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American Morning

Iranian Plane Fire; Update on Tropical Storm Ernesto; Patient Killings?; Pressure Bears Down on Iran on Nuclear Deadline

Aired September 01, 2006 - 08:58   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: A developing story this hour out of Iran. Dozens killed when a plane catches fire while it's landing.
MILES O'BRIEN, CNN ANCHOR: Ernesto opens up the floodgates on North Carolina and now Virginia. The Potomac could flood Washington. And the storm is heading inland.

Hurricane John upgraded now to Category 3, threatening Baja, California. CNN severe weather expert, Chad Myers, watching it for us.

S. O'BRIEN: Kind of like a baby boomer's flashback. The original fast-food restaurant, the automat, is making a comeback.

The big question, of course, is, how does it taste? Jeanne Moos takes a look.

Those stories, much more ahead on this AMERICAN MORNING.

And welcome back, everybody. I'm Soledad O'Brien.

M. O'BRIEN: And I'm Miles O'Brien.

Thanks for being with us on this Friday.

We begin in northeastern Iran, where a burning airliner has now claimed the lives of at least 60 people. It happened as the jet landed in Mashhad. Apparently, a tire blew, and that might have set off a sequence of events that sparked a fire.

CNN's Aneesh Raman joins us live from Tehran with more.

Aneesh, what do we know?

ANEESH RAMAN, CNN CORRESPONDENT: Miles, good morning.

Iran's transport minister in just the past hour said somewhere between 60 and 80 people are confirmed dead in this incident. Essentially, what we know is that as this plane was landing, as you mentioned, in Mashhad, in northern Iran, a tire burst. At that point, according to the pilot who survived -- and this is according to the transport minister -- the plane then veered off and crashed. There are other reports that upon the tire bursting, the plane was then engulfed in flames.

We know there are about 150 people that were on board this flight. Video has emerged from the scene. It confirms that the fire has now been brought down, that the situation is under control on the site.

We know that a number of people are in serious condition. Among those that did survive, they are in hospitals. Some 20 ambulances were rushed to the site.

We know as well, though, as independent reporters, those not with state-run television, are not being allowed on the site. So all of our information at the moment is coming from either state-run news services or from government spokespeople.

Now, this flight, as it landed the tire burst. That is not an uncommon occurrence here. Tires burst about twice a year on flights, often without casualties. It is endemic in an aging air fleet for airline's industry.

The average age, we understand, 16 to 17 years old. Many of these planes are Russian made, including the one that was engulfed in flames this morning.

Some of them are American made. The are pre-revolution, if that gives you a sense of how old they are. Iran's government has long said that sanctions that are currently imposed on the country prevent them from getting the necessary parts to keep their air fleet up to date -- Miles.

M. O'BRIEN: Aneesh, just looking at the videotape -- and it appears it is a Tupolev 154. I said before a 727, maybe. A very similar type of airplane.

This is a Tupolev. Of course it's a Russian-made version of that.

The weather appears to be good there and the runway is plenty long. Do we have any indications as to what might have happened?

RAMAN: Well, given the history that we have seen with air incidents in Iran before, it seems very likely that the information we're getting is correct, that a tire did burst. As I said, a couple of times a year this happens.

But the casualty numbers we are seeing today, again, the transport minister saying between 60 and 80 people killed. Local media saying the report -- the number is actually higher, closer to 90 people killed.

We haven't seen that in over a year. About a year ago, around a hundred people were killed not because a tire burst, but because a plane actually crashed.

So it does seem likely that this is the cause. Iran's government says it will investigate. We expect as well to hear sometime today from Iran's president on this incident.

He spoke earlier this morning on the nuclear dispute, of course the other issue that Iran faces. It was before the crash, so we expect to hear from him in the coming hours -- Miles.

M. O'BRIEN: Aneesh Raman in Tehran.

Thank you very much -- Soledad.

S. O'BRIEN: A scary scene to tell you about in Silver Spring, Maryland, this morning. A group of children were waiting for their school bus. Then a van lost control, plowed right into the kids.

Ten children were hit. Nine of them were taken to hospitals. They range in age from 10 to 14. Six of the kids are being treated for serious injuries, although we're told that none of those injuries are life-threatening.

Police are investigating the cause of the accident. We're told that they're not releasing the name of the school that was involved because they haven't notified all the parents yet.

Let's talk about the hurricane. And we're really watching weather everywhere this morning. Heavy rain, damaging wind, kind of the tale of two storms.

