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CNN Larry King Live

Interview With Clint Eastwood; Interview With Martha Stewart

Aired December 11, 2006 - 21:00   ET

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

LARRY KING, CNN ANCHOR: Tonight, Clint Eastwood opens up. A rare one-on-one with a Hollywood living legend. He usually lets his unforgettable acting and his brilliant filmmaking do the talking.
But tonight, he's going to be talking to me. Clint Eastwood -- actor, director, icon.

And then Martha Stewart.

What's life as a free woman been like for the diva of domesticity?

It's all next on LARRY KING LIVE.

Yes, Clint, the diva of domesticity.

Good evening.

CLINT EASTWOOD, ACTOR/DIRECTOR: Good evening.

KING: And welcome to another edition of LARRY KING LIVE, where we begin with the director of "Letters From Iwo Jima," the companion films to "Flags of Our Fathers," which he also directed. Clint Eastwood, two time winner of the Academy Award for "Million Dollar Baby" and "The Unforgiven."

Those films, by the way, also earned the Oscar for best picture in their respective years.

We want to congratulate you.

"Letters From Iwo Jima" was just named best film of the year by the National Board of Review. And yesterday, the Los Angeles Film Critic Association gave it the same honor.

How does -- how do you react?

EASTWOOD: Positively.

KING: Are you surprised?

EASTWOOD: Yes, I'm always -- I'm always surprised when you make a film and you live with it a while and you put it out, you never dream that anybody is ever going to want to really see it. So you just figure if it -- if you like it, the end results, when you're working on it, then -- then that's OK.

But I think once -- your brain sort of gets numb to it after a while and then...

KING: How did this one come (UNINTELLIGIBLE)...

EASTWOOD: ... somebody jumps out and then likes it. Fine by me.

KING: How did this whole thing come about for you, the whole Iwo Jima thing, two movies?

EASTWOOD: Well, the -- yes, James Bradley's book, "Flags of Our Fathers," was a book that I was interested in when it first came out. I had tried to purchases it, but it had already been bought by DreamWorks. And so it resided there for a year-and-a-half or a few years. And then finally Steven Spielberg cornered me one night and said why don't you come over and direct it for us?

So, having liked the book, I said yes, I'll give it a try and -- because we -- he didn't have a script on it. Or he had a script but he wasn't quite satisfied with it.

And so I went in and while we were doing that one, I wanted to look at the other side of it. It occurred to me that the reason this battle, which was the toughest battle in Marine Corps history, the reason it was so difficult was the defense of the island, and the unique defense that was set up by the general who was in charge the, Kuribayashi.

So it...

KING: But how did you -- how did you -- for example, how can you direct people who are talking in Japanese?

EASTWOOD: Good acting is good acting in all languages and bad is bad in all languages. But I just hired the very best actors I could find, starting with Ken Watanabe, who I had seen in films before and was a big admirer of.

KING: He played the general?

EASTWOOD: Yes, he plays the general. And the other -- the other actors were just auditioned and eventually, as far as what, you just kind of get the feel of it. We also had translators with us at all times just to make sure I wasn't -- nobody was going off the deep end.

KING: Well, I must say, reporting honestly to the public, they're two great films. And "Letters From Iwo Jima" is going to be a major candidate for an Oscar, another Oscar for you. It's a -- it's a brilliant film.

I can imagine you get caught up in it.

EASTWOOD: Yes, you do. It's -- you're -- it starts out in -- with a certain way and it just pulls you into it. And eventually you start living with these people and the defense. And this is -- but it all boils down to the same thing. It's the people who are sent to a place to fight a terrible battle in very tough times with very little odds of winning at that particular time. KING: Now, the Japanese had almost no chance to win that, right?

EASTWOOD: Well, they obviously felt they did. They felt that by a tremendous defense that they would discourage the Americans from maybe invading the mainland or going on to Okinawa, which happened.

But yes, they -- it -- they had -- they were less equipped and they didn't have -- they were on an island and had no water, had no food or anything. Anything that they had was stored there and then after the invasion started, of course, they couldn't replenish it.

KING: Why was Iwo Jima important?

EASTWOOD: Well, it is in direct line with the Marianas and Japan. And because the B-29s -- which was a terrific bomber, but it also was plagued by a certain amount of engine problems at times -- would need places to...

KING: A close harbor...

EASTWOOD: ... land coming back. And, also, because it was a direct line it offered the Japanese defenders an opportunity to intercept bombers on their way to Tokyo, and also to the radar transmission. They could give the -- give Japan a two-and-a-half hour lead start.

KING: We have an e-mail from David in Bellaire, Texas: "Who were your mentors in directing as you turned from acting to directing?"

EASTWOOD: Well, I turned from acting to directing 38 years ago so -- but my mentors go back -- well, even today, there are some wonderful directors around. But I guess my roots go back to John Ford and Howard Hawks and Preston Sturges and early American directors, though, ironically, one of my favorite directors was also Akira Kurosawa, who was indirectly responsible for my career, because my career started with the remaking of a Japanese Samurai film.

