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Bombings, Attacks Claim Lives in Iraq; Congress to Stand Firm Against Bush Plan; Presidential Field Gets More Crowded; Abortion Protestors Rally in Washington

Aired January 22, 2007 - 13:00   ET

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

DON LEMON, CO-HOST: Hello, everyone. I'm Don Lemon, live at the CNN world headquarters in Atlanta.
BETTY NGUYEN, CO-HOST: Good afternoon, everybody. I'm Betty Nguyen, in for Kyra Phillips today.

Next in the NEWSROOM, a chilling new tactic in Iraq. Insurgents wearing U.S. military uniforms to carry out deadly attacks.

LEMON: Plus, the times they are changing, and so are political campaigns, thanks to the World Wide Web. Suddenly, getting face time is a whole lot easier.

NGUYEN: And lights, camera, controversy. That's right. It is the main attraction at the Sundance Film Festival. From sex to politics, critics say filmmakers have gone too far.

You're in the CNN NEWSROOM.

LEMON: Body parts everywhere. One official's words in the bloody aftermath of a pair of car bombings today at a Baghdad market. Hours later a bomb struck a market north of the Iraqi capitol, and all told, 100 people are dead, twice as many wounded.

Arwa Damon joins us live from Baghdad -- Arwa.

ARWA DAMON, CNN CORRESPONDENT: Don, it's been one of those days where sometimes it just seems like the attacks won't stop. Relentless and bloody times here across Iraq, the deadliest attack, though, happening in the capitol, Baghdad.

(BEGIN VIDEOTAPE)

DAMON (voice-over): Familiar sights and sounds in the Iraqi capital: explosions, sirens, mayhem.

Insurgents striking once again in the heart of Baghdad. This time, hitting one of the city's main marketplaces for the third time in as many months, an area mainly frequented by Baghdad's impoverished Shia population, leaving scores dead and wounded.

Two mid-day car bombs exploding seconds apart, tearing into the second-hand clothing section of the market. The dead and wounded rushed to hospitals already stretched to the limit. Here at al-Kindi (ph) Hospital, frantic efforts to save lives. It's the same hospital where just days ago medics battled to treat the casualties from twin bombings at a university that killed at least 70 students and employees and wounded over 160.

The insurgency relentless, their tactics evolving. New details of a brazen and unprecedented attack on U.S. forces in Karbala. According to the police spokesman there, gunmen wearing uniforms very similar to those worn by U.S. forces got through three checkpoints flashing fake I.D.'s. Some even spoke English.

They stormed a supposedly secure coordination center where a meeting was under way to discuss security for the upcoming Shia pilgrimage known as Ashura. Police said the attackers targeted only U.S. soldiers.

(END VIDEOTAPE)

DAMON: The scene of the attack is under lockdown. The vehicles, which were very similar to those used in official convoys, were found in a neighboring province. Iraqi officials are calling this unprecedented. The U.S. military is still saying that it is under investigation. They're trying to figure out what went wrong and why.

LEMON: Arwa Damon in Baghdad, thank you so much for that, Arwa.

NGUYEN: Now, we want to talk about Black Hawk down in the Yawa (ph) province. A dozen Americans killed. It happened on one of the deadliest days for U.S. troops since the start of the war in Iraq. The Pentagon supects hostile fire, and CNN's Barbara Starr has the latest on this investigation.

What have you found out so far, Barbara?

BARBARA STARR, CNN CORRESPONDENT: Well, Betty, it does remain under investigation, but sources are telling CNN, U.S. military sources say all indications at this point are that it was hostile fire that brought this helicopter down, and the initial indications are it may well have been a shoulder fired surface to air missile.

Now, to emphasize, the investigation continues, but they have seen some of the debris on the ground. They have some eyewitness reports. And that is leading to this initial conclusion that it was most likely, at this point, to have been enemy fire that brought the Black Hawk down in this area of Iraq that you're seeing. All 12 service members on board, of course, killed.

Combined with the Karbala attack that Arwa was just talking about, officials are wondering is if they are beginning to now see the surge by insurgents, if you will, their stepped up attacks in response to the surge of U.S. troops into Iraq.

A lot of concern about these tactics that have evolved and been seen over the weekend, Betty.

NGUYEN: You talk about the surge by insurgents, but let's move on now to the surge by U.S. troops. What have you seen and heard so far?

STARR: Well, the first element of the 82nd Airborne Division, a couple of thousand troop are now on the ground in Baghdad. That is the first of the plus up, if you will, of some 20,000 to 21,000 troops that the Bush administration is going to put into Iraq over the next several months.