In the East we've got Tropical Storm Ernesto dumping buckets of rain on the Carolinas and now a little bit further north. And out West, Hurricane John threatening tourists and others in Mexico.

Our correspondents standing by with the very latest. Kathleen Koch in North Carolina. Harris Whitbeck in Mexico. And our severe weather expert, Chad Myers, is at the CNN Center in Atlanta.

Obviously we're having a little trouble with Harris' live shot. So we'll get to him in a moment and we'll start with Chad.

Hey, Chad. Good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Soledad.

(WEATHER REPORT)

MYERS: Back to you guys.

S. O'BRIEN: All right, Chad. Thank you for the update.

Let's see how things are in North Carolina this morning. Kathleen Koch is there for us.

Hey, Kathleen.

KATHLEEN KOCH, CNN CORRESPONDENT: Hi, Soledad.

You know, residents here remember 1999 very vividly, when Floyd dumped some 22 inches of rain on this area in less than eight hours. But luckily, Ernesto was no Floyd.

We got only about an inch and a half of rain here. The rain has largely stopped. But as you can see, we've got these strong gusts really still whipping around here, upwards of 30 miles an hour. And what that is causing is a lot of trees, a lot of power lines to come down.

Nearly 70,000 residents in North Carolina right now without power. And we have been hearing in recent hours here in Raleigh a lot of trees coming down on people's homes, smashing through the roofs, but so far no reports of injury.

Now, the worst of the rain, worst of the flooding was on the Gulf Coast, down near Wilmington, down near Long Beach, where Ernesto came in right around midnight last night with sustained winds of about 65 miles an hour. It was a Wilmington area that got a record 9.5 inches of rain from the storm. They evacuated many people in low-lying areas there, sent them to shelters.

In this area they were taking no chances, again because they have had severe flooding in the past. They had 25 swift water rescue teams on standby, ready just incase. Additional members of the National Guard, state troopers ready to help, especially as cars started get back out on the roads this morning, driving down flooded roadways and potentially taking some chances. But we've heard of no rescues right here in the Raleigh-Durham area that have had to occur, and a lot of that is thanks to the fact that schools in North Carolina, many in the state, have closed. In this area, delayed their start for a couple of hours.

So, again, the feeling here is that it could have been much worse.

Back to you.

S. O'BRIEN: Which is a nice sigh of relief there.

All right. Thanks a lot. Appreciate it.

Kathleen Koch for us this morning.

In Lexington, Kentucky, the pilot flying who was flying that Comair jet that crashed on Sunday is doing a little bit better. Copilot James Polehenki had his third surgery yesterday. He was the sole survivor after Flight 5191 crashed just after takeoff.

Forty-nine other people on that plane died in the crash.

M. O'BRIEN: A massive manhunt under way right now in western New York. Authorities are looking for a suspect in the shooting of two state troopers. Police say they were ambushed last night and shot with a high-powered rifle. Both said to be in critical condition this morning.

The suspects, Ralph Phillips (ph), is a convict who escaped prison in April. He is suspected of shooting another state trooper in June.

Polygamist cult leader Warren Jeffs could be transferred to Utah as early today. Jeffs did not fight extradition during a court appearance in Las Vegas yesterday. He's accused of arranging marriages between young girls and older men who are part of his sect.

A large wildfire in Montana could be slowing down. It has burned 156,000 acres already. Still dangerous. People in Stillwater and Sweet Grass are still out of their home this is morning. About 35 structures destroyed by the flames so far.

New Yorkers, your tram to Roosevelt Island is back in action this morning. Last spring it stalled. Dozens of passengers stranded for hours over the East River. Authorities seem convinced they have the kinks worked out. Made some improvements. Emergency kits and, just incase, toilets.

And here's to you, Eastford, Connecticut. You can hoist a glass of an adult beverage there at a restaurant for the first time since 1876. A hundred and thirty years of prohibition ended there last night.

We'll drink to that.

Voters approved the change. It was kind of close, though, 330- 287.

S. O'BRIEN: Did you see the VMAs last night, the Video Music Awards?

M. O'BRIEN: No. Well past my bedtime.

S. O'BRIEN: It's kind of late for us. But fashion, 10 out of 10.

M. O'BRIEN: Really?

S. O'BRIEN: Fabulous fashion.

M. O'BRIEN: So that's the only highlight in your mind is the fashion?

S. O'BRIEN: Well, not only in my mind. Some critics sort of said the same thing. They said it was little bit of a yawn, that, in fact, you know, the reviews, eh, iffy on it. They said it didn't have any shock value.

