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CNN Saturday Morning News

Three Americans And A British Citizen Abducted In Nigeria; 1,800 Missing In Philippines Mudslide; Search And Rescue Effort Underway For U.S. Marine Helicopters That Crashed Off Djibouti; Storm Hitting Northeast U.S.; Sports Olympics; Jacobellis Crashed Out; Kathleen Koch Visits Hometown Devastated By Hurricane Katrina; Major Shift In Palestinian Leadership; Chertoff Answers Tough Questions On Capitol Hill; Stroke Not Just Man's Disease; Army Opens Its Doors To Those With Problematic Pasts; Record Powerball Jackpot

Aired February 18, 2006 - 07:00   ET

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


TONY HARRIS, CNN ANCHOR: Good morning, everyone.
We're getting word this morning that three Americans and a British citizen have been abducted in Nigeria. They're among nine foreign workers taken hostage. The group has been working in the region for an oil services firm. Militants have been attacking oil and gas pipelines in the Western African nation in recent months.

BETTY NGUYEN, CNN ANCHOR: Well, help is coming by air and by sea to a remote region in the Philippines. Look at this -- about 1,800 people are missing after a massive mudslide buried an entire village. So far, more than 40 bodies have been found and officials are not optimistic.

The mudslide was triggered by two weeks of steady rains.

We're going to have a live report straight ahead.

HARRIS: A search and rescue effort is on right now for two U.S. Marine Corps helicopters that crashed yesterday off the coast of the East African nation of Djibouti. At least two crew members are injured and 10 others are missing. The Pentagon says there is no indication hostile fire played a role.

Back in the U.S. an Arctic blast, Betty, in the Northeast is blamed for three deaths. Two people in New York State and one person in Massachusetts were hit by falling trees. Wind gusts hit nearly 80 miles per hour.

NGUYEN: Oh, my.

HARRIS: We will have your complete weather forecast in seven minutes.

NGUYEN: Well, there is more violent fallout over the Danish cartoons depicting the Prophet Muhammad. There were violent clashes with police in Libya. Eleven people were reportedly killed there. Protesters also set fire to the Italian embassy in the northeastern town, or in a northeastern town there, but it was safely evacuated and no employees were injured. HARRIS: And the militant group Hamas officially took control of the Palestinian parliament this morning and it's already rejecting calls for peace talks with Israel. The U.S. and other world powers have called for a boycott of Hamas. It is believed the group has masterminded nearly 60 suicide attacks against Israel since 2000.

How about this? Nick Lachey wants spousal support from his soon- to-be ex-wife Jessica Simpson.

What is this about?

NGUYEN: Ah-ha. It's about the money is what it's about.

HARRIS: Well, there you go.

According to the Associated Press, Lachey filed court papers asking for jewelry, personal effects and earnings. But the couple had no pre-nuptial agreement. Simpson is asking the court to deny Lachey's request.

NGUYEN: How does that song go, we want pre-nup?

HARRIS: We want pre-nups. Something that you need to have.

NGUYEN: They didn't have it.

Well, all right, speaking of money, got your ticket or tickets, Tony? Because millions of lottery players across the U.S. are taking their shot at a record jackpot in tonight's Powerball drawing.

How much?

We'll tell you -- $365 million is up for grabs. Boy, I could use that chunk of change.

HARRIS: Come on, now, Betty.

NGUYEN: In West Virginia, tickets were selling -- get this -- at the rate of 29 per second. That's about one per second.

HARRIS: Yowza!

All right, let the good times roll. It's Mardi Gras season in New Orleans and folks in The Big Easy won't be denied. They're determined that no hurricane, levee breaches or government fallout will separate them from tradition. Mardi Gras Day is more than two weeks away, but the parties, parades and festivals are happening all over the city.

From the CNN Center in Atlanta, this is CNN SATURDAY MORNING.

7:00 a.m. along the East Coast, 8:00 p.m. in the Philippines and 2:00 p.m. in Gaza.

Good morning, everyone.

I'm Tony Harris.

NGUYEN: And I'm Betty Nguyen.

We want to take you for being with us today.

We want to get you more now on that developing story from the Philippines.

A terrible scene of devastation. You can see it right there. Hope of finding survivors is already fading just one day after a deadly mudslide. The situation is so dangerous, officials now worry about the safety of search crews.

CNN international correspondent Hugh Riminton joins us now from the Philippines -- Hugh, is the weather still hampering rescue efforts there?

HUGH RIMINTON, CNN CORRESPONDENT: It's actually quite nice at the moment. There's no rain at all. But that's a bit of a break. It has been raining quite heavily and causing stuff to be very dangerous for the rescuers.

They were out wading through mud, trying to get -- in particular their focus was on a school that was buried. There were 240 children at an elementary school completely disappeared. They had to leave the area of the landslide twice because over heavy rain and rumblings from underneath the mud.

The other piece of news which has just come out in the last hour or so, talking to top officials here, they say that they believe, or at least one of these officials says that they believe that there is credibility that can be placed on a report that knocking has been heard, as if it is a signal, coming from the school, and have had some expert mountaineering advice, saying that where the school is, the heavy rocks would have passed that by. It may just have soil on it.

So there's a new sense of vigor that perhaps they might yet retrieve something out of what is unquestionably a huge disaster here.

NGUYEN: That's such good news, Hugh, because for so long, the past few hours, we've been hearing about how hope is fading fast.

Talk to us about the scale of this disaster.

I was reading that the Philippines Red Cross is saying of the 300 houses, only three are left.

Is that what you're seeing?

RIMINTON: That -- you have to see it to believe it. This is on a fault line. And quite often on fault lines, you'll see a flat piece. It becomes like a riverbed. This is what's happened. And then this steep escarpment that leaps up over 2,000 feet immediately above it. A very, very forbidding looking line of high rock covered in jungle. That completely fell -- more than 2,000 feet of rock -- down a huge gully. Rock and mud wiped out the school, put -- the entire village, I should say -- pushed it hundreds of yards out onto the flatlands. And in some places, the village is buried under 30 feet of mud.

That gives you some idea of why, even now, they've still only managed to recover about 44 bodies out of 1,800 people.

NGUYEN: Yes, and just looking at the video, it doesn't even seem like there was a village there at one time.

Hugh Riminton, thank you for that report.

We'll be talking with you soon.

HARRIS: Well, Betty, more weather with a vengeance.

Check out these pictures from Spain. Sunbathers had to run when a giant wave, some 33 feet tall, came crashing onto -- this is San Sebastian Beach in northeastern Spain -- on Friday.

Winds in the area were close to 70 miles an hour. The high winds coupled with the full moon are blamed for creating a monster wave.

And back in the U.S. people in the Northeast are bundling up as a fierce new storm brought winds that gusted to almost 80 miles an hour, and temperatures are plummeting. In parts of western New York, the storm knocked the mercury from 60 degrees to below freezing in just a few hours.

Winds are taking out power lines and knocking down trees. Three people have died, two in New York, one in Massachusetts, after trees fell on them. Power was out to more than 325,000 customers at one point.

NGUYEN: We want to give you a live picture this morning of Nashville, Tennessee. It doesn't really look like Nashville with all that ice and snow. Yes, that's what you see on the ground there, although ...