This is all aimed, of course, at getting control of this terribly violent situation in Baghdad and in the west, in Anbar Province. The 82nd Airborne now on the ground. And what officials are emphasizing is the additional troops will go, but only if there is progress by the Iraqi government in trying to live up to their part of the effort to take control of the situation -- Betty.

NGUYEN: We'll see how that plays out, CNN's Barbara Starr, we appreciate it, Barbara.

Well, the death toll of American troops in Iraq now stands at 3,055. After the particularly bloody weekend, 25 troops were killed on Saturday, making that the third deadliest day for U.S. forces since the war began in March of 2003.

LEMON: The fight for Iraq is fueling a fight over Iraq in Washington. We'll hear mow about President Bush's plan in the State of the Union address tomorrow night, but he's facing more scrutiny today.

Key members of the Senate Armed Services Committee are introducing a new resolution two hours from now, criticizing Mr. Bush's call for a U.S. troop increase. The Republican lawmaker who had been leaning against the Bush plan came out in favor of it today.

Senator David Viter -- Vitter of Louisiana issued a statement urging Mr. Bush to adopt three recommendations, including being, quote, "stronger and clearer on benchmarks the Iraqi government must meet for us to continue our military support."

Vitter is also calling on the Bush administration to "encourage and support a regional diplomatic conference of Iraq and its neighbors and to examine whether our new troop levels are adequate to get the job done quickly."

Sponsors of the new critical resolution will speak to reporters at 3 p.m. Eastern, and CNN will, of course, cover it live for you.

Iraq debate is heating up on the House side of the capitol, as well. Andrea Koppel joins us with new details on a plan from key House leaders, including some influential Republicans -- Andrea.

ANDREA KOPPEL, CNN CORRESPONDENT: That's exactly right, Don.

Later this afternoon the House Republican minority leader, John Boehner, CNN has learned, is going to unveil a new plan, which basically puts President Bush on notice that he will no longer get a blank check from this Congress and that he will be expected to report to Congress every 30 days in writing on the progress that he has seen by the Iraqi government and that the Bush administration sees in Iraq.

This is all going to be spelled out in a letter from House Republican leaders to Speaker Nancy Pelosi. What they're going to do is they're going to say to the president that there are three areas, three prongs of the Iraq strategy that he -- they want him to report on every month that have to do with both the military, political and social progress.

In addition, CNN has learned that this message is also going to be directed to Speaker Pelosi in that John Boehner is going to ask Speaker Pelosi to convene another select committee. This is going to be a committee devoted exclusively to oversight on Iraq.

And the message from House Republicans to the Democratic leadership is that put your money where your mouth is. You campaigned on bringing about change in Iraq and now bringing about oversight, congressional oversight on your policy, so, let's see Congress do that. Let's have a special select committee exclusively devoted to Iraq oversight -- Don.

LEMON: Andrea, and we want to tell our viewers we'll be monitoring that event in our 3 p.m. hour. Andrea Koppel, thank you so much for your report.

NGUYEN: The road to the White House just got a lot more crowded.

Over the weekend, as widely expected, Democratic Senator Hillary Clinton said she's in the race. New Mexico Governor Bill Richardson, also a Democrat, declared he, too, is forming an exploratory committee. And Kansas Senator Sam Brownback joined the field of Republican contenders. There's a look at all of them.

Now if you think politics is buzzing, just fast forward 12 months. Would you? Here's a look at the primaries and caucuses that the best political team on television will be covering in early 2008 and, as you can see, the New Hampshire primary is exactly one year away.

Our national correspondent, Bob Franken, joins me now from Manchester as we gear up for all of this, Bob.

BOB FRANKEN, CNN CORRESPONDENT: We've been gearing up, I think, since November 8 since the presidential campaign really began.

And here in New Hampshire, of course, they've got quite the tradition. It's an interesting state where you have this unusual combination of words like quaint and the more crass ones like politics.

(BEGIN VIDEOTAPE)

FRANKEN (voice-over): Most states have a state bird, a state song, but in New Hampshire...

UNIDENTIFIED FEMALE: Politics is our state sport, and I'm delighted that you're here to play this game with all of us. FRANKEN: They've been playing the first primary game here since 1920.

While Hillary Rodham Clinton's announcement causes palpitations everywhere else, here it's join the crowd.

UNIDENTIFIED FEMALE: I really feel that we have a chance as citizens of New Hampshire to really, to meet all of the candidates and, so, until I have an opportunity to meet all the candidates, I will make a decision after that.

UNIDENTIFIED MALE: We really haven't seen Hillary, and we haven't seen Barack Obama, except once over in Manchester. And it will take us a while to figure out who they are.