You know, we're so used to the VMAs kind of shocking people.

Remember the big kiss between Britney and Madonna that one year? Blah, blah, blah.

M. O'BRIEN: Oh, that was there, yes.

S. O'BRIEN: This year, Justin Timberlake opened with his hit which is called "Sexy Back." There were no wardrobe malfunctions.

It was hosted by comedian Jack Black. There was one unscripted moment when this guy -- let's see if we can see a shot of this -- kind of walks up. There he is.

M. O'BRIEN: Oh, the guy right there.

S. O'BRIEN: The guy in the black T-shirt. He's trying to grab the trophy from J.Lo, who's so not giving it up.

He -- these guys won best video of the year. They wrote "I Write Sins Not Tragedies."

What group is that again?

M. O'BRIEN: Oh, gosh. I know.

Help us out.

S. O'BRIEN: Come on, Pete.

M. O'BRIEN: Panic! At the Disco.

S. O'BRIEN: Panic! At the Disco.

I got no help from the floor on that one.

Thanks, guys. We appreciate that.

M. O'BRIEN: We -- everybody here has proved that we are of a different vintage, OK?

S. O'BRIEN: Thank you. Thank you very much.

M. O'BRIEN: All right. We've go The Temptations down, Earth, Wind & Fire.

Houston, we have a problem. One year ago the welcome mat was out, but not anymore.

Coming up, we'll tell you why so many folks in Houston are upset about Katrina evacuees.

S. O'BRIEN: Plus, a New Orleans doctor and two nurses who are accused of killing patients in Katrina's aftermath. Could it be politics that keeps their case from going to trial?

We'll take a look ahead on AMERICAN MORNING.

We're back in a moment.

(COMMERCIAL BREAK)

M. O'BRIEN: From the Big Easy to the Big Apple. New Orleans mayor Ray Nagin is in New York City, in some big trouble today. But he's here to attract some business. The visit comes after his honor criticized the rebuilding pace in lower Manhattan after 9/11. He referred to Ground Zero as "a hole in the ground."

It will be interesting to see what he says today.

In Houston, the mayor is adding 140 police officers to the city's west side. The move coming after more than 1,700 residents in that part of town told the mayor they wanted Katrina victims out of their neighborhood. They blame the evacuees for violent crime rates that have increased almost 14 percent in one district.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We just want you to understand our situation in this community. I mean, we appreciate your work and your hard work that you've done, but we want the New Orleans residents to go home.

(APPLAUSE)

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We can't walk to a park that was put in that is wonderful without being accosted. I want to know what you all are going to do about it, or do we have to take it into our own hands?

(END VIDEO CLIP)

M. O'BRIEN: The Houston Police Department says it does not know how many of these crimes are really linked to Katrina evacuees -- Soledad.

S. O'BRIEN: It was a year ago today that perhaps one of the most shocking stories following Hurricane Katrina was developing. Louisiana's attorney general says that desperate medical workers murdered their patients in order to speed up the evacuation of a New Orleans hospital.

CNN investigative reporter Drew Griffin uncovered yet another twist to this very twisted story. He's at the CNN Center in Atlanta this morning.

Hey, Drew.

DREW GRIFFIN, CNN INVESTIGATIVE CORRESPONDENT: Good morning, Soledad.

You know, despite the arrest of this popular doctor and two nurses in the deaths of these four patients, they are unindicted to this day, and the case may never go to trial. And some say it may be boiling down to good old New Orleans politics.

(BEGIN VIDEOTAPE)

GRIFFIN (voice over): It was a shocking photo. Bodies of Katrina's dead lined up inside the chapel of New Orleans Memorial Hospital. Another shock came weeks later when this doctor, Bryant King (ph), told CNN some of the dead may not have been victims of the conditions after the hurricane but victims of medical professionals.

UNIDENTIFIED MALE: I looked around, and one of the other physicians had a handful of syringes. And the only thing I heard her say is, "I'm going to give you something to make you feel better."

GRIFFIN: Louisiana's attorney general, Charles Foti, said he couldn't ignore the stories of possible patient killings at Memorial Hospital.

CHARLES FOTI, LOUISIANA ATTORNEY GENERAL: Family members reported suspicious deaths. Life care hospitals self-reported suspicious deaths. A number of state agencies called us and said that they had complaints on suspicious deaths. And so we -- once we had this information, we are mandated under federal law to start an investigation.

GRIFFIN: And what he discovered was shocking.

FOTI: This is not euthanasia. This is a homicide.

