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CNN Live At Daybreak

Martha Stewart Released From Prison Last Night; A Piece of American History from September 11th

Aired March 04, 2005 - 05:00   ET

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


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


KELLY WALLACE, CNN CORRESPONDENT: Straight ahead on DAYBREAK, good-bye prison, hello New York. Martha Stewart will be waking up in her very own horsehair stuffed, hand-tied, custom made mattress this morning.
Plus, a piece of American history from September 11. Treasured by this couple, but a family tragedy means they're forced to give it up. The flag's owners joins us live.

And they may look harmless, friendly, fun, even. But wait until you hear what happened to a California man after an ape escape.

It is Friday, March 4, and this is DAYBREAK.

And good Friday morning to you.

From the Time Warner Center in New York, I'm Kelly Wallace in today for Carol Costello.

Now in the news, she's out. Martha Stewart arrived at her estate in New York about two and a half hours ago. She's under house arrest after serving five months behind bars for lying about a stock sale. We'll have a live report in just two minutes.

Canine search teams plan to stop looking for a missing Florida girl today. Nine-year-old Jessica Lunsford disappeared from her home more than a week ago. Authorities say there are no main suspects or strong leads.

President Bush is heading on the road again today. He is pushing his Social Security plan in a 60 city, 60 day blitz. The president will be in New Jersey this morning and at the University of Notre Dame this afternoon.

A New York jury is expected to begin deliberations today in the fraud trial of former WorldCom chief Bernard Ebbers. He could be sentenced to 85 years in prison.

And Venezuelan President Hugo Chavez warns he'll cut off oil supplies to the U.S. if Washington tries to "hurt his country." Venezuela has accused the U.S. of trying to assassinate President Chavez. The State Department calls the allegations "ridiculous."

Time to check the weather.

We go to Chad Myers in Atlanta -- good Friday morning to you, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Kelly.

Thanks for waking up for us for us this morning.

WALLACE: Good to be with you, as always.

MYERS: That alarm clock going off at 2:00 is always a shock in the middle of the night.

WALLACE: It is a shock to the system, Chad.

MYERS: Just a little bit.

WALLACE: It takes a bit of getting used to.

MYERS: All right, well, a lot of Martha Stewart going on today. We'll talk about some weather. We'll talk about some NASCAR. The Busch boys are down in Mexico City this weekend and Formula One starts on Saturday night from Australia.

(WEATHER REPORT)

WALLACE: Chad, you know something else we'll talk about today?

MYERS: Go ahead.

WALLACE: The dreaded SATs.

MYERS: Oh.

WALLACE: You remember those, don't you?

MYERS: I do.

WALLACE: Big changes...

MYERS: I remember the math part. That was easy.

WALLACE: Well have...

MYERS: The other part wasn't.

WALLACE: Have your pencils ready. We're going to test you throughout DAYBREAK today.

MYERS: OK.

WALLACE: All right.

More now on our top story, and that is Martha Stewart. Lifestyle and cooking guru Martha Stewart has a taste of something she hasn't had in five months -- freedom. A slim, trim, hip looking Stewart left a West Virginia prison about 12:30 Eastern this morning, boarded a private jet at a nearby airport and headed for her 153-acre estate in New York. CNN's Deborah Feyerick, who has been working all night long, was at Greenbrier Valley Airport when Stewart left for her home.

She joins us now live -- Deb, describe the scene for us when everybody first saw Martha Stewart.

DEBORAH FEYERICK, CNN CORRESPONDENT: Well, Kelly, I'll tell you, it was carefully orchestrated from the moment Martha Stewart left Alderson Prison at 12:30 this morning, to the moment she arrived at the airport 25 minutes later. There was a press statement saying she'd been officially released; another press statement saying she'd officially arrived here and was going to be boarding in just a few minutes.

Then an SUV pulled up about 50 feet from the open doorway of the private jet and Martha Stewart made her debut. There were cheers from a handful of supporters who came out to meet her. She looked young, hip, happy. She was sporting jeans, boots and a shawl that almost looked as if it had been handmade. She was waving and smiling. There was a spring in her step. Her daughter Alexis at her side today, as she has been throughout this entire ordeal.

Now, just after 1:00, the plane took off and about the same time, virtually, on her Web site, a message posted by Martha Stewart, or on behalf of Martha Stewart, I should say. And it read: "The experience of the last five months in Alderson, West Virginia has been life altering and life affirming. I am thrilled to be returning to my more familiar life. My heart is filled with joy at the prospect of a warm embrace with my family, friends and colleagues. Certainly there is no place like home."

And then the plane taxied along the runway and took off into the cold, clear, frigid West Virginia air. Martha Stewart on her way to begin her new life, one that no doubt will be orchestrated by the likes of TV celebrity king maker Mark Burnett -- Kelly.