KING: That's right.

EASTWOOD: So I'm coming back and making Japanese films from now on out.

KING: Are you going to act again?

EASTWOOD: I don't know. I started now directing in 1970 with the idea that when I looked up on the screen and I didn't like what I saw, I would -- I could be -- stand behind the camera and not have to worry about suiting up, so to speak. But you never know. A great role comes along and you have to grab it. But those don't come along as -- quite often enough for anybody, regardless of their age.

So -- and I'm at the age where I don't want to do something just for a pay day.

KING: But you're 76. EASTWOOD: Yes.

KING: Do you ever think of hanging it up?

I mean you don't need it financially?

EASTWOOD: You know, I haven't really thought about it. I thought maybe 38 years ago, when I started directing, I thought maybe I'd hang it up and maybe I'd hang up the acting part of it. But circumstances have just led away from it.

Besides, the fact is it keeps you -- you never feel like you're any particular age if you continue working.

KING: Our guest is Clint Eastwood.

The film is the brilliant out -- "Letters From Iwo Jima" is going to be out, when, this Friday?

EASTWOOD: It comes out next Wednesday, actually, a week from Wednesday.

KING: A week from Wednesday. It's a brilliant movie. Already got two major awards.

We'll be right back.

(COMMERCIAL BREAK)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP FROM "LETTERS FROM (VIDEO CLIP FROM "FLAGS OF OUR FATHERS," COURTESY DREAMWORKS)

UNIDENTIFIED MALE: Here are the heroes of Iwo Jima.

UNIDENTIFIED MALE: Everybody wants to meet you guys.

UNIDENTIFIED MALE: There's some simply things we want you to say, mostly buy bonds.

UNIDENTIFIED MALE: You know, I think this whole damn thing is a farce.

UNIDENTIFIED MALE: If we don't raise $14 billion, this war is over by the end of the month.

UNIDENTIFIED MALE: As far as us being the heroes of Iwo Jima...

UNIDENTIFIED MALE: Move! Move! Move!

UNIDENTIFIED MALE: ... that's just not the case. The real heroes are dead on that island.

(END VIDEO CLIP) KING: That clip is from "Flags of Our Fathers," the first film, leading into the current "Letters From Iwo Jima," which will open Wednesday, the 20th, in select cities, and then open wide as it goes across the United States.

"Flags of Our Fathers" -- did it shock you to learn that that whole Iwo Jima thing was a promotion?

EASTWOOD: Yes. It -- no, it didn't shock me. I thought it was a very good idea, actually, the promotion. The only thing that our story reveals was that it was tough on the three guys to be held up to great expectations that they thought would come along later on and only one of them ended up having sort of a relatively happy existence.

But it didn't -- it was a great idea, whoever promoted the idea at that time, of bringing these guys back, because they were talking about a photograph where you don't see anybody's face or anything. They could have picked any three guys and mocked it all up if they wanted to.

But they managed to bring these fellows back and make them stars. They -- and there was an -- and Ira Hayes, the Native American, they -- they thought the casting was good for the whole deal. It just happened to be very -- catch the public's imagination.

KING: How do you choose what you want to direct? Is it a gut --

EASTWOOD: Just gut. You read a story, you like the story. You ask yourself first, OK, would I like to be in this? Is there a part for me?

OK, there isn't. So, then would I like to direct this? Is this something I think I could make something out of?

Some stories are quite good, but you don't feel a really strong affinity for it to -- you just feel that maybe I'll pass on that.

But some of them grab -- and the last few pictures I've done, they just kind of came one after another, stories that I liked, starting with "Mystic River," I guess, and just -- and "Million Dollar Baby," they just -- so I just worked back to back. I haven't really taken a lot of time off.

KING: "Mystic River" was incredible, really incredible.

EASTWOOD: Yes (UNINTELLIGIBLE).

KING: And everyone says that you come in under budget.

EASTWOOD: Yes, but...

KING: You know what you're doing. You start your days on time. Your days finish on time. There's -- it's a no baloney movie.

EASTWOOD: Well, I don't know about that, you know? I mean I don't -- yes, I do -- I try to come in on budget. And sometimes I come in under, because I try to live up to what -- to the financier, to what I told them I could do.

But at the same token, some films are easier to do that with than others. And -- but we had a really good team at Mel Paso and we usually can pretty well figure what it is going to cost to make a film.

KING: Would you do another Western?

EASTWOOD: You know what, I did "Unforgiven" in '92. I thought that would be the last one. The subject matter, the way it was laid out, I thought that's enough of that genre.

But I suppose if somebody could write something imaginative, like that was at that time -- that script was completely different than most of that genre, that I had been involved with, anyway -- and it gave me a chance to kind of put my final take on it.