GRIFFIN: In July, Foti announced the arrests of Dr. Anna Pou and two nurses, Cheri Landry and Lori Budo, on charges of second-degree murder of four patients. But while Foti can arrest and bring charges, the local prosecutor must bring the case to trial. And so far, the Orleans Parish attorney, Eddie Jordan, who now has the case, won't say what he's decided to do.

(on camera): Like everything else in this city, it may be boiling down to politics. District Attorney Eddie Jordan has refused to discuss this investigation. At least with CNN.

What we have learned is that lobbyists for the hospital have talked to Mr. Jordan about this case, and so have many attorneys who do not want to see the case go any further.

(voice over): Mr. Jordan says that it's common for lawyers to talk to him about their cases but it doesn't affect his decision. It is the latest of many twists in the year since Katrina.

Charles Foti sat down with CNN to explain why he pursued this case.

(on camera): Was it difficult for you to believe this could have happened?

FOTI: Absolutely. My brother is a doctor. A number of my family members are either doctors or former assistant nurses, physical techs. You want to believe that everything happened right.

GRIFFIN (voice over): But critics accuse Foti of rushing to judgment, grandstanding, disregarding the horrible conditions inside the hospital after Katrina, blaming medical professionals for the government's and hospital owner's failure to evacuate.

FOTI: This is not a broad-brush investigation. This is specific fact as those facts were -- as those facts came to light to prove that these people -- these suspicious deaths were not suspicious, that there was the possibility of homicide.

GRIFFIN: Foti says the case remains open, and sources familiar with the investigation tell CNN as many as five more patient may have been killed and others could be charged. Attorneys for the three medical workers say their clients will plead not guilty, and friends and family of the accused, like Dr. Anna Pou's brother and sister, say Foti's got it all wrong.

MICHAEL POU, DR. POU'S BROTHER: They were there. They didn't cut and run. It was unbearable conditions.

They, along with many other doctors and nurses, worked through it. And to have this, you know, after the fact is just unbelievable from people who, in my biased opinion, have no -- no idea what was going on, the attorney general in particular.

(END VIDEOTAPE)

GRIFFIN: District Attorney Jordan's only comment is that he is going to decide if the evidence warrants going further in this prosecution.

And in another kind of odd twist, Soledad, a local radio station reports that one of Mr. Jordan's own staffers was actually polling callers to the D.A.'s office, asking if the case should be brought to trial. Jordan says a staff member did it on their own and that "it was stupid."

S. O'BRIEN: So, Drew, what happens if Eddie Jordan says, "You know what? At the end of the day I'm not bringing this case, I'm not going to bring it to trial"? What could happen? I mean, does it just go away essentially?

GRIFFIN: The case could go away. Under Louisiana law, I'm not sure if it goes beyond the prosecutor. They could try to bring up some kind of a federal case, but that most likely would have to be a civil rights type of case.

It's an interesting situation, because many believe Jordan is dragging his feet. The autopsies are in. The tisue samples are in. The witnesses are in.

This case was basically handed to him. And the question is, why is he not bringing this to a grand jury?

S. O'BRIEN: Interesting.

Drew Griffin for us this morning.

Thanks, Drew -- Miles.

M. O'BRIEN: Coming up, a tragic story that puts parents in one Massachusetts town on edge. And we should all pay attention as parents.

A 9-year-old boy dead after being bitten by a mosquito. We'll give you some important information that you need to know to protect your kids.

Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: A 9-year-old boy in southeastern Massachusetts has died from Eastern Equine Encephalitis, or Triple-E, as it's called. Hundreds of people attended a prayer service in Middleborough last night for little Johnny Fontaine, including dozens of his football teammates.

Reporter Linda Ergas from our affiliate WHDH in Boston has more.

(BEGIN VIDEOTAPE)

LINDA ERGAS, REPORTER, WHDH (voice over): Little Johnny Fontaine started feeling sick on August 18th after football practice. That was a Friday, and by Sunday he was in the hospital.

UNIDENTIFIED FEMALE: It was awful. Just awful. I couldn't even imagine. Can't even imagine what the parents are going through.

ERGAS: This was Johnny's second year playing football with the Mitchell Memorial Club (ph). He was a Cougar, and parents and teammates are speechless. They were told at the 4:00 practice.

UNIDENTIFIED MALE: It's unbelievable that -- that a mosquito could take somebody down like that. And just a few weeks ago, he's running around the field like the rest of the kids.