WALLACE: Well, Deb, I know you've been talking to probation officials in New York.

What is next for Martha Stewart? She has, what, 72 hours to meet with her probation officer?

FEYERICK: She does. She has 72 hours. And she's going to set up an appointment. As a matter of fact, it could happen even later today, depending on the arrangements she makes. Her five months of home confinement doesn't officially begin, the clock doesn't start running down until she is outfitted with one of those electronic bracelets. Once that happens, that's when the clock starts counting down.

Martha seems to be doing everything really to the minute, the way she entered, the way she left, and it may be likely that she'll have that ankle bracelet put on sooner rather than later, so that she can get this five months taken care of.

She'll be able to work at least 48 hours, or, actually, only 48 hours every week. The rest of the time she really is on home lockdown. She'll have to stay there. She can't just wander the grounds at will, unless, of course, she's being filmed for some television -- Kelly.

WALLACE: All right, Deb, thanks so much.

We'll be checking in with you throughout DAYBREAK today.

Deborah Feyerick reporting from Greenbrier Valley Airport this morning.

Well, about two hours after her release, Stewart arrived at her Bedford, New York estate. She has her sights set on being with her family and rebuilding her homemaking empire.

CNN's Allan Chernoff joins us from there -- and, Allan, I bet you're not the only reporter and crew in Bedford, New York this morning.

ALLAN CHERNOFF, CNN CORRESPONDENT: No doubt about that, Kelly.

Certainly plenty of news media here hanging around on a very quiet dirt road here. But Martha Stewart did arrive at the Westchester County Airport at 2:00 in the morning and by 2:35, she was home, back at her 153-acre estate here in Bedford. Of course, only one of Martha Stewart's many homes. But this is the home that she did select for her five month confinement.

And she did release a statement. Deb mentioned some of it. Let me add a little bit more. She said in that statement: "I can tell you now that I fell fortunate to have a family that nurtured me, the advantage of an excellent education and the opportunity to pursue the American Dream."

Clearly, her five months in prison put live in perspective for Martha Stewart.

Now, as Deb mentioned, Martha Stewart will have to check in with her probation officer by Sunday night. And she'll be fitted with an anklet bracelet. It'll track her movements, an electronic bracelet. And so she will basically be restrained to her home, but she'll be allowed out for 48 hours during the week to go shopping for food, perhaps to go to church, for a doctor visit and to work.

And Martha Stewart certainly has plenty of work planned. She'll resume writing a column for "Martha Stewart Living" magazine. She also has those two television shows. The syndicated program planned to premier in the fall and also her own version of "Apprentice." And the people at Martha Stewart Living are enthused. They are very excited to have her come back. The CEO of the company told me last week that Martha Stewart is a fountain of ideas and so they certainly are very, very excited, as I'm sure Martha Stewart is, to get back to work -- Kelly.

WALLACE: All right, Allan, a lot of work ahead for her.

Allan Chernoff reporting from Bedford, New York this morning.

Thanks so much.

Well, as Allan and Deborah were telling us, Martha Stewart is to be confined to her home most of the time during the next five months. But that's not all bad.

As our Mary Snow reports, that home is in a pretty upscale neighborhood.

(BEGIN VIDEO TAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): The Bedford, New York estate where Martha Stewart will be staying is bigger than the 95-acre prison grounds at Alderson, where she's been held for the past five months. She's been sharing close quarters with inmates, most of whom were there on drug convictions. Now, she's going home to her neighbors, like Ralph Lauren, billionaire George Soros and Glenn Close.

Adding Martha Stewart back into the mix in Westchester County doesn't seem to be fazing residents used to fame.

CHERYL FISHER, KATONAH RESIDENT: We respect their privacy. I mean the Clintons live in Chappaqua. So we're -- it's -- I don't think anyone is going to be too star struck to see her walking down the street or shopping in any of these shops that we go to every day.

SNOW: But Stewart isn't allowed to roam free. This gourmet grocery store, said to be one of her favorites, is one place she could go, since grocery shopping is on the approved list on her probation rules. She's allowed to leave her home for 48 hours a week, to go to work, attend church services, medical appointments and grocery shopping. There'll be one day a week of lockdown when she can't leave her home. When she does go anywhere, it must first be approved by her probation officer. He will be making unscheduled trips to her home and work.

Stewart must wear an electronic ankle bracelet like this one, that cannot be taken off for the next five months. That monitor will let her parole officer know when she enters and leaves her house. Probation officers who have had to monitor high profile people like Martha Stewart say home confinement could prove challenging, imposing limits on her marathon work hours.

LISA KUCA, FORMER FEDERAL PROBATION OFFICER: It's not a piece of cake. It's very frustrating. It is not as easy as it's perceived from the common public. And I do think she will have some interesting challenges, as will the probation officer supervising her, with the employment situation.

