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CNN Live At Daybreak

Inauguration Festivities Underway; Terror Threat in Boston

Aired January 20, 2005 - 05:00   ET

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

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


CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, George W. Bush prepares to take the oath of office for a second time. DAYBREAK has your inauguration coverage from top to bottom.
Plus...

(BEGIN VIDEO CLIP)

ANNIE, CYBER SPY: We're sort of like a global neighborhood watch program.

(END VIDEO CLIP)

COSTELLO: A Midwestern housewife and mom working after hours as a cyber spy.

And, home again. The search is over for two children allegedly taken by their parents at gunpoint from a foster home

It is Thursday, January 20.

This is DAYBREAK.

And good morning to you.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

Now in the news, Washington gets buttoned up. Security will be tight for today's presidential inauguration. Police from as far away as Seattle are in the nation's capital this morning. One hundred blocks are closed or will be soon and a police officer will be stationed every seven to 10 feet along the inaugural parade route.

Information from an unknown and uncorroborated source has authorities in the Boston area on alert this morning. Police are looking for four Chinese nationals wanted for questioning in a possible terrorist threat.

Condoleezza Rice is expected to get Senate approval as the next secretary of state, but possibly not today. Sources tell CNN some Senate Democrats plan to use delaying tactics that will push her confirmation to next week.

And the Muslim faithful fulfill one of the pillars of Islam and pack their bags. Hajj for about two million people comes to an end in Saudi Arabia. To the forecast center now and Chad -- good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: In just a few hours, President Bush will leave the White House to begin today's inauguration day activities. The president took some time out of his schedule last night to practice his inaugural address.

Here are some excerpts of that speech that have just been released by the White House. This is part of the speech: "We are led by events and common sense," the president will say, "to one conclusion -- the survival of liberty in our land increasingly depends on the success of liberty in other lands. The best hope for peace in our world is the expansion of freedom in all the world."

Also, the president will say: "America has a need of idealism and courage because we have essential work at home, the unfinished work of American freedom. In a world moving toward liberty, we are determined to show the meaning and promise of liberty."

And one of the highlights of inauguration week is the Texas State Black Tie & Boots Ball. The Bushes and Cheneys were on hand to party with around 12,000 other people. But what made this such a hot ticket? Could it be the 20,000 enchiladas? Or was it Lyle Lovett's performance? Or maybe, just maybe, it was the live armadillos. I bet that was it.

The events of today may be taken a little more seriously. Tom Ridge calls the security measures for the inauguration unprecedented.

CNN homeland security correspondent Jeanne Meserve takes a look at what's being done.

(BEGIN VIDEO TAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): Anti-aircraft systems arrayed around the Capitol, checkpoints for trucks approaching the city, manhole covers welded shut, cameras and command centers augmenting 6,000 law enforcement officers, signs of how 9/11 and the war in Iraq have made this inauguration unlike any other.

Tim Koerner of the Secret Service is the security plan's grand architect.

TIM KOERNER, U.S. SECRET SERVICE: The security picture is 360 degrees from the top to the bottom, underneath the ground to over in the sky.

MESERVE: In the city's subway system, that means canine teams, a heftier patrol presence and several closed stations. The air space restrictions over the National Mall four years ago were a fraction of the size of those being imposed this year, covering the entire Baltimore-Washington area. And officials say almost all commercial flights into the region will carry air marshals.

The health community has been strategizing for months. A health surveillance system has been put in high gear to detect a chemical or biological attack. New gear is being rolled out for paramedics.

OPA CLEGG, WASHINGTON HELP DEPARTMENT: A big difference. A big difference. Four years ago, we really, you know, it was laid back. It was kind of, OK, you know, this is the inauguration, just in case something happens. But now our frame of thinking is we know something possibly could happen. So we're prepared for that.

MESERVE (on camera): All that's what you can see. Officials say it's just the tip of the iceberg. They say there's plenty of security that is invisible, protecting the celebration, the city and the citizens.

Jean Meserve, CNN, Washington.

(END VIDEO TAPE)

COSTELLO: And be sure to stay with CNN throughout the day for all of your inauguration coverage, from the swearing in to the parade to the balls, we will have all of the angles covered.

The cost of this inauguration is expected to run about $40 million. And that doesn't include the cost of security. Much of the cost is being offset by corporate donations. Fifty-two companies have shelled out $250,000 apiece to be included in the events. Others gave between $2,500 and $100,000. The City of Washington is expected to spend more than $17.5 million on security and other essentials.

And that leads us to our DAYBREAK E-Mail Question of the Morning -- is this inauguration more about corporate indulgence or is it an important symbol of democracy? Let us know what you think. Daybreak@cnn.com. That's daybreak@cnn.com.