ERGAS: The co-chair of the football club saying the fields in Middleborough are sprayed constantly. On top of that, the state has sprayed twice over the area. No question, Johnny's death has parents feeling very uneasy.

UNIDENTIFIED FEMALE: It's pretty sad. Your kids can't play outside, and you've got to worry about them being stung by a mosquito and winding up in a coma in Boston.

ERGAS: For those who knew him, Johnny was an unforgettable little boy.

UNIDENTIFIED MALE: If you look at him, his freckles -- his freckles, looking out from that helmet with the dirt on the face. I mean, those types of things you don't forget.

(END VIDEOTAPE)

S. O'BRIEN: Middleborough was among the communities in southeastern Massachusetts that's undergone two rounds of spraying to kill mosquitoes. Encephalitis is spread to humans through mosquito bites, and symptoms include a high fever, headache, stiff neck, fatigue.

All those things could, you know, almost make parents think that their kid has the flu or just a bad cold. It could appear two to 10 days after infection. Brain swelling can happen. It could lead to a coma, even brain damage. The virus, no surprise here, it's hardest on the children and elderly people. And according to Massachusetts health officials, three out of any 10 human cases is fatal -- 30 percent fatal.

The Centers for Disease Control and Prevention says no human vaccine is currently licensed and it's likely -- it's unlikely, rather, that one's going to be available any time soon.

Really a huge tragedy there.

M. O'BRIEN: Pay attention, parents. It may not be the flu.

Coming up, Tropical Storm Ernesto pounding North Carolina. Where is the it headed next? Severe weather expert Chad Myers is tracking the storm. Actually, he's tracking two storms.

And just how hungry do you have to be to buy a burger from one of these machines? Mmm -- not. The automat returns. And maybe they've got some fresh food in there, we hope.

Stay with us.

(COMMERCIAL BREAK)

M. O'BRIEN: Good morning to you. It is Friday. I'm Miles O'Brien.

S. O'BRIEN: Yes, it is. All day, as they say.

Welcome, everybody. I'm Soledad O'Brien.

Opening bell just about to ring on Wall Street. The Dow Jones Industrial Average opens at 11,381. Down nearly two points from yesterday's trading.

Time to get a check of the forecast with Chad. He's at the CNN Center.

Hey, Chad. I know you're watching a couple things for us.

MYERS: Yes. Good morning, guys.

(WEATHER REPORT)

(NEWSBREAK)

M. O'BRIEN: The deadline has come and gone, and now the standoff between Iran and the rest of the world moves to a new stage. The United Nations will consider how to punish Iran with sanctions, but how will the regime in Tehran respond to that pressure? And just what are they after as they pursue their nuclear ambitions?

For some thoughts, we turn to David Kay, the weapons inspector who led the search for WMDs in Iraq. He joins us from Washington.

Mr. Kay, good to have you back on the program.

DAVID KAY, FMR. CHIEF WEAPONS INSPECTOR: Good to be here, Miles.

M. O'BRIEN: We had the U.S. ambassador to the United Nations with us just a little while ago, John Bolton. And I asked him if he felt that the United States had a bit of a credibility issue, given the intelligence failings in the run up to the invasion of Iraq. Listen to his response.

(BEGIN VIDEO CLIP)

JOHN BOLTON, U.S. AMBASSADOR TO U.N.: I don't really think there's a credibility issue for the United States with respect to Iran, despite what happened in Iraq. And the reason for that is much of the information on Iran's nuclear weapons program is fully public. It's been disclosed in reports by the International Atomic Energy Agency. We obviously know a lot we're not revealing, as well, all of which is consistent with the idea Iran is pursuing nuclear weapons. I don't think there's really much debate about that.

M. O'BRIEN: But isn't there a little bit of ambiguity? It still could technically be a civilian program.

BOLTON: I don't think so. I don't think you can have the wide range of activities that Iran has engaged in for any reason other than seeking a military capability. I'll just give you one example. Uranium metal, discussed in the latest IEAE report. Almost no use for uranium metal except to fabricate it into a weapon. Now, if they're running a peaceful program, what do they need to be experimenting with the metal for?

(END VIDEO CLIP)

M. O'BRIEN: All right, let's pick up on that last point first. Is that -- the uranium metal issue, is that sort of prima facie evidence that it is a program that is destined to come up with some sort of weapon?

KAY: No, Miles. In fact it is very -- it's a classic example of the difficulty we're having in understanding the Iranian program. There are other uses for uranium metal. For example, it is commonly used as a ballast in missile warheads. The Iranians have an active missile program. It's been used...

