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ANDERSON COOPER 360 DEGREES

Both Campaigns Utilize Scare Tactics In Final Push To Elections; Former President Clinton Will Appear In Philadelphia With Kerry

Aired October 20, 2004 - 19:00   ET

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


ANDERSON COOPER, HOST: Good evening from New York. I'm Anderson Cooper.
Teresa Heinz Kerry making headlines again, and a new twist in the campaign. Call it the Clinton factor.

360 starts now.

Harsh attacks on the campaign trail. Bush hits what he calls Kerry's liberal spending plan. Kerry strikes back at the president's handling of the war on terror.

Bill Clinton says his heart has healed enough to hit the road for John Kerry. But in the hearts of undecided voters, does Clinton help or hurt?

Teresa Heinz Kerry apologizes to Laura Bush. What she said, and why the Bush camp is all over it.

The tale of the tapes. Does Bill O'Reilly's accuser really have audio evidence of hot and heavy harassment? You've heard her side. Tonight, hear his. We go 360 with O'Reilly's attorney.

Martha Stewart behind bars. New details about what her prison life is really like, crabapples and all.

And can you face your greatest fear? Tonight, meet a woman too scared to leave home, how she overcame this crippling phobia, and how you can too.

ANNOUNCER: Live from the CNN Broadcast Center in New York, this is ANDERSON COOPER 360.

COOPER: Good evening again.

Thirteen days to go, and the big guns are being brought out, and bombs and bombshells are lobbed too. One of the big guns first.

It turns out that former president Bill Clinton will be well enough after his heart surgery some weeks ago to go out on the stump for John Kerry. He's now scheduled to appear at a rally in Philadelphia on Monday.

According to CNN's own poll of polls, an overview of eight respected national surveys, Kerry needs the help. This how the big picture averages out today, Bush 49, Kerry 45. Actually Bush 50 percent, Kerry 45.

Now on to the bombs and bombshells and the rest of the day's campaign news. We have Candy Crowley standing by on the Kerry side.

And John King with (UNINTELLIGIBLE) in the Bush camp. John?

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: Anderson, the president campaigning today in three states that Al Gore won back in campaign 2000. He hopes to put them in the Republican column this time by testing his appeal in rural and small-town America.

(BEGIN VIDEOTAPE)

KING (voice-over): First stop, Iowa, his opponent a little more than an hour up the road, the president eager to set them much farther apart.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Iraq is no diversion but a central commitment in the war on terror.

KING: Mr. Bush seized on a recent quote from a senior Kerry foreign policy adviser suggesting the term "war on terror" is a metaphor comparable to the war on poverty.

BUSH: Confusing food programs with terrorist killings reveals a fundamental misunderstanding of the war we face, and that is very dangerous thinking.

KING: The president's stops were in a trio of states that were shaded blue when the votes were counted four years ago. Mr. Bush lost Iowa by just 4,144 votes, Wisconsin by 5,708. In Minnesota, the margin was larger, 58,607 votes. Combined, the three states offer 27 electoral votes.

Iowa and Wisconsin are within reach for Mr. Bush and places where he stresses opposition to abortion and gay marriage.

BUSH: We stand for a culture of life in which every person matters and every being counts. We stand for marriage and family, which are the foundations of our society.

KING: Rural and small-town America does tend to be more conservative, but values are only part of the president's appeal.

DR. RICK FARMER, PROFESSOR, UNIVERSITY OF AKRON: Has something to do with his kind of common man way. People feel that they can relate to him. He's from Texas, so he sounds a little bit like they sound. And John Kerry seems like he's from Boston and doesn't really relate to them very well.

KING: Minnesota is the long shot of the three states Mr. Bush visited Wednesday. This absentee ballot drive at the Minneapolis airport, part of the Bush effort to engineer an upset or at least for Senator Kerry to work harder.

(END VIDEOTAPE) KING: And as the president campaigned, White House aides working furiously to try to head off another Iraq war controversy. Conservative minister Pat Robertson says the president told him confidently before the Iraq war that there would be no major U.S. casualties.

Three senior Bush administration officials, including one in the room for that meeting, say the president said no such thing, and that Reverend Robertson must have misunderstood, Anderson.

COOPER: All right, John King in Eau Claire, thanks very much, John.

I think when I spoke before I said in CNN's poll of polls, which is an overview of eight respected national surveys, let's get these numbers right, Bush 49 percent, Kerry 45 percent. I said Bush 50 percent before, based on the graphic, 49 to 55.

Back to the big guns for a moment now, and this news note. While Bill Clinton is coming out from the dugout for John Kerry, Arnold Schwarzenegger may be doing the same for the president. No confirmation from the Bush campaign itself, but senior Republican officials have been talking about the president and the California governor possibly making some public appearances together, perhaps in the swing state of Ohio.