More now on the possible terror threat in the Boston area. The FBI tells law enforcement officials there to be on the lookout for four Chinese nationals. Law enforcement sources tell CNN an anonymous caller says the four, along with two Iraqis, were smuggled into the States from Mexico. Still, the information is a little vague.

(BEGIN VIDEO CLIP)

GOV. MITT ROMNEY, MASSACHUSETTS: I would note that the nature of the threat that's been provided is an uncorroborated, unsubstantiated threat. The source is anonymous, but it is specific in that it mentions a location where individuals were dropped off. The location is New York. And it identifies, also, a location where a threat might be directed, and the location is Boston.

(END VIDEO CLIP)

COSTELLO: Massachusetts law enforcement agencies are on heightened state of emergency today.

You've heard it before from police -- be on the alert. Some people have taken that message to heart, and not just occasionally.

Our Thelma Gutierrez has the story of one citizen warrior.

(BEGIN VIDEO TAPE)

THELMA GUTIERREZ, CNN CORRESPONDENT (voice-over): Somewhere deep in the heartland of America...

ANNIE: You will wear the coat and you will wear it zipped up.

Let's see if you washed her face. Let's get your coat on.

GUTIERREZ: ... a citizen warrior starts her day.

ANNIE: There's your buddy. Have a good day.

GUTIERREZ: Call her Annie. She won't reveal her real name, her kids' faces or even where they live, because by day, this 49-year-old woman is a stay-at-home mom. But by night, her mundane life in the burbs becomes a hunt for terrorists.

ANNIE: I am getting ready to visit some Islamic extremist militant forums.

GUTIERREZ: Annie the housewife becomes Annie the cyber spy.

ANNIE: These are a few of my favorite forums.

GUTIERREZ: Trolling sites she never new existed.

ANNIE: Al Ansar, Castle Forum.

GUTIERREZ: Annie says she looks for suspicious postings and monitors live forums for ominous chatter into the wee hours of the morning.

(on camera) But you don't speak Arabic? You don't read it.

ANNIE: No, but we use software programs to translate it.

Ah, here we go.

GUTIERREZ (voice-over): Within minutes, Annie shows me step-by- step instructions for a suicide bomb belt and how to detonate explosives with a cell phone.

ANNIE: There's assassinations, recruiting, training.

GUTIERREZ: But Annie is mainly interested in the talk that goes on between extremists, whose she says use code words and hymns to hide messages.

ANNIE: They also can insert pictures on their boards. And inside those pictures are embedded files.

GUTIERREZ: It's a sophisticated cat and mouse game. The government shuts the sites down, but they just pop up again.

ANNIE: We have several FBI contacts. We have the CIA, the Secret Service.

GUTIERREZ: Annie and a half-dozen citizens from Canada to Singapore formed the group Phoenix Global Intelligence. They decipher information. Anything sensitive is turned over to authorities.

(on camera) But what if they say that they're not trained intelligence people? They don't even speak the language?

ANNIE: No. We're sort of like a global neighborhood watch program. And after 9/11, what did they tell you? Don't be afraid to call and report anything suspicious. That's what we're doing.

GUTIERREZ (voice-over): The group claims cryptic electronic messages on the Internet that they intercepted warned of attacks in advance, like the explosion outside of the Al Arabiya television station in central Baghdad. Seven people were killed, 19 wounded.

ANNIE: We had intercepted messages two weeks before they were bombed.

GUTIERREZ: Taba, Egypt -- terrorists attacked the Hilton Hotel last October. Thirty-four tourists die in the bloodbath.

ANNIE: There was another one that happened after we read it online.

GUTIERREZ: Riyadh City, May, 2003 -- cars packed with explosives detonate in three residential complexes. Thirty-five people are killed, including nine Americans.

ANNIE: There was information submitted to the FBI almost directly down to the time and location.

GUTIERREZ: We contacted the Office of Homeland Security and the FBI. Neither agency would comment on the citizen group or any tips they may have provided.

Computer security expert Clifford Neuman says private citizens can be extra eyes for the government, but they don't typically have the technology to crack codes.

PROF. CLIFFORD NEUMAN, COMPUTER SECURITY EXPERT: If you're looking at communications that are going on within a terrorist network, it is unlikely that a private citizen is going to see those communications or be able to understand those communications.

GUTIERREZ: But before you write Annie and her group off as wannabe spies with too much time on their hands, one of the members, a mother from Montana, did help catch a wannabe al Qaeda. She was a key witness in the government's case against a National Guardsman.

(on camera) Where was his mistake?

ANNIE: Probably posting on the Internet.

GUTIERREZ (voice-over): Posing as an Algerian extremist, Shannon Ross Miller exchanged e-mails with Ryan G. Anderson, a Muslim convert. In the e-mails, Anderson, part of a tank crew, promised to reveal U.S. vulnerabilities. Anderson was convicted of attempted treason and sentenced to life.