So I probably won't. But if somebody wrote something brilliant, I suppose I'd step in.

KING: You have seven kids, huh?

EASTWOOD: Yes.

KING: What's the age range? From what to what?

EASTWOOD: I've heard about your -- your famous for some...

KING: I have three -- one 50, one 47, one 39; and one 7-1/2 and one 6-1/2 and a stepson who is 25. I run-the range.

EASTWOOD: Mine go from 11 -- or from 10 -- from 10 to 52.

KING: Well, we're similar.

Is it tough, 76, with a 10-year-old?

EASTWOOD: No. It isn't. I love it. It's -- I think one good thing about -- as you mature, to put it nicely, I think you become much more tolerant and much more enjoyed and enjoyable. The experience is much, much greater.

KING: Marriage easier now?

EASTWOOD: Yes. Yes, it is. If you take -- I would recommend -- I would recommend that everybody wait quite a while before they get married because it gives you a chance to kind of find out where you are, what your thinking is.

KING: Did you take naturally to acting? Because you were so low key.

EASTWOOD: I don't know if I took naturally to it. I think acting -- everybody always had that debate of whether actors are born or whether they're made.

I think it's a -- it's -- you have to learn the knack. You have to learn -- you don't necessarily learn how to act, but you learn how to teach yourself how to act. And you can find various coaches along the way that kind of give you an avenue to it. And then the rest of it's observation, what you've observed from other actors that you've viewed when you were growing up or actors that you -- or just the thoughts that you've had in yourself, observing people, observing people on the subway or on the trains or in clubs or in markets and what have you. You kind of get a good idea of different characters you might portray.

KING: What do you make of the Mel Gibson thing? Have you seen his new film?

EASTWOOD: No, I haven't seen it.

KING: Pretty violent.

EASTWOOD: I, you know, I haven't seen it. I read some notices that said it was violent, but I guess it was a violent era. I don't know too much about it. I will see it, though...

KING: The Mayan culture.

EASTWOOD: Yes. I don't -- I'm -- I love history, but I must say, the Mayan culture is not one that I'm really up on.

KING: What do you make of the whole Gibson story, though, what happened to him?

EASTWOOD: Well, he -- there's been a lot of people getting juiced up here lately, I'm telling you, whether on television or on the highway.

KING: Yes.

EASTWOOD: I'm just glad that -- that -- I'm glad when anybody gets DUI that they haven't hurt anybody in the process.

He's -- I think he's been as contrite as he can be. And I think now he has to just forge on forward, which obviously he's doing. And...

KING: Is he a good director?

EASTWOOD: Yes, I think he is. Yes, I think he is. And I think he's -- I haven't seen this latest one, but I think he takes to it very well.

KING: Our guest is Clint Eastwood.

When we come back, Clint will be joined by one of the great actors of our time, and I don't say that lightly, Ken Watanabe, who plays the general in charge of the Japanese forces on Iwo Jima. And he's nothing but brilliant. He'll join Clint right after this.

(BEGIN VIDEO CLIP FROM "FLAGS OF OUR FATHERS," COURTESY DREAMWORKS)

UNIDENTIFIED MALE: Who are these gold star mothers?

UNIDENTIFIED MALE: That's what we're calling the mothers of the dead flag raisers. You present each mother with a flag. They say a few words. People will (OBSCENE WORD OMITTED) money. It'll be so moving.

UNIDENTIFIED MALE: But this is Mike Hanson's mother.

UNIDENTIFIED MALE: A lovely woman. She knows how close you and her son were. He wrote home about you. She is very, very much looking forward to meeting you.

UNIDENTIFIED MALE: Hank wasn't in the picture.

UNIDENTIFIED MALE: Sorry?

UNIDENTIFIED MALE: Hank didn't raise that flag. He raised the other one, the real flag.

UNIDENTIFIED MALE: The what?

The real flag.

There's a real flag?

UNIDENTIFIED MALE: Yes. Ours was the replacement flag. We put it up when they took the other one down.

UNIDENTIFIED MALE: Am I the only one getting a headache here? You know about this?

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP FROM "LETTERS FROM IWO JIMA," COURTESY WARNER BROTHERS)

BEN WATANABE, ACTOR: Long live the Emperor!

(END VIDEO CLIP)

KING: One of the many terrific scenes from Clint Eastwood's latest, "Letters From Iwo Jima," which has already won two major awards.

Clint remains with us.

And we're joined now by Ken Watanabe. He is the brilliant actor who plays General Tadamichi Kuribayashi, the general who was in charge of the Japanese forces at Iwo Jima.

He was nominated for an Academy Award as best supporting actor for his performs in "The Last Samurai."

How, Clint, did you pick Ken?

EASTWOOD: It didn't take much thought to choosing Ken. I had seen him "The Last Samurai" and on other occasions. I was a big fan of his work. I thought he was the -- he's the sort of logical, you know, he has a great face on the screen, a very great presence, much like Toshiro Mifune, who I admired very much. And I thought he was the modern day Mifune.