Well, what was it that Isaac Newton said, for every action there's an equal and opposite reaction? Well, the president and vice president spent (UNINTELLIGIBLE) the day today poking and pushing at their Democratic rivals. So now guess, bearing Newton's law in mind, what Senator Kerry did today.

CNN senior political correspondent Candy Crowley has that.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): Retired military behind him, flags to the side, it was billed as a speech on the war on Iraq and terrorism. It was intended as a full- scale assault on the commander in chief.

SEN. JOHN KERRY, DEMOCRATIC PRESIDENTIAL NOMINEE: You know, the president says he's a leader. Well, Mr. President, look behind you. There's hardly anyone there.

CROWLEY: With the calendar closing in, John Kerry is looking at a 20-point deficit on the leadership question, who is stronger, more decisive? He needs to break that down.

KERRY: The president keeps saying how certain he is about things, but you can't just be always certain and frequently wrong. It doesn't make sense.

CROWLEY: The senator spent nearly an hour in Waterloo, Iowa, recycling policy positions, looking to whittle down the president's advantage on terrorism and Iraq. KERRY: Our troops are the best-trained, best-led forces in the world, and they have been doing their job honorably and bravely. And the problem is the commander in chief has not been doing his.

CROWLEY: Kerry accused the president of miscalculating, misjudging, and bungling just about everything, including the decision to deny reconstruction contracts to countries that did not support the war.

KERRY: I mean, that's almost like a schoolyard decision, you know? You learn more in elementary school and high school than they seem to have applied in the conduct of this war.

CROWLEY: His alternative plans and the thrust of Kerry's complaints are not new, but the criticisms are more detailed now, the words more slicing and sharply condescending.

It's getting personal out here.

(END VIDEOTAPE)

CROWLEY: The way Kerry strategists see it, their mission over the next couple of days is to reach out to those very few voters still undecided, and maybe even some of the Bush what they call soft votes. They believe those voters are just looking for a reason not to vote for George Bush.

And so we believe we will be seeing John Kerry in more of these presidential settings, such as the one he had in Waterloo. And of course, Anderson, he'll be able to get some firsthand tips on how to be presidential when he shows up on Monday for that joint appearance with former president Bill Clinton.

COOPER: All right, Candy Crowley in Pittsburgh, thanks, Candy.

So will Clinton help, or could he actually hurt Kerry's campaign? We talk to the "CROSSFIRE" guys a little later in the show about that.

Have you had enough about battling boys? No problem, the political wives have been at it today as well.

CNN's Kathleen Koch reports.

(BEGIN VIDEOTAPE)

KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): They embraced after the debates, throughout the campaign, the women in white avoiding mud-slinging.

Then in a profile of the two in "USA Today," Teresa Heinz Kerry was asked if she'd be different from Laura Bush. Her answer, in part, "I don't know that she's ever had a real job, I mean, since she's been grown up, so her experience and her validation comes from important things, but different things."

However, First Lady Laura Bush did have a real job as a grade- school math teacher in 1968, and later as a librarian for roughly five years.

Bush campaign adviser Karen Hughes.

KAREN HUGHES, BUSH-CHENEY CAMPAIGN ADVISER: Being a librarian is a real job, being a teacher is a real job, a real hard job, as I think teachers across the country will tell you, and so is being a mother. Being a mother is a real job. And I think it's just these kind of comments are an unfortunate way to try to drive a wedge between women who work at home and women who work outside the home.

CROWLEY: Teresa Heinz Kerry herself had worked briefly as a United Nations interpreter, and since 1991 as head of Heinz Charitable Foundations. In a statement, Heinz Kerry quickly apologized, saying she'd forgotten about Mrs. Bush's work experience.

"There couldn't be a more important job than teacher our children. As someone who has been both a full-time mom and full time in the workforce, I know we all have valuable experiences that shape who we are. I appreciate and honor Mrs. Bush's service to the country as first lady and am sincerely sorry I had not remembered her important work in the past."

A spokesman for the first lady says Mrs. Bush is proud of the time she spent as a teacher and librarian, as well as raising a family and serving as first lady of the U.S., saying, quote, "She knows some days are longer than others out on the campaign trail when your husband is running for president."

(END VIDEOTAPE)

KOCH: And I just got off the phone with a spokesman for the Kerry campaign, Sara Geoghanheim (ph), and she tells me that Teresa Heinz Kerry tried to call the first lady this afternoon to apologize to her personally, but she reached Laura Bush's chief of staff, Andy Ball, who said that wasn't necessary, this is not a big deal, and that the first lady took no offense, Anderson.

COOPER: We'll see if they make a big deal on the campaign trail. Thanks very much, Kathleen.

Lawmakers are getting flu shots for free despite the shortage. That tops our look at what's happening right now cross-country.

Senate majority leader Bill Frist says lawmakers are not getting special treatment. He says senators can easily spread the flu, since they shake so many hands and kiss so many babies. President Bush, though, says healthy lawmakers shouldn't get flu shots, and he doesn't plan to get one himself.