FRANKEN: Actually, Hillary Clinton goes back to 1992 in New Hampshire when, as the wife of candidate Bill Clinton, she was traipsing through all the snow and scandal.

SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: Is anything about our marriage as important to the people of New Hampshire as to whether they will have a chance to keep their own families together?

FRANKEN: Now, Hillary Clinton herself is seeking the embrace of New Hampshire's voters, along with many, many others including lots of Republicans: McCain, Brownback, Romney, Giuliani. Among the Democrats Obama, Edwards, Biden, Richardson. Vilsack was here on Friday, Dodd on Saturday.

SEN. CHRIS DODD (D-CT), PRESIDENTIAL CANDIDATE: I apologize being a few minutes late. I'm not Bill Clinton; I'm not an hour late.

FRANKEN: Did he say Clinton? Actually, Hillary Clinton has not been here for a while.

UNIDENTIFIED FEMALE: All the Candidates have to come to New Hampshire if they want to win. It's not -- it's just the way that it is.

(END VIDEOTAPE)

FRANKEN: We talked about the primary being exactly a year away. That is, unless state officials decide that it's getting too crowded by other primaries that are moving up their calendars. They could move it back. They want to stay the first in the nation primary.

And I should point out, Betty, that the first in the nation debate is going to be held this year, not next year, April of this year. There are actually two of them, presidential debates for both parties. And did I mention they're co-sponsored by CNN and WMUR-TV?

NGUYEN: Well, if you don't, we will. We thank you.

And we do want to tell our viewers that CNN's Bill Schneider will be coming up a little bit later with some new poll numbers on who is the favorite so far. I know it's still early. But who's got an early lead as we speak as of today. So we'll talk to Bill Schneider about that a little bit later.

And we do want to give you this note, CNN is teaming with New Hampshire's two leading news organizations, as you just heard, to bring you the first presidential debates of the 2008 campaign. So, join us, would you? April 4 and 5, right here on CNN, America's campaign headquarters.

LEMON: And Betty, coming up, a developing story that affects thousands of employees. A major drug company cutting jobs.

NGUYEN: Thirty-four years later, Roe v. Wade is still a lightning rod. And today activists on both sides of the abortion issue take their fight to Washington. We have the live report. That's ahead, right here in the NEWSROOM.

(COMMERCIAL BREAK)

LEMON: Well, today marks the 34th anniversary of Roe v. Wade, the Supreme Court decision legalizing abortion. And that mean abortion rights supporters and opponents are demonstrating in the nation's capitol. And that's where we find our Brianna Keilar -- Brianna.

BRIANNA KEILAR, CNN CORRESPONDENT: Don, 34 years ago the Supreme Court ruled that Texas laws that criminalized abortion violated a woman's right to privacy. That's a constitutional right. And that meant a victory for the supporters of abortion rights.

Now every year since, opponents and proponents of abortion rights have marched. Today tens of thousands of people, perhaps more, are marching from the National Mall to the Supreme Court. And as he has before, President Bush called them to express his support.

Here's what he said.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: As we move forward, we've all have to remember that a true culture of life cannot be built by changing laws alone. We've all got to work hard to change hearts. We will find areas where we can agree and, at the same time, work to persuade more of our fellow citizens to join this great cause.

(END VIDEO CLIP)

KEILAR: Now, taking a temperature check on where Americans stand on the abortion issue, in a new CNN opinion research corporation research poll conducted in the past few days, 29 percent of the people surveyed said the Supreme Court should overturn Roe versus Wade; 62 percent said it should not.

But organizations on both sides of this debate say it appears that's not going to happen any time soon.

Now the court does not seem eager to overturn the precedent, but even so, state laws and some legal challenges have chipped away somewhat at the reach of Roe v. Wade. And a Planned Parenthood representative that I spoke with today said, Don, that that's really the concern for them.

LEMON: Yes, and Brianna, we talked about what Americans are saying, but what about the folks making the decisions? We're expected to hear from the Supreme Court. That could give us insight. What are we going to hear from them about Chief Justice Roberts and Alito, where they stand on abortion rights?

KEILAR: No, that's exactly right. And both of them have not said what -- exactly how they feel about abortion rights.

What we're waiting for is a decision that could come down as soon as the next two weeks, definitely before June. This is a case called Gonzalez v. Carhart. And at issue is the constitutionality of that federal ban on a procedure, a specific procedure that critics call partial birth abortion.

Now, it doesn't have an exception if a woman's health is in danger. And the Supreme Court did strike down a similar law, a Nebraska state law, a while ago. So, what people on both sides of this debate are watching for, Don, is to see if there's some sort of reversal.