HARRIS: OK.

NGUYEN: ... it seems like cars are making their way on the freeway.

But we want to get a better update on this weather condition with Brad Huffines, who joins us this morning -- Brad, we had snow and all this cold weather last weekend. It looks like it's back again.

(WEATHER REPORT)

HARRIS: Yes, you're right.

NGUYEN: Yes, give me a ticket to Miami. That's where the weather is today. HARRIS: And fast.

NGUYEN: Thank you, Brad.

HARRIS: Brad, thanks.

Well, here's the thing, whether you have to brave the rain, the snow, sleet or ice...

NGUYEN: Ice.

HARRIS: ... well, you'd better get your ticket. However...

NGUYEN: Without a doubt, get that ticket.

HARRIS: ... coming up, what would you do if you hit the $365 million jackpot?

NGUYEN: Ooh, weeee!

HARRIS: We've got some ideas.

NGUYEN: Oh, we have ideas, plenty of them.

HARRIS: Yes. We will put that question to the test, coming up.

NGUYEN: And speaking of winning, some advice to would-be Olympic champions.

Would you just wait until you cross the finish line before the congratulations and celebrations?

We have those details on a world class goof (ph) when we go live to Torino.

CNN SATURDAY MORNING continues in just a minute.

HARRIS: Oh, jeez.

NGUYEN: Ooh!

(COMMERCIAL BREAK)

NGUYEN: Got a criminal background, a little drug history?

No problem. Uncle Sam wants u. That's right, the Army is relaxing its recruiting rules to try to meet war time enlistment goals.

But is this a good idea?

We'll take a closer look next hour on CNN SATURDAY MORNING.

(COMMERCIAL BREAK)

NGUYEN: Well, good morning. And welcome back.

We want to check our top stories just in case you're just joining us this morning.

Hope of finding more survivors in the southern Philippines is fading fast. A village in a remote province lies buried under 30 feet of mud. U.S. troops are aiding rescue efforts. Up to 1,800 villagers are missing.

Two injured Marines have been rescued off the southern coast of Africa, but 10 others are still missing. Two U.S. Marine transport helicopters crashed into the sea yesterday off Djibouti. The cause of the crash is unclear, but there was no indication of hostile fire.

And, finally, another six people have been killed today in Baghdad, including one U.S. soldier. His vehicle was hit by a roadside bomb -- Tony.

HARRIS: U.S. snowboarder Lindsey Jacobellis won the silver, but it is how she lost the gold that will just shock you.

Mark McKay joins us from Torino with the unbelievable details. I mean it really is amazing.

And get your motor running. It's race week in Daytona. And if you think a bump is just an old dance from the '70s, think again. It's a big problem on the fast track. We will take you how NASCAR plans to put the brakes on it. Rick Horrow going "Beyond The Game," or, in this case, the race, when CNN SATURDAY MORNING returns.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

(MUSIC)

(END VIDEO CLIP)

HARRIS: Yes, yes, yes, let's get it started, as the kids say there, the Black-Eyed Peas.

That could be the theme of this year's Daytona 500. And it's fitting that Black Eyed Peas singer Fergie has been picked to sing the national anthem at the first big race of the NASCAR season, the Daytona 500, the Super Bowl of NASCAR.

So let's take you "Beyond The Game" now.

Two of the biggest names in racing failed to make it into last year's Nextel finals, a fact that had racing officials seriously worried about TV ratings. So you can believe they'll be watching this time around to see if Dale Earnhardt, Jr. and Jeff Gordon can pump some excitement into tomorrow's kickoff of the Nextel championship series.

We're heading now live to West Palm Beach, Florida.

Rick Horrow, our CNN sports business analyst and author of "When the Game Is On the Line" -- Rick, good morning to you, doctor.

Nice tie.

RICK HORROW, CNN SPORTS BUSINESS ANALYST: Hey, man, how are you doing?

Hey, this is a NASCAR -- you know how hard it is to find a NASCAR tie? $2 billion in merchandise, by the way, with NASCAR.

HARRIS: Wow!

HORROW: And I think I just added to their account. And...

HARRIS: Hey, you know, before we get to all of this celebrity star power in NASCAR, I guess we're five years since Dale Earnhardt died and I know that NASCAR is dealing with a kind of another image issue here, this whole -- all of the talk about bumping.

HORROW: Yes, well, look at it in context. There were about 253 incidents, they call it, at races last year, a 24 percent increase over the year before. It's getting to be that NASCAR is like the West Side Highway in New York or any other expressway.

HARRIS: Yes.

HORROW: And these guys are so good that the way they're dealing with this is they're mandating no bump zones. I wish they could only do that while we were driving. And that's going to work, along with a little bit safer car and a more crash resistant car.

NASCAR sees a problem, they solve it right away, by the way.

HARRIS: So -- OK.

So you don't have two of the biggest names, Jeff Gordon and Dale Earnhardt, Jr. in the championship, the chase for the cup last year.

Is NASCAR a little concerned that it could happen two years running?

HORROW: Well, my friend, they're doing quite fine. Clearly, they're concerned about everything. But a 90 percent growth rate. The race this week is televised in 150 countries in 35 langs. A billion dollars in sponsorship from Sprint alone, for example.

HARRIS: Wow!

HORROW: And the fans are three percent more avid and loyal than other sports.

That's why the superstar is important. You think about Dale Earnhardt's death, five years almost to the day...

HARRIS: Yes.

HORROW: ... and yet his estate has sold $500 million of merchandise after his death. And you don't need to say any more about NASCAR.

HARRIS: OK, so what are some of the other issues facing NASCAR as the season kicks off?

HORROW: Well, you've got a few.

They signed a big $5 billion television contract starting next year, basically replacing NBC with the ABC family of networks. So they've got to stabilize that.

Then it's all about expanding their fan base. They're choosing a Hall of Fame site between Atlanta and Charlotte and Daytona Beach soon. They're also trying to build new tracks in the Seattle area and around New York City. Demographics -- women make up twice as many fans as they did five years ago. Minorities -- the drive for diversity.

The biggest challenge is, you know, when you tried -- unsuccessfully, I might add -- to pick up a baseball or a football...

HARRIS: Oh, boy.

HORROW: ... when you were a kid...

HARRIS: Right. Right.

HORROW: ... OK, or a golf club and all -- but, you know, a 9- year-old can't drive the family car. So you've got to figure out how to get the kids into the hearts and minds of the next generation so they can be NASCAR fans, as well.

HARRIS: Got you.

What's your fair ball this week, Rick?

HORROW: Hey, Kobe Bryant, believe it or not.

HARRIS: Oh, boy.

HORROW: His 81 points. And there's a new Nike commercial that emphasizes a love-hate relationship with the fans. It used to be hate, now it's love. The jersey sales, by the way, up to the All Star break this weekend, are fifth, only behind Shaquille and Stefon Marbury and Iverson and Lebron James, for example.

So he's going in the right direction. Let's see if he continues.

HARRIS: Hey, do we want to see a little bit of this commercial?

Is this the new commercial that you're talking about, the whole love-hate thing?