But Vice President Cheney, who has a history of heart disease, got the vaccine, and a lot of folks on Capitol Hill can get them very easily.

Nationwide, the average price for home heating oil set a record for a third straight week. The national average is $1.98 for a gallon, up 61 cents from a year ago. The price hike is linked to higher crude oil costs and concerns fuel supplies will be low this winter.

Kirksville (ph), Missouri, now, fiery plane crash. Amazingly, there are survivors. Emergency crews are searching for five people missing after the crash of a commuter plane last night. Eight others were killed, but two survived, including a woman who was walking around when rescuers arrived. Unbelievable.

In New York, less than an hour now, the Yankees and the Red Sox face off in the deciding game of the American League championship series. That's a live shot right now from Yankee Stadium. The series between the bitter rivals is tied three to three Tonight's winners goes to the World Series. We'll see what happens.

That's a look at stories right now cross-country.

So, are you ready for the 360 challenge? Later in the program, we're going to ask you three questions testing your knowledge on today's news. If you watch the show closely, you should be able to get them all right. Be the first to e-mail all three correct answers, we'll send you a 360 T-shirt. Later, we'll also announce last night's winner.

Also ahead, Martha Stewart on the inside. Crabapple pie, name brand sheets, and some new friends. A glimpse at her new life behind bars.

Plus, "The O'Reilly Factor." He says he's a victim of extortion. But isn't he willing to settle? We're reporting all sides of this story. We've talked to his accuser. Tonight, I'll ask O'Reilly's lawyer the tough questions. He joins us live.

First, let's take a look at your picks, the most popular stories right now on CNN.com.

(COMMERCIAL BREAK)

COOPER: Well, Martha Stewart says prison is nice, but her lawyers want to make sure her stay there is shorter than expected. They plan to appeal her conviction on the grounds she never had the chance to cross-examine her former broker, or they never had the chance to cross-examine her former broker after a (UNINTELLIGIBLE) damaging audiotape of him was played in court.

While her appeal gets filed, Martha Stewart, of course, continues to get used to a whole new kind of living, as Deborah Feyerick found out by checking out a chat room for former inmates and friends of current ones. Take a look.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): Inside the college-like campus of Alderson Prison, inmate 55170054 is getting along. Martha Stewart, writing on her Web site, "The best news, everyone is nice," and that "the camp is like an old-fashioned college, without the freedom, of course." In fact, it seems Stewart is quite popular. On another Web site, Prison Talk Online, an Internet user who goes by the name Still Mommy's Girl says her mother recently got out of Alderson, and that a friend told her Stewart is "very very cool and a sweet and nice person." The writer also says Stewart "walks the track" with other inmates, spends time "in the library typing in her journal," eats in the chow hall and "complains about the food just like the rest."

The writer says Stewart has made friends. "Everyone loves her there and follows her around," and that "the ladies help her stay out of the spotlight," protecting Stewart from photographers. Alderson inmates do not have access to the Internet, but the prison Web site is used by former inmates who stay in touch with women on the inside.

Prison officials would not confirm reports on the Web site that Stewart offered to provide name-brand sheets to her Alderson pals.

Stewart will finish up orientation this week and be assigned a job, which could include gardening, cooking, or baking.

Like other inmates, she can walk around the grounds when the workday ends at 3:30. A prison official says it's a rumor that Stewart was picking crabapples to cook.

Stewart, who nabbed a choice bottom bunk, has been living in a two-story cottage with 80 women.

(END VIDEOTAPE)

FEYERICK: Now, Stewart was busy last week meeting with her appeals lawyer. He believes there are at least five major issues, including juror misconduct, which could be grounds for reversing Stewart's conviction. By the time a judge decides, Stewart could already be out of prison. Those papers are due tonight at midnight, Anderson.

COOPER: All right, Deb Feyerick, thanks very much.

A U.S. soldier pleads guilty to abusing Iraqi prisoners. That tops our look at what's happening right now around the world in the uplink.

Baghdad, Iraq, this man, Staff Sergeant Ivan Chip Frederick, the highest-ranking soldier charged in the Abu Ghraib prison scandal, admits guilt to five charges. Now, as part of the plea deal, he's expected to testify in other cases and could be sentenced tomorrow, and up to 11 years in prison as possible.

Tehran, Iran, now, a blastoff, a test of the Shahab (ph) III missile. With a range of about 800 miles, it can reach Israel. Just last month, the missile was shown off in a military parade with a banner draped over it saying, quote, "Israel must be wiped off the world map." But Iran insists its missile program is for defensive purposes only.

Across southern and central Japan, Typhoon Toga -- excuse me, Tokage strikes. At least 18 people have been killed in deadly mudslides and flash floods. At least 13 others are missing. Amazing pictures there. Tokage, the Japanese word for lizard, dumped nearly 16 inches of rain in some areas.