SNOW: Stewart won't have to be alone. She can have visitors to her home, as long as they haven't been convicted of a crime.

Mary Snow, CNN, New York.

(END VIDEO TAPE)

WALLACE: And be sure to catch a special edition report on Martha Stewart tonight. That's on "PEOPLE IN THE NEWS" with Paula Zahn at 8:00 p.m. Eastern, 5:00 p.m. Pacific. That only on CNN.

Still to come here on DAYBREAK, it seems to be a matter of necessity. A Virginia man battling for his life puts a September 11 memento up for sale. We'll talk with him in seven minutes.

Plus, it's a good thing, good for Martha Stewart, anyway. Sprung from prison and now on the way to relaunching an ever bigger career, that's coming up in 25 minutes.

And too many passengers, too little time. Are airport screeners stretched too thin? That story in 32 minutes.

But first, here's a look at what else is making news this Friday morning.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

WALLACE: Your news, money, weather and sports.

It's about 15 minutes after the hour and here is what is all new this morning.

Homemaking diva Martha Stewart is back in her New York home this morning. She was released from a West Virginia prison just after midnight and flew home on her private jet.

More testimony on tap today from the teenaged sister of Michael Jackson's accuser. She told jurors Jackson whisked her family off to Florida the day before that controversial TV documentary aired.

In money, two Boston companies have offered to buy out the shuttered National Hockey League for more than $3 billion. But it's unlikely the league's 30 owners would agree to the sale.

In culture, Tim McGraw leads the way to the Academy of Country Music Awards. McGraw received six nominations for the 40th annual awards, including entertainer of the year. Winners will be announced May 17.

In sports, Shaquille O'Neal led his "Miami Heat" to a big win over the New Jersey Nets in his first game back from injury. Shaq had missed three games with a sprained knee. Also, Alonzo Mourning made his season debut with Miami.

Time to get another look at the forecast -- good morning again, Chad.

MYERS: Good morning, Kelly.

(WEATHER REPORT) WALLACE: Well, at first David Nicholson said he'd never sell it. It is an American flag that flew above the Pentagon on September 11, 2001. But that has changed. The flag goes up for auction today on eBay. It is just part of the story.

And David Nicholson joins us live on the phone from his home in Virginia.

David Nicholson, thanks for being with us today.

We definitely appreciate it.

DAVID NICHOLSON: You're welcome.

WALLACE: David, if you can hear me -- can you hear me, David?

NICHOLSON: Yes.

WALLACE: What I want to ask you first, this obviously has to be an extremely difficult decision for you and your family.

Why did you decide to go up and auction this flag?

NICHOLSON: Well, the hospital bills are enormous and I haven't worked in a year due to my illness. And I have renal cell carcinoma and they have taken my kidney out last March. And then three months later I was in stage four. It had spread into my lymph nodes. So I need the...

WALLACE: You decided because of your medical costs and other issues facing your family that you had to go ahead and auction off this flag.

Is that right?

NICHOLSON: Yes. I need -- I have a 6-year-old daughter and I need to make sure that their future is secure while I can, while I can make these decisions.

WALLACE: When did you know that you had come into contact with this piece of history, this flag that was on top of the Pentagon on September 11, 2001?

NICHOLSON: Yes, in May of 2002, when it was actually taken off the crane at the Pentagon and brought to my auction house. And we found it in a box. And, of course, at that time, we framed it and preserved it and it aired on CNN "American Stories" the first anniversary of 9/11.

WALLACE: Do you in some way believe, Mr. Nicholson, that this flag, your contact with this flag, something associated with so much death, in some way could help you stay alive?

NICHOLSON: Well, I don't know if it can help me stay alive, but we're going to donate a portion of if to renal research, carcinoma research. And hopefully it'll be able to help other people down the road. I've been undergoing high dose interleukin treatments and I only had a partial response. So my next step will either be an experimental or a bone marrow transplant.

WALLACE: What are the doctors telling you?

NICHOLSON: That's what they're telling me, Dr. Jared Gollob, out of Duke Cancer Center, where I get my treatment. Those are my next options after my scans coming up, my next set of scans. And they'll look at it at that point.

WALLACE: What do you hope for whomever might decide to purchase this flag as it goes on auction on eBay later today? What do you hope that person or persons will do with it in the weeks and months to come?

NICHOLSON: Well, I'm hoping it'll be shared or put in a bedroom maybe at a corporation where it will be taken care of and not -- I don't want it leaving the country. However, going on eBay, I don't know who may end up with it, as far as purchasing it at this point.

WALLACE: Our viewers are watching and wanting to help. We're putting up on the screen, Mr. Nicholson, the Nicholson Cancer Fund, an address and a phone number.