ANNIE: He responded to coming to a jihad and he didn't know who he was talking to. He didn't ever stop to think who is this person I'm talking to?

GUTIERREZ: Annie says she has the perfect cover.

ANNIE: My family supports me. My mother, she's 80 and doesn't approve, of course.

GUTIERREZ: She says no one would suspect a Midwestern housewife working after-hours as a cyber spy.

Thelma Gutierrez, CNN, somewhere in the Midwest.

(END VIDEOTAPE)

COSTELLO: A driver's license can open a lot of doors. But in at least one state, it just may be too easy to get one. A threat to homeland security? Our Jeanne Meserve has that in the next hour of DAYBREAK.

And be sure to stay tuned to CNN all day and night for the most reliable news about your security.

There is much more news ahead on DAYBREAK this inauguration day.

A five day search for two North Carolina children ends in another state. We'll update the story for you at 24 minutes past the hour.

And surgeons in Louisiana take a risk to try and save the life of a very sick baby boy. We'll tell you about this amazing procedure.

And the world watches as the nation celebrates the inauguration today. We'll see how U.S. soldiers in Iraq are helping to manage the president's foreign policy challenges.

But first, time to test your inauguration day knowledge. So get your thinking caps on. Which president had the longest inaugural address? We'll have the answer for you after a break on this Thursday edition of DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: All right, some inaugural history for you.

Which president had the longest inaugural address? No, it was not Martin Sheen on "The West Wing." It was William H. Harrison, 8,445 words. That was back in 1841. And you probably know this, as well. He caught a cold and died of pneumonia about a month later. It was really cold on his inauguration day.

The road ahead for President Bush may be smoother in this country than in Iraq. There are lots of potholes over there, both literally and figuratively.

From the northern Iraqi city of Mosul, our Nic Robertson looks at the challenge of Iraq.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: People shoot from us from that mosque all the time.

UNIDENTIFIED MALE: Yes?

UNIDENTIFIED MALE: Yes.

NIC ROBERTSON, CNN CORRESPONDENT (voice-over): Half a world away from Pennsylvania Avenue, the streets of Mosul reveal much that challenges President Bush as commander-in-chief and the troops he's sworn to lead. For one, figuring out friend from foe. Its streets a microcosm of ethnic and religious tensions, of insurgent intimidation and a loathing of occupation that countrywide holds Iraqis back from embracing U.S. policy.

It is President Bush's perceived early failings in Iraq that present his biggest headache here now.

UNIDENTIFIED MALE: We told them it's necessary to build the country and to correct everything. But they don't do anything until now. For this reason, we don't trust for President Bush.

ROBERTSON: Overcoming that, in addition to providing security, is what taxes U.S. soldiers every day. Perceived wisdom among the troops on the ground is current policy will work.

UNIDENTIFIED MALE: The intent of building up the Iraqi security forces so that they can stand on their own is what is going to carry us through.

ROBERTSON: The challenge? Developing quality as well as quantity and doing it fast enough to match expectations of withdrawal that will likely grow over the next four years. Success in that has to aid in what is every wartime president's greatest challenge -- saving American lives. The challenge then becomes managing the expectations of the hundreds of thousands of servicemen and women who are willing to die for their country abroad, but who really want a secure future back home.

UNIDENTIFIED MALE: I think he should focus on our economy and rebuilding the American workplace.

ROBERTSON: Perhaps the toughest challenge here, though, facing down political criticism and staying the course.

UNIDENTIFIED MALE: Stabilizing Iraq and Afghanistan, give these people a stable life and economy. And I think we're on the right track but I think it's just going to take time and persistence.

ROBERTSON (on camera): In the near term at least, Iraq is likely to remain one of President Bush's most pressing and immediate foreign policy challenges. How well he copes will impact the policies of presidents to come.

Nic Robertson, CNN, Mosul, Iraq.

(END VIDEO TAPE)

COSTELLO: Nearly every state in this nation will have a group in today's inaugural parade. Protesters will be out in force, as well, not to mention unprecedented security.

Live to the staging area for the parade and reporter Jill Sorensen of CNN Washington affiliate WTTG -- good morning.

JILL SORENSEN, WTTG CORRESPONDENT: All throughout the morning, this huge parking lot behind me will fill up with over 10,000 participants and just about 120 bands and marching regiments that will participate in this inaugural parade.

Now, the first bands that will arrive will be about 7:00 a.m. Those will be the rap bands. There's about 13 of them. And they'll be positioned along the parade route just performing for those parade goers before the parade actually starts. And that will be a few hours that they'll be entertaining those crowds on the risers and whatnot along the parade route.