KING: Did you, Ken, like this idea right away?

KEN WATANABE, ACTOR: Yes. So, yes. I heard about the project of "Flags of Our Fathers." And so I had a little bit to learn about the deep Japanese history. Before this, I didn't know that. Yes.

And, but I wanted to negotiate to an agent to find a Japanese soldier or a Japanese general or something. But, unfortunately, we didn't in "Flags of Our Fathers."

EASTWOOD: Yes.

WATANABE: And so, yes, Clint make a decision about directed -- to direct "Letters From Iwo Jima." And so I was really glad. And so -- but I had some hard pressure as a Japanese actor. It's a deep history in Japan. And so I had to be responsible kill the soldiers in this island.

KING: It had to be difficult for him, Clint, a picture about his people being directed by an American.

EASTWOOD: Well, I think he responded to it well. You know, the actors -- all of the actors -- and Ken will tell you this himself -- is that you -- none of them knew much about the history of Iwo Jima. It's not really taught in schools or...

KING: No?

WATANABE: No.

EASTWOOD: ... in current days.

WATANABE: No education.

KING: Lack of information.

EASTWOOD: So they were all sort of starting from scratch, starting from him as the senior player. Yet they all went back and researched it. And he was -- he was tremendous about researching it, as much material as there was on Kuribayashi, which there isn't a whole lot.

But he read incessantly about it. He even went to the province where Kuribayashi lived and was born and...

KING: But he makes the character so likable.

EASTWOOD: Right.

KING: I mean he's...

EASTWOOD: Well, obviously, he was a likable man. I -- when you -- the book that I first read that called my attention to it was a book that he had written -- of letters that he had written home to his daughter or his son and his wife when he was an envoy in the United States in 1928 and -- through '30.

And he was here working and he learned English here. And he became -- but you -- when you see his letters home, they are very much like any father's, you know...

KING: Yes.

EASTWOOD: ... regardless of what culture. And so you made -- you got that feeling where you really wanted -- you really wanted to tell his -- see what kind of a person he was.

KING: And when you see this film, he reminded me, as I said to Clint and to Ken, very much of a young Gregory Peck that controlled the screen, that ability to make the screen come alive for him.

EASTWOOD: A young Gregory Peck.

KING: How did you like, Ken, being directed by Clint?

WATANABE: Well, before shooting I imagined he was a more tough and strong guy. But, yes, he's so calm, and so quiet and warm. He knew the acting feeling. He also acting -- actor. So he trusted us and he allowed us to create each character and to make dialogue in Japanese.

And so, yes, he didn't worry about -- he didn't have to worry about dialogue. And so have to focus on the character to make it. It's so comfortable for us.

KING: Did you like the general?

WATANABE: Yes and no. Yes, it's our -- it's a hard destiny he had. And, yes. I also have been working in the United States. And just relate to his feeling. But, yes, fortunately I don't want to fight against the United States right now.

KING: No.

He must have been -- I'm just gevving (ph) -- wonderful to direct. EASTWOOD: Fabulous. Yes, fabulous. He was extremely well prepared, as was the whole cast, for that matter. They -- and, you know, I have always -- I feel that when you cast a film properly, you put yourself in a very good, advantageous position, a very -- which, I realize that's clumsily phrased.

But you put yourself in a position where you -- you hedge your bets. You get people, other actors, that fit the roles really well.

But all these fellows came in with a lot of enthusiasm. And having to learn the material and historically from scratch, was quite interesting.

KING: It's a great film, Clint.

I wish you nothing but the best.

EASTWOOD: Thank you, Larry

KING: Ken, wonderful seeing you.

WATANABE: Thank you so much.

KING: You are a great actor.

EASTWOOD: Yes.

KING: Ken Watanabe, who stars in "Letters From Iwo Jima," could get another Academy nomination.

And Clint Eastwood certainly will, for this brilliant film, which opens Wednesday, the 20th.

And, when we come back, Martha Stewart.

What's life as a free woman been like for the diva of domesticity?

I can't believe I said that.

It's all next.

(BEGIN VIDEO CLIP FROM "MARTHA")

UNIDENTIFIED MALE: We gonna cook up something good, Martha.

MARTHA STEWART: Ooh.

UNIDENTIFIED MALE: I know you're looking good, girl.

STEWART: (UNINTELLIGIBLE).

UNIDENTIFIED MALE: I didn't do anything.

STEWART: The lard (ph) bone. Don't eat all the lard bone (ph).

UNIDENTIFIED MALE: You're so critical.

STEWART: Umm, tastes good to me.

UNIDENTIFIED MALE: Martha's going to bitch slap me any minute.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

KING: It's a great pleasure to welcome an old friend, Martha Stewart. She returns to LARRY KING LIVE. Host of the syndicated daytime program "The Martha Stewart Show". Her newest book is "Martha Stewart's Homecoming Hand Book". I have it in my hands. It's a hernia book. The essential guide to caring for everything in your home, how many pages in this book?