Is that where people can send in money to help with your experimental treatment?

NICHOLSON: Yes, ma'am, at SunTrust Bank in Charlottesville, Virginia. Or they can go to the local SunTrust Banks and make that donation.

WALLACE: Well, we certainly hope our viewers respond and we thank you for joining us.

We know this has to be a very difficult time for you and your family and this a difficult decision, indeed, to decide to auction off that flag.

David Nicholson joining us on the phone from Orange, Virginia.

Thank you very much.

Well, switching gears quite a bit, in just a few days, book weary juniors and seniors across the country will be taking the new Scholastic Aptitude Test. That is the SAT. For the first time, there is an essay question on the test, as well as more advanced math and reading comprehension questions. We'll have much more on that essay question next hour.

But first, a DAYBREAK pop quiz. So get out that number two pencil and get a fresh cup of coffee.

Here is a sample question from this year's SAT. "If X minus 3 equals 5, which of the following could be the value of X? A, -8; B, - 3; C, -2; D, 2; E, 3.

We'll have the answer for you...

MYERS: Hey, Kelly.

WALLACE: Oh, Chad, you're there.

MYERS: Yes.

WALLACE: What do you think?

MYERS: The right answer is not one of the above.

WALLACE: Chad, guess what? We're going to give you a few minutes to think about it -- think, think, think. And we'll see what your answer is after the break.

We'll be right back.

(COMMERCIAL BREAK)

WALLACE: And welcome back.

Before the break, we asked you a sample question from the revised Scholastic Aptitude Test. And the question is, "If the absolute value of X-3=5, which of the following could be the value of X? Is the answer A, -8; B, -3; C, -2; D, 2; E, 3?

MYERS: Well, you didn't...

WALLACE: So, Chad, what's your answer?

MYERS: You didn't say absolute value last time.

WALLACE: I know. My mistake.

MYERS: Now you're...

WALLACE: I'm changing it on you.

MYERS: Well, that would be a C then, -2-3 = -5. But the absolute value of a -5 is equal to 5.

WALLACE: Chad, hello! You're quite amazing there.

MYERS: You've got...

WALLACE: I have to tell you, I was kind of stumped by that, because I was getting confused about the absolute value.

MYERS: I got 780 on the math part.

WALLACE: Oh, wow! I got...

MYERS: But I didn't do so well on the English part.

WALLACE: I had 650 for me. You beat me big time.

All right, well, Chad, thanks.

Keep the number two pencil handy, because we're going to have a verbal aptitude sample question later this hour.

All right, switching gears again, we're going to be seeing, as you already know, a lot, a lot of Martha Stewart over the next few weeks.

And David Letterman has started in on her renewed celebrity.

MYERS: Oh, no.

WALLACE: Of course, Chad. You knew he would, even before she got out of the pen.

Take a listen.

(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN, COURTESY CBS/WORLDWIDE PANTS)

DAVID LETTERMAN, HOST: She had a lot of last minute details on her mind. She's been wracking her brain all week, you know, how much does she tip the warden?

(END VIDEO CLIP)

(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN, COURTESY CBS/WORLDWIDE PANTS)

LETTERMAN: When Martha gets out, she will be under house arrest in her big $40 million mansion in Bedford. Well, boy, that'll teach her. And she's only allowed out of the house for like doctors' visits, grocery shopping or to dump more stock.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN, COURTESY CBS/WORLDWIDE PANTS)

LETTERMAN: By the way, Martha, if you're watching, I waited for you.

(END VIDEO CLIP)

WALLACE: Maybe she's going to sit down with David Letterman, do an exclusive interview with him, Chad.

MYERS: Yes, well, he'll have to go there. Or I don't know -- she can't have, the guest list has to be pre-approved, as well, for people to come over.

WALLACE: Right. You can't have been convicted of a crime.

MYERS: No.

WALLACE: You can't be a convicted felon to go to her Bedford, New York estate.

MYERS: No. I guess I'm OK then.

WALLACE: I guess so.

You know, they're going to be talking about Martha, Martha, Martha over the next several days, don't you think?

MYERS: Oh, yes.

Oh, absolutely. It'll be ad nauseam.

WALLACE: It will be.

All right, Chad, we'll check with you in a little bit.

We want to make sure you know, though, that CNN's "PEOPLE IN THE NEWS" with Paula Zahn profiles the home fashion makeover queen tonight at 8:00 p.m. Eastern, 5:00 p.m. Pacific, only here on CNN.

And here's a look at what is all new in the next half hour.

Martha Stewart has done the time, but what has that done to her? We'll check out the effects of prison just ahead.

Plus, you'll be paying more for that spring break road trip, so get ready to dig for cash. We'll tell you, as DAYBREAK hits the accelerator.

