure during the Super Bowl. She will host "Saturday Night Live" on NBC coming up April 10. Good move on her part.

MARCIANO: That's the perfect spot to make your re- entry into network television.

CALLAWAY: Oh, I cannot even imagine what kind of skits they're going to have.

MARCIANO: It should be fun.

CALLAWAY: Fit for a queen. Despite reports to the contrary, Sunny, the foul-mouthed parrot, will remain on the HMS Lancaster when Queen Elizabeth tours the British warship today. Sunny is known for her vocabulary of four-lettered words.

MARCIANO: Really? I don't suppose we have any sound bytes this time.

CALLAWAY: No, we can't do that with the new FCC regulations, right? I wonder if she has an accent. All right, it's a cross between arts and potty humor. This public restroom is open to visitors every weekend outside of London's Tate Gallery. The one-way mirror glass provides privacy for the user and keeps passersby guessing. I don't know that much would get done in there. Will people...

MARCIANO: That's pretty cool. That's pretty fun. You don't need a newspaper there.

CALLAWAY: Oh!

MARCIANO: You know, you've just got everything going on behind you.

CALLAWAY: Interesting stuff. All right, Rob, have a great weekend.

MARCIANO: Hey, you, too, Catherine. I enjoyed it.

CALLAWAY: We're out of time. "AMERICAN MORNING" begins right now.

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