MARTHA STEWART, "THE MARTHA STEWART SHOW": Well it's about 766 or something, but it's the weight that's really impressive. It's 4.3 pounds. And when I do book signings it's really kind of fun, because I don't have to do any exercise for a couple days afterwards.

KING: There's been a lot of things to cover. You know, it's been over a year since you've been here.

STEWART: I can't believe that.

KING: I think that's a record.

STEWART: I know.

KING: ... for your not being on this show.

STEWART: I missed you.

KING: Busy year for you.

STEWART: It's been very busy, very good.

KING: How's the radio show doing?

STEWART: The radio channel is doing very well.

KING: It's your own channel?

STEWART: Yes, Sirius Channel 112. And it is full of great, great content, really. It's -- there's gardening and pet keeping and home keeping.

KING: How often are you on?

STEWART: I'm on -- well, I'm on every day live with my show. My show is broadcast on the radio for people who are in their cars, or at home and they can't watch.

KING: Your TV show is on the radio. STEWART: Yes, it's really good, and then I'm on with "Ask Martha" at least once a week. And I call in periodically. I listen to it. So I call in all the contributors.

KING: Let's discuss some things. Earlier this year you settled with the SEC in connection with civil insider trading. Is that all over with now?

STEWART: All of that's done. The SEC is finito.

KING: Share holder lawsuit?

STEWART: Almost done.

KING: Almost done?

STEWART: Yes, yes, it's just about -- I think it's paying the money.

KING: What's the -- any legal situation -- were you on appeal? Any legal situations pertaining to convictions?

STEWART: No, that's all done. Nothing more.

KING: There's nothing hanging over your head?

STEWART: No.

KING: How do you feel about all of that now that you look back?

STEWART: Well, I'm glad it's over, certainly. And I'm glad that I survived the entire process, and that the company is thriving. That's the most important thing to me, really, that -- and that the pain is over.

KING: Yes, I would imagine you're not going to involve yourself in stocks anymore. Are you staying removed from it?

STEWART: No.

KING: No, you still buy and sell.

STEWART: I'm an investor. Yes, I think it's very important to understand all the different companies and investing gives you an opportunity to understand them even better.

KING: So you haven't lost your luster for that? One might think, hey, I don't need this anymore.

STEWART: Don't -- we really shouldn't talk about this. Let's talk about other things.

KING: No, you can I say I don't need this anymore. Would it be logical? It's a fair question to ask.

STEWART: I don't need what? KING: Stocks, bonds, who needs investing?

STEWART: I didn't do anything wrong with my stocks, Larry.

KING: OK, so there's no -- what if you just said, I don't even want to have it go near me anymore.

STEWART: I own -- you know, I own a lot stock in my own company, and I'm very interested in the stock market. I'm very interested in the health -- financial health of the nation.

KING: I'm glad to hear that. You haven't lost interest in it.

STEWART: Oh, no, no.

KING: That's all I meant. What's with you and Trump? Give me the...

STEWART: Who's Trump? You mean Donald Trump?

KING: What's going on?

STEWART: Nothing, absolutely nothing.

KING: Where's the feud?

STEWART: Not on my side, that's for sure.

KING: Well, why did he get so mad?

STEWART: Oh, I have no idea. I think he is a very interesting character and he's -- I don't think he like two Apprentices on at the same time, as I didn't, but I have no ill feelings.

KING: Do you talk to him?

STEWART: No.

KING: So, it ended bitter? I mean, it looked like a great idea for a while, male apprentice, female apprentice, two well-known people.

STEWART: Yes, they were both good, but there were too many of them, I think. But again, I don't know what his schtick was, or what his gripe was, all I know is that I don't think it had too much to do with me.

KING: What happened to your apprentice, Dawna Stone?

STEWART: Oh, Dawna's still -- she's just about complete with her year's apprenticeship. I think she's going to go back to Florida and run her magazine. She had a magazine of her own. And she did very nicely in our company. She worked on our "Body and Soul Magazine", which is a lovely magazine, dealing with, you know, body, soul, mind, and helpful living. And she did very well.

KING: So she turned out well?

STEWART: Oh yes.

KING: We'll be right back with Martha Stewart. We'll talk about Rachael Ray, who's been created as kind of a competitor, and other things. Don't go away.

(BEGIN VIDEO CLIP)

STEWART: Then salt and pepper the fish really, kind of, generously. I'm always amazed at how much salt and pepper the French chefs put on their fish, but...

UNIDENTIFIED MALE: We want to make it very tasty. You have to work for some (ph) design year after year.

STEWART: Oh we do.

(CROSSTALK)

UNIDENTIFIED MALE: So nice for you to have wine here, especially me getting out of rehab, way to go.

STEWART: There is no wine anywhere.