We'll be right back.

(COMMERCIAL BREAK)

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Aired March 4, 2005 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KELLY WALLACE, CNN CORRESPONDENT: Straight ahead on DAYBREAK, good-bye prison, hello New York. Martha Stewart will be waking up in her very own horsehair stuffed, hand-tied, custom made mattress this morning.
Plus, a piece of American history from September 11. Treasured by this couple, but a family tragedy means they're forced to give it up. The flag's owners joins us live.

And they may look harmless, friendly, fun, even. But wait until you hear what happened to a California man after an ape escape.

It is Friday, March 4, and this is DAYBREAK.

And good Friday morning to you.

From the Time Warner Center in New York, I'm Kelly Wallace in today for Carol Costello.

Now in the news, she's out. Martha Stewart arrived at her estate in New York about two and a half hours ago. She's under house arrest after serving five months behind bars for lying about a stock sale. We'll have a live report in just two minutes.

Canine search teams plan to stop looking for a missing Florida girl today. Nine-year-old Jessica Lunsford disappeared from her home more than a week ago. Authorities say there are no main suspects or strong leads.

President Bush is heading on the road again today. He is pushing his Social Security plan in a 60 city, 60 day blitz. The president will be in New Jersey this morning and at the University of Notre Dame this afternoon.

A New York jury is expected to begin deliberations today in the fraud trial of former WorldCom chief Bernard Ebbers. He could be sentenced to 85 years in prison.

And Venezuelan President Hugo Chavez warns he'll cut off oil supplies to the U.S. if Washington tries to "hurt his country." Venezuela has accused the U.S. of trying to assassinate President Chavez. The State Department calls the allegations "ridiculous."

Time to check the weather.

We go to Chad Myers in Atlanta -- good Friday morning to you, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Kelly.

Thanks for waking up for us for us this morning.

WALLACE: Good to be with you, as always.

MYERS: That alarm clock going off at 2:00 is always a shock in the middle of the night.

WALLACE: It is a shock to the system, Chad.

MYERS: Just a little bit.

WALLACE: It takes a bit of getting used to.

MYERS: All right, well, a lot of Martha Stewart going on today. We'll talk about some weather. We'll talk about some NASCAR. The Busch boys are down in Mexico City this weekend and Formula One starts on Saturday night from Australia.

(WEATHER REPORT)

WALLACE: Chad, you know something else we'll talk about today?

MYERS: Go ahead.

WALLACE: The dreaded SATs.

MYERS: Oh.

WALLACE: You remember those, don't you?

MYERS: I do.

WALLACE: Big changes...

MYERS: I remember the math part. That was easy.

WALLACE: Well have...

MYERS: The other part wasn't.

WALLACE: Have your pencils ready. We're going to test you throughout DAYBREAK today.

MYERS: OK.

WALLACE: All right.

More now on our top story, and that is Martha Stewart. Lifestyle and cooking guru Martha Stewart has a taste of something she hasn't had in five months -- freedom. A slim, trim, hip looking Stewart left a West Virginia prison about 12:30 Eastern this morning, boarded a private jet at a nearby airport and headed for her 153-acre estate in New York. CNN's Deborah Feyerick, who has been working all night long, was at Greenbrier Valley Airport when Stewart left for her home.

She joins us now live -- Deb, describe the scene for us when everybody first saw Martha Stewart.

DEBORAH FEYERICK, CNN CORRESPONDENT: Well, Kelly, I'll tell you, it was carefully orchestrated from the moment Martha Stewart left Alderson Prison at 12:30 this morning, to the moment she arrived at the airport 25 minutes later. There was a press statement saying she'd been officially released; another press statement saying she'd officially arrived here and was going to be boarding in just a few minutes.

Then an SUV pulled up about 50 feet from the open doorway of the private jet and Martha Stewart made her debut. There were cheers from a handful of supporters who came out to meet her. She looked young, hip, happy. She was sporting jeans, boots and a shawl that almost looked as if it had been handmade. She was waving and smiling. There was a spring in her step. Her daughter Alexis at her side today, as she has been throughout this entire ordeal.

Now, just after 1:00, the plane took off and about the same time, virtually, on her Web site, a message posted by Martha Stewart, or on behalf of Martha Stewart, I should say. And it read: "The experience of the last five months in Alderson, West Virginia has been life altering and life affirming. I am thrilled to be returning to my more familiar life. My heart is filled with joy at the prospect of a warm embrace with my family, friends and colleagues. Certainly there is no place like home."

And then the plane taxied along the runway and took off into the cold, clear, frigid West Virginia air. Martha Stewart on her way to begin her new life, one that no doubt will be orchestrated by the likes of TV celebrity king maker Mark Burnett -- Kelly.