All right, let's take a look...

HORROW: Yes, I think so.

HARRIS: Yes, let's take a look at it.

(BEGIN VIDEO CLIP FROM COMMERCIAL

KOBE BRYANT, NBA PLAYER: Love me or hate me, it's one or the other. It always has been. Hate my game, my swagger, hate my fade away, my hunger.

(END VIDEO CLIP)

HARRIS: Yes, yes, yes.

All right...

HORROW: Hey...

HARRIS: All right, yes, yes.

HORROW: Hey, Tony, that is -- that is brilliant acting that I know you aspire to just every day.

HARRIS: That's just ...

(CROSSTALK)

HORROW: Yes.

So do I get time for my fair ball?

HARRIS: Yes, yes, yes.

No, no, your foul ball.

HORROW: Or my foul ball.

My foul.

Fair is Kobe for a change. And foul, based on the NBA All Star Game, arena issues all over the place. Seattle has an ultimatum, by the way, a $200 million request for a new arena to replace Key Arena. In Seattle, the legislature ends its session on March 9. The lease is over in 2010. If they don't do it, people are talking about going somewhere else, maybe Kansas City, maybe otherwise.

So the musical chairs on franchises, by the way, never, never ends.

HARRIS: Rick Horrow, the author of "When the Game Is On the Line," taking you "Beyond The Game" this morning.

Rick, good to see you.

A nice tie. HORROW: Hey, a nice tie.

But I'm going to Torino next week.

HARRIS: Oh, that's right. That's right.

HORROW: We're going to do it live from Torino. And I'm going to all of those events. I'm frozen already just thinking about it, by the way. From Daytona tomorrow to Milan and Torino next week.

(CROSSTALK)

HARRIS: They're not ready for you, that's for sure.

All right, Rick, be safe.

HORROW: You've got it.

HARRIS: Travel well.

HORROW: All right, man.

All right, man.

HARRIS: Betty?

NGUYEN: And speaking of Torino, I don't think it's ready for Rick's tie.

But it is one week down and one week to go at the Winter Olympics in Torino, Italy.

American Lindsey Jacobellis attracted lots of attention to the new Olympic sport of snowboard cross, then she blew it in an astonishing fashion.

Let's get an update on the 20th Winter Games from CNN's Mark McKay live in a very cold Torino -- what happened here?

MARK MCKAY, CNN CORRESPONDENT: Not good news at all for Lindsey Jacobellis, that's for sure, Betty.

And Rick is going to need a pair of these -- gloves. It is a cold and blustery day here in Torino.

But let's look back at yesterday and a snowboarder who came in with supreme confidence in this event. We're talking, of course, on the grand stage of the Olympics here. Sometimes you get caught up in the moment. And unfortunately the American did just that.

She was the pre-Olympic favorite in women's snowboard cross and then, Lindsey Jacobellis tries what is called a backside method grab, said to be unnecessary. Yes, maybe a little bit of showboating.

Jacobellis crashed out. She would have won the gold if she had just made it to the finish line. She was, fortunately, able to get up and medal, but the silver medal very little consolation to the American.

Hey, the best the United States can now do in women's ice hockey is take home the bronze.

Why?

On Friday, the Americans lost to Sweden in a penalty shoot-out on the ice. This is the winning goal for the Swedes. It's only the second time that the United States has lost in women's ice hockey since the sport went international 16 years ago.

We're looking ahead to men's 1000 meter speed skating tonight here in Torino. It is called the speed skating race of the Games.

Why?

Just because of the names.

You've got Shani Davis, the world record holder, enrolled in this. You also have Chad Hedrick and Joey Cheek.

Betty, those are two guys who have already won gold, so the fastest men on ice tonight in a warm arena here in Torino.

NGUYEN: Yes, that's where you want to be, not where you're standing.

Hey, let me ask you about this. I heard about a car accident involving one of the men skaters?

MCKAY: Yes. Evgeni Plushenko. As he made his way to the airport, he -- on his way back to Russia, of course, after taking gold -- he got into a minor accident after winning the gold the night before. This was Friday morning.

He's OK. He's happy. In fact, he's probably going to come back a little later in the Torino Games to celebrate his achievement. Evgeni Plushenko, though, OK after just a minor tussle. After riding around the streets of Torino, I can see how he got into a little bit of a scrape because it's fend for yourself guys.

NGUYEN: That is true.

But, hey, once you win gold, you've got to come back to celebrate.

Mark, we'll talk to you soon.

MCKAY: Yes.

NGUYEN: Tony?

HARRIS: It's the luge.

Changing gears now, while there is still some progress in New Orleans, six months after Katrina hit many towns along the Gulf Coast haven't changed much since early September.

CNN's Kathleen Koch shows us her hometown, Bay St. Louis, the difficulties of destruction.

(BEGIN VIDEOTAPE)

KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): It's been nearly six months since the worst natural disaster in the U.S. history, and not a single destroyed home, not a single grocery store, not a single business on Beach Boulevard has been rebuilt in Bay Saint Louis.

In some places, it's as if time stood still. And there is a growing sense of betrayal here in Bay Saint Louis among residents who have been paying for home insurance for years. Now many of these insurance companies are refusing to pay.

TOMMY KIDD, BAY SAINT LOUIS RESIDENT: I've talked to people that have not even seen an adjuster yet. And they're not asking for what's not theirs. All they want is to be put back whole, be paid the insurance that's due them.

KOCH: Even Bay Saint Louis' congressman, who, like so many here lost everything, is fighting his insurance company.

REP. GENE TAYLOR (D), MISSISSIPPI: I had a tin roof on my house. There were pieces of my tin roof 20 to 30 feet up in trees behind where my house used to be, kind of wrapped around it sort of like a taco shell.

When they came back with my claim and said there was no wind damage to my house and I pointed to the tin, they just kind of shrugged.

KOCH: So he's suing.

TAYLOR: There ought to be a national registry of child molesters and insurance company executives, because I hold them in the same very low esteem.

KOCH: He's not alone. In fact, the State of Mississippi is suing the insurance companies on behalf of all its residents. No insurance company we contacted would talk to us on camera, so I went to see a spokesperson for the industry.

(on camera): It sounds like many insurance companies are trying to say this is the first hurricane in history that came with no wind, that sustained 125 mile an hour winds can do no damage.

I've stood in 70 mile an hour winds in a hurricane and watched a roof blow off a hotel.

How can they say 125 mile an hour winds can do no damage?

CAROLYN GORMAN, INSURANCE INFORMATION INSTITUTE: I think that they -- they do know there was a 28-foot storm surge that came through. Also, there are many houses... KOCH: Six hours after the 125 mile an hour sustained winds.

GORMAN: Well, it's -- it's a difficult situation.

KOCH (voice-over): Of course, insurance isn't the only problem. Small business loans are being granted at a snail's pace. And after all this time, there are still residents waiting for FEMA trailers. Almost everyone here is waiting for something to make their lives whole again.

(END VIDEOTAPE)

HARRIS: "CNN PRESENTS: SAVING MY TOWN, THE FIGHT FOR BAY ST. LOUIS."