And in Bangkok, Thailand, tigers marked for death at a zoo. Forty tigers believed to be infected with the bird flu virus will be killed. That after 30 others died after being fed raw chicken could have been infected with the virus.

That's a quick look at the uplink tonight.

360 next, meet a star of cable TV who was so agoraphobic she couldn't leave her house. Find out how she overcame her fears, and how you can too.

Also tonight, political star power. Bill Clinton on the campaign trail. Can he help Kerry among undecided voters and among women? Find out. "CROSSFIRE" guys weigh in.

And a little later, Bill O'Reilly's defense, his lawyer joins us live.

(COMMERCIAL BREAK)

COOPER: That was a scene from the movie "Copy Cat" in which Sigourney Weaver plays a woman suffering from agoraphobia, a condition that affects more than 3 million Americans.

Now, it is an intense fear of having a panic attack in a place or a situation which may be hard to escape. It's so intense in some cases, many victims can't even leave their homes. It can be overcome, however. You just have to ask the Food Network's Paula Deen.

CNN's Daryn Kagan has her story as we continue our special series, Facing Your Fears.

(BEGIN VIDEOTAPE)

(BEGIN VIDEO CLIP, "PAULA DEEN'S HOME COOKING," THE FOOD NETWORK)

PAULA DEEN, HOST: Don't ever underestimate our sweet tooth.

(END VIDEO CLIP)

DARYN KAGAN, CNN CORRESPONDENT (voice-over): Paula Deen is the reigning belle of down-home Southern cooking. Fried, whipped, buttered, and graveied, her country cuisine draws fans to television...

DEEN: Why aren't you eating that fried chicken, girl?

KAGAN: ... and her restaurant in Savannah, Georgia.

What most fans don't know about Deen, for over 20 years, she was terrified to leave her own home.

DEEN: I was so frightened that it literally stopped me in my tracks.

KAGAN: This one-time Georgia beauty queen suffered debilitating panic attacks and agoraphobia, set off, she believes, by the death of her father.

DEEN: At 19 years old, I got up every day of my life waiting to die. And I said, I wonder if today will be the day. And I'd, you know, do this, do this and check my throat, and check for coughing up blood.

KAGAN: And gradually, the fear completely overwhelmed her.

DEEN: I didn't know it had a name. And I was so embarrassed that I wouldn't share this with anybody.

KAGAN: But it was hard to hide, especially from her two young sons. Jamie, who now works with his mother, remembers a rare outing.

JAMIE DEEN, CO-OWNER, THE LADY AND SONS RESTAURANT: And we were running around this department store, and I remember Mom carried a brown paper bag with her, and ducked down behind a clothing display. She was beginning to hyperventilate and have an anxiety attack, and she was breathing in the bag, and that was real confusing for me.

KAGAN: Deen says she had no money to afford therapy. She overcame her fear, she says, through prayer, and simply one day deciding to take responsibility for her own life.

DEEN: I realized that I could not change these things, but God had given me today, and I was going to go out and live it.

KAGAN: Deen took baby steps, starting with a lunch catering business. Fifteen years later, a multimillion-dollar enterprise.

(on camera): And the young woman who was so scared and stayed locked up at home, what would she think about walking into this restaurant today?

DEEN: She would say, Oh, my goodness, I'm so glad she's back.

Hey, how are y'all doing?

KAGAN: Paula Deen is doing great. Part of this warm welcome, these days, she's so busy she's rarely home.

Daryn Kagan, CNN, Savannah.

(END VIDEOTAPE)

COOPER: Well, her story is remarkable. I spoke with her about her brave recovery from agoraphobia a short time ago. Take a look.

There was a time when you could not -- or you couldn't walk down the street alone.

DEEN: No, I couldn't. I lived in an apartment complex, and my brother lived, like, three or four doors down, and I couldn't walk down there.

COOPER: Describe, I mean, that feeling, that fear. What does it, what does it feel like?

DEEN: Well, it's just horrible. You think that you're going to die. You start getting this panicky feeling, and your heart just totally runs away with you, and you're breathing so fast, and your arms go numb.

COOPER: Did your family know?

DEEN: I tried to hide it. My husband was my confidant. And I begged him not to tell anybody and help go along with me, because I was so embarrassed by this, that I could be that out of control.

COOPER: There was a time when, I think, your son cut himself, and you couldn't take him to the hospital?

DEEN: Couldn't take him to the hospital. And I love my children more than I love my life.

COOPER: (UNINTELLIGIBLE), (UNINTELLIGIBLE), explain that. I mean, I think for people that's...

DEEN: The fear of going to a hospital just totally, totally broke me down, because hospitals were where bad things happened.

COOPER: So you must be incredibly strong that you overcame that. I mean, to do this by yourself without therapy?

DEEN: Well, have you ever been sick and tired of being sick and tired? I was so tired of being afraid, and I took control of my life.

COOPER: And it was that Serenity Prayer which really (UNINTELLIGIBLE).