WALLACE: Well, Deb, I know you've been talking to probation officials in New York.

What is next for Martha Stewart? She has, what, 72 hours to meet with her probation officer?

FEYERICK: She does. She has 72 hours. And she's going to set up an appointment. As a matter of fact, it could happen even later today, depending on the arrangements she makes. Her five months of home confinement doesn't officially begin, the clock doesn't start running down until she is outfitted with one of those electronic bracelets. Once that happens, that's when the clock starts counting down.

Martha seems to be doing everything really to the minute, the way she entered, the way she left, and it may be likely that she'll have that ankle bracelet put on sooner rather than later, so that she can get this five months taken care of.

She'll be able to work at least 48 hours, or, actually, only 48 hours every week. The rest of the time she really is on home lockdown. She'll have to stay there. She can't just wander the grounds at will, unless, of course, she's being filmed for some television -- Kelly.

WALLACE: All right, Deb, thanks so much.

We'll be checking in with you throughout DAYBREAK today.

Deborah Feyerick reporting from Greenbrier Valley Airport this morning.

Well, about two hours after her release, Stewart arrived at her Bedford, New York estate. She has her sights set on being with her family and rebuilding her homemaking empire.

CNN's Allan Chernoff joins us from there -- and, Allan, I bet you're not the only reporter and crew in Bedford, New York this morning.

ALLAN CHERNOFF, CNN CORRESPONDENT: No doubt about that, Kelly.

Certainly plenty of news media here hanging around on a very quiet dirt road here. But Martha Stewart did arrive at the Westchester County Airport at 2:00 in the morning and by 2:35, she was home, back at her 153-acre estate here in Bedford. Of course, only one of Martha Stewart's many homes. But this is the home that she did select for her five month confinement.

And she did release a statement. Deb mentioned some of it. Let me add a little bit more. She said in that statement: "I can tell you now that I fell fortunate to have a family that nurtured me, the advantage of an excellent education and the opportunity to pursue the American Dream."

Clearly, her five months in prison put live in perspective for Martha Stewart.

Now, as Deb mentioned, Martha Stewart will have to check in with her probation officer by Sunday night. And she'll be fitted with an anklet bracelet. It'll track her movements, an electronic bracelet. And so she will basically be restrained to her home, but she'll be allowed out for 48 hours during the week to go shopping for food, perhaps to go to church, for a doctor visit and to work.

And Martha Stewart certainly has plenty of work planned. She'll resume writing a column for "Martha Stewart Living" magazine. She also has those two television shows. The syndicated program planned to premier in the fall and also her own version of "Apprentice." And the people at Martha Stewart Living are enthused. They are very excited to have her come back. The CEO of the company told me last week that Martha Stewart is a fountain of ideas and so they certainly are very, very excited, as I'm sure Martha Stewart is, to get back to work -- Kelly.

WALLACE: All right, Allan, a lot of work ahead for her.

Allan Chernoff reporting from Bedford, New York this morning.

Thanks so much.

Well, as Allan and Deborah were telling us, Martha Stewart is to be confined to her home most of the time during the next five months. But that's not all bad.

As our Mary Snow reports, that home is in a pretty upscale neighborhood.

(BEGIN VIDEO TAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): The Bedford, New York estate where Martha Stewart will be staying is bigger than the 95-acre prison grounds at Alderson, where she's been held for the past five months. She's been sharing close quarters with inmates, most of whom were there on drug convictions. Now, she's going home to her neighbors, like Ralph Lauren, billionaire George Soros and Glenn Close.

Adding Martha Stewart back into the mix in Westchester County doesn't seem to be fazing residents used to fame.

CHERYL FISHER, KATONAH RESIDENT: We respect their privacy. I mean the Clintons live in Chappaqua. So we're -- it's -- I don't think anyone is going to be too star struck to see her walking down the street or shopping in any of these shops that we go to every day.

SNOW: But Stewart isn't allowed to roam free. This gourmet grocery store, said to be one of her favorites, is one place she could go, since grocery shopping is on the approved list on her probation rules. She's allowed to leave her home for 48 hours a week, to go to work, attend church services, medical appointments and grocery shopping. There'll be one day a week of lockdown when she can't leave her home. When she does go anywhere, it must first be approved by her probation officer. He will be making unscheduled trips to her home and work.

Stewart must wear an electronic ankle bracelet like this one, that cannot be taken off for the next five months. That monitor will let her parole officer know when she enters and leaves her house. Probation officers who have had to monitor high profile people like Martha Stewart say home confinement could prove challenging, imposing limits on her marathon work hours.

LISA KUCA, FORMER FEDERAL PROBATION OFFICER: It's not a piece of cake. It's very frustrating. It is not as easy as it's perceived from the common public. And I do think she will have some interesting challenges, as will the probation officer supervising her, with the employment situation.