M. O'BRIEN: But those wouldn't be nuclear warheads? It's just...

KAY: No.

M. O'BRIEN: It could be a non-nuclear weapon?

KAY: It can be a non-nuclear warhead, too, over a long range. As you probably know as a pilot, uranium metal has been used as a ballast in aircraft for many years. The original 747 had large amounts of depleted uranium to balance it. It's used in gyroscopes. The great advantage of uranium metal is uranium 67 percent denser than lead, almost as dense as gold. When you need a lot of concentrated weight, it's there. Now, it is essentially for a nuclear weapons program, but it's -- there are other explanations that can be given.

M. O'BRIEN: So you wouldn't say it's proof positive, but in other words, it's ambiguous, as a lot of other people would suggest.

KAY: Well, look, what the administration has constructed is a powerful circumstantial case, for which there are other explanations. There are a lot of disturbing parallels with what we went through with Iraq here. And the administration would be better off just facing the issue. There is a credibility problem.

M. O'BRIEN: Well, let's -- yes, let's expand on that just a little bit. When the United States goes to the war and says, you know, we have the proof, we know more than we're saying, it sounds a little bit like an echo?

KAY: It sounds very much like an echo. And if you look at the parallels, they really are striking. Iran cheated. It's admitted it cheated on its nonproliferation obligations for 18 years. The inspectors have not been given full access, and they have disturbingly incomplete areas that they would like more information. You have a leader who makes fanatical statements. And all of this gives a context that leads one to easily jump to, it's got to be a nuclear weapons program. We simply don't have proof positive that that's it.

M. O'BRIEN: Another common thread here is big oil reserve. A lot of people would say, why would the Iranians need to, want to, create a civilian program to generate electricity when they have the third largest oil reserves in the world?

KAY: Well, you know, that's an arguments Americans ought to be careful with. If you go back in the history of Iran, it was during the Richard Nixon and Henry Kissinger, that signed very big deals with the shah of Iran to provide a large civilian nuclear power program that the shah wanted to have. The difference is, then we thought we were going to sell them the reactors, and now we're not, in fact, selling reactors.

M. O'BRIEN: All right, well if the whole thing were purely civilian and not a malevolent thing, why wouldn't the Iranians agree to allow somebody on the outside -- the Russians have offered to do this -- do their enrichment? In other words, handle this critical part, which could be used either for civilian or for military purposes?

KAY: You know, I think that's the issue that for many of us is the most disturbing one. But the reply is this probably isn't about nuclear weapons. It's about Iran gaining acceptance for the United States of its role in the region. It -- this is a bargaining diplomatic tool that the Iranians have. Why should they give it up and not get what they really want? The demand for U.S. recognition and U.S. talks has been consistent in Iranian foreign policy for a number of years, and we haven't responded to it.

M. O'BRIEN: What do you see as the risk now, as this moves into this new stage of sanctions?

KAY: I think the greatest risk is we're going to fail to get meaningful sanctions. We will adopt sanctions, get adoption of sanctions that may restrict travel, may have some financial seizures of funds and some limited embargo on nuclear materials. That's not going to change Iranian behavior. And Iranian counters are really quite available. You mentioned oil. You start seizing Iranian funds, and they start stopping exports of oil to certain countries.

M. O'BRIEN: And that doesn't affect the U.S. directly. Mostly Iranian exports go to other countries, but ultimately it affects the oil market. Oil prices go up. Ultimately, is there really, for real, a military option on the table?

KAY: Well, look, there's always a military option. The case -- the question is whether you're willing to pay the price. The Iranians have such easy counters after a military attack. They can make our life impossible in Iraq, terrorism. And if you like oil at $70 a barrel or don't like it at $70, how would you feel about $150 a barrel? I mean, you've got to think through the second and third moves when you ask the question, is there a viable military option?

M. O'BRIEN: David Kay, good insights. Thank you for your time. He's the former chief weapons inspector in Iraq. Thanks for your time.

KAY: Thank you, Miles.

M. O'BRIEN: Soledad?

S. O'BRIEN: Ahead this morning, Microsoft handing out millions of dollars. Andy is going to tell us just who's getting the money. That's ahead as he minds your business.

Plus, a blast from the past. It's a return of the automat. But the souped-up vending machines come with a very modern twist, and some pretty yummy food, looks like. We'll check it out ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Are you somebody on the go? Are you somebody who's strapped for cash? Or maybe you're somebody who's just a little bit nostalgic. A unique eatery has opened in New York, happened this week. And, boy, it's going to appeal to you. It is a blast from the past, but with a little modern twist.