DEEN: The Serenity Prayer just clicked with me one day. I was familiar with that prayer, but this one day I got up, and it was like turning on a light switch. I heard it, and I understood it.

COOPER: You said that the -- you think the best way to beat this agoraphobia to ward off panic attacks is to play tough, to, quote, "drop the pity act." That's a tough thing for people to hear who are in the midst of this fear.

DEEN: It's very, very hard. But I just beseech people, if they're struggling with this, to think about that Serenity Prayer and what it means. There are some things that we cannot change, we have no control over, and some things we can.

COOPER: Did, did you (UNINTELLIGIBLE), when, did you hear that it had a name? I mean, when, when somebody put a name on it for you, did that make a big difference?

DEEN: Yes, I sat on the end of my bed, and I watched Phil Donahue one morning. COOPER: That's how you found out?

DEEN: That's how I found out what I had. And I cried for one hour. I was so relieved that it had a name, that I wasn't crazy, I wasn't insane, and there was a very good chance I wasn't going to die.

COOPER: And that first time you went out, I mean, what was that like, though?

DEEN: Oh, it would make you cry. I know the first time I was ever able to ride a mile from my house after I had really hit rock bottom, I cried and cried and cried. You know, so joyful.

COOPER: And your message to anyone out there who has this or some other phobia?

DEEN: Ask yourself, what's the worst thing that's going to happen if I go out my door? What's the worst thing? And when you face these fears, and you beat fear, it sets you free.

COOPER: And you're cooking up a storm.

DEEN: I'm cooking up a storm. I suffered for 20 years, and I know it's not easy, but if I can do it, anybody can do it, because I'm not the brightest bulb in the socket.

COOPER: You certainly have been blessed. Paula Deen, thanks.

DEEN: Thank you, Anderson.

COOPER: Bill Clinton says his heart has healed enough to hit the road for John Kerry. But in the hearts of undecided voters, does Clinton help or hurt?

The tale of the tape. Does Bill O'Reilly's accuser really have audio evidence of hot and heavy harassment? You've heard her side. Tonight, hear his. We go 360 with O'Reilly's attorney.

And are you ready for the 360 challenge? We'll test your knowledge of today's news and see if you can be a 360 winner.

(COMMERCIAL BREAK)

COOPER: Defending Bill O'Reilly. His lawyer joins us live, 360 next.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ANDREA MACKRIS, SUING BILL O'REILLY: When we were discussing me coming back, I said it on the phone and at a dinner eye ball to eye ball, this will not happen, we will not have this saucy talk anymore. And he said, right, right, I'd be employer. That would never happen. Of course not. So I took that as a promise. I took that as a boundary that was explicit. (END VIDEO CLIP)

COOPER: That was Andrea Mackris on this show on Friday. She said that Bill O'Reilly broke that promise by objecting her to explicit phone calls. While O'Reilly does his show tonight, his lawyer will be doing ours. Is it started out nasty and is only getting worse. As you know, Mackris, accuses Mr. O'Reilly of sexual harassment. Mr. O'Reilly says his associate producer is trying to extort millions from him and Fox News

Mackris, denies those charges and now claims Fox News retaliated by using the "New York Post" to attack her.

We believe in looking at all sides of a story. We talked with Mackris on Friday. Tonight we talk with Ronald Green, the attorney for O'Reilly and for Fox News. Thanks very much for being with us.

RONALD GREEN, ATTORNEY, BILL O'REILLY: Thanks for having me.

COOPER: Did Bill O'Reilly, make what Andrea Mackris originally called saucy telephone calls to her?

GREEN: We don't think so. In fact, what we've believed about in this case since it's inception, is that it was an extortion plot, which ripened when we called their bluff.

COOPER: So, you don't believe there were phone calls of a sexual nature at all between these two?

GREEN: We don't know, frankly, if there were conversations that occurred by telephone between consenting adults that someone might call saucy. What we do know is this is when Mr. -- this -- Mr. Morelli contacted us, he said that he had a demand of $600 million, not $60 million. That he was going to put in a pleading that he filed in court and disseminate as widely and as broadly as he could, because he wanted to punish Bill O'Reilly, and he wanted to punish Fox.

COOPER: You're saying -- I know I've read your complaint -- your initial complaint. You said that he wants to punish Fox because of his political beliefs?

GREEN: We think that may be a part of it, and he's not clearly denied it, expressing himself on TV as an active and supporting Democrat. But more importantly to us is not what his motivation was or frankly what her motivation was, we know that she is in financial jeopardy. We've established that fact. We know that she told co- workers she intended to bring Bill O'Reilly down, take $1 million from him and buy the New York City apartment she couldn't previously afford. We know that within days of prior to her lawyer sending the letter that brought upon the meeting in which she made this demand, initially for $600 million, reduced to $60 million, she answered a friend's confidential personal inquiry by e-mail in which she said, I'm having a wonderful time here. I love this environment. I'm home again, and I will never leave. We know at the same time she was peddling a book. COOPER: Let me jump in here. First of all, Mr. Morelli, who's Andrea Mackris' attorney says he didn't mention $60 million as a number that he wanted. He said that a lot a numbers were thrown around. He says, what he said was that he had read that Bill O'Reilly makes $60 million for the Fox network.