SNOW: Stewart won't have to be alone. She can have visitors to her home, as long as they haven't been convicted of a crime.

Mary Snow, CNN, New York.

(END VIDEO TAPE)

WALLACE: And be sure to catch a special edition report on Martha Stewart tonight. That's on "PEOPLE IN THE NEWS" with Paula Zahn at 8:00 p.m. Eastern, 5:00 p.m. Pacific. That only on CNN.

Still to come here on DAYBREAK, it seems to be a matter of necessity. A Virginia man battling for his life puts a September 11 memento up for sale. We'll talk with him in seven minutes.

Plus, it's a good thing, good for Martha Stewart, anyway. Sprung from prison and now on the way to relaunching an ever bigger career, that's coming up in 25 minutes.

And too many passengers, too little time. Are airport screeners stretched too thin? That story in 32 minutes.

But first, here's a look at what else is making news this Friday morning.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

WALLACE: Your news, money, weather and sports.

It's about 15 minutes after the hour and here is what is all new this morning.

Homemaking diva Martha Stewart is back in her New York home this morning. She was released from a West Virginia prison just after midnight and flew home on her private jet.

More testimony on tap today from the teenaged sister of Michael Jackson's accuser. She told jurors Jackson whisked her family off to Florida the day before that controversial TV documentary aired.

In money, two Boston companies have offered to buy out the shuttered National Hockey League for more than $3 billion. But it's unlikely the league's 30 owners would agree to the sale.

In culture, Tim McGraw leads the way to the Academy of Country Music Awards. McGraw received six nominations for the 40th annual awards, including entertainer of the year. Winners will be announced May 17.

In sports, Shaquille O'Neal led his "Miami Heat" to a big win over the New Jersey Nets in his first game back from injury. Shaq had missed three games with a sprained knee. Also, Alonzo Mourning made his season debut with Miami.

Time to get another look at the forecast -- good morning again, Chad.

MYERS: Good morning, Kelly.

(WEATHER REPORT) WALLACE: Well, at first David Nicholson said he'd never sell it. It is an American flag that flew above the Pentagon on September 11, 2001. But that has changed. The flag goes up for auction today on eBay. It is just part of the story.

And David Nicholson joins us live on the phone from his home in Virginia.

David Nicholson, thanks for being with us today.

We definitely appreciate it.

DAVID NICHOLSON: You're welcome.

WALLACE: David, if you can hear me -- can you hear me, David?

NICHOLSON: Yes.

WALLACE: What I want to ask you first, this obviously has to be an extremely difficult decision for you and your family.

Why did you decide to go up and auction this flag?

NICHOLSON: Well, the hospital bills are enormous and I haven't worked in a year due to my illness. And I have renal cell carcinoma and they have taken my kidney out last March. And then three months later I was in stage four. It had spread into my lymph nodes. So I need the...

WALLACE: You decided because of your medical costs and other issues facing your family that you had to go ahead and auction off this flag.

Is that right?

NICHOLSON: Yes. I need -- I have a 6-year-old daughter and I need to make sure that their future is secure while I can, while I can make these decisions.

WALLACE: When did you know that you had come into contact with this piece of history, this flag that was on top of the Pentagon on September 11, 2001?

NICHOLSON: Yes, in May of 2002, when it was actually taken off the crane at the Pentagon and brought to my auction house. And we found it in a box. And, of course, at that time, we framed it and preserved it and it aired on CNN "American Stories" the first anniversary of 9/11.

WALLACE: Do you in some way believe, Mr. Nicholson, that this flag, your contact with this flag, something associated with so much death, in some way could help you stay alive?

NICHOLSON: Well, I don't know if it can help me stay alive, but we're going to donate a portion of if to renal research, carcinoma research. And hopefully it'll be able to help other people down the road. I've been undergoing high dose interleukin treatments and I only had a partial response. So my next step will either be an experimental or a bone marrow transplant.

WALLACE: What are the doctors telling you?

NICHOLSON: That's what they're telling me, Dr. Jared Gollob, out of Duke Cancer Center, where I get my treatment. Those are my next options after my scans coming up, my next set of scans. And they'll look at it at that point.

WALLACE: What do you hope for whomever might decide to purchase this flag as it goes on auction on eBay later today? What do you hope that person or persons will do with it in the weeks and months to come?

NICHOLSON: Well, I'm hoping it'll be shared or put in a bedroom maybe at a corporation where it will be taken care of and not -- I don't want it leaving the country. However, going on eBay, I don't know who may end up with it, as far as purchasing it at this point.

WALLACE: Our viewers are watching and wanting to help. We're putting up on the screen, Mr. Nicholson, the Nicholson Cancer Fund, an address and a phone number.

Is that where people can send in money to help with your experimental treatment?