You can catch that tonight at 8:00 p.m. eastern right here on CNN.

NGUYEN: And still ahead, FEMA is a four letter word for people living in the hurricane zone. But as Congress weighs in on the agency's failed response to Katrina, what can be done to fix FEMA before the next storm season begins? We're going to try to find out.

BRENDA BERNARD, CNN CORRESPONDENT: I'm Brenda Bernard at the International Desk.

A new era in Palestinian self-government begins this morning and it could mean new problems.

We'll have a live report on "Going Global."

(COMMERCIAL BREAK)

NGUYEN: Here's what's happening right now in the news.

Rescue workers in the southern Philippines say no survivors have been found today in a sea of mud. Up to 1,800 people are missing and feared dead. Half a mountain came crashing down on a farming village yesterday after two weeks of torrential rain.

HARRIS: A search is underway off the coast of East Africa for 10 U.S. Marines. Two Marine transport helicopters like the ones seen here crashed into the sea off Djibouti yesterday. Two injured Marines have been rescued. The Pentagon says there is no indication hostile fire played a role in the crash.

NGUYEN: At least six people have been killed today in Baghdad, including one U.S. soldier and at least five Iraqis. All of them were killed by roadside bombs.

And a variety of winter weather is socking the eastern half of the country. Cold temperatures -- and we mean cold -- are settling over the northern half, with a mixed bag of snow, rain or both elsewhere. The fast moving system is on path through the Southeast and Gulf Coast, then through the Appalachians and Mid-Atlantic. HARRIS: The deadly bird flu may have spread to France. Authorities say a dead wild duck tested positive for the H5 virus and they're pretty sure it had the deadly N1 strain. Further tests are being conducted to determine that.

The virus has spread across Asia and Europe and is now also reported in West Africa and Egypt.

Authorities in New Mexico have captured two brothers described as domestic terrorists. Federal agents say officers raided their home and found illegally firearms, marijuana and several hundred pounds of explosives, enough to bring down a building, they say. The officers said they have no idea what the two men were planning to do with the materials.

And many of you are hoping for a lot of luck today. You're snapping up lottery tickets in hopes of winning tonight's record $365 million Powerball jackpot. It is the biggest lottery jackpot ever. Powerball is played in 28 states, Washington, D.C. and the U.S. Virgin Islands.

NGUYEN: Not Georgia.

We're going to go global now, because a major power shift is taking place in the Palestinian leadership.

HARRIS: Our Brenda Bernard joins us from the International Desk with details -- Brenda, good morning.

BERNARD: Good morning, Tony.

It's official -- the Palestinian government is now in the hands of Hamas, which, as you know, is considered a terrorist organization.

For the past few hours, politicians have been gathered in both Gaza City and Ramallah to swear in the newly elected parliament. They had to do it by videoconference between the two cities because of Israeli travel restrictions on Hamas members.

Our John Vause joins us on the phone from the session in Gaza City -- John, Hamas is already rejecting calls for peace talks with Israel and Israel is already planning sanctions against the Hamas-led government.

It's not looking good, is it?

JOHN VAUSE, CNN CORRESPONDENT: Well, absolutely not, Brenda.

And especially, we heard from the Palestinian Authority president, Mahmoud Abbas, when he addressed the newly elected members of the Palestinian Legislative Council, he laid out a very strong platform, saying essentially he was elected last year to resume peace negotiations with Israel.

He wants to continue on with that as head of the PLO, the Palestinian Liberation Organization. And he's also called on any new government to recognize previous deals between the Israelis and the Palestinians.

That is, of course, the Oslo Peace Accords from 1993. But, also, the U.S.-backed road map to peace.

Now, Hamas is saying it will not negotiate with the Israelis, it will not disarm and it will not renounce violence.

The Israelis are saying until those three steps are taken, there can be no compromise, no negotiations and no dealing.

Just to clarify one point. This is the swearing in of the parliament. The government has actually yet to be formed. What happens now is that Hamas will put forward a candidate for prime minister and that candidate will either be accepted or rejected by the president, Mahmoud Abbas.

So a confrontation could be still days ahead, as Abbas and Hamas negotiate over who will be the prime minister and who will form the cabinet and the coming government for the Palestinians -- Brenda.

BERNARD: Yes, Washington has pushed very hard for Arab democracy, and that's exactly what they have here. So now Washington also is apparently trying to put a financial squeeze on Hamas.

How might that be perceived in the Arab world, John?

VAUSE: Well, it will not be perceived well, of course, and already the United States is asking for $50 million back that was donated to the Palestinian Authority last year. The Palestinian Authority president, Mahmoud Abbas, is reportedly said to be furious about giving the money back, but he said he will. And the United States is also withdrawing hundreds of millions of dollars from the Palestinian Authority, as well.

It must be said, though, that a lot of that money is not directly spent to the Palestinian Authority. And the United States has said it will still try and get into -- get the aid money to the Palestinians through humanitarian groups, through the Red Cross, that kind of thing.

So the Palestinian people, who need this foreign money the most, will still be able to survive, because many Palestinians live below the poverty line and depend on their day to day existence for this foreign aid money, which comes from not just the United States, but also from around the world.

Hamas is saying it will try and make up the revenue shortfall by going to the Arab and Islamic worlds. And they say they will go to Iran to ask for money for help -- Brenda.

BERNARD: That will be very interesting.

Thank you so much, John Vause, for joining us live on the phone there from Gaza City.

Tony -- back to you. HARRIS: Good stuff.

Good stuff.

Brenda, thank you.

NGUYEN: Thanks, Brenda.

HARRIS: Well, this week on Capitol Hill, there was a perfect storm of outrage directed at Michael Chertoff over FEMA's failed response to hurricane Katrina. But what can be done to fix the struggling agency? We will try to find out -- good morning, Brad.

(WEATHER REPORT)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: I have to say that the idea that this department and this administration and president were somehow detached from Katrina is simply not correct in my view and in my recollection of what happened.

(END VIDEO CLIP)

HARRIS: Embattled homeland security chief Michael Chertoff spent this week on Capitol Hill fending tough questions. At a congressional hearing on FEMA's response to hurricane Katrina.

And as the blame game and finger pointing continued, one fact emerged -- Chertoff and the Department of Homeland Security were utterly unprepared to deal with a disaster of this magnitude.

So what happens next?

Should Michael Chertoff resign, as many have called for him to do?

Should FEMA be removed from the Department of Homeland Security?

Here to talk about that is Tara Setmayer, a Republican strategist, and Victor Kamber, a Democratic strategist.

Welcome to you both.

Good morning.

VICTOR KAMBER, DEMOCRATIC STRATEGIST: Good morning.

TARA SETMAYER, REPUBLICAN STRATEGIST: Good morning.

HARRIS: You know, I'm of two minds on this. But I'm not sure quite how to think about it.

But I'll ask you first, Tara, do Americans outside of the beltway care about these hearings, care about the blame game that's going on?

SETMAYER: Well, I think Americans do because this was -- the impact of this natural disaster was just so great and the pictures were so startling that sure, the American people care about this, as they should.

FEMA -- there was a failure in initiative, which was the name of the House report -- and that is absolutely true. There were a lot of things wrong within FEMA. I think this is just a consequence of big bureaucracy. This is what happens.