UNIDENTIFIED MALE: No wine?

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

STEWART: I'm sorry, it's not that kind of turkey.

RUSSELL CROWE, ACTOR: I'll do that.

STEWART: Yes, maybe.

Try.

These guys don't want to go. They're not giving.

Not giving.

CROWE: Come on. Give up, you bastard.

STEWART: OK. Let's see. Nope.

(END VIDEO CLIP)

KING: The gladiator, Russell Crowe, on Martha Stewart's show, which has been renewed for a third season. I've guested on that show.

STEWART: Oh, I want you to come back on. Will you please? We have a really great task for you. KING: As I've told -- you've got another new one?

STEWART: Yes.

KING: As I've told you, it's the best set on television. In addition, it has a great host and a lot of fun. The audience is bubbly.

STEWART: It is. It's a lot of fun.

KING: Rachael Ray was on this show a few months ago and had some nice things to say about you. Watch.

(BEGIN VIDEO CLIP)

RACHAEL RAY, FOOD NETWORK: Martha knows how to do so much more than Rachael Ray. I mean, Martha knows to craft, and bake, and build, and, you know, she's -- she is iconic. And she's built a fabulous industry...

KING: You're a different kind of thing though. You're a chef.

RAY: I am -- I am a miserable failure at 90 percent of what Martha can do so beautifully well. And I've always thought it's a wonderful compliment for me to be compared on any level with Martha, and it must be very not so fun to have somebody who can barely make burgers and pasta, you know, compared with someone who's worked so hard and done so many things.

(END VIDEO CLIP)

KING: Highly complimentary of you.

STEWART: That's nice.

KING: What do you think of her?

STEWART: I think she's a bubbly, effervescent host, and I think that she really enjoys her -- enjoys her show. And the audience seems to like her very much.

KING: Is she a competitor?

STEWART: I think probably on some level she is, because people are always looking for the next of something. And I think I started how-to television, or I was one of the -- Bob Vila and I. He did the home. I did the -- he did the building. I did the making the home beautiful and the cooking, and things. And I think that it really spawned a tremendous number of really talented people, who like to be on television, who like to entertain and do things. So, I think it's all well and good. The more people can teach, the more people can learn.

KING: And there's nothing wrong with that, is there?

STEWART: No, not at all. KING: It's a big universe.

STEWART: It certainly is.

KING: Do you think she's talented?

STEWART: I think so, yes. I think she is.

KING: Any guest on your show surprise you with their crafting skills?

STEWART: Well, I was very surprised that Russell Crowe knew so much about certain things. He was not afraid to wrestle with that turkey. And he was a lot of fun as a guest, too. And he also brought me some very superb Australian wines and New Zealand wines, which we used on Thanksgiving. They were -- and he knew a lot about them too, about the manufacture of them, and the blending. I thought that was really interesting.

Jeff Bridges came on and taught me how to do a certain kind of pottery which I had never tried, throwing clay. And I was very surprised that he was so good at that. And actually, I used his dishes that he made on the show. I just used them the other night for a dinner that I had at my house.

KING: Is it true that Eminem -- you want Eminem on your show?

STEWART: Oh, I would love to have him on my show, I really would. I...

KING: The rapper?

STEWART: Yes, the rapper. I think he's, again, a very talented young man. I think that he could probably -- and I think he's, with his children, probably a good teacher. So I would like to have him on and see what he could do, other than rap.

KING: How do you do all that you do? I mean, how do you even figure it out? How does your day begin?

STEWART: Well, this weekend I went to a very interesting thing. I went to Art Bassell (ph), down in Florida, in Miami, South Beach, and it's a great, big art show. Dealers from all over the world, including the very, very best and a lot of the smaller dealers come to show art from basically the 20th century.

And so there we got tremendous numbers of ideas for our craft business. Artists are using a lot of crafty techniques these days, and so I can adapt a lot of those techniques to our crafts business.

Photography is very, very popular as a collectible. And so, I think, we will probably be having a very nice photography business, framed photographs in the near future. All those kinds of things. I just like to go out there and learn, and adapt and create. It's my life.

KING: Martha Stewart, always enjoy having her.

We'll be right back with her. Don't go away.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: ... no beef with the beef.

STEWART: OK. So what we're doing first is rubbing the meat.

UNIDENTIFIED MALE: I just woke up, Martha.

STEWART: You're not going to do a Danny De Vito thing on me. If you don't know what I'm talking about, it's in all the newspapers today. Danny, it seems, should be a little inebriated on...

UNIDENTIFIED MALE: On "The View". That's the only way to do that show. Let me tell you.

STEWART: Really?

UNIDENTIFIED MALE: Yes.

STEWART: Well, he was right then.

