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ANDERSON COOPER 360 DEGREES

Wild Weather Hammers California; Murphy, Culkin Added to Michael Jackson's Witness List; Black Market America

Aired February 22, 2005 - 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.
California takes a pounding, mudslides, tornado warning, and that rain just keeps on coming.

A special two-hour edition of 360 starts now.

Wild weather hammers the Golden State. California suffers one of its wettest seasons in history. At least six dead, 32 inches of rainfall. Tonight, the latest on the rain, the mud, and the houses teetering on the edge of destruction.

Lisa and Jayden Underwood's bodies found under water, a former lover taken into custody, charged with capital murder. What happened to this pregnant woman and her son? Tonight, the latest on the Texas tragedy, and we take you beyond the headlines. Why are so many pregnant women killed by people they know?

Michael Jackson's defense adds two more big names to the witness list, Eddie Murphy and Macaulay Culkin. The judge says the trial is still on track, but some court watchers say this trial is spinning out of control.

Black market America, fake prescription drugs, luxury knockoffs, and exotic animals. Billions spent and billions made, but where is the money really going? And who's really getting ripped off? Tonight, a 360 investigation, black market nation, what you need to know.

Paris Hilton hacked, her star-studded address book posted online. Could this happen to you, your cell phone, your identity hacked and stolen? Tonight, the latest on how you can protect your privacy.

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

COOPER: And good evening again. Thanks for joining us on this two-hour edition of 360.

California is called the Golden State because nature generally is very kind to it indeed. Not for the last couple of days however. Mix almost constant heavy rain -- take a look at that bus trying to make its way through the water -- mix almost constant, heavy rain with what was parched earth, and, well, you get scenes like that, the scene in Highland Park today, a home which is teetering on the brink of collapse. Some of the parts of the house have already fallen.

This house, three others nearby, have been red-tagged, designated unsafe to occupy. Now, keep in mind, they may have been hillside homes before. Right now, this house is a cliffside house, and it could give way at any moment. The families have been evacuated, and they are watching it, watching what will happen to their home in the next several hours.

And then, of course, there have been the tornadoes and the avalanches. Poor California, its weather has turned for mild to wild.

More now from reporter Donna Tetreault.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Oh, oh, oh!

UNIDENTIFIED MALE: Oh, hey, it just went. Come back to our picture.

DONNA TETREAULT, CNN CORRESPONDENT (voice-over): This unbelievable picture on Fortune Place is a snapshot of the misfortune Southern Californians continue to weather. Dozens of homes have been red-tagged, too dangerous to live in.

This home slid off its foundation, only the flower boxes still intact.

LANCE VILTER, HOME RED-TAGGED: I was sitting at the desk with a computer on it, and the next thing I know, I heard something, and then it felt like an earthquake.

TETREAULT: The forces of nature are at work, and officials are scrambling to find answers for frightened and weary homeowners.

MAYOR JAMES HAHN, LOS ANGELES: We're going to do the best we can. We can't save every home. Mother Nature's got a lot more tools in her toolbox than we do.

TETREAULT: This latest storm in a series of weather systems is packing a knockout punch, leaving black-and-blue bruises across the region. Roofs are leaking, mud is flowing, and water is raging, not only through flood-control channels, but down driveways and anything on a slope.

Engineers have opened the floodgates at Lake Pyru (ph) Dam to relieve swollen waterways, but the rushing water is tearing up the Santa Paula Airport. Landing or taking off from here isn't going to be happening anytime soon.

Driving isn't any better. Roads around the region are flooded or otherwise impassable. Pacific Coast Highway had to be shut down today because of a massive rockslide.

So in normally sunny Southern California, the dark skies and rain are expected to remain. But already, people are beginning to think about how this kind of damage might be avoided next time.

UNIDENTIFIED MALE: You look at this, and think before they start issuing all these permits for hillside building.

(END VIDEOTAPE)

TETREAULT: And this is the fourth-wettest season in Southern California since records were first taken back in 1877. More rain is expected tonight, and there is the possibility of tornadoes. And already six people have lost their lives, Anderson.

COOPER: Unbelievable. Thanks very much for that.

Weird weather on land as well as at sea. Look at this, off the Santa Monica shore, under those dramatically menacing clouds, a waterspout. Hard to see in the picture, I know, but that is a waterspout, which is an-above water tornado. You don't see that off California very often.

Talk some more about California's freakish and fatal weather. We're joined now by CNN meteorologist Jacqui Jeras in Atlanta. Jacqui, more rain for California?

JACQUI JERAS, CNN METEOROLOGIST: Yes, very heavy at times right now. It's like we kind of have this little pocket right over downtown L.A. at this time. We saw the waterspout video. Well, a tornado warning just expired about 20 minutes ago for Orange County for a waterspout that was spotted by storm officials just off the coast about 10 miles to the west of Newport Beach. And Newport Beach itself recorded a wind gust of 68 miles per hour.

So keep in mind that these waterspouts can make their way on shore, and when they do, they become a tornado, and they can cause some damage, although they are weak tornadoes. And this is the area we've been seeing some of that rotation pushing on through just to the south of Huntington Beach.

We'll zoom out a little bit here for you and show you that there is a tornado watch still in effect from just north of L.A. extending all the way down just to the south of San Diego until 6:00 local time. That's right, we think will continue for another couple of hours, and then we don't expect quite as much rotation.

But the heavy rains you can see persisting, and the rainfall amounts have been unbelievable over the last couple of days all across Southern California.

We want to show you the difference that we've been seeing since Thursday. In the coastal valley areas, 4 to 9 inches, in the mountains, 10 to 20 inches, and 10 feet of snow in a few locations of the San Gabriel Mountains.

Things should quiet down, though, late in the day on Wednesday, and Thursday through Sunday, all the way through the weekend, Anderson, it locks like we should see some drier weather for California. COOPER: All right. Much deserved. Jacqui Jeras, thanks.

We're going to have more later this evening on the menacing weather in California, including a report from Ted Rowlands on how the hanging houses and frightened homeowners back there in Highland Park are doing.

The climate in California may be one thing. The political climate in Europe, something else entirely.

In Brussels, Belgium, today, President Bush addressed an audience of European Union and NATO representatives to say, among other things, that the notion this country means to attack Iran is, in his word, "ridiculous." The indoor mood seemed friendly, conciliatory.

Outside, another story entirely. Demonstrators there. They threw Molotov cocktails. Not, obviously not very happy about the president being there.

Inside, however, the diplomats maybe sipped a couple of cocktails. The president was far more popular than he was there among the demonstrators.

CNN's Suzanne Malveaux has more.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): Day two of President Bush's European charm offensive proved his diplomacy is paying off. Emerging from back-to-back summits with NATO and the European Union, President Bush walked away with what he had been working for, renewed friendly relations with his European counterparts.

JAAP DE HOOP SCHEFFER, NATO SECRETARY GENERAL: There's a lot more we agree upon, and that is the bottom line.

MALVEAUX: And additional support to train Iraqi troops, a critical first step to the U.S. exit strategy. All 26 NATO members pledged to contribute to the training mission in some way, from Poland's deployment of 40 troops to Iraq, to France's commitment of one officer who'll help coordinate the mission out of Brussels.

Despite the modest contributions from some members, Mr. Bush rejected the notion that NATO's effort was merely symbolic.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Every contribution matters, and every country ought to be (UNINTELLIGIBLE) -- ought to be proud of the fact that they're contributing to the world's newest democracy.

MALVEAUX: Mr. Bush underscored his pro-democracy message by making appearances with several important allies, the new democratically elected Ukrainian leader, Viktor Yushchenko, and Mr. Bush's Iraq war proponents from Italy and Britain. On this high- profile day of diplomacy, at times, the leaders' remarks seemed to border on hyperbole.

BUSH: After all, NATO is the most successful alliance in the history of the world.

UNIDENTIFIED MALE: It was an excellent summit. It was an excellent idea of the president to come here.

MALVEAUX: But towards the end of the day, the flowery language seemed to wear thin.

BUSH: Your question kind of made it sound like you finally showed up and met.

MALVEAUX: And it was clear that there are differences in how the U.S. and Europe perceive their approaches to potential threats.

BUSH: This notion that the United States is getting ready to attack Iran is simply ridiculous. Having said that, all options are on the table.

MALVEAUX: Significant policy disagreements between the U.S. and Europe still remain, one being the Bush administration's concern over the European Union's intention to lift the arms embargo on China.

BUSH: There is deep concern in our country that a transfer of weapons would be a transfer of technology to China which would change the balance of relations in -- between China and Taiwan.

MALVEAUX (on camera): President Bush leaves Brussels with largely symbolic gestures of support. But as one European Union official put it, sometimes symbolism is substance.

Suzanne Malveaux, CNN, Brussels.

(END VIDEOTAPE)

COOPER: Well, the oldest rule in politics is, never answer the question you're asked. Answer the one you wish you were asked. All politicians have talking points, and they sure do stick to them. Talking about Republicans and Democrats. On 360, we like to point out the not-so-subliminal points the politicians are trying to get across to you.

And on this overseas trip, the president is definitely sticking to his talking points. Take a look.

(BEGIN VIDEOTAPE)

COOPER (voice-over): Talking point number one, we're all friends.

BUSH: Prime minister is one of the strong leaders (UNINTELLIGIBLE).

And I want to thank you for your leadership on that yacht.

Looking forward to having dinner with you and Xavier Solana and Jean-Claude tonight.

Hey, oh, Mr. Prime Minister.

It's an honor to be here.

You're doing a fine job of being the secretary general, I want you to know.

COOPER: Talking point number two, stay strong.

BUSH: America supports a strong Europe.

... a strong Europe is very important...

It's in our interests that Europe be strong.

... viable, strong partner...

NATO's relevance is strong.

There's strong commitment to NATO.

... strong commitments, and the United States of America strongly supports it.

Well, our bilateral relations are very strong...

... strong friendship...

... America's strong supporters...

... strong cooperation...

We need a strong partner.

COOPER: Talking point number three, laugh, and the world laughs with you.

BUSH: I'm looking for a good cowboy.

I had been hoping for a similar reception.

Since I'm his boss, it's probably pretty relevant.

First time I've been called charming in a while.

You don't know what this means?

Now we're finished.

COOPER: Finishing with a laugh, a good way to end your talking points.