CNN's Jeanne Moos explains.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Knock, knock, who's there? A Spam mosavi (ph)? A peanut butter and jelly empinada (ph)?

(on camera): Pizza dumplings?

UNIDENTIFIED FEMALE: You want to try it?

MOOS: Pizza dumplings?

(voice-over): This isn't mere vending-machine food. This marks the return of the Automat. Celebrated in movies like "Easy Living" and "That Touch of Mink." Normally hands don't come out. Pie did. Back in the early 1900s, you put in nickels, then help yourself to everything from baked beans to creamed spinach. But now.

UNIDENTIFIED FEMALE: Want a bite?

MOOS (on camera): Yes.

(voice-over): Now there's macaroni and cheese croquet.

UNIDENTIFIED FEMALE: Oh my God, that is so good!

UNIDENTIFIED FEMALE: And teriyaki burgers, and...

UNIDENTIFIED MALE: A pig in a blanket?

MOOS: A king-size blanket.

This was the grand opening of Bamn!. So what if there's no place to sit, the food is cheap, most items are under two bucks.

(on camera): How fresh is this going to be?

UNIDENTIFIED MALE: Well, this is made directly behind the machines.

MOOS (voice-over): There are about four people back in the kitchen, cooking and reloading the shelves.

(on camera): How do we know that this isn't an ancient teri- burger?

UNIDENTIFIED FEMALE: In there.

UNIDENTIFIED MALE: We have timers on the back. If anything sits more than 15 minutes, we throw it away.

MOOS (voice-over): Hard to believe they throw delicasees like the peanut and jelly empinada. Or everyone's favorite.

UNIDENTIFIED FEMALE: I'm waiting for more croquets.

MOOS: Even senior editors from "Food and Wine" magazine graced the opening of this humble automat, waiting for macaroni and cheese encased in fried breading.

Another food editor snapped photos of Spam on sushi rice.

LAREN SPIRER, FOOD EDITOR, GOTHAMIST.COM: I like the saltiness paired with the teriyaki, the sweetness.

MOOS: The three New Yorkers who created Bamn! dream of an empire of automats some day.

UNIDENTIFIED FEMALE: Like a drunk person in the street, and, like, coming out of the bar late at night.

MOOS: Or a kid's dream. This one got a pig in a blanket for his sleeping brother.

UNIDENTIFIED MALE: I'm sure you don't want to see him mad.

MOOS (on camera): Hot dog, Nicholas!

(voice-over): No luck. In the Internet age when spam usually comes via computer, the old-fashioned automat has picked itself up off the mat.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

S. O'BRIEN: That's very funny.

Let's get right to Daryn. Let's get right to Daryn, get a look at what she's working on this morning. That looks pretty good to me. Miles is not buying it at all.

DARYN KAGAN, CNN ANCHOR: Better than our cooking. That's our standard, Soledad.

S. O'BRIEN: I don't cook, I microwave, is what I like to say.

KAGAN: That's why it's talking to us.

We have a lot to get to our show today, including -- surprise. A soldier comes home from Iraq. We have hugs, and kisses and tears. That is the order of the day here on CNN LIVE TODAY and there's new hope in the fight against cancer, an amazing story from our senior medical correspondent Dr. Sanjay Gupta. We will get to it at the top of the hour.

M. O'BRIEN: Daryn Kagan on her last day.

S. O'BRIEN: Thanks, Daryn.

Up next, Andy, "Minding Your Business."

What you got, Andy?

ANDY SERWER, "FORTUNE" MAGAZINE: Miles, Microsoft and Intel, two companies joined at the hip, both a bit sluggish lately. What are they doing to fight the funk? We will tell you coming up on AMERICAN MORNING. Stay tuned.

(COMMERCIAL BREAK)

M. O'BRIEN: This week marked the one-year anniversary of Hurricane Katrina. As you know, so many stories of devastation. There are also some stories of hope. We've told you about some of those, too. Hope that a helping hand is just around the corner, as generous people continue to make their mark on the lives of Katrina victims.

CNN's Kathleen Koch has one such story from Biloxi, Mississippi.

(BEGIN VIDEOTAPE)

KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): A shell of a house. It's all Lucy Williams had left after Hurricane Katrina's storm surge swept through her Biloxi, Mississippi, neighborhood. She salvaged one dining room chair.

LUCY WILLIAMS, HURRICANE KATRINA VICTIM: I'm going to keep it, to remind me.