Because if they come out and they uphold this law, that does signal some sort of change in the landscape of how this court, in general, with Chief Justice Roberts and Justice Alito, how they feel about abortion rights.

And the big question in the end is always, what might that mean? Could that mean, possibly, in the future, an overturn of Roe v. Wade?

LEMON: Brianna Keilar, thank you so much.

NGUYEN: Well, many are called, few chosen and even fewer get elected as more and more candidates jump into this presidential race. We're going to look at the early favorites. That's ahead in the CNN NEWSROOM.

(COMMERCIAL BREAK)

NGUYEN: Well, it is said an ounce of prevention is worth a pound of cure, but too few Americans apparently have heard that. Two government reports say the quality of health care in the U.S. is up overall, but preventive care hasn't kept pace. Simply put, not enough people are getting diet advice, colon cancer screenings, diabetes counseling, you know, things like that.

Now here's a possible remedy. Grill your doctor about what you can do to stay healthy.

And this is a real mammogram double whammy for you today. Scientists have found that not only are women with denser breast tissue harder to screen for cancer; they're more likely to have it. Researchers knew the denser tissue makes it tougher to see lumps in a mammogram, but this is the first study to link the tissue with an increased cancer risk.

LEMON: Another round of layoffs at the world's largest drug market. Susan Lisovicz is at the New York Stock Exchange with all the details on that.

Hate to hear about layoffs, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: That's right, Don, and we heard about layoffs very recently from the same company. This is a bitter pill to swallow for Pfizer workers, especially on a day when the company is reporting better than expected profits.

The company says it plans to slash about 10,000 jobs or 10 percent of its global work force. That includes the elimination of more than 2,000 U.S. sales positions that Pfizer disclosed two month ago.

The announcement made by Pfizer's CEO, Jeffrey Kindler, about an hour ago comes as part of a broad restructuring, which includes the closure of two plants and three research sites. Three of those plants in Michigan. One is in Brooklyn, New York, and one is in Omaha, Nebraska.

Pfizer's goal: to save up to $2 billion a year by the end of '08. Saving money is something Pfizer needs to do. It's been struggling with the loss of patents on key drugs, including its blockbuster anti- depressant, Zoloft. Zoloft sales plunged nearly 80 percent in the fourth quarter, causing Pfizer's overall quarterly revenue to come in flat.

And something we talked about late last year, Don, is that its most hopeful drug was pulled very late in the experiment -- in late trials because of some very serious injuries and health problems associated with it.

LEMON: Wow. And they're also in the news for another reason today, as well. Legal reason.

LISOVICZ: That's right. Something we talked about this morning, because there was a press conference this morning by a major AIDS treatment group which is suing Pfizer over the way the company markets its blockbuster impotence pill, Viagra.

The AIDS Health Care Foundation says Pfizer irresponsibly and illegally promotes the recreational use of the little purple pill. The group says that practice has led to risky behavior by men and an increase in HIV and other sexually transmitted diseases. Basically says it's become sort of a party drug.

Pfizer sees it very differently. It denies the group's claim and says it's, quote, "committed to the safe and appropriate use of Viagra," end quote. And it encourages men to see a doctor for proper diagnosis.

(STOCK REPORT)

LISOVICZ: That is threat latest from Wall Street.

Coming up, drivers got some relief at the pumps this month. I'll tell you if that trend is likely to continue.

LEMON: Oh, my ears perked up with that one. And you keep abreast of everything.

You notice how all of these political candidates are going online to make their announcements. Pretty interesting. The question is, Susan, will the mouse roar in '08? Some presidential candidates see the Internet as their ticket to the White House. We're spinning a political web next in the NEWSROOM.

(COMMERCIAL BREAK)

LEMON: Hello, everyone. I'm Don Lemon, live at the CNN world headquarters in Atlanta.

NGUYEN: And I'm Betty Nguyen, in for Kyra Philips today.

A bunch of new Internet launches that have nothing to with the tech industry and everything to do with presidential politics. We're going to talk about cyber campaigns and whether they'll click with voters.

You're in the CNN NEWSROOM.

LEMON: Hello, everyone. I'm Don Lemon live at the CNN world headquarters in Atlanta.

NGUYEN: And I'm Betty Nguyen in for Kyra Phillips today. Well the weather is cold but the controversy is steaming up at the Sundance Film Festival. A batch of new films are pushing the envelope and a lot of buttons. We're going to get the scoop live from Sundance, you're in the CNN NEWSROOM.