He didn't say that is the amount of money he was asking for. You're saying that's completely false?

GREEN: That is absolutely false. He said it not only to me, he said it to two other witnesses in a room filled with other people including his colleagues. What he said was, "I will settle this case for $60 million, if you pay it within the next several days."

COOPER: Were you willing to settle the case for any sum at any point?

GREEN: As soon as we heard his position, how in tractable it was, to buy silence, we knew what our options were.

COOPER: But this came several days and/or weeks. I think he said there was some two weeks back and forth, so I'm assuming you thought there was some sort of smoke with this fire.

GREEN: No, I think not. What you see here is what Michael Flatley saw a few weeks ago when the courts in California permitted him to sue a woman and her attorney who threatened him with precisely the same type of allegations. She said to Michael Flatley who's worth $800 million, if you don't quiet us by paying this enormous sum, we're going to sue you in a widely publicized suit, accuse him of sexual abuse...

COOPER: How long were the negotiations for, though -- before?

GREEN: There were no negotiations.

COOPER: There were no discussions with Andrea Mackris, her attorney and you?

GREEN: There were discussions, no negotiations, of which I was not a part.

COOPER: How long were the discussions for?

GREEN: I don't think they extended past five meetings and five telephone calls. During all of those conversations and all those meetings, Mr. Morelli's position was I want $60 million, time is of the essence, referring specifically -- specific to Bill O'Reilly's ratings, the presidential election, the sweep going on right now, and how Bill O'Reilly could not afford not to settle this case.

COOPER: I want to play you something that Bill O'Reilly on his radio program earlier this week. Let's play that.

(BEGIN AUDIO CLIP) BILL O'REILLY, HOST, "THE RADIO FACTOR": This is my fault. I was stupid, and I'm not a victim. But I can't allow certain things to happen. And I appreciate your support; we get thousands of letters. But I'm not -- I am stupid guys, and every guy listening knows how that is. That we are very stupid at times. But, there comes a time in life where you got to stand and fight. And I knew these people were going to do this, I knew they were going to do everything they could to try to destroy me and the channel. And I just made a decision that I'm just going to ride it out, and I'm going to fight them.

(END AUDIO CLIP)

COOPER: Sounds like to some extent he's acknowledging there was some sort of inappropriate or stupid, as he says, conversation.

GREEN: I think not, Anderson. I think what he's saying is I made a mistake by putting myself in a position where I became vulnerable to a threat of extortion, because of a host of things, including my celebrity status, and trusting someone who worked for me not once, but twice. Who asked to come back to work for me just weeks before she retained an attorney to sue me, and threaten me with destroying my wife, my family and my career.

COOPER: So you saying that's what the stupid reference was.

GREEN: I think so.

COOPER: We're going to have to leave it there. Ronald Green, appreciate you joining us. There's a hearing on Friday, you want the tapes, if there are any tapes.

GREEN: We said, put up or shut up. If you've got tapes that you believe corroborate your assertions, we want to see them, we want to read the transcripts, we want to play the tapes.

COOPER: We will see what happens. Do you think you'll get a ruling on Friday?

GREEN: I think we will.

COOPER: All right, Ronald Green, appreciate you joining us. Thank you.

GREEN: Thank you, Anderson.

COOPER: Well, today's "Buzz" is this. Who are you most likely to believe at first in a sexual harassment cast, at first, the accuser or the accused?

Log on to cnn.com/360, cast your vote, results at the end of the show.

Ninety seconds away from tonight's 360 "Challenge," how up are you on today's news? Three questions to test your knowledge. Get ready to log in and win. Bill Clinton with the heart surgery behind him, the former president plans to join the Kerry campaign in the final days before the election.

"CROSSFIRE" guys weigh in.

(COMMERCIAL BREAK)

COOPER: We have this just in. The commander of the supply unit where some reservists refused to drive a fuel convoy mission in Iraq has been relieved of his command. Pentagon officials say the army captain was let go because of a loss of confidence in his leadership ability. Officials are not releasing his name at this time.

Bill Clinton is not known as the comeback kid for nothing, so it would take more than heart surgery to keep him off the campaign trail. On Monday the former president will join Senator Kerry at a rally in Philadelphia. That's the plan right now. And while Clinton's doctors might not be too thrilled, some Democrats most certainly are. More now from CNN's Adaora Udoji.

(BEGIN VIDEOTAPE)

ADAORA UDOJI, CNN CORRESPONDENT (voice-over): If the Guinness Book of World Records rated political campaigning, Bill Clinton would be hard to beat. The former president's drive to shake every hand and rev up every crowd is legendary. In June, he told CNN's Larry King he would do the same for presidential hopeful Senator John Kerry.