(END VIDEOTAPE)

COOPER: Here's a quick news note for you. The president is not traveling solo in Europe. First lady Laura Bush is there as well. She went ahead, in fact, of the president today, from Belgium to Ramstein Air Base in Germany, where she spoke to some 3,000 U.S. troops and department of Defense employees.

Back here in the U.S., new legal moves in the fight over a brain- damaged woman in Florida. That's just one of the stories we're tracking cross-country right now.

Dineenen (ph), Florida, an emergency stay is issued after an appeals court cleared the way for the husband of this woman, Terri Schiavo, to have her feeding tube that's kept her alive removed. Now nothing can be done until 5:00 Eastern time tomorrow. Now, for 15 years, you no doubt remember this, Schiavo's husband and her parents have been in a tug of war over the feeding tube. Her father is pleading for her life to be saved.

(BEGIN VIDEO CLIP)

BOB SCHINDLER, TERRI SCHIAVO'S FATHER: We are begging and pleading with the legislators and Governor Bush to save Terri from being murdered in cold blood. And that's all I have to say.

(END VIDEO CLIP)

COOPER: Well, Monmouth County, New Jersey, now, three mayors are arrested, put in handcuffs, the leaders of Hazlet, Keyport, and West Long Branch, along with eight local or county officials. They're all charged in a corruption sting by undercover FBI agents.

Miami Florida, now, a man accused of stalking tennis star Anna Kournikova pleads not guilty. This guy, William Lepeska, is accused of swimming nude across Biscayne Bay last month, bound for Kournikova's house. He was arrested when he turned up at the wrong house yelling, "Anna, save me." If convicted, he could face 30 years in prison.

Westbrook, Connecticut, now, beached seal. It is unusual for one to be hanging out this close to a house, but state environmental officials say everything appears to be fine with the seal. They hope he'll go back into the water on his own very soon.

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

Coming up next on this special two-hour edition of 360, a pregnant woman and her 7-year-old son found murdered. An ex-boyfriend has allegedly confessed. We're going to tell you how police cracked the case.

Also ahead tonight, how's this for justice? In Colorado, a serial rapist was set free after confessing to the police. Then he went out and allegedly raped again. How in the world could this have happened? We're going to try to get to the bottom of it.

Also ahead tonight, Martha Stewart on the verge of freedom. That's right, five months just flew by. Maybe not for her. She's getting out soon. Tonight, we have some new details about how she's been spending her time behind bars.

All that ahead. Right now, though, your picks, the most popular stories right now on CNN. Let's take a look.

(COMMERCIAL BREAK)

COOPER: We have been following the case of Lisa Underwood, a missing pregnant woman and her 7-year-old son, Jayden. Last night, we talked to a close friend of hers who was hoping, praying that there might be some good news. Her car was found.

Well, tonight, there is no happy ending to tell you about. There's no hope to hold onto in this case. Tonight, a man once romantically involved with Underwood is in police custody. And I got to tell you, the details of what he allegedly did are sickening.

Police say this guy, Stephen Barbee is his name, punched Lisa Underwood in the face, then held her down on the floor and suffocated her. Now, remember, she was seven months pregnant. According to police, he didn't stop with Underwood. He then allegedly killed little Jayden the same way. That boy was just 7 years old, and God only knows what his eyes saw before he died.

Here's CNN's Ed Lavandera.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice-over): Late Friday night, Fort Worth investigators say, Stephen Barbee came to Lisa Underwood's home. According to an arrest warrant, the couple that had once been dating started fighting, because, as Barbee told police, he would not leave his wife.

LT. GENE JONES, FORT WORTH POLICE DEPARTMENT: We know that Mr. Barbee and Miss Underwood were at one time romantically involved.

LAVANDERA: The warrant says Barbee is the father of Underwood's unborn child. According to investigators, as the argument escalated, Barbee punched the pregnant woman in the face, and then suffocated her to death. During the scuffle, 7-year-old Jayden walked into the room screaming. Barbee then suffocated and killed the boy.

Investigators say Barbee proceeded to load the bodies into Underwood's SUV and dumped them in a field.

JONES: A makeshift grave has been located in southwest Denton County. We were led to this location by Stephen Barbee after he provided a confession to our investigators.

LAVANDERA: Investigators say Barbee was arrested about 135 miles away in Tyler Tuesday morning. He was secretly taken to the crime scene.

SGT. J.D. THORNTON, FORT WORTH POLICE DEPARTMENT: He was transported back to Fort Worth from Tyler this morning, and before he was booked into the town county jail, he led us to the exact location of the grave.

LAVANDERA: Investigators continued working inside Lisa Underwood's home, using the front driveway to search for fingerprints on doors.

Neighbor James Wilson has known the Underwood family for several years. Their children played together. He's angered by what he calls a senseless murder.

JAMES WILSON, UNDERWOOD NEIGHBOR: If there was ever a time that the justice system needed to work, it'd be now.

LAVANDERA: Lisa Underwood was the co-owner of Boopa's Bagel Deli. Boopa was her son's nickname.

A memorial of flowers and letters grows in front of the store, where Underwood, who was seven months pregnant, was supposed to have enjoyed a baby shower in her honor on Saturday.

(END VIDEOTAPE)

LAVANDERA: We understand Stephen Barbee's being held on $2 million bond. He's been charged with one count of capital murder, which means, Anderson, if he's convicted here in the state of Texas, that he could face the death penalty, Anderson.

COOPER: All right. Ed Lavandera, thanks.

The tragedy out of Texas has been one of the most-followed stories on CNN.com all day.

Rudi Bakhtiar has been watching the Web all day. He's here now with more. Rudi?

RUDI BAKHTIAR, CNN CORRESPONDENT: Anderson, this heartbreaking story of Lisa and Jayden Underwood continues to attract Web surfers. And as were tracking it all day, we found some information that may come as a surprise to most. It certainly did to me. The leading cause of death among pregnant women is murder.

(BEGIN VIDEOTAPE)

BAKHTIAR (voice-over): Laci Peterson was eight and a half months pregnant. Bobby Jo Stinnett was eight months. And Laurie Hacking had just learned she was expecting.

Their murders made headlines across the country, but they are the most visible victims of a crime mere commonplace than most people realize.

According to "The Washington Post," since 1990, authorities have documented the murders of more than 1,300 pregnant woman, and there could have been many others.

(BEGIN AUDIO CLIP)

UNIDENTIFIED FEMALE: Medic, she's shot, she's pregnant. All I can get out of her is Wessex Square.

UNIDENTIFIED MALE: I have no idea where that is.

(END AUDIO CLIP)

BAKHTIAR: Among them, Sharika Adams (ph), who made that 911 call after she was shot in a drive-by shooting orchestrated by the father of the baby inside her.

UNIDENTIFIED FEMALE: Any comment, Ray?

BAKHTIAR: Former pro football player Ray Carew.

Sadly, violence is a part of life for many pregnant women. According to the Centers for Disease Control, an estimated 324,000 pregnant women are abused and victimized by a partner or a former partner each and every year.

(END VIDEOTAPE)

BAKHTIAR: The big question on people's minds, probably, is why? Why would a husband, an ex-lover, or a boyfriend physically abuse or kill their pregnant partner?

Well, according to the National Organization for Women, the reasons may have a lot to do with power and control. They say women are at their most vulnerable when they're pregnant, and that makes it easier for the victimizer to threaten them. And the idea of control being that once you have a child, you lose control, and the way to alleviate that is to alleviate the pregnant mother.

COOPER: When you hear that statistic, that the leading cause of death among pregnant women is murder, I mean, that's just, that is stunning. Are the numbers accurate? I mean, could the numbers be even higher? How closely do they track (UNINTELLIGIBLE)?

BAKHTIAR: It gets even more tragic, because, according to published reports, only 17 states actually and New York City actually record if on the death certificate, if the woman was pregnant at the time of the murder. So it's very possible.

COOPER: So they don't even know in some of these other states (UNINTELLIGIBLE).

BAKHTIAR: They don't even know yet.

COOPER: That's remarkable.

BAKHTIAR: They only have recently started to track this.

COOPER: Rudi Bakhtiar, thanks very much.

BAKHTIAR: Thank you.

COOPER: Following the Web for us today. 360 next, we have been tracking this story all day as well. A 23-year-old American man accused of plotting with al Qaeda to assassinate President Bush. Now, his family claims he is innocent. We're going to hear the government's case against him. We're going to look at that closely coming up.

Also, how could this happen? A serial rapist confesses to police, then they let him go back on the streets, and he allegedly struck again. We are going to get to the bottom of exactly what went so wrong, because clearly, something went wrong.

Also tonight, Martha Stewart's jail time. A glimpse into her life behind bars from someone who's been there. We're covering all the angles tonight.

Be right back.

(COMMERCIAL BREAK)

COOPER: Bizarre story to tell you about. We've been tracking it all day. A young man, an American, charged with plotting with al Qaeda to kill President Bush, either by shooting him or setting off a car bomb.

CNN's justice correspondent Kelli Arena is tracking the case.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): Texas-born Ahmed Abu Ali is 23 years old. He just spent the last 20 months of his life in prison in Saudi Arabia but was never charged there.

Abu Ali says he was tortured in prison, and has the scars on his back to prove it, a claim the Saudi government denies.

He finally got home last night. His first stop, a U.S. courtroom. U.S. prosecutors say Abu Ali conspired to assassinate President Bush, that he supported al Qaeda, and was willing to set up a terror cell right here in the United States.

Abu Ali's parents say the government is lying to save embarrassment.

OMAR ABU ALI, AHMED'S FATHER: The government, they lied to us from the first day. They told the district court that this is a Saudi case, and we have nothing to do with this case. Now, they are cooking, they cooked a new thing, they changed the story about Ahmed.

ARENA (on camera): His family says he was held at the request of the United States and sued the U.S. government on behalf of their son. U.S. government officials have insisted the Saudis had their own interest in Abu Ali, having to do with the bombings in Riyadh in May of 2003.

The judge assured him he would not suffer any torture or humiliation while in U.S. custody. In the indictment against him, Abu Ali is charged with discussing two scenarios to assassinate President Bush, one in which he would get close enough to the president to shoot him on the street, and another in which Abu Ali would detonate a car bomb.

All the evidence against him remains under seal, the indictment, just the bare bones of what the government knows.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

COOPER: We head overseas now. Iranians recover from yet another earthquake. That tops our look at what's happening in the uplink.