First, though, a controversial jailhouse conversation. The man accused of kidnapping two Missouri boys talks with a visitor who turns out to be a reporter. Michael Devlin's attorneys are just furious over this. CNN's Soledad O'Brien with "AMERICAN MORNING" has more.

(BEGIN VIDEOTAPE)

SOLEDAD O'BRIEN, CNN ANCHOR (voice-over): He's 6'4", weighs 300 pounds. Not the kind of man you'd think of as timid and scared. Still, Michael Devlin says that he's afraid to confront his mother and father now that he's been arrested. In two separate 15-minute interviews, the Missouri pizza shop manager accused of kidnapping two boys tells the "NEW YORK POST," "I don't know how I'm going to explain myself to my parents. It's much easier talking to a stranger about these things than your own parents." Devlin says he had few friends, telling "The Post," "I guess you could say I was lonely. All my friends started getting married and having kids. Hanging out with friends just becomes a lower priority." When asked about girlfriends, Devlin says, "I was never really interested in that." Did he like women at all? Devlin says, "I can't talk about that because it has to do with the case." Shawn Hornbeck's parents are concerned their son will have to testify in court about his four-year ordeal with Devlin.

PAM AKERS, SHAWN HORNBECK'S MOTHER: It's something that I am sure Shawn isn't wanting to do. It's something that I really don't want to have to put Shawn through that again. You know he lived it for four and a half years. Why make him relive it.

O'BRIEN: Michael Devlin says his time in jail is difficult. He can't sleep he says, and he's isolated. "They keep me away from everyone because they think I'm dangerous." He insists he's not. In spite of the trauma Devlin may have inflicted on Shawn Hornbeck for four long years, Devlin claims that for him, at least, life with the boy had been good. "I guess I was relatively happy, he says." Not happy is Devlin's attorney. He's furious the interview ever happened.

ETHAN CORLIJA, DEFENSE ATTORNEY: Anytime you have unauthorized, unrestricted access into a jailing facility you have problems. Especially with a case like this.

O'BRIEN: Soledad O'Brien, CNN, reporting.

(END OF VIDEOTAPE)

NGUYEN: Now Devlin's attorneys want him moved to what they consider a more secure location. But the Franklin County Sheriff insists there was no security breach at his jail, that the woman who visited Devlin signed in as required and, quote, "Devlin observed the female prior to the interview and still granted the visit." The statement goes on to read, "The female then left. It is not known by this office who she told Devlin she was."

LEMON: And Betty there are reported sightings in a manhunt for a missing Indiana family. Police in Elkhart will only say they've received information that the mother and four children are alive. Now they're checking every lead. The search is expanded to Chicago, where police believe Jerry White may have taken his ex-girlfriend and their children. But a cousin says none of his relatives in Chicago has heard from him. Police alleged White took the family by gunpoint from their home on Saturday. The children range from 16 months to 9 years old.

You're not going to believe this story. Amazing, but it is true. In Indianapolis, a man crashed through, get this, a 17th floor window of a high rise hotel. He fell 16 floors. It's in Minneapolis. He fell 16 floors, landed feet first on a roof overhang and he survived. Police say he has some broken bones and internal injuries but must have had an angel on his shoulder. Of course, he's identified as a 29-year-old Wisconsin man in town for a dart tournament.

NGUYEN: That is really remarkable. The question is, why was he jumping out of that window? Maybe we'll get to the bottom of that.

Here's another story for you, "Consumer Reports" has long been a trusted authority on product safety. So when it makes a mistake, as it did this month with infant car seat crash tests, it's news. What went wrong? CNN consumer reporter Greg Hunter investigates.

(BEGIN VIDEOTAPE)

GREG HUNTER, CNN CONSUMER REPORTER (voice-over): "Consumer Reports," the magazine known for its investigative work is now investigating itself. Trying to figure out why it published a report saying 10 of 12 infant car seat models failed their side impact crash tests.

KEN WEINE, CONSUMER REPORTS SPOKESMAN: We decided that we were going to conduct new side impact tests, review all aspects of the article and conduct an internal review.

HUNTER: The magazine withdrew its findings after federal officials refuted the results. In its more than 70-year history, "Consumer Reports" has made very few mistakes. So who watches the watchdog? Ironically, "Consumer Reports" is responsible for checking itself. But in this case, it didn't work. Consumer advocate Joan Claybrook, former head of the National Highway Traffic Safety Administration says she thinks she knows what went wrong.

JOAN CLAYBROOK, PRESIDENT, PUBLIC CITIZEN: They hired a company that they probably didn't check out enough as to its expertise with crash testing. It's a very technical area. They should have had some bell go off in their head and say, you know, this is unbelievable and maybe it's not correct.