KOCH (on camera): Of what you used to have.

(voice-over): When we caught up with her in February, Williams had no money to start over since the school where she worked as a janitor had been destroyed.

WILLIAMS: I've been praying. I've been praying that somebody come in and see it and want to help me.

KOCH: Someone did.

(on camera): That's the angel. That's the angel.

WILLIAMS: That's the angel, right there.

KOCH (voice-over): Steve Kessler in Warsaw, Indiana, saw her story on CNN. Years before becoming a successful businessman he, too, had been a janitor.

STEVE KESSLER, BUSINESSMAN: We got ahold of Lucy and called her up and I said, we're coming down and we're going to take care of your house.

WILLIAMS: He came right down and just went to work. And he just like an angel that the Lord just sent down to bless me.

KOCH: Over the next six months, Kessler flew down crews from Indiana to clear and grade Williams' lot. Workers from Biloxi joined them in building a beautiful new three bedroom home.

WILLIAMS: In here is my dining room area. This is my kitchen area.

KESSLER: Obviously, we tried to do it right. And Lucy was real helpful. She was the interior decorator. I don't know what the dollars was. I haven't really kept track. We'll look at that later on.

KOCH (on camera): But that doesn't matter on you?

KESSLER: No. No.

WILLIAMS: I've just got a smile on my face that I just can't take off. I am so happy. He is one wonderful man. I just get up every morning and thank the lord.

KOCH (voice-over): Williams plans to move into the house next week, with her husband and one of her 13 grandchildren. Kessler believes the Gulf Coast recovery would be further along if more Americans followed his lead.

KESSLER: It's really not that difficult. And you just have to jump in and help the best you can. I knew this is what I was supposed to do and we did it and hey, it's a - it will be a great story to tell from here on out.

KOCH: A Katrina story with a happy ending.

(on camera): You guys are the best. Thank you, Steve.

(voice-over): Kathleen Koch, CNN, Biloxi, Mississippi.

(END VIDEOTAPE)

M. O'BRIEN: Good story. Now you -- it makes you want to get down there and do something.

S. O'BRIEN: You know, I've got to tell you. I think we're going to see real success or volunteers doing exactly that thing. Forget it, we're going to go wait for the money, we're just going to go raise the money ourselves and build houses and put people in homes again.

M. O'BRIEN: Yes, you can't be waiting on the government or the insurance, for that matter.

You know, there are others throughout the Gulf region -- there's still plenty more that needs to be done. More than 100,000 families still living in trailers and mobile homes all throughout that region. That's...

S. O'BRIEN: And remember, the trailers deadline is in February.

M. O'BRIEN: So if you're handy with the tools, why not?

S. O'BRIEN: Get people at church together, whatever group you're involved in.

(BUSINESS HEADLINES)

M. O'BRIEN: We're back with more in a moment.

(COMMERCIAL BREAK)

M. O'BRIEN: All right, it's the end of the run for the week for us.

S. O'BRIEN: It's Friday. M. O'BRIEN: And it's the end of the run at CNN for Daryn Kagan. Wow, I feel like singing the Carol Burnett song. I'm so glad we had this time...

KAGAN: You guys, will you smile a second? I'm getting a picture of my last day. So I want a picture of you guys, OK?

M. O'BRIEN: You're going to take a picture of us? OK.

KAGAN: Ready, one, two, three -- great. Thank you.

M. O'BRIEN: Listen. We're going to miss you. Gosh, Daryn and I -- both of us have been here since the mid-50s.

S. O'BRIEN: You have. Daryn just joined only a year ago.

M. O'BRIEN: Back before cable.

S. O'BRIEN: Twenty-three or 24 this year, Daryn? I can't remember.

KAGAN: Well, see, I think if you're going to lie about your age, you lie up. Because if I tell you I'm 19, you're like, ooh, that's hard living, but if I tell you I'm 56, you're like, darling, you look good. So I'm claiming 59.

M. O'BRIEN: We're going to miss you. We wish you -- really, we wish you well in your new endeavor. Daryn is going to do a Web site and it's about good news. You know what, the world needs a little more good news.

S. O'BRIEN: Darynkagan.com -- Daryn.

KAGAN: Darynkagan.com.

M. O'BRIEN: So we wish you well. We will miss you. You're a class act, you're a pro and a good friend. And good luck to you.

KAGAN: Thank you.

S. O'BRIEN: Going to miss you, Daryn.

KAGAN: Thank you, guys. I'll be watching.

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