UNIDENTIFIED MALE: It's the only way to get a word in edgewise.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

ANDERSON COOPER, CNN ANCHOR: Coming up just 13 minutes from now on "360", what happened the night Princess Diana died? A new report uncovers details never before disclosed, including whether or not the driver of Diana's car was really drunk and the allegation that U.S. intelligence agencies were spying on the Princess. It has a lot of people asking questions and reviving many of the conspiracy theories surrounding her death.

We'll also take a look at why many in Washington say the president is simply ignoring the Iraq Study Group's recommendations. Does he have a better plan or none at all?

that and more at the top of the hour on"360".

KING: We're back with Martha Stewart. Her new book is "The Martha Stewart's Home Keeping Handbook."

How's your social life? Who are you -- who's the lucky guy now?

Who's the latest in the Stewart parade?

STEWART: Oh, pretty much the same, same...

KING: Same guy?

STEWART: ... same lame social life that I have. KING: Same guy that I met?

STEWART: Yes, you did meet him. Yes, you did.

KING: He's a -- what does he do? He flies all over, right?

STEWART: Yes, he flies all over.

KING: He's from France.

STEWART: No, no, not that one.

KING: What happened to him?

STEWART: Well, that's a long time ago.

KING: Oh, you see, then I don't know. So tell me a little bit about who the current guy is. And then I'll go on to other things.

STEWART: You know, I'm always uncomfortable talking about boyfriends and men friends.

KING: Charles is his name.

STEWART: Charles. Yes, yes.

KING: I think I met Charles.

STEWART: Charles is very busy, actually, these days. He's -- he has a company that -- a software company that he's developing, and he's going to outer space, so he's, sort of, like running away.

KING: He's going to be one of those civilians...

STEWART: Yes, civilians in outer space.

KING: ... who pay to go up.

STEWART: Yes, and he's looking forward to it. He's in training now. So it's...

KING: What does that cost?

STEWART: About $20 million to start. And then the toll it takes on all the other parts of your life.

KING: Will you watch the launch?

STEWART: Yes, I would like to go to -- they take off from a Russian base in Kazakhstan. So, I invited Borat to go with me, but I don't think he's...

KING: Do you like Borat?

STEWART: I think he's persona non grata in...

KING: Yes, he may be. But do you like him?

STEWART: I think he's showing a lot of things in his films. I think he's showing us how bigoted a lot of Americans are. And I think he's not -- I think he's a pretty brilliant comedian.

KING: He may also, they say, possibly get an Academy Award nomination.

STEWART: Oh, well that would be good.

KING: His film did so well and he's wonderful in it, right?

STEWART: Yes, well he certainly is uninhibited. Put it that way.

KING: We have an e-mail for you from Pat in Hacienda Heights, California:

"How is your mother and will you be spending Christmas together?

And what are your traditions together?"

STEWART: We have lots of traditions. I had -- actually, mom was over yesterday for a pre-Christmas lunch.

KING: How old is she now?

STEWART: Ninety two and a half, I think.

KING: Great lady.

STEWART: And she's fantastic. She sends her best regards to you, Larry. She loves you.

And no, she's traveling. She was in Alabama for Thanksgiving. She's going to Arizona, to her sister's, for Christmas. She just called me up to -- she's taking one of my friends with her to Arizona as a companion on the plane, so...

KING: Are you a lot like her?

STEWART: Like my mom, no.

KING: No?

STEWART: No. I think she's much more even-tempered than I am.

KING: Was she, though, a home freak, with regard to...

STEWART: Oh, I learned almost everything in that book and that Marthapedia of home keeping...

KING: Marthapedia...

STEWART: ... my mom had a lot to do with it. She kept a very nice house and, simple though it was, it was always impeccably clean. I learned how to iron from her. I learned how to do all the laundry. I learned how to do a lot of things from her. She was a great inspiration.

KING: You've got big plans for the holidays?

STEWART: Oh, a quiet Christmas at home.

KING: Quiet?

STEWART: Quiet. You know, I work so hard, our days are so full. We've been making Christmas cards and products for Macy's. You know, we have a new deal with Macy's. Did you know about that?

KING: I did not know.

STEWART: Oh, yes, so we're designing like crazy and having lots of meetings.

KING: The most famous Christmas store.

STEWART: Oh, it's wonderful. And then we have all our Kmart products that we're still developing, like thousands and thousands of different SKUs. It's non-stop.

And I brought you a present.

KING: I don't want to get that.

STEWART: Oh, you don't want to see that yet?

KING: We're going to take a break, and when we come back, a Christmas surprise from Miss Stewart. Don't go away.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: How are you? I'm just blanking on the name.

UNIDENTIFIED MALE: You're beautiful. Oh, ruff, boom! Well, someone had a hot dog.

UNIDENTIFIED MALE: That's funny. That's fun that you're beautiful. But -- I'd love to mount you.

STEWART: When and where?

(LAUGHTER)

UNIDENTIFIED MALE: We'll leave as soon as we can. Martha Stewart, everybody!

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

STEWART: So, now making "Moulin Rouge" must have been fun.