HUNTER: Claybrook says they should have consulted other experts after seeing the results. Also, "Consumer Reports" doesn't typically include manufacturer's comments when their products test poorly. Claybrook says that's also a mistake.

CLAYBROOK: The public relations advantage they might have seen in putting out this incredible report has completely undercut the organization's credibility.

HUNTER: Consumers Union, which publishes "Consumer Reports" magazine tests more than 3100 products a year. Most in its own labs and testing sites. This time, it didn't.

WEINE: The most important thing is it's held to the same standards as everything else that's published in "Consumer Reports."

HUNTER: The magazine insists it serves only one master.

WEINE: "Consumer Reports" takes no ads. We are completely unbiased. We do not allow marketers to use our name in their advertisements. We have one constituent and that is consumers.

HUNTER (on camera): I asked "Consumer Reports" if they were going to change the way they did the magazine and include comments from manufacturers who did poorly. The only thing the spokesperson would tell me is that they were doing an investigation and they don't have any more information at this time. On the New Jersey turnpike near Secaucus, New Jersey, Greg Hunter, CNN.

(END OF VIDEOTAPE) NGUYEN: Fanning the flames of controversy, 2-year-old actress Dakota Fanning is the talk of Sundance. Starring in a film that she'd be way too young to see without her parents. We have those details ahead in the CNN NEWSROOM.

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: I'm Brooke Anderson in Park City, Utah at the Sundance Film Festival where Dakota Fanning's film is premiering tonight. I'll have more from controversy from both films and the Sundance founder himself Robert Redford when the CNN NEWSROOM returns.

(COMMERCIAL BREAK)

NGUYEN: Well, they are drumming up dollars and distributors that is the name of the game at the Sundance Film Festival which kicked off late last week. Joining us live now from Park City, Utah with much more is CNN's Brooke Anderson. Hi there Brooke?

ANDERSON: Hi there Betty. Speaking of money, yeah John Cusack's new film "Grace's Gun" got snapped up for $4 million in a late night business dealing. But, yeah, I'm here in Park City, Utah at the Sundance Film Festival, the brain child of Robert Redford. This year the festival is not only focused on film but a lot of controversy as well. It's become not only a platform for independent filmmaking, but also an arena for some people to vent their personal, political and social frustrations.

(BEGIN VIDEOTAPE)

ROBERT REDFORD, ACTOR/SUNDANCE FOUNDER: Anybody with a rational mind, with a sense of decency is being positioned as a lefty by the behavior of the extreme rights.

ANDERSON (voice-over): Sundance founder Robert Redford in the opening day news conference harshly criticized the current administration, demanding an apology for events that have transpired on President Bush's watch.

REDFORD: I just believe in the fundamental tenets of democracy and when they get pushed, shoved, compromised or attempted to be snuffed, it (expletive) me off.

ANDERSON: A number of films selected to debut at Sundance don't shy away from hot button political issues.

UNIDENTIFIED MALE: It's like a combination of "Apocalypse Now" meets "The Shining." Except that, you know, this is real.

ANDERSON: The documentary "Ghosts of Abu Ghraib" examines the abuses by American military personnel at the Iraqi prison while feature film "Grace's Gun" starring John Cusack reflects a growing anti-war sentiment.

JOHN CUSACK, ACTOR: I don't think anybody hasn't turned on the television or read the newspaper and feel very, very concerned about where the world is going. So, you know, it's just a movie, but that's what I do.

ANDERSON: "Hounddog" starring 12-year-old Dakota Fanning is also just a movie, but one that is swirling in controversy.

DAKOTA FANNING: You ain't nothing but a hound dog crying all the time.

ANDERSON: Some are criticizing the filmmakers for featuring young Fanning in a brutal rape scene. But she told "The New York Times" she's mature enough to handle the part saying, quote, "I am getting older. I'll be 13 years old. I knew I was at the perfect age." Films focusing on religious intolerance of the gay community are also capturing attention here from the documentary "For the Bible Tells Me So" to the feature film "Save Me."

UNIDENTIFIED FEMALE: Pastor is watching. I think you should stop this.

ANDERSON: "Grey's Anatomy" star Isaiah Washington's recent use of an anti-gay slur came up at a Sundance event thrown by the Gay and Lesbian Alliance Against Defamation. The head of GLAAD plans to meet with the actor soon.

NEIL GIULIANO, GLAAD: If we can get to where it's coming from with his situation, maybe we can understand where it's coming from with so many other Americans.