At least 400 people were killed. You can see they are digging out, trying to find survivors. Hundreds more were injured when the 6.4 magnitude quake flattened villages in the mountains of central Iran. The quake was centered just 125 miles from Bam, where, 14 months ago, a 6.6 magnitude quake killed at least 26,000 people. And there's not a lot of heavy equipment there to help, help those people dig out, as you can see.

In the Indian-controlled part of Kashmir now, deadly avalanches and cold weather. Indian officials are saying at least 186 people have died there since snow began falling last Friday. The Pakistani side has also had casualties, at least 58 people were killed in the past two weeks because of the weather.

We take you to Bandong, Indonesia, now. Just horrific images. Garbage slide deaths. Rescuers have found more bodies of people killed when heavy rains caused a 30-foot wall of garbage and mud to collapse onto a neighborhood. Police say 100 -- police say, excuse me, 41 people are known dead, 70 others are missing or are feared dead.

That is a quick look at the uplink right now.

Michael Jackson's defense adds two more big names to the witness list, Eddie Murphy and Macaulay Culkin. The judge says the trial is still on track, but some court watchers say this trial is spinning out of control.

Black market America, and exotic animals, billions spent and billions made. But where is the money really going? And who's really getting ripped off? Tonight, a 360 investigation, black market nation, what you need to know.

This special two-hour edition of 360 continues.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

MARTHA STEWART: It has been a trying and long ordeal for all of us, and it is time to get it all behind us, behind me, so we can move forward. I know I have a very tough five months ahead of me, but I understand too that I will get through those months knowing that I have the ability to return to my productive and normal life, my interesting work and future business opportunities, supported through the ordeal by my friends and colleagues and loved ones.

(END VIDEO CLIP)

COOPER: Now, that was Martha Stewart before going to prison. Now, you probably haven't been keeping track of this on your kitchen calendar, but believe me, cable news producer have been -- some more than others. In just 10 days, Martha Stewart will be free. Five months flew by.

In the latest edition of "Martha Stewart Living," the editor in chief says that Stewart will start penning a new column in April. She'll also be free to host a reality show. She'll be under partial home confinement for five months, but from what I understand, her home isn't so bad.

Today, we heard new details about what her life has been like behind bars. Allan Chernoff takes a look at the return of Martha.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN CORRESPONDENT (voice-over): When Martha Stewart decided to serve her time instead of wait for an appeal, she said she'd look forward to gardening upon her release.

STEWART: I would like to be back as early in March as possible, in order to plant the new spring garden and to truly get things growing again.

CHERNOFF: From her West Virginia prison, Stewart has ordered her seeds and is ready to plant, according to the new issue of "Martha Stewart Living." Editor in chief Margaret Roach, who has been visiting and corresponding with Stewart, writes: "At the minimum security prison, Martha has taught a nightly yoga class to inmates. She also crocheted, but lamented, 'my crochet is still very basic.' And in the ceramic studio, she decided to cast, paint, and then glaze a nativity scene for her mother as a gift."

To supplement the prison diet, Stewart ate wild dandelions, says the magazine. And also decorated the prison chapel for a memorial service.

The magazine reports Stewart's reading list included Bob Dylan's "Chronicles," a biography of John James Audubon, and a novel, "The Clearing."

The article comes days after hair stylist Frederic Fekkai revealed he'd visited Stewart to discuss washing away her gray to restore her blonde trusses. Clearly, Martha is getting ready for her close-up, and there will be many.

She has already signed deals to host two TV shows, a daily lifestyle program and her own version of "The Apprentice," for which contestants have already been trying out. Even though Stewart will still have five months of home confinement to serve, she will be permitted to work outside the home. And producer Mark Burnett says that will include shooting the series.

MARK BURNETT, EXEC. PRODUCER, THE APPRENTICE: Anything we decide to shoot on Martha Stewart's around that time will be allowed. She's in the television business, so therefore she's actually working in the same business she's already worked in.

CHERNOFF (on camera): During her legal ordeal, Martha Stewart became a liability to her own company, and the products, including the magazine bearing her name, have been de-emphasizing Stewart. But America loves a comeback, and Martha Stewart Living Omnimedia is counting on it. Good reason for the company to publicly embrace its founder and plan a homecoming.

Allan Chernoff, CNN, New York.

(END VIDEOTAPE)

COOPER: So fascinating what a difference a couple of months make. There was all that talk, remember, a couple of months ago, when Martha Stewart went to prison, about her magazines distancing themselves from her. Clearly that is no longer the strategy.

While Martha Stewart may be counting the days, Michael Jackson is counting jurors. The jury selection process in Jackson's molestation trial resumed today. That was him coming into court. Apparently, his flu-like symptoms have flown away, and he was back in court today, naming even more celebrities to his witness list, as if there could be anymore, and raising eyebrows about who really is in control of the courtroom. CNN's Miguel Marquez has been following the case from Santa Maria, California.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): With only a handful of fans to cheer his arrival, Michael Jackson arrived on time to court after his bout with the flu.

STEVE CORBETT, SANTA MARIA TIMES: Michael Jackson came into court today and took his position at the defense table. When the judge stepped in, everybody rose, and Michael Jackson stayed put.

MARQUEZ: Jackson eventually stood, and the process of questioning potential jurors continued.

STEVE CHAWKINS, LOS ANGELES TIMES: There's this one black person in this pool of jurors who were being questioned. And the prosecutor has asked that this black woman, a middle-aged woman, be excused.

MARQUEZ: Jackson's defense lawyer, Tom Mesereau objected to the only African-American juror being dismissed, but the judge allowed the potential juror to go, because the prosecution used one of its preemptory juror challenges, which means lawyers can dismiss jurors without reason. So far, 14 jurors have been dismissed. The defense has used six and the prosecution five of their 10 preemptory challenges.

CHAWKINS: So it seems like it's going extraordinarily quickly.

MARQUEZ: Among those still on a potential jury, a 21-year-old male, paraplegic; an 81-year-old male, who worked in law enforcement; a 39-year-old woman whose first language is Indonesian; and a 50-year- old female who trains horses for a living.

Jerry Gallant, a 46-year-old musician, was one of the jurors dismissed by the defense.

JERRY GALLANT, DISMISSED JUROR: This was interesting, and it would have been kind of -- you know, it would have been kind of cool and interesting to get on this jury, but like I say, I have a life outside of this. I have things I do.

(END VIDEOTAPE)

MARQUEZ: And the judge did indicate that Eddie Murphy, Macaulay Culkin and Smokey Robinson have been added to a witness list. He didn't indicate which one, although we do presume it is the defense witness list.k

I can tell you that another African-American person has been added to that smaller pool of jurors that is now being questioned. And at the rate we're going, Anderson, this thing could be done, a jury could be selected by the end of the week -- Anderson.

COOPER: Does it feel like the judge is moving things along well? I mean, there have been some questions about how in control the courtroom he is. Clearly, he seems to be trying to control this thing and move this thing along.

MARQUEZ: I've been impressed with this judge throughout the entire thing. There's no question in my mind that he's in control of this court when it is in session. Now, we have had two things put the court off, and two false starts, which he addressed today, but this judge is in firm control, and wants this thing moving along -- Anderson.

COOPER: All right, Miguel Marquez, thanks very much.

Every day when he goes to court, of course, Michael Jackson makes a big arrival, and every day it's different. Some days he's a vision in white, some days all black. Today, it was a little ebony, a little ivory. Just the latest metamorphosis for a guy who has undergone many changes in his career. CNN's Rusty Dornin takes a look.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Never have the before and the after made so many wonder why.

Michael Jackson's biographer says the star began altering his appearance just as his career was moonwalking to the heavens, the 1982 release of "Thriller."

RANDY TARABORELLI, JACKSON BIOGRAPHER: After "Thriller" is when you really started to see the plastic surgery, and he also came up -- started coming up with bizarre ideas.

DORNIN: How many plastic surgeries? Jackson only admits to two, both nose jobs.

UNIDENTIFIED MALE: This is where he has an implant.

DORNIN: Like many others, facial plastic surgeon Stanley Jacobs (ph) believes the singer went under the knife again and again.

UNIDENTIFIED MALE: Then the most drastic thing is here, 1991, no question, age 31, where he clearly has a nasal implant. You can see like a razor-sharp edge to the top of his nose. A little point, a pinpoint nasal tip. The nostrils are very narrow.

DORNIN: Through the '90s, Jackson appeared to be a man just not comfortable in his own skin.

UNIDENTIFIED MALE: And here you can see the mandible, the jawbone implants, which go here, the big cheek implants, which would be something that would sit like this on his cheek area.

DORNIN: Rabbi Shmuley Boteach, a former adviser to Jackson, says he kept asking.

RABBI SHMULEY BOTEACH, FORMER ADVISER: Why? Why the tinkering? He didn't answer that, but he did say to me that he was once on an airplane, and his father said to him, you know, your nose isn't nice, or something like that. And generally, he expressed to me that he was made to feel that he was ugly, and he was not pretty.

DORNIN: And pretty he became. Jackson has told interviewers that he suffers from a skin disorder and uses makeup to cover the skin discoloration, and that's why his skin tone became lighter and lighter.

Disbelievers said it had to be bleach. Some tried to persuade Jackson enough was enough.

BOTEACH: If he had even little procedures, he used to hide them from me, because we used to talk, he swore to me he wouldn't do anymore, and then I saw he has a stitch here, or something, and then, oh, Shmuley, it was nothing, it was small.

DORNIN: But small things add up, and the morphing of Michael Jackson makes it difficult to recognize the face he was born with. Let alone, why.

Rusty Dornin, CNN, San Francisco.

(END VIDEOTAPE)

COOPER: Well, if you have ever thought about getting plastic surgery or Botox, you will want to hear this story coming up on 360. Injecting -- doctors who injected fake Botox into unsuspecting patients. We'll help you tell if your doctor has the real thing or a potentially dangerous counterfeit. Dr. Sanjay Gupta is on the case.

Plus, it's not just fake drugs. We're going to look in depth at this black market nation of ours. Exotic animals for sale on the underground. Americans keeping them as pets, but it's not all cute and cuddly. Tonight, a look at the cruel underbelly of this four- legged trade.