Then at 8:00 a.m., the first division of bands will arrive. Now, that means between 25 and 30 bands will make their way into this parking lot. You mentioned security. Each band member has to go through a metal detector. All their instruments, their buses, have to be swept for security. So each division will come in by the hour starting at 8:00 a.m. They'll be here for about two hours practicing, getting ready, going through security. And then starting at 10:00 a.m., the first group of bands will make their way to the parade route. And that goes from 10:00 a.m. until 2:00 p.m., the last group will leave this parking lot. And that will, of course, be the last group of bands going through the parade.

It's going to be an exciting morning, as everyone here from all across the country will be getting ready and they're quite nervous.

I'm Jill Sorensen live at the Pentagon -- now back to you.

COSTELLO: Quite nervous and quite cold.

Jill Sorensen from CNN affiliate WTTG reporting live from Washington this morning.

CNN will have live coverage all day of the Bush inaugural. Be sure to stay with us for that comprehensive coverage.

A fanatic search for children said to have been abducted at gunpoint by their parents. It is a heartbreaking story, but we have an update for you on the children's safety. As you can see, they're home in safe hands now.

And later, the president of Harvard apologizes after creating an uproar. Some women complained that his comments didn't add up. You remember that story. We did it on DAYBREAK.

And don't forget, we want your opinion this morning about Inauguration 2005 -- corporate indulgence or symbol of democracy? E- mail us your comments this morning, daybreak@cnn.com. That's daybreak@cnn.com.

And you are watching DAYBREAK for Thursday, January 20.

(COMMERCIAL BREAK)

COSTELLO: In News Across America now, Harvard President Lawrence Summers says he regrets his comments about women in science and math. Last week, Summers said differences between the sexes could account for why fewer women have successful math and science careers. But he says those comments were just summarizing research and that he really doesn't endorse those findings. He adds: "I was wrong to have spoken in a way that was an unintended signal of discouragement to talented girls and women. I deeply regret the impact of my comments and apologize for not having weighed them more carefully."

A federal judge in Florida has upheld the law that allows states to ban same-sex marriages. It's the first time a federal judge has ruled on a direct challenge to the Defense of Marriage Act. The suit was brought by a gay couple who were married in Massachusetts but want their marriage recognized in Florida.

A 21-year-old man is facing trespassing charges after being arrested twice at his old high school. San Francisco Serrano passed himself off as a student at the school for three weeks. He would sit in on classes, shower in the locker room and actually sleep in the school theater. Serrano said he had nowhere else to go.

Two children abducted last weekend at gunpoint have been returned safely to Boone, North Carolina. The two were allegedly kidnapped from a foster home by their biological parents. The children were recovered yesterday in nearby White Top, Virginia.

CNN correspondent Randi Kaye is covering the story for us.

(BEGIN VIDEO TAPE)

RANDI KAYE, CNN CORRESPONDENT (voice-over): Five days after being taken at gunpoint from their foster home, 11-month-old Brianna Chambers and her 2 1/2-year-old brother Paul are back in custody of the State of North Carolina. The two had been removed from this home last March, where they lived with their biological parents after police found a meth lab inside.

The children were picked up about 30 miles away, in White Top, Virginia Wednesday afternoon at a home there along with their biological parents, James Canter and Alisha Chambers. Also taken into custody were Jeff Brown, Canter's cousin, and this woman, Sharon Woodwards.

SHERIFF MARK SHOOK, WATAUGA COUNTY, NORTH CAROLINA: No struggle. Everything was very calm. At first Mr. Canter gave them false information. He gave them a false name. He had changed his appearance by shaving his head and then he later identified himself as James Canter.

KAY: Watauga County sheriffs deputies were acting on a tip from a family member. The Virginia Highway Patrol was alerted, and soon after, the five day manhunt came to an end. No one was more thrilled than the children's foster parents.

SHOOK: My first attempt the phone was busy. So I had to contact the operator to do an emergency break-in to let them know. They were very, very relieved and excited.

KAY: This has been an emotional week for this usually quiet town. There were pleas from the foster mom who asked not to be identified for her own safety.

UNIDENTIFIED FEMALE: They might love those children, but they're not giving them what they need. And if they can't make the choice for the children, then let somebody else who will love them and support them have them.

KAY: And in the end, there were tears and goo-goo ga-ga faces from a sheriff, a side of the law rarely captured on camera.

Randi Kaye, CNN, Boone, North Carolina.

(END VIDEO TAPE)

COSTELLO: New in the next half hour of DAYBREAK, four more years. What does the world think of President Bush's road ahead? We'll talk with reporters from around the globe to find out.

Plus, just who is paying for all the glitz and glamour of the inauguration? We will tell you straight ahead.

And a reminder, our E-Mail Question of the Morning -- is the inauguration corporate indulgence or a symbol of democracy? Send us your thoughts. Daybreak@cnn.com. That's daybreak@cnn.com.