BILL CLINTON, FMR. PRESIDENT OF THE UNITED STATES: I would do everything I could that I was asked to do.

UDOJI: Quadruple bypass surgery sidelined him last month but didn't stop him. Today Clinton sent out a letter urging Democrats to open their wallets. And the big announcement? Though he's still recuperating, Clinton plans to join Senator Kerry Monday in Philadelphia. Good news for Democrats says this analyst.

STEPHEN HESS, BROOKINGS INSTITUTION: What Bill Clinton does is he appeals to the people who are least likely to vote. That's the big thing, and these are new voters, they're people who are lower down on the socioeconomic totem pole.

UDOJI: Is there a down side? The last Democratic presidential candidate Al Gore didn't use Clinton much in 2000 conscious of his divisiveness. Even though it was a tight race, the fallout from Clinton's indiscretion with an intern and impeachment proceedings cast a long shadow, though some argued Gore lost votes without him. Still, with another close race expected this year, every edge counts. Clinton's approval rating remains steady at 54 percent, according to a July CNN/"USA" Today/Gallup poll. And Democrats hope that translates into votes Kerry will need to win. Adaora Udoji, CNN, New York.

(END VIDEOTAPE)

COOPER: The question is, would president Clinton be an asset or liability on the campaign trail? I talked about that with the "CROSSFIRE" guys a short time ago.

(BEGIN VIDEOTAPE)

COOPER: So, Paul, how much does the Clinton factor help John Kerry?

PAUL BEGALA, CO-HOST, "CROSSFIRE": I think it helps. It's a close election. He's beloved by the Democratic base, but also probably more important is a lot of swing voters who think very highly of him, the so-called soccer moms who we identified back in the Clinton era, who were reliably Republican, but then came over to the Democratic column on issues like the environment or the economy and I think people look back on the Clinton era as a pretty successful era economically and I think it helps Kerry.

COOPER: Tucker, is there a negative?

TUCKER CARLSON, CO-HOST, "CROSSFIRE": Of course there's always a negative with Clinton and there's an up side. I think a lot of it depends on where they send him. I'm not a strategist, but if I were in charge of it, I would send him to Arkansas. That's a state Kerry would like to win and that's a state where Clinton could help him. I don't think they're planning on sending him to Arkansas, maybe they will.

COOPER: What's going on with the women's vote? According to the latest "New York Times"/CBS News poll published today, came out yesterday, Kerry jumped ahead among women. Bush 50 percent to 40 percent. What's going on there, Paul?

BEGALA: I think the turn back to domestic issues -- there have been two different theories. Karl Rove has a theory of security moms. He may be right. This theory was talking about terrorism and the war, keeps security moms in President Bush's camp. Kerry has a different theory. His strategists believe that talking about jobs, healthcare, education, less of education, jobs and healthcare will bring those women along. It looks like the Kerry theory is playing out to be more valid than the Karl Rove/Bush theory.

CARLSON: In the end Kerry will lose women that he would have otherwise gotten. I think he will lose some unmarried women on the security issue. He still hasn't closed that gap. There's still more than 10 points separating Bush and Kerry on the question of who can keep us safer.

COOPER: Let's talk about national security. Today Kerry made a big speech regarding his national security policy, Paul, really criticizing, saying there's a distinction between the war on terror and the war in Iraq. Has he been able to convince voters that the war in Iraq was a diversion?

BEGALA: Well, yes, it's increasingly that sense. What Senator Kerry, while he probably would rather campaign on some of the domestic issues, I think there's a sense in the Kerry campaign that they don't want to let the president re-merge, if that's a word, to let him conflate those two issues again, Iraq and war on terror. They felt like Kerry did a good job in the debate of separating the two. War on terror, good, necessary. War in Iraq, unnecessary, failed. And the president, of course, wants to merge those two back together. They feel like every time the president looks like he's starting to get a little traction on that they need to come out and draw those distinctions again and Kerry was very tough on him today.

CARLSON: I don't think it makes sense. The argument that the war in Iraq is not the frontline the war on terror. That's a completely legitimate argument. A lot of conservatives would agree with that, but you can't argue that and simultaneously argue we need to stay the course. If the war in Iraq is not at the center of the war on terror, we ought to withdraw from Iraq. That's the only conclusion you can reach from the first point yet Kerry again is arguing them both simultaneously. It's irrelevant, it's a waste of time, it's wrong, and we ought to keep 130,000 troops there. That's insane.

COOPER: We'll have to leave it there. Tucker Carlson, Paul Begala, thanks.

(END VIDEOTAPE)

COOPER: We've heard adults speak plenty about the upcoming election, but what about kids? Who is their candidate? Here's a quick news note. Nearly 400,000 children and teens named their choice for president on Nickelodeon's website. Today the cable network announced the results. Senator John Kerry won with 57 percent of the vote. President Bush got 43 percent. The poll's not mere child's play. It has correctly predicted the winner of the last four presidential elections, we are told. We'll see.