(END OF VIDEOTAPE)

ANDERSON: And speaking of the uproar over Dakota Fanning's new film "Hounddog", the president of the Catholic League, Bill Donohue, is even asking for a federal investigation of the film to determine if federal child pornography laws were violated during the shooting. Now the director told "The New York Times" that that's not the case. That Dakota was treated with the utmost respect. And it was done very tastefully. "Hounddog" will have its premiere tonight. Betty, we were just told a little while ago that Dakota nor the cast will be participating with television outlets in any of the organized interviews that all of these films have here at Sundance. They will be at the premiere tonight we're told and we will be there as well. "Hounddog" is currently seeking theatrical distribution.

NGUYEN: But no interviews. I just talked about the criticism surrounding this film, in fact we're going to be talking more about that. Brooke we appreciate it. Coming up in just a few minutes, we'll hear from Bradley Jacobs, movie editor of "US Weekly" live from Park City. Now he has the latest on some on-screen controversies heating up this snowy Sundance film festival, including the movie "Hounddog."

LEMON: But first Betty, we have to get back to the breaking news desk. Our T.J. Holmes working on a developing story in the Middle East, right T.J.?

T.J. HOLMES, CNN ANCHOR: Yeah, we're going to Gaza City here where there's reportedly been a huge blast at the satellite station, the Arabic satellite channel Al Arabiya. A huge blast at their offices there. We have for us Talal Abu-Rahmi who is on the line for us who's there in the area and, Talal, I hope you're here with me. What can you tell us about this explosion?

TALAL ABU-RAHMI, GAZA: Yes, this explosion happened in the middle of Gaza City, about 15 minutes ago. It's not far away from my office, about 50 meters. We heard a big explosion in Al Arabiya office. According to the sources, and our crew who are down there, a fire inside these offices and the Arabiya offices being destroyed completely. According to the medical sources, up until now there is no injuries recorded to the hospital. The situation is still very tense around the tower and where al Arabiya TV is located. Security went down there and the fire department went down there with the ambulances.

HOLMES: All right Talal, we appreciate you getting on the line for us and giving us the information that you have. But to recap for you here, a short time ago, just 15 minutes according to Talal there, a blast at the satellite channel Al Arabiya at their offices. AP actually reporting no word of injuries, no one hurt because the office was actually empty at the time but this was a huge blast. Also, reporting here the AP that this was -- the satellite channel had been critical of a member of Hamas. Hamas of course has come to power there at the -- in the government. The Palestinian government. And that this network, the Al Arabiya had been critical, aired some programs that were critical of Hamas and of one of their leaders. No idea just yet how much that might have had to do with this explosion that we see tonight. But right now, no word on any injuries or, right now, any deaths or anyone because the office was empty. That's a good thing, but a huge blast. Don't know what this might do to once again make it tougher. Been some infighting reports in the Palestinian government. Don't know how much -- this is certainly not going to help the situation. Don't know if this is going to really to just help this to flame up once again.

LEMON: T.J. more details to be worked out. I'm sure you'll be working on it. If you get something new, we'll check back with you.

HOLMES: I sure will.

LEMON: More from that and also live at Sundance. The NEWSROOM continues. We'll be right back.

(COMMERCIAL BREAK)

NGUYEN: There's a live look at the Sundance Film Festival. And you can call it Sundance's shock and awe. Torture, bestiality, child rape. All have turned up on this year's screens. Should anything be left on the cutting room floor? Well joining us from Park City with more on all the hoopla is "US Weekly's" movie editor Bradley Jacobs. Thanks for being with us Bradley.

BRADLEY JACOBS, "US WEEKLY": Thanks for having me. You're nice and warm there though.

NGUYEN: Oh I am. But you're not looking too bad in that big coat of yours. We do want to get down to the issue of the movie "Hounddog" though because there's a lot of criticism surrounding this movie. Twelve year-old Dakota Fanning is raped in this film. That alone is something that many movie critics are saying and just different groups are saying, this is going way too far. Is this pushing the envelope too far?

JACOBS: Let's just step back a little bit to talk about Sundance in general. Sundance has never been about big mainstream movies like "Pirates of the Caribbean 2." It's been about boundary pushing independent films, films that push boundaries in sexual ways, and violent ways and in sociological ways. Also, it's important to know that "Hounddog" was written and directed by a 42-year-old woman named Deborah Campmire, she said she worked very, very carefully with Dakota Fanning and that the central rape sequence in "Hounddog" was achieved in the editing room, not on the stage. She has actually said in interviews that Dakota was singing and laughing just a few minutes after finishing the scene. There have been reports also that there is nudity, that Dakota Fanning is nude in this film. That is not true. There are shots of her bare shoulders and shots of her bare legs that are done carefully to achieve the effect that she is naked within the film but you don't see anything, of course.