(COMMERCIAL BREAK)

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Aired January 20, 2005 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, George W. Bush prepares to take the oath of office for a second time. DAYBREAK has your inauguration coverage from top to bottom.
Plus...

(BEGIN VIDEO CLIP)

ANNIE, CYBER SPY: We're sort of like a global neighborhood watch program.

(END VIDEO CLIP)

COSTELLO: A Midwestern housewife and mom working after hours as a cyber spy.

And, home again. The search is over for two children allegedly taken by their parents at gunpoint from a foster home

It is Thursday, January 20.

This is DAYBREAK.

And good morning to you.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

Now in the news, Washington gets buttoned up. Security will be tight for today's presidential inauguration. Police from as far away as Seattle are in the nation's capital this morning. One hundred blocks are closed or will be soon and a police officer will be stationed every seven to 10 feet along the inaugural parade route.

Information from an unknown and uncorroborated source has authorities in the Boston area on alert this morning. Police are looking for four Chinese nationals wanted for questioning in a possible terrorist threat.

Condoleezza Rice is expected to get Senate approval as the next secretary of state, but possibly not today. Sources tell CNN some Senate Democrats plan to use delaying tactics that will push her confirmation to next week.

And the Muslim faithful fulfill one of the pillars of Islam and pack their bags. Hajj for about two million people comes to an end in Saudi Arabia. To the forecast center now and Chad -- good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: In just a few hours, President Bush will leave the White House to begin today's inauguration day activities. The president took some time out of his schedule last night to practice his inaugural address.

Here are some excerpts of that speech that have just been released by the White House. This is part of the speech: "We are led by events and common sense," the president will say, "to one conclusion -- the survival of liberty in our land increasingly depends on the success of liberty in other lands. The best hope for peace in our world is the expansion of freedom in all the world."

Also, the president will say: "America has a need of idealism and courage because we have essential work at home, the unfinished work of American freedom. In a world moving toward liberty, we are determined to show the meaning and promise of liberty."

And one of the highlights of inauguration week is the Texas State Black Tie & Boots Ball. The Bushes and Cheneys were on hand to party with around 12,000 other people. But what made this such a hot ticket? Could it be the 20,000 enchiladas? Or was it Lyle Lovett's performance? Or maybe, just maybe, it was the live armadillos. I bet that was it.

The events of today may be taken a little more seriously. Tom Ridge calls the security measures for the inauguration unprecedented.

CNN homeland security correspondent Jeanne Meserve takes a look at what's being done.

(BEGIN VIDEO TAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): Anti-aircraft systems arrayed around the Capitol, checkpoints for trucks approaching the city, manhole covers welded shut, cameras and command centers augmenting 6,000 law enforcement officers, signs of how 9/11 and the war in Iraq have made this inauguration unlike any other.

Tim Koerner of the Secret Service is the security plan's grand architect.

TIM KOERNER, U.S. SECRET SERVICE: The security picture is 360 degrees from the top to the bottom, underneath the ground to over in the sky.

MESERVE: In the city's subway system, that means canine teams, a heftier patrol presence and several closed stations. The air space restrictions over the National Mall four years ago were a fraction of the size of those being imposed this year, covering the entire Baltimore-Washington area. And officials say almost all commercial flights into the region will carry air marshals.

The health community has been strategizing for months. A health surveillance system has been put in high gear to detect a chemical or biological attack. New gear is being rolled out for paramedics.

OPA CLEGG, WASHINGTON HELP DEPARTMENT: A big difference. A big difference. Four years ago, we really, you know, it was laid back. It was kind of, OK, you know, this is the inauguration, just in case something happens. But now our frame of thinking is we know something possibly could happen. So we're prepared for that.

MESERVE (on camera): All that's what you can see. Officials say it's just the tip of the iceberg. They say there's plenty of security that is invisible, protecting the celebration, the city and the citizens.

Jean Meserve, CNN, Washington.

(END VIDEO TAPE)

COSTELLO: And be sure to stay with CNN throughout the day for all of your inauguration coverage, from the swearing in to the parade to the balls, we will have all of the angles covered.

The cost of this inauguration is expected to run about $40 million. And that doesn't include the cost of security. Much of the cost is being offset by corporate donations. Fifty-two companies have shelled out $250,000 apiece to be included in the events. Others gave between $2,500 and $100,000. The City of Washington is expected to spend more than $17.5 million on security and other essentials.

And that leads us to our DAYBREAK E-Mail Question of the Morning -- is this inauguration more about corporate indulgence or is it an important symbol of democracy? Let us know what you think. Daybreak@cnn.com. That's daybreak@cnn.com.