NICHOLSON: Yes, ma'am, at SunTrust Bank in Charlottesville, Virginia. Or they can go to the local SunTrust Banks and make that donation.

WALLACE: Well, we certainly hope our viewers respond and we thank you for joining us.

We know this has to be a very difficult time for you and your family and this a difficult decision, indeed, to decide to auction off that flag.

David Nicholson joining us on the phone from Orange, Virginia.

Thank you very much.

Well, switching gears quite a bit, in just a few days, book weary juniors and seniors across the country will be taking the new Scholastic Aptitude Test. That is the SAT. For the first time, there is an essay question on the test, as well as more advanced math and reading comprehension questions. We'll have much more on that essay question next hour.

But first, a DAYBREAK pop quiz. So get out that number two pencil and get a fresh cup of coffee.

Here is a sample question from this year's SAT. "If X minus 3 equals 5, which of the following could be the value of X? A, -8; B, - 3; C, -2; D, 2; E, 3.

We'll have the answer for you...

MYERS: Hey, Kelly.

WALLACE: Oh, Chad, you're there.

MYERS: Yes.

WALLACE: What do you think?

MYERS: The right answer is not one of the above.

WALLACE: Chad, guess what? We're going to give you a few minutes to think about it -- think, think, think. And we'll see what your answer is after the break.

We'll be right back.

(COMMERCIAL BREAK)

WALLACE: And welcome back.

Before the break, we asked you a sample question from the revised Scholastic Aptitude Test. And the question is, "If the absolute value of X-3=5, which of the following could be the value of X? Is the answer A, -8; B, -3; C, -2; D, 2; E, 3?

MYERS: Well, you didn't...

WALLACE: So, Chad, what's your answer?

MYERS: You didn't say absolute value last time.

WALLACE: I know. My mistake.

MYERS: Now you're...

WALLACE: I'm changing it on you.

MYERS: Well, that would be a C then, -2-3 = -5. But the absolute value of a -5 is equal to 5.

WALLACE: Chad, hello! You're quite amazing there.

MYERS: You've got...

WALLACE: I have to tell you, I was kind of stumped by that, because I was getting confused about the absolute value.

MYERS: I got 780 on the math part.

WALLACE: Oh, wow! I got...

MYERS: But I didn't do so well on the English part.

WALLACE: I had 650 for me. You beat me big time.

All right, well, Chad, thanks.

Keep the number two pencil handy, because we're going to have a verbal aptitude sample question later this hour.

All right, switching gears again, we're going to be seeing, as you already know, a lot, a lot of Martha Stewart over the next few weeks.

And David Letterman has started in on her renewed celebrity.

MYERS: Oh, no.

WALLACE: Of course, Chad. You knew he would, even before she got out of the pen.

Take a listen.

(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN, COURTESY CBS/WORLDWIDE PANTS)

DAVID LETTERMAN, HOST: She had a lot of last minute details on her mind. She's been wracking her brain all week, you know, how much does she tip the warden?

(END VIDEO CLIP)

(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN, COURTESY CBS/WORLDWIDE PANTS)

LETTERMAN: When Martha gets out, she will be under house arrest in her big $40 million mansion in Bedford. Well, boy, that'll teach her. And she's only allowed out of the house for like doctors' visits, grocery shopping or to dump more stock.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN, COURTESY CBS/WORLDWIDE PANTS)

LETTERMAN: By the way, Martha, if you're watching, I waited for you.

(END VIDEO CLIP)

WALLACE: Maybe she's going to sit down with David Letterman, do an exclusive interview with him, Chad.

MYERS: Yes, well, he'll have to go there. Or I don't know -- she can't have, the guest list has to be pre-approved, as well, for people to come over.

WALLACE: Right. You can't have been convicted of a crime.

MYERS: No.

WALLACE: You can't be a convicted felon to go to her Bedford, New York estate.

MYERS: No. I guess I'm OK then.

WALLACE: I guess so.

You know, they're going to be talking about Martha, Martha, Martha over the next several days, don't you think?

MYERS: Oh, yes.

Oh, absolutely. It'll be ad nauseam.

WALLACE: It will be.

All right, Chad, we'll check with you in a little bit.

We want to make sure you know, though, that CNN's "PEOPLE IN THE NEWS" with Paula Zahn profiles the home fashion makeover queen tonight at 8:00 p.m. Eastern, 5:00 p.m. Pacific, only here on CNN.

And here's a look at what is all new in the next half hour.

Martha Stewart has done the time, but what has that done to her? We'll check out the effects of prison just ahead.

Plus, you'll be paying more for that spring break road trip, so get ready to dig for cash. We'll tell you, as DAYBREAK hits the accelerator.

We'll be right back.

(COMMERCIAL BREAK)

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