The Department of Homeland Security is a monstrosity.

HARRIS: Yes.

SETMAYER: And having an agency like FEMA, which is relatively small, 2, 500 employees, under that -- under the umbrella of DHS, I think may have been a mistake. And this report demonstrates that.

HARRIS: Well, good. Good, good.

Let's leave it there.

And, Vic -- let me bring Victor in.

And, Victor, if, as Tara says, America does care about this -- and I agree with that -- then America wants someone to take a hit on this.

KAMBER: Well, I think America would like to have found the fault. Republicans initially thought they gave America the fault in Michael Brown. They hung him out to dry. He was the scapegoat. At his -- at the hearing, however, the other day, Michael Brown was quick to say I'm not to blame.

HARRIS: Yes.

KAMBER: It goes above me. And obviously the 500-page report, the Katrina report, done by Republicans, you remember?

HARRIS: Right.

KAMBER: No Democrats participated -- basically agreed with him. It didn't exonerate him, but basically said there's a lot of blame at the local, state level, but the ultimate blame came to the federal government. It was ill-prepared for this action.

HARRIS: So, Tara, does Chertoff need to go?

KAMBER: In my judgment, probably we should start even above that who should go. But we don't have that choice, so...

HARRIS: Wait. Well, wait...

KAMBER: So...

HARRIS: Hold it.

KAMBER: So I would say yes, the secretary needs to go.

SETMAYER: Well, I don't think the secretary needs to go. I mean we have to -- I'm not going to make excuses for him in that what he does ultimately take responsibility because he is the figurehead of this -- of this cabinet level.

However...

KAMBER: But he didn't take responsibility...

SETMAYER: However, he was only on the job for seven months. The DHS is still at relatively infantile stages, at this point, and people don't understand that bureaucracy is not set up to respond quickly. Have you ever been to your local DMV? Government does not respond quickly to anything. And this is...

KAMBER: That's not an excuse for lives lost.

SETMAYER: Nothing is an excuse, but he should not -- his concentration has been on terrorist attacks and that -- he admitted that, that their focus has been more on that area, which it should be. The Department of Homeland Security...

KAMBER: Tara, Tara...

SETMAYER: ... that should be their role.

KAMBER: Tara, that's not his charge. The charge was that since FEMA is part of his agency, to care. There was a whole plan, a hurricane plan that was there that was never implemented. He was the secretary. The buck stops -- I still think the buck stops with the president, but it definitely stops with him.

HARRIS: All right...

KAMBER: And if there's going to be a scapegoat...

SETMAYER: Yes, but you can't...

KAMBER: ... he should be the scapegoat.

SETMAYER: Every time you make a mistake or something is overlooked -- and hindsight is 20-20. You can't call for everyone to resign all the time. That's not the answer.

What he has proposed, he has proposed...

HARRIS: Well ...

(CROSSTALK)

SETMAYER: ... changes in FEMA, adding 1,500 more employees, because they were understaffed, and there are -- there are things going on in FEMA to make the organization better. HARRIS: Well, Tara...

SETMAYER: They want to maximize the responsiveness.

KAMBER: Tara...

HARRIS: Tara...

KAMBER: ... that contradiction you just said...

HARRIS: Victor, Victor, let me jump in.

Victor, let me jump in.

Tara, let me ask you this. We're four months away from the start of the '06 hurricane season.

Did you hear anything in the hearings to indicate to you that Chertoff has a plan to improve upon at least the readiness this time around?

SETMAYER: Well, yes, because, like I said, he's going to add 1,500 more full-time employees. There was a brain drain, as they call it, in FEMA from 2002. Many of the...

KAMBER: Or a lack of brains.

SETMAYER: Many of the -- many of the disaster relief experts that were there cashed out because they would make more money in the private sector, because disaster relief experts were needed. Everyone had fears of what to do now after September 11th, in case it hit their city.

So since then, they've had -- they needed to replenish that. And I think that this -- that Chertoff recognizes that there needs to be hands-on, very focused implementation of the national disaster plan.

HARRIS: OK...

SETMAYER: They have these things in place...

HARRIS: And, Victor...

SETMAYER: ... and now more attention, at least, will be...

HARRIS: Well, if you want...

SETMAYER: ... will be put on it.

HARRIS: ... if you want maximum attention, Victor, why don't you just pull it out of...

KAMBER: Absolutely.

HARRIS: ... DHS?

SETMAYER: I agree with that.

KAMBER: Absolutely.

HARRIS: Oh, you do?

KAMBER: I mean what Tara said disagrees with her earlier statement. Adding 1,500 more people, making it a bigger bureaucracy in the biggest agency that exists, is not going to be a solution. FEMA should be a separate agency unto itself. If it needs restaffing or additional staffing, let's fund it. And it should have a direct access to the White House.

We're talking about national disasters that affect this country.

HARRIS: OK...

KAMBER: FEMA shouldn't be under some bureaucratic structure.

SETMAYER: No, I already agreed...

HARRIS: Well, Tara...

SETMAYER: ... I already conceded that point, that I thought FEMA should be an independent agency, because disaster relief, natural disaster relief is very different than terrorist attacks.

HARRIS: Well, then let's do this...

SETMAYER: So and that...

HARRIS: Let's do this. Let's end it there, on a point of agreement.

Tara, Victor, good to talk to you both.

KAMBER: Thank you.

Good morning.

SETMAYER: Thank you.

HARRIS: Thanks for getting up this morning and coming in -- Betty.

NGUYEN: You got them to agree. That takes skill, Tony. It takes skill.

Well, a New Orleans story now in production chronicles the events players surrounding Hurricane Katrina. New Orleans attorney and amateur filmmaker Stephen Rue lived the tragedy he filmed. The documentary has the only personal interview with disgraced FEMA Director Michael Brown.

The interview with Brown lasted more than two hours. It touched on who he thinks handled the situation well and who did not. And, Director Stephen Rue surprised the former FEMA chief by offering his forgiveness to Brown.

(BEGIN VIDEO CLIP)

MICHAEL BROWN, FORMER FEMA DIRECTOR: Thank you.

Thank you.

You did that on purpose at the end.

STEPHEN RUE, FILMMAKER: No. No.

No, I didn't.

That -- does that matter to you?

BROWN: It matters a great deal to me.

Thank you.

(END VIDEO CLIP)

NGUYEN: Now, it is understandable the former FEMA chief got so emotional. For the past six months, life in the hurricane zone has been an endless roller coaster ride of emotion for the hundreds of thousands impacted by that storm.

You can see for yourself later tonight, when "CNN PRESENTS: SAVING MY TOWN, THE FIGHT FOR BAY ST. LOUIS."

Our Kathleen Koch returns to her hometown as it struggles to recover from Hurricane Katrina.

You can catch that tonight and tomorrow night at 8:00 Eastern right here on CNN.

Up next, you want to hear some interesting water cooler talk?

Yes, we have something that will get those tongues wagging, ahead, when CNN SATURDAY MORNING returns, in just a moment.