And a little later tonight, Paris Hilton's cell phone hacked, her personal info posted all over the Internet. Certainly not for the first time that something from her has been posted on the Internet.

The question is, could this happen to you? Could someone hack into your cell phone? We're covering all the angles. Stay with us.

(COMMERCIAL BREAK)

COOPER: Well, if you've ever thought about getting Botox, you got to see this next story. Doctors injecting fake Botox into patients. Dr. Sanjay Gupta is on the case.

(COMMERCIAL BREAK)

COOPER: Well, imagine paying good money for anti-wrinkle treatments so you could look younger and healthier, only to wind up in the hospital dangerously ill, because your doctor was using a fake form of Botox. That's exactly what's happened to a couple in Florida. And their case put investigators on the trail of an Arizona company -- these are the fake Botox samples they were getting -- of this Arizona company that authorities say has been selling bogus Botox to doctors in a couple of states. So if you're one of the millions of people -- and millions of Americans are using this stuff all the time -- if you're one of those millions of people trying to look younger with anti-wrinkle injections, the question tonight is how can you make sure that what your doctor is using is legitimate, is real? CNN's senior medical correspondent, Dr. Sanjay Gupta, is here now with some important advice -- Sanjay.

DR. SANJAY GUPTA, CNN SR. MEDICAL CORRESPONDENT: Hey, good evening, Anderson. Really interesting. First of all, the numbers are just startling. Three million people, three million Americans actually using Botox every year. That number I found just very startling. Such high demand, such big money, no surprise then, Anderson, that we're starting to see some counterfeit Botox.

The Arizona company you just referred to, Toxin Research International, has reportedly sold what they call a cheaper version of Botox, which, by the way, is a brand name. I'll tell you about that in a second. And now, at least 200 doctors, 12 of which are facing suspension, had used this particular substance. They're being investigated by the FDA and the Department of Justice. Three of them probably have already been charged. So this is pretty serious stuff.

Again, all about a fake form of Botox. Botox itself, again, is a brand name, is the only FDA-approved substance for the treatment of wrinkles.

What we're talking about here, what this Arizona company was selling was actually raw-grade version of the toxin, the botulinum A toxin. You can see some of the substance there in these bottles.

Give you a little frame of reference, the bottles themselves that were being injected into these patients said "not for human use." You think that would have been the first clue. Another clue was the price, $250 a dose for their brand. The real stuff actually costs about $560. And what it cost them, just because a lot of people want to know that, is about $2 a dose. So a huge mark-up there.

Anderson, you talked about that Florida couple. A lot of people followed that story back in November. They were shocked by it, because it was the first time that someone had acquired botulism from a Botox shot, or so they thought. It turned out it was the fake stuff, but it caused a lot of damage nonetheless.

Update, there was a couple -- the wife still cannot speak, and the man still relies on a feeding tube and a breathing tube. So it can be very serious if you actually get the botulism.

COOPER: You know, Sanjay, a lot of people don't want to admit that they've this stuff. What can they do, though, to insure their treatment is going to be safe? I mean, most people don't look at those little bottles, you know, I guess when they get this stuff from the doctor.

GUPTA: That's right, and most people are going to be safe. I think that's worth saying first. We're talking about rare cases here, a few cases.

There are a few things. Biggest question is, who is administering it? Are you going to a board-certificated plastic surgeon or dermatologist? You want to know about your doctor for sure, but as we just learned, as well, Anderson, you also want to know about the substance.

Botox, again, is a brand name. It is made by Allergan. That is the company that makes it. You want to make sure that you're getting the real stuff here.

There's actually a seal there -- you see the seal, it's actually a holographic seal. You can ask to look for that. It's serious enough where you probably should do that kind of thing. Those are a couple of clues.

Again, the cost, I mentioned that earlier. It's going to cost about $300 to $600. If someone is offering you a big discount, you're probably not getting your money's worth at all, Anderson.

COOPER: I'm startled that some doctors would use this. I can't express that startlement because I have so much of that stuff in my forehead I can't move my eyebrows...

GUPTA: That's what I thought. COOPER: Dr. Sanjay Gupta, thanks very much.

GUPTA: Thank you.

COOPER: See, I can, so I'm not yet using it, but maybe some day.

It's not just Botox. A little later on 360, we're going to have a special series of reports on what is being bought and old on America's thriving black market. We're talking about exotic pets, luxury knock-offs -- we've all seen those on the streets -- even prescription drugs. Are you being duped by this? Where is the money going, and who's really paying the price? That's "Black Market Nation," that's still ahead tonight on this special, two-hour edition of 360.

Also ahead on the program, a serial rapist who was set free after confessing to police. You got to wonder, how could anything like this actually happen? We're going to try to get to the bottom of it, ahead.

Also tonight on this two-hour edition, California homes just inches away from free falling. Parts of the structure already fell. You see it right there. That's part of a patio going down. There's a house hanging on the edge of a cliff. We're going to get the latest in a live report form that rain-soaked state. We'll be right back.

(COMMERCIAL BREAK)

COOPER: Welcome back to this two-hour edition of 360.

We all know that being a police officer is among the toughest jobs there is. It's thankless. You only get notice when you make a mistake. But a mistake is exactly what officials in Colorado are being accused of making tonight, a big mistake. A suspected serial rapist is accused of going on a month-long crime spree. But there are those who believe that it all could have been prevented, and tonight, they are pointing the blame at the people who let him go. CNN's Sean Callebs reports.

(BEGIN VIDEOTAPE)

SEAN CALLEBS, CNN CORRESPONDENT (voice-over): Brent Brents has already appeared in court once this week. Police say he's the man who fueled terror and fear throughout Denver, accused of a series of rapes in the city in recent days. District Attorney Mitch Morrissey says Brents will by charged with sexually assaulting at least eight, perhaps nine people.

MITCH MORRISSEY, DENVER DA: Based on the charges that we have in this case, and the potential life sentences, we get a conviction, he's going to spend an awful lot of time in the penitentiary.

CALLEBS: Brents had been released last July after more than 14 years in prison for raping a young boy and girl. As a convicted sex offender, his DNA sample should have been in the state computer database and readily accessible. Denver police and the Colorado Bureau of Investigation admits there was a foul-up, and that a DNA sample from a sexual assault in October could have identified Brents as a suspect in a string of rapes at least two months sooner, months before a string of rapes terrified the city.

A joint statement reads: "At this time both agencies recognize that a match to the October 2004 case should have occurred earlier."

Colorado authorities call it a glitch within the database used to track sex offenders.

(on camera): Do you see any reason for outrage among citizens here in Denver?

MORRISSEY: I think people watch "CSI" and those television shows and they think that we get these DNA results in 30 minutes, where in fact in a case on a normal track in Denver it will take sometimes three to four months before we have that DNA profile.

CALLEBS (voice-over): Had the data transfer been probable done, the DA admits police would have been able to identify Brents as a suspect earlier.

Many in Denver, including the grandmother of an 8-year-old alleged victim are upset that Brents was free.

UNIDENTIFIED FEMALE: I would say to him, why would he take a life that was so young and so precious, and for no reason at all, destroy it. And make that person never be the same again. I don't understand.

CALLEBS: Rick Garcia is a Denver councilman on the Public Safety Commission.

RICK GARCIA, DENVER COUNCILMAN: I'm shocked and outraged by that. And I certainly feel a sense of frustration, unequal, I'm sure, from the families that this individual offended.

CALLEBS: On top of all this, last November, Brents was actually brought in by Aurora police, a Denver bedroom community, and police say he admitted sexually assaulting a young boy, yet the mayor says inexplicably Brents wasn't arrested. Cops let him go.

UNIDENTIFIED MALE: I think people are very appropriately upset. This simply should not happen. And I think that that's really the undercurrent of our community right now, all right, this happened, it wasn't right. Now we expect it fixed.

CALLEBS: When talking about Brents, authorities use phrases such as "regrettable," "horrible results," "our hearts go out to the victims," but admit it's probably little consolation.

Sean Callebs, CNN, Denver.

(END VIDEOTAPE)

COOPER: Paris Hilton hacked. Her star-studded address book posted online. Could this happen to you? Your cell phone, your identity hacked and stolen? Tonight, the latest on how you can protect your privacy.

Andre Agassi sister's battle with breast cancer. Tonight, she reveals her struggle with the disease, her dramatic decision how to fight it. This special two-hour edition of 360 continues.

(COMMERCIAL BREAK)

COOPER: One of the things I find frustrating about the news is that you often get contradictory information, particularly about your health. One day a study says do this, the next day another study says, don't do that.

This week, however, prominent researchers in Boston came out with some really clear and truly encouraging news about breast cancer. It turns out if all women between 50 and 79 have mammograms every year, the number of breast cancer deaths could go down by about 40 percent.

For those already diagnosed with the disease, however, the choices are not as clear. Paula Zahn now on how the family of one world-famous athlete faces a double blow.

(BEGIN VIDEOTAPE)

PAULA ZAHN, CNN ANCHOR (voice-over): Tenacity. Toughness. Never say die. Words that made Andre Agassi one of tennis' greatest players. Words that Agassi and his family lived by when they waged a fierce battle against breast cancer.

ANDRE AGASSI, TENNIS PLAYER: I've lived with certain difficulties, but nothing that compares to what I've seen my sister and my mom have to go through.

ZAHN: Andre Agassi's sister Tami and mother, Elizabeth, were diagnosed with breast cancer within six months of each other. It was a one-two punch that rocked the Agassi family. It was especially hard for Tami and Andre, who have been very close since childhood. They shared a passion for tennis.

A. AGASSI: The last thing in the world I was thinking about was me. It was what it must have been like for her. And that was what hit me. It's, OK, what is she feeling? What does she have to go through here and how can I be a part of just helping her?

TAMI AGASSI, SISTER OF ANDRE AGASSI: I only knew one person who had had breast cancer and she was much older and had died. So I didn't really know a whole lot about it.

So, I never thought that I would have it. So, I went in to see my doctor. She was equally not concerned. You're 30. I'm sure it's nothing. You don't smoke. You're athletic.

ZAHN: Tami didn't take any chances. She immediately had a mammogram and ultrasound. But unlike tennis, where you either win or lose, Tami would find breast cancer far more complicated. T. AGASSI: This doctor who did my ultrasound, she looked at me and said, it is 98 percent benign. And you have three options, remove it, biopsy it, watch it and see if it grows.