UNIDENTIFIED MALE: It was a hoot. It was a blast. I worked with Nicole Kidman.

STEWART: Oh, she's such a beauty.

UNIDENTIFIED MALE: Tall, too. I thought if I could climb her I could her, but...

STEWART: It didn't work out that way?

Too bad for Nicole. But she had a good time with you anyway, right?

UNIDENTIFIED MALE: Yes, she did.

(END VIDEO CLIP)

KING: Martha Stewart always brings a surprise. There are personalized Larry King Christmas cards. This is a modern card, to celebrate the season. And this one shows me when I started in television.

STEWART: I didn't know you then.

KING: In Miami, in 1960, Channel 10.

STEWART: Wow. Look at you. You look so great.

These are Martha Stewart, Kodak Gallery cards. So, if you go to MarthaStewart.com, you can find the templates and send in your pictures and get these fantastic Christmas cards.

KING: Wow.

STEWART: It's all digital. It's all done over the Internet.

KING: Isn't that a good idea?

And what are these?

STEWART: Oh, and these are just a project from our December issue of the magazine, "Martha Stewart Living". And these cute little houses are simple to make. They're great children's crafts, all made out of graham crackers.

KING: Yes, I see that.

STEWART: And candies. Yes, candies and a little bit of royal icing, with just egg white and sugar.

KING: What are those? M&Ms?

STEWART: M&Ms and gum drops, and cinnamon sticks, and look at these giant gum drops making little boxes and Necco wafers. Very cute. KING: And you're thinking people can make this at home?

STEWART: Oh, yes. These are kids' projects. And we show you how in the magazine.

KING: Kids can make them?

STEWART: Kids can make them. You have to guide them a little bit.

KING: This disciplined?

STEWART: Yes. Your little boys could easily make these, if you help them.

KING: Well...

STEWART: This is the weekend, this is this weekend's project.

KING: Well, I think the wife will have to do that.

STEWART: You have to do that.

And I brought you a present.

KING: A hat.

STEWART: Yes, well, it's a hat of sorts. This is for you. So that you can have a merry Christmas with your boys. You can play Santa Clause.

KING: Oh, I love this.

STEWART: OK.

Oh, good and it fits perfect. Oh, you look great, Larry.

KING: Am I Santa?

STEWART: You are Santa. You're Santa to lots of us. Thank you very much.

KING: Is Christmas the big time of year for you? For people who do what you do?

STEWART: Oh, it's a very big time of year. And by the time Christmas Eve rolls around, I've had Christmas -- you know, we do it a lot. And it's all month, all this month on the show, we're just decorating trees and doing craft projects and making homemade gifts, like the hat. We're doing all kinds of stuff, all the time.

But we love it, because it helps people understand family traditions, holidays. And I think it's important.

KING: How many people work for you?

STEWART: Right now? Oh, it's over 750. It's great.

KING: And these cards again. You get these by going where? You bring a picture of yourself?

STEWART: Go to MarthaStewart.com/kodakgallery. And you go right to the Kodak Store. And look under Martha Stewart. And these are special templates. These are unique to Martha Stewart. And you can -- this is called the self-mailer. And it's the four-fold.

KING: You just fold it up and...

STEWART: Yes, and there's nice little stickers that you can have that peel off, and close the card. And you can have beautiful messages. You can put family photos, you can do your animal photos, you can do landscapes, whatever. And there are certain choices, too, of pictures from our collection.

KING: It's weird to see pictures from -- uh, from 26 years ago.

STEWART: But you know, what you should send that to some friends. You should send that card to some friends who worked with you on that show, this year. Wouldn't that be fun, Lar?

KING: There I am. Yes. That's right. It would be a great idea.

What's next, Martha?

STEWART: Well, we're just cranking along. As I said, the whole -- I'm doing a book signing in Charlotte, North Carolina, this Saturday. I think it's 11:00 in the morning.

And we are very excited about doing that. And it's always fun to see all the fans and all our friends who come to the book signings. And that's a great, great Christmas gift.

KING: Anything planned for 2007?

STEWART: Many, many, many things. Our craft business will launch at Michael's. And we're very much looking forward to that. A great place for your wife to take the kids. And...

KING: Michael's?

STEWART: Michael's Craft Stores.

KING: Oh.

STEWART: It's the biggest chain of craft stores in America.

KING: So, that's where you're going to launch. Wow.

STEWART: Yes.

KING: Best of luck to you, darling.

STEWART: You bet.

KING: Martha Stewart and "Martha Stewart's Home Keeping Handbook: Essential Guide to Caring For Everything in Your Home".

Earlier, Clint Eastwood, and my friend Ken.

And we invite you to stay tuned now for Anderson Cooper. Remind you tomorrow night, Sharon Brooks is our special guest, the mother of the late Laci Peterson.

Thanks for joining us.

Tinkle, tinkle.

Here's Anderson Cooper.

Good night.

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