More now on the possible terror threat in the Boston area. The FBI tells law enforcement officials there to be on the lookout for four Chinese nationals. Law enforcement sources tell CNN an anonymous caller says the four, along with two Iraqis, were smuggled into the States from Mexico. Still, the information is a little vague.

(BEGIN VIDEO CLIP)

GOV. MITT ROMNEY, MASSACHUSETTS: I would note that the nature of the threat that's been provided is an uncorroborated, unsubstantiated threat. The source is anonymous, but it is specific in that it mentions a location where individuals were dropped off. The location is New York. And it identifies, also, a location where a threat might be directed, and the location is Boston.

(END VIDEO CLIP)

COSTELLO: Massachusetts law enforcement agencies are on heightened state of emergency today.

You've heard it before from police -- be on the alert. Some people have taken that message to heart, and not just occasionally.

Our Thelma Gutierrez has the story of one citizen warrior.

(BEGIN VIDEO TAPE)

THELMA GUTIERREZ, CNN CORRESPONDENT (voice-over): Somewhere deep in the heartland of America...

ANNIE: You will wear the coat and you will wear it zipped up.

Let's see if you washed her face. Let's get your coat on.

GUTIERREZ: ... a citizen warrior starts her day.

ANNIE: There's your buddy. Have a good day.

GUTIERREZ: Call her Annie. She won't reveal her real name, her kids' faces or even where they live, because by day, this 49-year-old woman is a stay-at-home mom. But by night, her mundane life in the burbs becomes a hunt for terrorists.

ANNIE: I am getting ready to visit some Islamic extremist militant forums.

GUTIERREZ: Annie the housewife becomes Annie the cyber spy.

ANNIE: These are a few of my favorite forums.

GUTIERREZ: Trolling sites she never new existed.

ANNIE: Al Ansar, Castle Forum.

GUTIERREZ: Annie says she looks for suspicious postings and monitors live forums for ominous chatter into the wee hours of the morning.

(on camera) But you don't speak Arabic? You don't read it.

ANNIE: No, but we use software programs to translate it.

Ah, here we go.

GUTIERREZ (voice-over): Within minutes, Annie shows me step-by- step instructions for a suicide bomb belt and how to detonate explosives with a cell phone.

ANNIE: There's assassinations, recruiting, training.

GUTIERREZ: But Annie is mainly interested in the talk that goes on between extremists, whose she says use code words and hymns to hide messages.

ANNIE: They also can insert pictures on their boards. And inside those pictures are embedded files.

GUTIERREZ: It's a sophisticated cat and mouse game. The government shuts the sites down, but they just pop up again.

ANNIE: We have several FBI contacts. We have the CIA, the Secret Service.

GUTIERREZ: Annie and a half-dozen citizens from Canada to Singapore formed the group Phoenix Global Intelligence. They decipher information. Anything sensitive is turned over to authorities.

(on camera) But what if they say that they're not trained intelligence people? They don't even speak the language?

ANNIE: No. We're sort of like a global neighborhood watch program. And after 9/11, what did they tell you? Don't be afraid to call and report anything suspicious. That's what we're doing.

GUTIERREZ (voice-over): The group claims cryptic electronic messages on the Internet that they intercepted warned of attacks in advance, like the explosion outside of the Al Arabiya television station in central Baghdad. Seven people were killed, 19 wounded.

ANNIE: We had intercepted messages two weeks before they were bombed.

GUTIERREZ: Taba, Egypt -- terrorists attacked the Hilton Hotel last October. Thirty-four tourists die in the bloodbath.

ANNIE: There was another one that happened after we read it online.

GUTIERREZ: Riyadh City, May, 2003 -- cars packed with explosives detonate in three residential complexes. Thirty-five people are killed, including nine Americans.

ANNIE: There was information submitted to the FBI almost directly down to the time and location.

GUTIERREZ: We contacted the Office of Homeland Security and the FBI. Neither agency would comment on the citizen group or any tips they may have provided.

Computer security expert Clifford Neuman says private citizens can be extra eyes for the government, but they don't typically have the technology to crack codes.

PROF. CLIFFORD NEUMAN, COMPUTER SECURITY EXPERT: If you're looking at communications that are going on within a terrorist network, it is unlikely that a private citizen is going to see those communications or be able to understand those communications.

GUTIERREZ: But before you write Annie and her group off as wannabe spies with too much time on their hands, one of the members, a mother from Montana, did help catch a wannabe al Qaeda. She was a key witness in the government's case against a National Guardsman.

(on camera) Where was his mistake?

ANNIE: Probably posting on the Internet.

GUTIERREZ (voice-over): Posing as an Algerian extremist, Shannon Ross Miller exchanged e-mails with Ryan G. Anderson, a Muslim convert. In the e-mails, Anderson, part of a tank crew, promised to reveal U.S. vulnerabilities. Anderson was convicted of attempted treason and sentenced to life.