360 next. We take you inside the campaign zone. Sure is a spooky election campaign. Scary. That's raw politics.

Also, tonight the sky may be falling, but you can bet Yankees and Red Sox fans wouldn't even notice. Tonight we take that little series between them to the Nth Degree.

And also the results of the 360 challenge and announce last night's winner.

(COMMERCIAL BREAK)

COOPER: In this year's campaign, there's a dimension beyond that which is known to voters, it's a dimension as vast as space and as timeless as infinity, it's the middle ground between light and shadow, between science and superstition, and it lies between the pit of voter's fears and the summit of their knowledge. It's an area of Raw Politics we call: the Campaign Zone."

(BEGIN VIDEOTAPE)

COOPER (voice-over): Submitted for your approval, campaign rhetoric designed to care the bejesus out of you. Forget Freddy vs. Jason, Bush vs. Kerry is by far scarier. On the campaign trail, we know what you did last summer, you were scaring us silly. Don't worry about some mass murderer jumping out of the bush bushes, you have some real-life stuff to worry about.

CHENEY: The biggest threat we face now is the possibility of terrorists ending up in the middle of one of the our cities with a biological agent or a nuclear weapon.

COOPER: Oh yes, we all agree the danger is great.

KERRY: These are dangerous times.

COOPER: But what exactly is the danger?

KERRY: My fellow Americans, on November 2, Social Security is on the ballot. A choice between one candidate who will save Social Security and another who will undermine it.

CHENEY: He will try to scare young people by raising the specter of the draft...

KERRY: They can't come here to Ohio and talk to you about the jobs they have created, because they've lost 1.6 million jobs, 237,000 of them right here.

BUSH: He has voted to raise taxes 98 times. I want to remind you, he voted to tax Social Security benefits.

COOPER: So do we all really want to be scared? Hey, election day isn't Friday the 13th, is it?

SCHNEIDER: In politics, the choice is always fear of the known versus fear of the unknown. Both sides are trying to scare the voters. The message is, be afraid, be very afraid.

COOPER: So when it comes to the campaign of fear, just repeat after me, it's only Raw Politics it's only Raw Politics, it's only Raw Politics.

(END VIDEOTAPE)

COOPER: I can't believe we got Bill Schneider to do that.

360 next, the Yanks vs. the Red Sox. We know if you're fans of either team, you're are distracted right now, we're going to take it to the Nth Degree.

First today's Buzz, "who are you more likely to believe at first in a sexual harassment case? The accuser or the accused?" Log on to cnn.com/360. Cast your vote. Results when we come back.

Plus, the 360 challenge, find out if you're a potential winner, ahead.

(COMMERCIAL BREAK) COOPER: Time now for the answers to today's 360 challenge. Question No. 1: Former President Clinton will appear with Kerry next week at a rally in what city? The answer is Philadelphia.

No. 2: Iran conducted missile tests today using what kind of missile? It's a hard one. The answer Shahab-3.

And lastly, An outbreak of bird flu is forcing a zoo in Thailand to kill dozens of what? The answer, sadly, is tigers,

If you were the first person to answer all 3 questions correctly, you'll be sent a free 360 T-shirt. Tune in tomorrow to find out if you're the one. And now the results of last night's challenge. The winner is Greg Matarosian, from Media, Pennsylvania. Very good job, Greg. Very quick on the computer. The T-shirt's in the mail.

Another 360 challenge, another chance to win, tomorrow.

Let's look at the Buzz now. Earlier we asked you, "who are you more likely to believe at first in a sexual harassment case?" 80 percent of you said the accuser, 20 percent believe the accused. Not a scientific poll, certainly, but it is your Buzz. Thanks for voting.

Tonight, taking distractions to the Nth Degree.

We know you're not listening, here in New York and certainly there in the right-hand corner of the country from below Boston, up past Bangor, to the Canadian border. You haven't heard a thing anybody said all day, and won't for the next couple hours other than the beating of your own hearts and what is being said on the PA system at Yankee Stadium.

It's the Sox.

Damned if they haven't come back. Lost 3 games in a row to their ancient rivals, the Yankees, then won the next 3. These are the Red Sox famous for breaking the hearts of their fans. Famous for last having won a World Series in 1918. Famous for coming close enough to reach out and touch the Series many times. But then even more famous, finally, for snatching defeat from the jaws of victory.

It's a curse, many say, that settled on the team when the Sox traded Babe Ruth to the Yankees. That was in 1920.

I can say anything at all right now. In Lexington and Concord and Winchester and Wister (ph) in Portland, in Portsmuth (ph), and a thousand other northeastern places in between, nary a soul would hear it anyway. Good luck to you all.

I'm Anderson Cooper. Thanks for watching 360. Coming up next, "PAULA ZAHN 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


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