ZAHN (on camera): That's a pretty scary dice to roll, isn't it?

T. AGASSI: Well, yes. And it just didn't make sense to me. So, I knew I had something in me that wasn't in me before, and I wasn't happy with the answer. And so I went and got a second opinion.

And the funny thing about the second opinion is that doctor looked at the ultrasound and told me, you need to have it removed this week. I was like, what do you mean? It's 98 percent benign. And after a long conversation, he said, I just completely disagree.

But that's the way breast cancer is. It's a human science. They look at a fuzzy little round ball inside an X-ray and they try to make a judgment call of whether it's cancerous or not, and it's hard to do.

ZAHN (voice-over): Tami was only 30 years old and decided to not only remove the breast with the cancer in it, but her other breast as well. She was playing the odds. Her strategy, no breasts, less risk of reoccurrence.

T. AGASSI: I made the decision the second I found out I had cancer.

ZAHN (on camera): There was no other choice for you?

T. AGASSI: No. My priority was my life, and that was my goal. So whatever I had to do to achieve that goal, I was willing to do.

ZAHN: When I hear you talk, it reminds me of something that your own brother Andre said about you, that you approached this whole issue of cancer like an athlete would take a sport, head on.

T. AGASSI: Yes. The difference is, cancer really is an enemy. And you can kid yourself that your opponent on a tennis court or whatever sport you choose to play is an enemy. But, you know, cancer really doesn't want you alive. So...

ZAHN (voice-over): Team Agassi fought the enemy together, especially during the months of very aggressive chemotherapy.

(on camera): When you went through chemo you started to lose your hair, you actually went to your brother Andre and said, shave it off.

(LAUGHTER)

ZAHN: And then what did he do as a gesture of solidarity?

T. AGASSI: He gets so much praise for shaving his head, but he really -- he's pretty close to bald. He wears such a bald, such a short cut, that he didn't have to go much further. But he was -- it was very sweet of him. He took it down an extra notch and went straight to the skin.

(CROSSTALK)

ZAHN: ... right?

T. AGASSI: Right. Right.

ZAHN: To root you on as you were going through chemotherapy.

T. AGASSI: It was just really, really sweet.

ZAHN: Did you have doubts along the way about any of the choices you made?

T. AGASSI: No, not even to this day. And I have to be really honest. I'm recently married. And I'm hoping to start my own family. And we're looking at fertility issues based on the protocol I chose to do.

You know, we're hopeful. And we think that I'll be able to have kids at some point. But that may be a big sacrifice that I had to make based on the high level of chemo and hormonal therapy I did. But even looking back, it's worth it, because if you can't be here to raise kids, then it's not worth having. I mean, I just -- I won't ever look back and think that I didn't do all that I could.

ZAHN: Were there nights in the middle of this process where you just couldn't sleep, where you wondered about what the implications were of some of these choices that you made?

T. AGASSI: No.

There were nights during this process where I didn't want to sleep because I was so grateful to have life and wanted to enjoy every moment of it, because you don't know what's going to happen tomorrow. So, I found myself living like there weren't enough hours in the day to do everything I wanted to do and experience everything I wanted to do.

ZAHN (voice-over): Tami Agassi has devoted her life to increasing breast cancer awareness and raising money for research.

(BEGIN VIDEO CLIP, AD)

T. AGASSI: If there is a history of ovarian or breast cancer in your family....

(END VIDEO CLIP)

ZAHN: She's produced public service announcements, chaired tennis benefits with her brother, and has recently produced a celebrity cookbook called "Star Palate." She is now five years cancer-free and grateful for every minute of that.

T. AGASSI: It's made me stop and take stock of what makes my life worth living. And it's also taught me how to take care of myself, because if I don't take care of myself, I'm not available to help others and take care of others.

A. AGASSI: The greatest thing that I've learned through Tami is just what it means to fight a battle and what it means to consider life a gift.

(END VIDEOTAPE)

COOPER: Wednesday on "PAULA ZAHN NOW," a prime-time special, "Breast Cancer Survivor Stories." That's going to be tomorrow night at 8:00 p.m. Carly Simon, Lynn Redgrave, Tommy Thompson and Paula's mom, stories about them all, 8:00 Eastern time tomorrow.

This is a special two-hour edition of 360. We're tracking the wild weather out West right now. Let's take a look. There are more storms and another inch of rain on the forecast for Southern California. Water-logged hills are collapsing, carrying away everything from swimming pools to entire homes. At least nine deaths are blamed on the weather. People who lived in this house, they were lucky. Neighbors were able to get them out, even though the home slid about 30 feet down the hillside.

Mudslides are not the only problem. Excuse me. Flash floods and -- coughing -- are pouring on to roads turning rush hour -- excuse me -- into anything but. This lake, believe it or not, is the Hollywood Freeway. There's even too much water for some dams to hold back. This waterfall is the overflow from the Lake Hodges Dam near San Diego. It's become a tourist attraction.

It's been seven years since the reservoir was so full. That water has spilled out.

Now, with the additional rain on the way, the big worry is that more homes are going to be lost to mudslides tonight. Take a look at this. This is in Highland Park, a section of L.A. People's decks and backyards are crumbling, falling away bit by bit. Entire homes literally are hanging precariously on the edge of this cliff. The owners can do nothing but stand by and watch.

Ted Rowlands is there.

(BEGIN VIDEOTAPE)

RICHARD GOODPASTURE, HOMEOWNER: I was frightened. I mean, that was the first thing that came, was fear and panic.

TED ROWLANDS, CNN CORRESPONDENT (voice-over): Richard Goodpasture owns one of the Highland Park homes that's in danger of sliding. In the middle of the night, Richard says he heard what he thought was his backyard fence rattling.

GOODPASTURE: We just came out here and looked and sought the fence missing and decided it's probably a good idea to pack up some stuff and get -- you know, get away from it.

ROWLANDS: A red tag is now on Richard's home of 28 years. He, his wife and 15-year-old son are staying with relatives. The family piano is one of the few valuables they pulled out. Richard's home is one of four in this tight-knit neighborhood that's been red-tagged.

ROBERT TROLE, HOMEOWNER: Sorry. My family's fine. We've come out OK. And that's -- obviously, people say that's the important thing.

ROWLANDS: Robert Trole lives around the corner from Richard.

TROLE: You just wonder. People say, if you had 20 minutes to get out, what would you take? And now I know what you take. You take your -- you take your pets and you take your family. You take your kids. You take some photographs off the wall, and you just get out.

ROWLANDS: Richard says he's well aware that living on a hillside is a risk. It is one that he was willing to take almost 30 years ago, when he moved in.

GOODPASTURE: You're always thinking about it. I don't think there's anybody around here that's not thinking of it. We don't expect it to happen, but when it does, it does. You try to deal with it. We're lucky. We're alive.

(END VIDEOTAPE)

ROWLANDS: Firefighters say the hillside here at Highland Park has continued to move throughout the day. And there's real concern that those homes may fall possibly as early as overnight. Rain continues to fall here in Southern California. Forecasters are forecasting a much-needed break by Thursday -- Anderson?

COOPER: It's so terrible for people to be watching their homes slowly slip away like that.

Ted Rowlands, thanks very much, in California tonight.

A U.S. citizen is accused of plotting to kill President Bush. That's one of the stories we're following cross-country right now.

Alexandria, Virginia. This guy's the subject, 23-year-old Ahmed Abu Ali. In federal court today, he was charged with conspiracy and supporting al Qaeda. Abu Ali had been detained in Saudi Arabia for 20 months, where he was a student. His family says he is not guilty.

Near Denton, Texas, a pregnant mother and son found murdered. Police say they found the bodies of Lisa Underwood, her son, Jayden, in a shallow grave. The man arrested for the murders was once romantically involved with Underwood. Police say he led them to the bodies and admitted to suffocating both of them, first Lisa. She was seven months pregnant. Then he's accused of suffocating her 7-year- old son, Jayden.

We'll take you to San Diego County now, something to make you smile. This dog had fallen 40 feet into a backyard well, stayed there for five hours until it was finally rescued. It wasn't easy. The fire department's attempts had failed, so the county's animal control had to be called in to save the pooch, tired, a little dirty, but alive and hopefully getting some treats tonight. That's a look at stories cross-country.

Coming up next on this special two-hour edition of 360, Paris Hilton had her cell phone jacked, hijacked, really, her personal information all over the Internet. The question is, could it happen to you? You might be surprised by the answer. We're going to tell you how to protect yourself coming up.

Also tonight, we're going to take a close look at the underground in America, "Black Market Nation." We're talking about exotic animals sold to Americans as pets. You won't believe how many people have tigers as pets, a glimpse into the cruel world of smuggling.

Plus, buying drugs on the cheap from the Internet, they could be deadly fakes. We're taking a closer look at what may be in your medicine cabinet and how you can tell the fakes from the real ones. All that ahead. First, let's take a look at the most popular stories right now on CNN.com.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP, AD)

UNIDENTIFIED ACTOR: Nearly 10 million families could have their most valuable possessions stolen right from here. It's their own identity, bank statements, credit card and ATM receipts, pay stubs. In today's world, a little advice. Shred anything you wouldn't want in the hands of a stranger.

Hey, Tom.

(END VIDEO CLIP)

COOPER: Well, by now, you've seen that commercial probably a lot of times. Its creepy ending probably gave you chills the first time around. It's frightening to know that criminals can get access to your personal information. And they can do it in a whole bunch of surprising ways. They're not just digging through your trash.

Paris Hilton, for instance, just had hackers break into her cell phone, which, I got to tell you, I had no idea was even possible. So, tonight, we wanted to find out what you can do to protect yourself.

Here's CNN's Mary Snow.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): It's not the kind of reality show Paris Hilton is used to, her cell phone numbers, explicit photos and personal messages stealing the limelight and shared on the Internet. While your cell phone may be tame compared to Hilton's, security experts say everyone should be on guard for phone hackers.

MARK RASCH, SENIOR VICE PRESIDENT, SOLUTIONARY: There are hundreds of thousands of people who do nothing but try to hack into phone company systems, hack into cell phone systems. SNOW: And industry watchers say those phone systems and your phone need to be secured like personal computers.

NICK MAGLIATO, CEO, TRUST DIGITAL: I've seen everything from patient records to be stored on these phones for individual doctors that visit hospitals, to small business people having their billing systems built over the phones.