ANNIE: He responded to coming to a jihad and he didn't know who he was talking to. He didn't ever stop to think who is this person I'm talking to?

GUTIERREZ: Annie says she has the perfect cover.

ANNIE: My family supports me. My mother, she's 80 and doesn't approve, of course.

GUTIERREZ: She says no one would suspect a Midwestern housewife working after-hours as a cyber spy.

Thelma Gutierrez, CNN, somewhere in the Midwest.

(END VIDEOTAPE)

COSTELLO: A driver's license can open a lot of doors. But in at least one state, it just may be too easy to get one. A threat to homeland security? Our Jeanne Meserve has that in the next hour of DAYBREAK.

And be sure to stay tuned to CNN all day and night for the most reliable news about your security.

There is much more news ahead on DAYBREAK this inauguration day.

A five day search for two North Carolina children ends in another state. We'll update the story for you at 24 minutes past the hour.

And surgeons in Louisiana take a risk to try and save the life of a very sick baby boy. We'll tell you about this amazing procedure.

And the world watches as the nation celebrates the inauguration today. We'll see how U.S. soldiers in Iraq are helping to manage the president's foreign policy challenges.

But first, time to test your inauguration day knowledge. So get your thinking caps on. Which president had the longest inaugural address? We'll have the answer for you after a break on this Thursday edition of DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: All right, some inaugural history for you.

Which president had the longest inaugural address? No, it was not Martin Sheen on "The West Wing." It was William H. Harrison, 8,445 words. That was back in 1841. And you probably know this, as well. He caught a cold and died of pneumonia about a month later. It was really cold on his inauguration day.

The road ahead for President Bush may be smoother in this country than in Iraq. There are lots of potholes over there, both literally and figuratively.

From the northern Iraqi city of Mosul, our Nic Robertson looks at the challenge of Iraq.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: People shoot from us from that mosque all the time.

UNIDENTIFIED MALE: Yes?

UNIDENTIFIED MALE: Yes.

NIC ROBERTSON, CNN CORRESPONDENT (voice-over): Half a world away from Pennsylvania Avenue, the streets of Mosul reveal much that challenges President Bush as commander-in-chief and the troops he's sworn to lead. For one, figuring out friend from foe. Its streets a microcosm of ethnic and religious tensions, of insurgent intimidation and a loathing of occupation that countrywide holds Iraqis back from embracing U.S. policy.

It is President Bush's perceived early failings in Iraq that present his biggest headache here now.

UNIDENTIFIED MALE: We told them it's necessary to build the country and to correct everything. But they don't do anything until now. For this reason, we don't trust for President Bush.

ROBERTSON: Overcoming that, in addition to providing security, is what taxes U.S. soldiers every day. Perceived wisdom among the troops on the ground is current policy will work.

UNIDENTIFIED MALE: The intent of building up the Iraqi security forces so that they can stand on their own is what is going to carry us through.

ROBERTSON: The challenge? Developing quality as well as quantity and doing it fast enough to match expectations of withdrawal that will likely grow over the next four years. Success in that has to aid in what is every wartime president's greatest challenge -- saving American lives. The challenge then becomes managing the expectations of the hundreds of thousands of servicemen and women who are willing to die for their country abroad, but who really want a secure future back home.

UNIDENTIFIED MALE: I think he should focus on our economy and rebuilding the American workplace.

ROBERTSON: Perhaps the toughest challenge here, though, facing down political criticism and staying the course.

UNIDENTIFIED MALE: Stabilizing Iraq and Afghanistan, give these people a stable life and economy. And I think we're on the right track but I think it's just going to take time and persistence.

ROBERTSON (on camera): In the near term at least, Iraq is likely to remain one of President Bush's most pressing and immediate foreign policy challenges. How well he copes will impact the policies of presidents to come.

Nic Robertson, CNN, Mosul, Iraq.

(END VIDEO TAPE)

COSTELLO: Nearly every state in this nation will have a group in today's inaugural parade. Protesters will be out in force, as well, not to mention unprecedented security.

Live to the staging area for the parade and reporter Jill Sorensen of CNN Washington affiliate WTTG -- good morning.

JILL SORENSEN, WTTG CORRESPONDENT: All throughout the morning, this huge parking lot behind me will fill up with over 10,000 participants and just about 120 bands and marching regiments that will participate in this inaugural parade.

Now, the first bands that will arrive will be about 7:00 a.m. Those will be the rap bands. There's about 13 of them. And they'll be positioned along the parade route just performing for those parade goers before the parade actually starts. And that will be a few hours that they'll be entertaining those crowds on the risers and whatnot along the parade route.