(BEGIN VIDEOTAPE)

CHRISTY FEIG, CNN CORRESPONDENT (voice-over): Stroke isn't just a man's disease. In fact, of every five deaths from stroke, three are women and two are men. Now new research shows that those who have had minor strokes have a 43 percent chance of another vascular problem within 10 years.

Investigators looked at 2, 400 stroke patients from hospitals in the Netherlands and found that roughly a decade after they had had a minor stroke, about 60 percent of them had died. Fifty-four percent had experienced another stroke.

Doctors say the study shows a mini stroke is a clear warning that major strokes or other vascular problems may occur within 10 years.

Christy Feig, CNN.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

NGUYEN: All right, you've heard all the important news today. But there is always much, much more to tell you about.

HARRIS: Well, it's a little something we like to call the CNN Water Cooler.

Here's CNN's Carol Lin.

(BEGIN VIDEOTAPE)

CAROL LIN, CNN ANCHOR (voice-over): Face value of a rare U.S. bank note -- $1 million. Investment raised from eight Japanese investors to buy the rare bank note -- $1.25 million. Anticipated return to investors upon immediate selling of rare bank note -- $10 million. Look on their face when they found out the U.S. Treasury has never issued a million dollar bill -- priceless.

Either someone has a fetish for fake legs or they are hell bent on keeping Melissa Huff from playing softball. For the second time since November, a burglar has run off with a pair of her artificial legs. Melissa of Temple City, California, lost her leg in an accident two years ago. The artificial legs cost as much as a car. So replacing them is a huge deal. The everyday cosmetic leg costs $12,000. But the sports model to play softball, which is Melissa's passion, cost $16,000.

Try following along. The niece is older than her uncle by more than an hour. The uncle's mom is the niece's grandma. The niece's mom is the uncle's sister. The niece is named after a British luxury car. The uncle is named after an American pickup truck. And for the rest of their lives, they'll probably be treated as brother and sister.

(END VIDEOTAPE)

NGUYEN: I'm still scratching my head.

What?

How does that family lineage go there?

The niece is the uncle's grandma is the who?

HARRIS: Is sounded like a Georgia story, didn't it? Where is that story...

NGUYEN: Brad, can you sort this out?

(WEATHER REPORT)

NGUYEN: All right, Brad. HARRIS: Have you been working out yet?

NGUYEN: I'm still trying to figure out...

HARRIS: This area?

NGUYEN: ... the niece, the uncles, the grandmother's son...

HARRIS: Right.

NGUYEN: I don't even know.

HARRIS: We're stuck at the Water Cooler.

NGUYEN: It's -- argh! It's one of those things that you've just got to figure it out.

HARRIS: You've got another hour to figure it all out.

NGUYEN: Yes, maybe by then.

HARRIS: Yes.

NGUYEN: But I doubt it.

HARRIS: The next hour of CNN SATURDAY MORNING continues in a moment.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN ANCHOR (voice-over): Closing costs down, title fees, appraisal fees, document preparation fees -- sealing a deal on your home can really add up. But you can curb those costs. Get a good faith estimate. All lenders are required to give you an estimate of your closing costs within three days after you apply for a loan. And while it's no guarantee, it will give you an idea of how much you'll be expected to shell out.

Question all the fees. Make sure you know what each item is and whether it's required. And don't be afraid to ask for reasonable cost breaks. You may be able to negotiate a better price on some items.

So get an estimate and always ask questions.

That's your Tip of the Day.

For more, watch "OPEN HOUSE," Saturday mornings, 9:30 Eastern, on CNN.

(COMMERCIAL BREAK)

NGUYEN: We've got a developing story for you out of Nigeria.

Three Americans and a British citizen have been abducted there.

Militants have been attacking oil and gas pipelines in the Western African nation in the recent months.

We'll be following this.

HARRIS: And two U.S. warships and 1,000 Marines are headed to the eastern Philippines right now in response to a deadly mudslide. Some 1,800 people in one village are missing and believed dead. So far, 35 deaths have been confirmed.

NGUYEN: Well, time is of the essence in the search this morning for the crews of two U.S. Marine Corps helicopters. They crashed yesterday off the eastern African coast. Ten of the 12 crew members are still missing at this hour. And it's still not clear what caused the crashes. But, officials say, there was no sign of hostile fire.

HARRIS: A U.S. soldier and at least four Iraqis have been killed today by roadside bombs and other attacks in Baghdad. The U.S. military says a roadside bomb struck a American vehicle, killing a soldier assigned to the multinational division.

NGUYEN: CNN reporters are poring over recently discovered audiotapes in which Saddam Hussein speculates about a terrorist attack on the United States, possibly involving weapons of mass destruction. The tapes date from the mid-1990s but were released to us this morning. You'll want to stay with us for more explanation when our senior editor of Arab affairs, Octavia Nasr, delves into these tapes next hour.

HARRIS: A tough talk from the militant group Hamas, which officially took over the Palestinian parliament this morning. Already the group is rejecting Palestinian leader Mahmoud Abbas' demand that they support negotiations with Israel.

From the CNN Center, this is CNN SATURDAY MORNING. It is February 18, 8:00 a.m. here at CNN headquarters in Atlanta, 9:00 p.m. in the Philippines.

Good morning, everyone. I'm Tony Harris.

NGUYEN: And I'm Betty Nguyen. We want to thank you for being with us today.

Still to come right here on CNN SATURDAY MORNING, a few good men, maybe some not so good. Who's getting into the Army these days? The answer just might surprise you.

Also, long lines, big odds, and a record jackpot. The lottery machines are spitting out tickets like crazy. Going to tell you what your odds are of winning 365 million bucks.

HARRIS: Wow.

NGUYEN: Yes. And the White House, it's been a man's world, but it might not be in 2008. Who has the best shot at being called Madame President? We'll get some ideas later this morning.

HARRIS: Hopes fading, rescuers say the chances of finding more survivors in the deadly Philippines mudslide are slim, 1,800 people are missing. So far, only 57 survivors have been pulled from the rubble.

CNN international correspondent, Hugh Riminton, joins us via videophone from the Philippines with the very latest. And Hugh, there was some encouraging news in your report last hour of some knocking, some tapping that may indicate that more people have survived.

RIMINTON: An agonizing decision, this one, Tony. It's nightfall now. They have no power supply anywhere on this landslide slope, so they couldn't continue their searching, far too dangerous to try to do it by torchlight. They've had to go off and wait until dawn tomorrow.

But what has galvanized them is the reports that knocking, tapping was heard from underneath 10 feet of mud and rubble coming from the vicinity of an elementary school that was buried. There were 240 children at that school when the landslide came through, about seven teachers there as well, and other visitors to the village.

Of course, this has reignited efforts to try to get everything in there. The appeal has gone out to the United States to see if they've got any specialist equipment at doing what's called construction cavity searches, the very specialized area of search and rescue, which is where the experts try to get in and filter their way down -- you see it in earthquake rescues -- through slabs of concrete and so on, in case there's someone alive inside.

They don't know if that equipment's around, but some is being flown in from Malaysia. They hope to get that up into the field before too long.

HARRIS: Hugh is this a totally surprising development? Or is this an area prone to mudslides?