SNOW: In Hilton's case, her spokeswoman says she had a T-Mobile Sidekick 2, a personal electronic device that can do things like send messages and take photos. T-Mobile says it's aware of the situation and fully investigating it.

The company also says it's possible someone may have known Hilton's password or had access to the device. Private investigators like Robert Strang, though, say protection mainly falls on the consumer's shoulders.

ROBERT STRANG, CEO, INVESTIGATIVE MANAGEMENT GROUP: Making sure you cover your tracks, backtracking, remembering what you had on your BlackBerry, what you had in your phone, and covering the bases yourself. You're on your own.

SNOW: But there are some things you can do.

RASCH: The best thing to do is hold your provider's feet to the fire. And when you find out about things like this, ask your provider what they're doing, and then vote with your feet. Go to a provider that guarantees a certain level of security.

SNOW: Security experts also suggest encryption software, which can make your information unreadable to others. This is especially important, they say, as mobile phones grow in use.

In Japan, for instance, they can be used to buy rail tickets. T- Mobile offers some simple tips, such as using a complex password with upper and lowercase letters and numbers and changing the password often.

(on camera): Just last week, a 22-year-old hacker pled guilty to infiltrating T-Mobile's system. Court documents also suggest that he may have even accessed Secret Service documents. That case, like this one, the Secret Service is investigating, since it handles computer fraud cases.

Mary Snow, CNN, New York.

(END VIDEOTAPE)

COOPER: Well, of course, cell phones aren't the only problem. Thieves can get your private information by a lot of other means. For example, the data collection firm ChoicePoint, it's a spinoff of the credit reporting giant Equifax.

They're warning 145,000 people, their consumers, that criminals may have gained access to their personal information, possibly Social Security numbers, credit, medical histories and other sensitive information. Unbelievable.

"Washington Post" staff writer Robert O'Harrow Jr. has covered this story a lot. He's the author of "No Place to Hide: Behind the Scenes of Our Emerging Surveillance Society."

Robert, thanks for being with us.

(CROSSTALK)

COOPER: We all know our personal information is out there. What can we do to prevent these companies from compiling these personal files on us?

ROBERT O'HARROW, AUTHOR, "NO PLACE TO HIDE": Not much, really.

The information, a lot of it is public record. So, they have as much right to get it as anybody. They just have better systems for collecting it routinely, 24 hours a day, seven days a week, every week of the year for the rest of our lives.

COOPER: Well, you'd think they'd have better systems also for protecting the information. Apparently, they don't. You say people are actually surprised to learn where they're most vulnerable. Where is that?

O'HARROW: Well, people are vulnerable in their trash cans. Hence, the commercial that we looked at earlier. A lot of the receipts that people use, financial records and so on, are -- attract identity thieves like honey attracts bees.

COOPER: I actually had my -- I had a check stolen out of a bag at the airport. And the luggage handler actually ended up stealing part of my identity, which I didn't realize it can be so easy.

O'HARROW: It can be as easy as being at a restaurant and having a corrupt busboy who maybe is working in a ring, and they translate the credit card number, your name, the address that's on there. They buy some information about you and, presto, they've ripped you off.

COOPER: So, what are the top -- I mean, are there like top three things you can do to reduce your risk of at least getting your identity stolen?

O'HARROW: Well, it's really tough.

Everybody's vulnerable. Major executives have been ripped off, but you can, first of all, not share your information willy-nilly, really take some effort to decide, do I really want to give out my Social Security number in this case? Tear up those receipts. And be really careful with your financial records.

And, finally, experts are saying more and more, not only check your credit report once a year, but maybe twice a year or more often and just start being diligent. You're going to have to advocate for yourself. COOPER: I shred stuff now, because it makes me feel important. It makes me like I have secret information now. And I feel very -- but, you know, you don't even have to buy one of those fancy shredders. I've heard also recommendations, pouring tomato sauce on your garbage so people are not going to go through it. I don't know how well...

O'HARROW: I'm sure the identity thieves figured out a way to cut through tomato sauce.

COOPER: Probably so. Shredding is probably best.

Robert O'Harrow Jr., thanks very much.

O'HARROW: Thanks so much.

COOPER: Coming up next on this two-hour special edition of 360, a special report, black-market drugs. You know, a lot of people out there have fallen victim, thinking they had the right medicine. They took the medicine religiously. It turns out it was a fake drug. The question is, could it happen to you? Could you have stuff in your medicine cabinet right now? We'll tell you how you might be able to find out.

Also tonight, a look at the black-market in exotic animals, big bucks being made off big cats in America. You are not going to believe how many of -- how many Americans have these big cats as pets.

Also ahead, phobias. I don't even want to see that. Cockroaches everywhere, it creeps me right out, still. We're going to talk about phobias and how you can overcome your phobias and how that might benefit your health.

(COMMERCIAL BREAK)

COOPER: I don't know if you saw that. Ten percent of all pharmaceuticals are counterfeit drugs. That's an alarming statistic. And they're big sellers on the black market, counterfeit drugs are. In this age of the Internet, especially a couple of quick clicks, a credit card and almost anybody can buy prescription drugs without a prescription and without a doctor's supervision, even kids.

Now, we all want cheaper medicine. There's no doubt about it. Drugs are way overpriced in many cases.

But listen for a moment to this report by CNN's Gary Tuchman. He met a few of the people, just a few of them, whose lives have been tragically affected by drugs that are sold illegally online, including one family whose son died from a lethal mix of drugs bought on his computer at home in secret. Listen.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT (voice-over): For 15 years, Linda Surks has worked for a New Jersey organization that seeks to prevent substance abuse. That's why what happened to her son is such a horrifying irony.

LINDA SURKS, MOTHER OF VICTIM: As soon as we walked into the emergency room and they referred us to as "the parents," we knew something was wrong.

TUCHMAN: The son of Linda and Mark Surks died of a drug overdose. The parents didn't know, but Jason Surks was buying prescription drugs over the Internet. Test results show the 19-year- old college student O.D.ed on Xanax, Vicodin and OxyContin.

MARK SURKS, FATHER OF VICTIM: I think he just looked at them as totally safe, and safe and approved by our government.

TUCHMAN: And here is what one can find, no prescription, no problem, no waiting room, no appointments. Drugs that Americans need prescriptions for are readily available without prescriptions.

STEVEN LIGA, COUNCIL OF ALCOHOL AND DRUG DEPENDENCE: I'm very concerned because it's something we haven't seen before. It's a new type of drug dealer that provides friendly customer service, door-to- door delivery with a credit card, no middleman, no risk of getting arrested.

TUCHMAN (on camera): What did you find when you went into your son's computer after he passed away?

M. SURKS: I found that he was visiting a variety of drug-related Web sites.

TUCHMAN (voice-over): And that he was being billed monthly by a drug Web site.

M. SURKS: It was just as easy to get Xanax as it is to get a Beanie Baby on eBay.

TUCHMAN: That's not the only way black-market drugs are finding their way into the marketplace. University of San Francisco Professor Rick Roberts was diagnosed with AIDS in 1988. He got very sick a few years ago and was prescribed the drug Serostim.

RICK ROBERTS, COUNTERFEIT DRUG VICTIM: I'd been injecting it every day for months. And then, in November of 2000, I started noticing stinging at the injection sites.

TUCHMAN: Roberts says his pharmacy had been duped by a counterfeit supplier.

ROBERTS: So this is real and this is fake.

TUCHMAN: Rick Roberts had been unwittingly injecting a female pregnancy hormone.

REP. STEVE ISRAEL (D), NEW YORK: These counterfeit pharmaceuticals have become the medical equivalent of a $3 bill, but far more dangerous. TUCHMAN: Arrests in black-market cases are rare, but this Alabama pharmacist was arrested in one recent case and pleaded guilty to illegally dispensing more than 76,000 hydrocodone pills.

ALICE MARTIN, U.S. ATTORNEY: There is money. They're paid to prescribe. They're being paid to send this medication out. And they're doing it in large quantities.

TUCHMAN: Mark and Linda Surks have one other child, 16-year-old Merrill (ph), who they hope they are lovingly protecting, but they believe they were doing the same for their son.

L. SURKS: And that's the scary part, because of my background, because of where I work and what I know. And we do programs to teach parents how to talk to their kids and how to see those kinds of things. And I didn't really have a clue.

TUCHMAN: The clues, it turned out, came too late.

(END VIDEOTAPE)

TUCHMAN: So, here are the rules of thumb.

If you need a prescription drug, to legally get it, you need a prescription, which means you either go to a doctor or you must know a doctor who knows you who has the knowledge about your condition. If a Web site says it has an online doctor, that is not legal, according to the DEA and the Food and Drug Administration. However, there are legal ways to refill prescriptions online.

Meanwhile, how do you know for sure your legitimate prescription drug is safe? Well, you should always look at the bottle and see if it's any different from your last bottle. And look at the pill and see if it looks any different. And, of course, if your medication tastes or smells any different, that could be a sign of a problem.

Any questions at all, bring the drug to your pharmacy and let the experts there check it out -- Anderson.

COOPER: All right, good advice tonight. Gary Tuchman, thanks.

(BEGIN VIDEOTAPE)

COOPER: Black-market America, and exotic animals, billions spent and billions made. But where is the money really going? And who's really getting ripped off? Tonight, a 360 investigation, "Black Market Nation," what you need to know.

And can your phobia lead to an unhealthy heart? New research on how fear can bring on a heart attack. Tonight, we put my bug phobia to the test and tell you how to overcome your greatest fear.

This special two-hour edition of 360 continues.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

COOPER: Siegfried and Roy. Exotic animals are something we're used to seeing in a place like Las Vegas with Siegfried and Roy or maybe the zoo. But a lot of people apparently want to own exotic pets and it's given rise to a vast and illegal trade that is often cruel to the animals and can be dangerous for the rest of us as well. Some of these animals carry transmittable diseases like tuberculosis or hepatitis B and tonight we're taking a look at the thriving black market economy in America. You're not going to believe some of the kinds of animals Americans are buying and selling illegally. CNN's Ed Lavandera (sic) reports.

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN CORRESPONDENT (voice-over): Her name is Nikita. Four years ago this lion was found at a home during a drug raid in Nashville, Tennessee. No one knows where she came from. Now she lives here at big cat rescue in Tampa, Florida. She may not know it but Scott Lope is her best friend. Lope manages the facility with a couple of paid staffers and several volunteers.