Then at 8:00 a.m., the first division of bands will arrive. Now, that means between 25 and 30 bands will make their way into this parking lot. You mentioned security. Each band member has to go through a metal detector. All their instruments, their buses, have to be swept for security. So each division will come in by the hour starting at 8:00 a.m. They'll be here for about two hours practicing, getting ready, going through security. And then starting at 10:00 a.m., the first group of bands will make their way to the parade route. And that goes from 10:00 a.m. until 2:00 p.m., the last group will leave this parking lot. And that will, of course, be the last group of bands going through the parade.

It's going to be an exciting morning, as everyone here from all across the country will be getting ready and they're quite nervous.

I'm Jill Sorensen live at the Pentagon -- now back to you.

COSTELLO: Quite nervous and quite cold.

Jill Sorensen from CNN affiliate WTTG reporting live from Washington this morning.

CNN will have live coverage all day of the Bush inaugural. Be sure to stay with us for that comprehensive coverage.

A fanatic search for children said to have been abducted at gunpoint by their parents. It is a heartbreaking story, but we have an update for you on the children's safety. As you can see, they're home in safe hands now.

And later, the president of Harvard apologizes after creating an uproar. Some women complained that his comments didn't add up. You remember that story. We did it on DAYBREAK.

And don't forget, we want your opinion this morning about Inauguration 2005 -- corporate indulgence or symbol of democracy? E- mail us your comments this morning, daybreak@cnn.com. That's daybreak@cnn.com.

And you are watching DAYBREAK for Thursday, January 20.

(COMMERCIAL BREAK)

COSTELLO: In News Across America now, Harvard President Lawrence Summers says he regrets his comments about women in science and math. Last week, Summers said differences between the sexes could account for why fewer women have successful math and science careers. But he says those comments were just summarizing research and that he really doesn't endorse those findings. He adds: "I was wrong to have spoken in a way that was an unintended signal of discouragement to talented girls and women. I deeply regret the impact of my comments and apologize for not having weighed them more carefully."

A federal judge in Florida has upheld the law that allows states to ban same-sex marriages. It's the first time a federal judge has ruled on a direct challenge to the Defense of Marriage Act. The suit was brought by a gay couple who were married in Massachusetts but want their marriage recognized in Florida.

A 21-year-old man is facing trespassing charges after being arrested twice at his old high school. San Francisco Serrano passed himself off as a student at the school for three weeks. He would sit in on classes, shower in the locker room and actually sleep in the school theater. Serrano said he had nowhere else to go.

Two children abducted last weekend at gunpoint have been returned safely to Boone, North Carolina. The two were allegedly kidnapped from a foster home by their biological parents. The children were recovered yesterday in nearby White Top, Virginia.

CNN correspondent Randi Kaye is covering the story for us.

(BEGIN VIDEO TAPE)

RANDI KAYE, CNN CORRESPONDENT (voice-over): Five days after being taken at gunpoint from their foster home, 11-month-old Brianna Chambers and her 2 1/2-year-old brother Paul are back in custody of the State of North Carolina. The two had been removed from this home last March, where they lived with their biological parents after police found a meth lab inside.

The children were picked up about 30 miles away, in White Top, Virginia Wednesday afternoon at a home there along with their biological parents, James Canter and Alisha Chambers. Also taken into custody were Jeff Brown, Canter's cousin, and this woman, Sharon Woodwards.

SHERIFF MARK SHOOK, WATAUGA COUNTY, NORTH CAROLINA: No struggle. Everything was very calm. At first Mr. Canter gave them false information. He gave them a false name. He had changed his appearance by shaving his head and then he later identified himself as James Canter.

KAY: Watauga County sheriffs deputies were acting on a tip from a family member. The Virginia Highway Patrol was alerted, and soon after, the five day manhunt came to an end. No one was more thrilled than the children's foster parents.

SHOOK: My first attempt the phone was busy. So I had to contact the operator to do an emergency break-in to let them know. They were very, very relieved and excited.

KAY: This has been an emotional week for this usually quiet town. There were pleas from the foster mom who asked not to be identified for her own safety.

UNIDENTIFIED FEMALE: They might love those children, but they're not giving them what they need. And if they can't make the choice for the children, then let somebody else who will love them and support them have them.

KAY: And in the end, there were tears and goo-goo ga-ga faces from a sheriff, a side of the law rarely captured on camera.

Randi Kaye, CNN, Boone, North Carolina.

(END VIDEO TAPE)

COSTELLO: New in the next half hour of DAYBREAK, four more years. What does the world think of President Bush's road ahead? We'll talk with reporters from around the globe to find out.

Plus, just who is paying for all the glitz and glamour of the inauguration? We will tell you straight ahead.

And a reminder, our E-Mail Question of the Morning -- is the inauguration corporate indulgence or a symbol of democracy? Send us your thoughts. Daybreak@cnn.com. That's daybreak@cnn.com.

(COMMERCIAL BREAK)

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