RIMINTON: The mudslide itself is not an unusual event here. It has high rainfall. It's on an earthquake zone. There is -- no great heavy engineering gets put in place to shore up things. There have been disasters here in the past.

This one, though, is just -- it was just terrible from the way it came apparently without warning, and was almost cruelly targeted on this village to utterly obliterate it. And we had the painful scenes today of the 50-odd people who were away from the village at the time, who have survived, obviously, going down to try to look for bodies of their loved ones, knowing that their entire families have probably been annihilated in this disaster. Some really dreadful scenes there, Tony.

HARRIS: And no doubt that children who were in that school are among the dead.

RIMINTON: That's right. I mean, the word that came out from a senior official that he thought it was credible, this knocking sound, and that it was worthy of investigation, and every effort to try to rescue people has certainly given a morale boost, it's galvanized the rescue effort. But no one can deny the lives it treated (ph) because it as to come to something, that this has been a terrible death toll here, and many of them are children.

HARRIS: Hugh Riminton for us in the Philippines, reporting on that horrible mudslide. Hugh, thank you.

NGUYEN: Stories across America now.

Police in Phoenix, Arizona, respond to a suspicious package call, but they find a whole lot more. They sent a robot in to check out what was inside this stranded SUV. Police say they found canisters filled with an unknown substance. Well, they now believe the substance is chemicals used to make methamphetamines, and this SUV is actually a mobile meth lab.

Now to California. A 3-year-old Iraqi girl is recovering after surgery to fix wounds she got when U.S. forces accidentally bombed her home in Iraq. The explosion killed her two brothers and a cousin. The girl was brought to the U.S. by a group that funds medical treatment for children.

It is time to gear up for Mardi Gras. And that is just what they're doing down in New Orleans. The big celebration is more than a week away, but parties, parades, and festivities are already kicking into high gear. We're going to have a live report on that a little bit later this morning.

HARRIS: A biting cold, ice, snow, sleet, and fierce winds, look at the boxes there, all of that.

NGUYEN: You know it's serious when we got the boxes up.

(LAUGHTER)

HARRIS: Yes, yes. I do sense (ph) it.

The remnants of nor'easter stirring up quite a nasty winter weather concoction. It's hard to drive, hard to walk, hard to shop. When will it all end?

NGUYEN: Well, Brad Huffines is here to tell us about that. Brad, you got an answer for us?

(WEATHER REPORT)

NGUYEN: Thank you, Brad.

Well, not you, Brad, but do you have a criminal record or a drug or alcohol problem?

(CROSSTALK)

HARRIS: What a question this morning.

NGUYEN: Let me tell you why, because there may be a place for you if you have all of that in the United States Army. That's right. Coming up, the search for soldiers. Is the Army lowering its standards to meet wartime goals? We'll talk about it. HARRIS: Also, believe in miracles, do you? Well, if so, you might want to get in on Powerball...

NGUYEN: Oh, yes.

HARRIS: ... mania. Today's jackpot is the biggest in U.S. history. What are the odds of winning? We'll tell you ahead on CNN SATURDAY MORNING.

NGUYEN: Going to need a miracle.

(LAUGHTER)

(COMMERCIAL BREAK)

HARRIS: Another developing story we're watching, this one off the Horn of Africa. U.S. and allied forces are in an urgent search. Ten crew members are still missing a day after two U.S. Marine helicopters crashed off the coast of Djibouti. Two Marines have been rescued. The helicopters are part of a squadron based out of Jacksonville, North Carolina.

Our Pentagon correspondent Barbara Starr was in Djibouti a few weeks ago, actually, and flew with this unit. She is now on the phone with us. Barbara, first of all, I think a lot of folks would be surprised to know that there is a base there. But you certainly confirmed that up for us when you were there awhile ago. But give us a sense of this area, this terrain that we're talking about. Are we talking about a mountain search, a water search right now?

BARBARA STARR, CNN PENTAGON CORRESPONDENT (on phone): Tony, good morning.

It is over water off the coast of Djibouti in the Horn of Africa. The search does go on for 10 missing crew members from those two Marine Corps CH-53 helicopters that crashed yesterday over the ocean.

No indication of hostile fire, so the logical conclusion at the moment is that the two helicopters suffered a midair collision.

You're right. We were in Djibouti interviewing General Tim Gormley last month about the mission out there. There's about 1,400 troops in the Horn of Africa. And what they do is everything but combat. They are on a humanitarian relief mission in the Horn. They ferry supplies, troops, they perform humanitarian relief projects all over eastern Africa in the Horn region.

These two helicopters were on a training mission at the time of the accident. They are out of Jacksonville, North Carolina. Likely to be very, very tough for the troops out in Djibouti. As I say, there's only about 1,400 of them. It's a pretty close-knit base out there. So pretty sad times for them.

But this morning, still hopeful they are -- it is now an international search and rescue effort in the water there. There are U.S. Navy ships there, an Italian ship, a French ship, French helicopters. And the military of this very small nation of Djibouti is also lending a hand, Tony.

HARRIS: Ah, Barbara, we note that there is no indication that the helicopters were brought down by hostile fire. That sort of begs the question, are there any hostilities to speak of on the ground in that region?

STARR: Not in Djibouti, I mean, not in Djibouti per se. It is not a hostile environment to the U.S. They have welcomed them, as well as a significant French military force that remains there. That is very unlikely to be the issue.

HARRIS: Yes.

STARR: By all accounts, as you can see from the pictures we're showing, when we flew with this unit, the helicopters always do fly in pairs, two at a time. So if one helicopter somehow got in trouble and had to put down, the other helicopter could come along, pick everybody up, and everything would be fine.

It is not unknown, unfortunately, when helicopters fly in pairs, that sometimes, unfortunately, they get too close somehow, and they do collide. It's very tragic, but it does happen.

And the early indications, at least at this point, is that is the most likely scenario here, Tony.

HARRIS: Yes. Pentagon correspondent Barbara Starr for us. Barbara, we appreciate it, thank you.

NGUYEN: Tony, relaxing the rules. The Army opens its doors to recruits with a problematic past. From criminal behavior to drug and alcohol abuse, the Army has sharply increased the number of recruits who normally would have been barred from the service.

Last year, almost one out of every six Army recruits had a problem in their background, compared to one in eight the year before.

So, has the search for soldiers gone too far? Or is it OK for the Army to lower its standards to meet wartime goals?

Joining me now from Columbus, Ohio, is Allan Millett, director of the Eisenhower Center at the University of New Orleans.

Good morning to you.

ALLAN MILLETT, PROFESSOR OF MILITARY HISTORY: Good morning. How are you today?

NGUYEN: I'm doing great. Let's talk about this, because this is really interesting. And for some folks, it may be a little surprising and a cause for concern. When we talk about the Army standards, and its increase in waivers to people with criminal history, what kind of criminal history are we talking about? How serious are the crimes?

MILLETT: Well, it's hard to say without looking at the individual cases. In some ways, the privacy laws make that difficult. In any event, I think the big distinction would be between felonies related to violence or, you know, just misdemeanors or traffic problems or the like. Really would depend upon just how this sorted out in terms of the severity of the crimes.