SCOTT LOPE, BIG CAT RESCUE: I always had a passion for animals. So I started volunteering here. Pretty soon you're hooked, quit the real job, moved here. This becomes your life.

ZARRELLA: It has to be. There are 150 cats here. Nikita's next- door neighbor is another female lion, Sarabi. This is Toby, a cougar in heat, all owned by private citizens who kept them, some legally some illegally as pets like Adonis, an ill-tempered black panther. Nearly every animal is here because their owner no longer wanted them.

LOPE: We found carriers at our front gate before. A bobcat, some of the civets.

ZARRELLA: And nearly every animal is a byproduct of a booming U.S. trade in exotic animals.

WAYNE PACELLE, HUMANE SOCIETY PRESIDENT: The exotic animal trade is second only to the drug trade in raw dollars. It's literally billions of dollars are exchanged in the exotic animal trade.

ZARRELLA: On Internet sites you can click, point and buy lions and tigers and bears. A chimpanzee for $65,000 or a giraffe to trim your backyard trees just $40 to $50,000 and that's the legal trade. What's impossible to calculate is how many animals are being bought and sold on the black market.

CAPT. JOHN WEST, FLORIDA FISH AND WILDLIFE COMMISSION: It's a very high dollar business and we're talking a lot of species out there that people can't access anymore because of restrictions and they're easy to smuggle, especially reptiles, reptiles and birds.

ZARRELLA: From the beautiful to the bizarre, there's nothing Americans don't seem to want. Tucked mercilessly in suitcases, inspectors at Miami international airport have found African gray parrots. They bring 1100 each at pet stores. How about this bird- eating tarantula and her 200 babies or these poison arrow frogs from Venezuela, 300 of them. The smuggling of big cats is less likely, experts say, simply because they don't carry their black market weight.

LOPE: We have sort of a running joke that you pay more for a pure bred dog than you do for a lion or tiger.

ZARRELLA: They're easily and legally bought in the U.S., $200 at an exotic pet auction.

UNIDENTIFIED MALE: I'll still going to put a hot wire all the way over on top.

UNIDENTIFIED MALE: Just in case. Just in case.

ZARRELLA: Investigators from Florida's Fish and Wildlife Commission came to Eusebio Verrier's Miami home to inspect the new backyard enclosure for his white Bengal tiger named Harry.

EUSEBIO VERRIER, BENGAL TIGER OWNER: It's something that I need to have a tiger, something different to have and it's something that the average person can't have.

ZARRELLA: Maybe not, but Harry is one of nearly 1500 tigers registered in Florida which has some of the toughest regulations. It took Verrier two years to get his permit, but in some states, there are no regulations at all against keeping exotic animals and 29 states will allow you to keep them as pets and Scott Lope says people find ways around the regulations.

LOPE: If you're going to buy this animal from me and I say, well, it's $100 for the lion cub, but hen it's $500 for me to say you've worked for me for two years and you have all the hours that you need to own one.

ZARRELLA: Eventually, Lope says, when that cute cuddly cub grows up, it's often no longer wanted. Last year, big cat rescue was at capacity and turned away more than 300 cats. Some end up in the crosshairs of a gun.

LOPE: There's places that people pay to shoot these animals. That's where an animal like Tamarind would end up, absolutely, an adult male lion, a nice big mane like that, he's going to end up in a canned hut because some rich guy's going to pay to shoot him.

ZARRELLA: If anything, experts say the demand for exotic animals is still growing, no matter what species. If someone wants it and will pay enough for it, someone will get it for them one way or another. John Zarrella, CNN, Miami.

(END VIDEOTAPE)

COOPER: And that was CNN's John Zarrella. A couple more fast facts about just how busy the exotic animal marketplace really is. The Humane Society says that as many as 7,000 tigers, 7,000 are kept as pets in the United States. In fact, there are more tigers held as pets in this country now it's believed, than tigers in their wild habitats in Asia.

Coming up next on "360" more on America's black market. Luxury knockoffs, designer looks for super low prices. I know it's a deal, everyone loves them, but the problem you've got to ask is where's the money really going? We'll take a look that.

Plus new research about fear and how it may be hurting your heart. When we come back I face one of my maybe irrational fears and maybe what I learned will help you too.

Also later tonight, sick of all those people yammering on their cell phones? We'll show you the latest gizmo for getting a little bit of peace and quiet. This is a special two-hour edition of "360." Stay with us.

(COMMERCIAL BREAK)

COOPER: Tonight in this special two-hour edition of "360," we're been taking you behind the scenes of America's black market, the illegal buying and selling of everything from prescription drugs to exotic animals. Now there's no doubt everyone likes a deal, but some of them are literally steals. There's a huge market in knockoffs in designer bags, we're talking about watches, anything with a brand name. We all want them, can't afford them and you can buy them suddenly on the street. But there are consequences. In New York City, the tour guides will tell you go down to Chinatown. CNN went there with a hidden camera to see what exactly is being bought and sold. This is what we found. Here's Deborah Feyerick.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): Along Canal Street in virtually every store selling handbags, buying a knockoff is pretty easy. It's just a matter of knowing how.

UNIDENTIFIED FEMALE: You can just take this off and...

UNIDENTIFIED MALE: Put the Prada over it.

UNIDENTIFIED FEMALE: And put the Prada over it.

FEYERICK: One way is swapping the tag. Replacing a no-name bag with a name-brand label like Gucci, Kate Spade, Chanel. With our hidden camera filming, this guy went in the back to get a Prada label. In another store when our CNN producer asked, one watchful clerk warned the other to be careful.

UNIDENTIFIED FEMALE: Be careful. Be careful.

FEYERICK: Sellers nervous because of police raids that have largely forced the trade under ground. What used to be out front is now under the counter.

Former NYPD Detective Andrew Overfeldt worked Canal Street for years helping seize counterfeit goods. Now a private eye, he helps big companies protect their labels. On a recent walk together, it didn't take long before everyone knew we were there.

(on camera) It's fascinating when one of the women saw us coming she took her merchandise and started putting it away and then everybody got on their Nextels and started radioing each other. So there's a real communication network even on this one block.

ANDREW OVERFELDT, PRIVATE INVESTIGATOR: Yes. The blocks are organized. They're all friends and neighbors in a lot of instances. They might be from the same province or they're just from having shops next to each other they look out for one another.

FEYERICK: When he says the blocks are organized that's police talk.

UNIDENTIFIED MALE: This isn't, you know, someone just on the street making, you know, a quick dollar. These things are manufactured. They're then sold. They're imported. You're talking about a very large business. So, it's not just a simple, let me just buy this for 20 bucks, it's a good bargain. You are supporting organized crime.

FEYERICK: Around the world, counterfeit goods equals a $300 to $500 billion a year business, and experts say it leads to all sorts of crimes.

TIM TRAINER, PRESIDENT, INTERNATIONAL ANTICOUNTERFEITING COALITION: I think most people wouldn't want to think of themselves as spending any money than that may go toward promoting child labor, trafficking in narcotics, things like that.

FEYERICK: The thing is it's not illegal to buy the phony goods. It's only illegal to sell them. Ask Detective John Markey. He'll tell you everyone knows where to get them.

JOHN MARKEY, NYPD COUNTERFEIT UNIT: It actually stops there, I think. It's one of the big stops there.

FEYERICK (on camera): Is that frustrating on some levels?

MARKEY: It's very frustrating.

FEYERICK: There's an endless supply of people wanting to buy these things.

MARKEY: Right. And it's just an endless supply of material. It's just -- it's getting to a point now it's out of control. I mean, you go anywhere. Canal Street. You walk down Canal Street and it's just -- it's all over the place.

FEYERICK (voice-over): Because for sellers, the risk are pretty low.

UNIDENTIFIED MALE: If you had a handful of heroin that would put you in jail for 24 years, eight to 24 years. If you had a truckload full of handbags, you're not going to do any jail time. In federal court you might, but it's really the exception and not the rule. (END VIDEOTAPE)

FEYERICK: Now we've blurred the faces of the store clerks in the store, because even though they're breaking the law, none have formally arrested or charged with a crime.

We contacted business organizations in Chinatown. The only one that would comment told us over the phone that it has nothing to do with any of these stores that sell fake merchandises. And the vendors, as you say, themselves quickly ducked into the stores when they saw us passing with our cameras.

Now by the time we finished our walk down that one block of Canal Street, we had more than a dozen young men following us, and the ex- detective with us recognized them as being part of the counterfeit operation.

Now Anderson, one of the things is that the quality of the bags is so good now it's very difficult to tell them apart. They actually have to call in experts from the store. We picked up -- these are some of the ones that we bought when we were shopping. You have to tell us which ones are real.

COOPER: Which ones are real? Let's see. Prada, Kate Spade. I actually don't think any of these -- I don't think any of the Louis Vuitton are real. I don't think any of them are real.

FEYERICK: OK.

COOPER: But they're very good. I think this bag is particularly very good. Are any of them real?

FEYERICK: This wallet.

COOPER: Really?

FEYERICK: This wallet is $545 in the store. We bought it in the store.

COOPER: Five hundred and forty-five dollars for this?

FEYERICK: And this wallet that we picked up on Canal Street is 20 bucks and that's the difference. And that's the difference. People are going to buy this wallet for 20 bucks are not certainly not going to go into that store to buy that wallet for $545. It's all about trademark infringement. And that's why the designers and the companies are pretty upset about it.

Don't scratch it, please.

COOPER: Thanks very much, Deborah. Interesting.

Three-sixty next, how I learned to face one of my biggest fears and how it could actually help you. Will the alternative approach I tried work for you? I don't want to see that. Maybe I didn't face it. All right. Also ahead tonight, shutting people up to "The Nth Degree," yammering on those cell phones. We'll tell you how in this special two-hour edition of 360.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JOE ROGAN, HOST, "FEAR FACTOR": Here we go: 15,000 Madagascar hissing cockroaches. Ninety thousand disgusting roach legs. OK, don't stop.

UNIDENTIFIED MALE: It went in my mouth.

ROGAN: Yes, that happens. It happens. Relax. Put your head down, please so I can close this.