NGUYEN: Ok, so no nudity, but it is very clear that a 12-year- old is being raped in this movie. Is this something that moviegoers are willing to watch? Are they ready for something like this? And are they willing to view something like this?

JACOBS: Whether they're willing to view it or not we'll see later in the year when the movie comes out. But again, "Hounddog" is a classic Sundance movie. In that it examines something that's going on in our culture that is not seen very often. You know, teenagers are raped. Women in the world -- every woman I know knows a woman who was raped. This happens in America. It's unfortunate. And this film, Deborah Campmire's film is an effort to look at one story of a 12-year-old and how she was abused. What happened to her later in her teenage years and how she eventually overcame that terrible day.

NGUYEN: We want to show just a little clip right now from the film of Dakota singing a little bit. Some would say maybe it's a little provocative. Let's just take a look.

(BEGIN VIDEO CLIP)

FANNING: You ain't nothing but a hound dog crying all the time. You ain't nothing but a hound dog crying all the time.

UNIDENTIFIED MALE: Isn't she something?

(END OF VIDEO CLIP)

NGUYEN: They are imitating Elvis himself, but let me ask you this. What has Dakota said about this herself? I know earlier she said she's going on 13. She's ready for something like this. Has she said anything else about what this may have done to her psychologically? I mean being - I know she's an actress, this is what she does, but she's still just a little girl. JACOBS: Listen, we all know what a grown-up Dakota Fanning is. This film comes after films like "Pretty Baby" which starred Brooke Shields as a child prostitute. "Taxi Driver" of course which had Jodie Foster, Dakota Fanning's long time role model, as a child prostitute. Now while these films in the 70's were very controversial, they were also acclaimed. Looking back at them these days as classics. Dakota Fanning is going to be at the premiere tonight when all of Sundance will see this movie for the first time and we'll see what she has to say. But I assume it will be something like this was a story that I felt was important and I was taken care of very well on the set by the director and the others there and, of course, her parents. I think that you're going to end up seeing this movie get critical raves and that the audience itself will understand. One more thing, if I have time, about that scene that you just showed. The director has been quoted saying that it's actually -- that seen divides people down gender lines. Men think it's somewhat exploited to see this young girl in the 50's singing along to Elvis Presley, her idol in the movie. But women seem to think it worked and sort of understood that cheekiness. She's a 12-year-old. Her youth, her puberty is just beginning. She's on the cusp of all of that. And women seem to understand that sequence.

NGUYEN: We'll see what moviegoers have to say about it once they get a chance to check it out. Bradley Jacobs, movie editor for "US Weekly" we appreciate your time and insight.

JACOBS: Thank you Betty.

NGUYEN: Don?

LEMON: From the box office to the roads, good news for drivers. The cost of filling up went down this month. Always good news. Susan Lisovicz at the New York Stock Exchange with details for us. Hi Susan.

LISOVICZ: Hi Don. This isn't a move of a penny or two. Gas prices plunged nearly 14 cents over the past two weeks. The national average for a gallon of self-serve regular now $2.18 according to the most recent Lundberg Survey. The two-week drop, the biggest since early October, as usual, drivers paid the most in Honolulu. But six cities saw prices fall below the $2 level including St. Louis, Minneapolis and Detroit, which had the nation's cheapest gas. And Lundberg said gas prices could continue to fall over the next few weeks but any further declines would probably be smaller. The oil price information service says that the folks there think that maybe prices will come down another 5 or 6 cents before a -- a gallon that is, before they start going up in the spring when people tend to drive more. Don?

LEMON: That's what's behind all of this. Who do we have to, I guess maybe, thank for these lower prices?

LISOVICZ: The weather. That certainly is one reason. The recent plunge in oil prices certainly, that's something we talk about on a daily basis. Crude is down nearly 15 percent. This year alone more than 30 percent lower from its peak last summer. That's largely because of soft demand for heating oil amid an unusually warm winter in the northeast. The world's biggest heating oil market. And oil is once again sliding. It started the day up a buck but right now down 79 cents at $51.20 a barrel. Generally takes a few weeks until lower crude oil prices work their way through the system and are reflected at the gas pump. As for stocks, well they're lower, too. Investors considering the first wave of corporate earnings reports expected this week. Nearly a quarter of the S&P 500 companies slated to report. Right now the Dow Industrials down 90 points or three quarters of a percent. The NASDAQ also down three quarters of a percent. And that is the latest from Wall Street. Coming up, I'll tell you what one internet billionaire is doing to make healthcare information more accessible on the web. The next hour of NEWSROOM continues in a moment. You're watching CNN, the most trusted name in news.

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