And the fact the Army's granted waivers is no secret. As you pointed out, that's been a standard practice. What that means is that if they find somebody who's, they believe, highly qualified on other criteria, they don't want some kind of youthful indiscretion blocking them from military service.

NGUYEN: But they're granting more waivers this times around. Now, that, I know that fluctuates with the years. But is it more difficult to get recruits this time around, simply because the country is at war?

MILLETT: Oh, I'm sure it is, that the Army particularly has had some recruiting shortfalls, both in its active and reserve components. Anyone who's -- who joins the Army particularly, or the Marine Corps, for that matter, can count on going to Iraq, at least in the near future.

And I think people understand that this is a dangerous and very taxing environment. So I'm sure they're having problems recruiting.

NGUYEN: All right. Taking into account the criminal background and the fact that some of these recruits with waivers do have drug problems, given the Abu Ghraib prison scandal and allegations of human rights violations at Gitmo, is the Army granting these sorts of waivers, is it in any position to grant these sort of waivers?

MILLETT: Well, I think it depends on what the soldiers do once they become soldiers. The standards for being a military policeman are generally much higher than those of an ordinary recruit. I'd be very surprised to find military policeman who've got criminal backgrounds or, you know, have an incident. I think there's a difference between being a hardened criminal and being the kid who got into a bar fight someplace.

If the person has some talent and potential, it may very well be a good investment. It's been standard practice in the military, at least until recent times, to give people a second chance by allowing them to serve and therefore proving that they're good citizens.

NGUYEN: Well, what kind of effect does it have on the Army as a whole and the U.S. military's ability to protect us?

MILLETT: Well, I doubt that it has a whole lot of effect, at least thus far. The environment, obviously, is far more controlled. Soldiers are trained. If they're impossible to train, if they're maladjusted, then the Army has the authority to release them very early in their career.

So in a sense, these are social experiments. I think the question is, is it worth the time and effort to try to rehabilitate these folks, and then get some service out of them? It's a little -- I'm sure the Army's got some statistics on whether people who receive waivers for a criminal episode in their lives finish their enlistment. They've statistics on everything else. So I'm sure...

NGUYEN: Yes, well, you say social...

MILLETT: ... that they have those too.

NGUYEN: ... experiments. With these experiments, is there a way to just to really bypass all of that, simply by boosting the bonuses? Is there a way to get around these waivers and getting people that are qualified without a waiver?

MILLETT: Well, I suspect there might be some. But I think, for the urgency at the moment to make end strength in the like, to hit quotas, is probably forcing the temporary policy change that's increased the frequency...

NGUYEN: Yes, well, the country ...

MILLETT: ... of these waivers.

NGUYEN: ... is at war, yes. Allan Millett, we appreciate your time and your insight today. Thank you.

MILLETT: Thank you very much.

NGUYEN: Tony?

HARRIS: So what would you do with $365 million? A record lottery jackpot is just a few lucky numbers away. The grand prize could be yours. But you have to stay tuned with us here on CNN SATURDAY MORNING to find out more.

We'll be right back.

(COMMERCIAL BREAK)

HARRIS: You knew that was, you knew that was coming, right?

NGUYEN: That was the sound of money.

HARRIS: Yes, a little Pink Floyd for you. Knew that was coming, right?

NGUYEN: I knew

(CROSSTALK)

HARRIS: Edward Eddig (ph). Who wants to be a millionaire?

NGUYEN: Me.

HARRIS: How about a $365 million mega-millionaire? When it's all said and done, folks, all over the U.S., they're hoping they're holding the winning tickets.

After tonight's record-breaking Powerball drawing, CNN'S Gary Nurenberg is in Washington, where many people seem to have come down with a severe case of lotto fever. Gary, good morning.

GARY NURENBERG, CNN CORRESPONDENT: Good morning, Tony.

Just talked to a gentlemen who dropped $40 on Powerball. Powerball started as Lotto America in 1987 in seven states, became Powerball in 1992, now it is in 28 states across the country.

Also here in D.C., where there've been long lines all morning, and in the Virgin Islands. This jackpot, the largest in American history, $365 million, is the biggest since the $363 million jackpot in 2000. There was a big winner last year of $340 million, two ticket winners in Illinois and Ohio, if I remember properly.

But everyone here thinks that this is their big chance to hit it rich, even though we're told you have a better chance of being hit by lightning twice than of winning the Powerball.

We talked to some people this morning about why they're taking the chance.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Three hundred and sixty-five million, why not? I mean it's a chance in a lifetime. But it's a chance in a lifetime.

NURENBERG: How many tickets you buy?

UNIDENTIFIED MALE: Nine. That's my favorite number. Reggie Jackson wore nine. It did him well, why not me?

UNIDENTIFIED MALE: I'm playing because I want to be hit by a (INAUDIBLE). I want to be hitting that Powerball. Definitely, I could use it.

NURENBERG: How much are you going to spend today?

UNIDENTIFIED MALE: Oh, I'm going to spend about $30 on the Powerball today. And hoping I can get something. I don't need the $300 million, just if I just can get $2 million, I'd be all right.

(END VIDEOTAPE)

NURENBERG: Yes, $2 million wouldn't be bad.

We talked to one person who came in from Maryland's got $100 in Powerball tickets today. You can't buy Powerball in Virginia or in Maryland, which are the immediately adjacent states, and that's why, Tony, lines like this one in D.C. are so long this morning, and are likely to be long until they stop selling them tonight.

HARRIS: That is a little crazy there.

NURENBERG: Tony, send me money.

HARRIS: Well, yes, well, you ... NURENBERG: Send me money, I'll buy one for you.

HARRIS: Well, here's the thing. Grab your Blackberry, because Betty's going to send you a list of numbers she would love for you to play for her. And you're going to send the cash down as well?

NGUYEN: I'll send the cash, promise I will, Gary. You just send me my winning ticket, would you?

HARRIS: Yes, yes, yes. Thank you, Gary.

NURENBERG: You know - OK ...

(CROSSTALK)

NGUYEN: No, go ahead, Gary, what? What were you going to say?

NURENBERG: Just that, you know, there's good news and bad news if I win. The good news is, you guys get an all-expense-paid trip to South America.

NGUYEN: Yes.

NURENBERG: The bad news is, I haven't yet decided if it's round trip.

HARRIS: Yes, yes, yes ...

(CROSSTALK)

NGUYEN: Ah, ho-ho, you may just leave us there.

(CROSSTALK)

NGUYEN: ... that's kind of mean, yes.

(CROSSTALK)

HARRIS: ... All right, Gary, thank you.

NGUYEN: All right, Gary. A comedian ...

(CROSSTALK)

HARRIS: Wow.

NGUYEN: All right, let the good times roll, whether you're a millionaire or not. Mardi Gras is just 10 days away, but the party kicks off today. Coming up at 9:00 a.m. Eastern, we are going to go live to New Orleans for the festivities.

HARRIS: But first, new studies show that low-carb diets may raise your bad cholesterol, and low-fat diets may not help your heart at all. Boy, next on "HOUSE CALL," Dr. Sanjay Gupta makes sense of these studies so you can have a healthy heart.

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