(END VIDEO CLIP)

COOPER: Anyway, that gives me the creeps, but it may not be the worst of it. A new study published in this month's journal of the American Heart Association says that phobias or fears and the funny feelings they cause can actually increase the risk of heart trouble in women. And earlier studies have already found the same thing in men.

So if you want to save your ticker you'd better learn to maybe deal with those phobias all the other things that creep you out.

I, myself, have an intense fear of cockroaches. Not quite a phobia, but in the interest of science I tried an alternative therapy for overcoming it in one easy, well, maybe not that easy lesson. Take a look.

(BEGIN VIDEOTAPE)

COOPER: Cockroaches are one of my worst fears. Yes.

(voice-over) The therapy begins with paperwork, lots of paperwork.

UNIDENTIFIED FEMALE: So here we have another questionnaire.

COOPER (on camera): I'm thinking a lot about cockroaches.

(voice-over) The questions are meant to test my dislike of roaches.

(on camera) If I encountered a cockroach now I would have images of it trying to get me. Absolutely, because they are all out to get me. I don't know if you're aware of this. They are.

(voice-over) Next, they record my anxiety level as I'm asked to move closer and closer to an aquarium filled with giant Madagascar hissing cockroaches.

(on camera) You want me to stoop down and what? UNIDENTIFIED FEMALE: Stoop down. Stoop down so your face is right in directly in front of the cage.

COOPER: No way!

(voice-over) OK. So I pretty much made clear I don't like roaches.

(on camera) Now they're on the roof of the thing.

(voice-over) But this is where the treatment gets, well, silly- looking.

PROF. HARVEY BAKER, QUEENS COLLEGE: Looks ridiculous. It looks asinine. Even though I'm afraid of cockroaches.

COOPER (on camera): Even though I'm afraid of cockroaches.

BAKER: I deeply and completely accept myself.

COOPER: I deeply and completely accept myself.

(voice-over) They call this the emotional freedom technique, or EFT. It involves tapping a sequence of so-called energy points on the body while repeating what your fear is.

BAKER: The noise cockroaches make. The noise cockroaches make.

COOPER (on camera): The noise cockroaches make.

BAKER: The noise cockroaches make.

COOPER: The noise cockroaches make.

(voice-over) Believers say EFT clears emotional baggage by promoting relaxation, ultimately desensitizing people to what scares them. The treatment lasts about 45 minutes, and I think I mentioned it. It looks really, really silly.

BAKER: It's very repetitive. The remaining fear about the noise.

COOPER (on camera): The remaining fear about the noise.

BAKER: Unpleasant memory about cockroaches.

COOPER: Unpleasant memory about cockroaches. Remaining fear of cockroaches.

BAKER: I hate the way cockroaches move.

COOPER: I hate the way cockroaches move.

BAKER: Keep tapping. Move your eyes in a circle. Move your eyes in a circle the other way. OK. Hum the first few notes of "Happy Birthday." COOPER: "Happy Birthday"?

(voice-over) Skeptics, including a committee of the American Psychological Association, say the tapping technique is not proven and success stories could be explained by a placebo effect. Even psychology professor Harvey Baker admits EFT is not for everyone.

BAKER: It helps about two out of three people, and a number of the people it helps dramatically. Some it helps modestly. And there are some who don't get help at all.

COOPER: Baker says I showed modest improvement, but clearly not complete improvement.

UNIDENTIFIED FEMALE: Are you willing to put your hand inside the container?

COOPER (on camera): Yes. No, I don't think so.

(voice-over) Maybe if I hum a few more bars of "Happy Birthday."

(on camera) (humming)

(voice-over) I'll one day be able to put my hand in the cage.

(END VIDEOTAPE)

COOPER: But I don't think so.

To find out if this kind of alternative therapy really chased away phobias and if it could work for you, I talked with clinical psychologist Belisa Vranich.

(BEGIN VIDEOTAPE)

COOPER: What do you make of that?

BELISA VRANICH, CLINICAL PSYCHOLOGIST: Well, it did not work for you. Now, you probably wouldn't...

COOPER: They said I would need more sessions.

VRANICH: You need a lot more sessions, I think. But no, I wouldn't have chosen that therapy for you, Anderson, I have to tell you. You're a pretty cerebral, kind of macho guy. And that was not...

COOPER: Stop trying to be nice to me.

VRANICH: It's true. It's not going to work. I would have done something completely different.

COOPER: But -- but I mean, a lot of these therapies seem to -- the ones that work at all seem to work -- I mean, any time you address a concern or address a fear or phobia, you're going to probably feel better if you try to relax while you're doing it. So whether you're tapping yourself or talking to a therapist, just about anything will probably help more than hurt.

VRANICH: A little bit. It's going to help a little bit. If you have someone who's a professional who knows how to sort of guide you along that process it can work a lot more quickly and who's not making you sing, who's actually using different therapies that are proven.

COOPER: So there are more -- many different kinds of therapies to overcome something like this?

VRANICH: Absolutely. Yes. Absolutely. That one, per se, is based on acupressure and acupressure works for some people. Acupuncture works for some people. So I could see where that would work, you know, for a couple of people.

COOPER: What about the rolling of the eyes thing? What was that about?

VRANICH: The rolling of the eyes is something neurological. That's actually based in neurology, whereas if you pay attention to something outside of your body while you're thinking of something inside it's called dual attention and it's supposed to disrupt sort of the negative memories you have of that bad thing.

COOPER: Interesting. I've also heard about something called flooding. There are all different alternative therapies out there.

VRANICH: Yes. Flooding is exactly what it sounds like. You face that fear by having it -- being locked in a room and having it sort of put all over you.

COOPER: Yes. I don't like that one.

VRANICH: Most people are not going to have that one done. I definitely wouldn't recommend you for that one either. But something that's a little bit more gentle is systematic desensitization or brief exposure, which is the same idea but a little bit more general.

COOPER: We're talking about virtual therapy. I mean, can -- is there medication people can take?

VRANICH: There is medication and now the field of medication is actually getting better as far as fears. I wouldn't tell people to have -- just take a medication by itself. If you're taking a medication that's an anti-anxiety medication, do it with therapy.

COOPER: Now somebody -- what's the most strange phobia fear you've heard of?

VRANICH: Fear of clowns is -- is the one that...

COOPER: Fear of clowns?

VRANICH: Yes.

COOPER: Because I actually don't like clowns, too. And look, actually, I was assaulted by clowns on this program, which people knew of my fear. They assaulted me on my birthday, and these clowns were very belligerent and they would not leave.

VRANICH: But if you would have roaches and clowns that would have been awful.

COOPER: Yes. That would have been awful, but this traumatized me, actually, for quite some time. I fired all the people involved in that.

VRANICH: You fired them?

COOPER: Yes.

VRANICH: You didn't look that unhappy there.

COOPER: Well, I was faking it because I was on TV. I didn't want to look that upset. As soon as the cameras were off I was screaming.

VRANICH: See, I don't think you really have a really deep seated. I think it's a fear but not a phobia.

COOPER: Right.

VRANICH: Because a phobia would look a little different. You really would probably get up and run out.

COOPER: Right. And I don't want to minimize, you know, there are people out there who have life-changing life, you know, ending phobias about this. But for me it's more just a fear, because I know they have a personal vendetta to get me.

VRANICH: They do.

COOPER: Yes. We actually confirmed that.

Belisa Vranich, thanks very much.

VRANICH: Thanks for having me.

(END VIDEOTAPE)

COOPER: "LARRY KING LIVE" is coming up in just a few minutes.

Larry, who is joining you tonight?

LARRY KING, HOST, "LARRY KING LIVE": First, Anderson, cockroaches. Who cares? What are they going to do to you?

COOPER: They're going to attack me. I know this. They have it in for me. I've seen them in most (ph).

KING: So step on them. They're nothing little things. But we have a good show tonight. Think about it. You see a cockroach, step on it.

Dana Reeve is our special guest tonight, the widow of Chris Reeve. Lots to talk about, his passing, what she's been doing since the legacy he left. Dana Reeve, the widow of Chris Reeve, is ahead in about five and a half minutes, Anderson.

COOPER: What a legacy he did leave indeed. All right. Larry King, look forward to that. Thanks very much, Larry.

So you know as you get older there's an offer to get you in on the ground floor of some great opportunity? Maybe you've heard that. We can do you better tonight. We can get you on the dance floor of a great opportunity. This one.

Particularly, it's the most famous dance floor ever, the one in which John Travolta strutted his stuff in "Saturday Night Fever." Who can forget that? The Brooklyn club, apparently, where these scenes were shot has closed and the famous floor is going to be auctioned off in a live sale and also, where else? On eBay, of course.

Now, the guys on the 360 crew got so excited at this it brought back, rekindled all those emotions of the '70s and all those memories of their many nights on the dance floor. Take a look.

(BEGIN VIDEO CLIP)

(MUSIC)

(END VIDEO CLIP)

COOPER: Nice. Nice. I like that we got David Riesner (ph) to actually do the robot. It's hard to do.

Coming up next on 360, silencing the cell phones. There is a secret weapon aimed at putting an end to all of that yakity-yak. We'll take the gizmo to "The Nth Degree."

(COMMERCIAL BREAK)

COOPER: Tonight, taking silence to "The Nth Degree."

The gizmos we're about to show you are illegal in this country, illegal, but increasingly available in the back rooms of certain tawdry ask-no-questions establishments.

They bristle with antennae, range in size from small enough to hide in your hand to big as a brick, cost anywhere from a couple hundred to several thousand dollars.

And what are they? What is it that people are breaking the law and spending all that money to buy? Weapons? Light partner (ph) trackers, electronic charms against germs, bad luck, the IRS? No. None of the above.

You're looking at cell phone jammers. What people buy when they buy one of these is silence, a little blessed silence.

Now, there isn't much of that anymore in case you haven't noticed. It used to be that folks would do what was once called thinking. This involved having notions that could not be heard by others because they did not come out of the mouth.

No more, however. We live completely out loud these days, incessantly speaking whatever we have in mind into our ever-present cell phones while shopping, riding on the bus, waiting on line, walking, running, jogging, standing still. We narrate our lives from morning until night.

This has created a black market for silence. For a gizmo that points and makes the loud mouths shut up.

So now there are outlaws among us stealing a little bit of peace and quiet. Oh, brave new world.

I'm Anderson Cooper. Thanks for watching. Up next, "LARRY KING LIVE."

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