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State of Iraq Will big Part of State of the Union Address; Roe V. Wade Anniversary; Bike Path Rapist

Aired January 22, 2007 - 14:00   ET

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

DON LEMON, CNN ANCHOR: Hello, everyone. I'm Don Lemon, live at the CNN world headquarters in Atlanta.
BETTY NGUYEN, CNN ANCHOR: And I'm Betty Ngyuen, in for Kyra Phillips today.

Well, the tactics, they are already bloody and brutal. But now they are devious, too. Iraqi gunmen dress up as U.S. soldiers to get closer to their targets.

LEMON: And has this husband and father been hiding a deadly secret for more than two decades? He's now behind bars as a suspected Buffalo bike path rapist.

NGUYEN: And the popcorn is not the only thing that is hot at the Sundance Film Festival. We'll have a live report on a batch of controversial new flicks headed to a theater near you.

You're in the CNN NEWSROOM.

LEMON: The state of Iraq will be a big part of the president's State of the Union Address. The union is divided over Mr. Bush's plan to send more troops to the war zone.

CNN's White House correspondent Elaine Quijano joins us with a preview of tomorrow night's speech.

Elaine, what will the president tell us about his Iraq strategy?

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Well, good afternoon to you, Don.

First of all, it will be a different political dynamic for President Bush, certainly, as he delivers his State of the Union Address before a Democratic-led Congress. But, of course, important to note that the deep skepticism about his new Iraq plan is being expressed not just by Democrats, but by some of his fellow Republicans as well.

So tomorrow night, the president will continue trying to make the case that his strategy to send some 21,000-plus U.S. troops to pacify Baghdad and the rest of Al Anbar Province can be effective. Aides say, though, that his comments on the Iraq war will be made within the larger context of the war on terror.

His address, though, coming on the heels of a particularly deadly weekend for U.S. forces in Iraq. Asked about that earlier today, the president's spokesman said that as the Iraqi government begins to assert itself, increased violence should not come as a surprise.

(BEGIN VIDEO CLIP)

TONY SNOW, WHITE HOUSE PRESS SECRETARY: You can expect as there is pushback that there is going to be some increase in violence. But on the other hand, what's been going on, on the ground -- and you've seen the prime minister being more assertive when it comes to dealing with militias. You've seen the prime minister being more assertive when it comes to political reconciliation.

(END VIDEO CLIP)

QUIJANO: Now, at the same time, officials here privately acknowledge that until things change on the ground in Iraq, and there is a decrease in the level of violence there, that many Americans will remain skeptical of the president's Iraq plan and its effectiveness.

So the White House, also, in tomorrow's State of the Union Address, is going to try to shift some of the attention off of the president's foreign policy and on to the president's domestic agenda. Aides say that his State of the Union Address will focus on areas where the White House believes it can work with Democrats and find some common ground. Issues, Don, that include healthcare, immigration, energy and education policy -- Don.

LEMON: Yes, talk to us, Elaine, more about this healthcare, because that's been a very hot issue. And I guess the White House realizes that. And you said they are going to shift the focus off the Iraq policy.

QUIJANO: Well, they're going to try. And what they are talking about here is something, of course, an issue that affects millions of Americans. This issue of health insurance. And it is going to be a tax deduction.

We don't know if the president himself will unveil the exact numbers, but the figures we're hearing from people familiar with the plan in the White House are that the president is talking about a $7,500 standard tax deduction for healthcare for individuals and a $15,000 deduction for families.

Now the goal here, obviously, is to try and encourage people to -- who are not insured right now to go ahead and sign up for insurance, because this would apply to people who not only get insurance through their employers, but if you went ahead and got insurance on your own. Now, one sticking point, though, already there is some talk about the possibility that some people could actually see their taxes go up.

So, Don, in this political environment, even before the president unveils this proposal formally, already criticisms coming on this domestic issue as well.

LEMON: All right. Elaine Quijano at the White House.

Thank you very much for that. And don't forget, the best political team on television covers the president's State of the Union Address tomorrow night starting at 7:00 p.m. Eastern. CNN's Wolf Blitzer is in "THE SITUATION ROOM" with a preview of the speech. Then you can watch the president at 9:00.

Then Anderson Cooper picks up the postgame at 10:30 from Washington. And Larry King stays up late with a midnight edition right here on CNN.

NGUYEN: Well, while President Bush hopes to wins hearts and minds in tomorrow night's State of the Union speech, the odds, they're going to be against him. He gets a 34 percent job approval rating in the latest CNN Opinion Research poll. Sixty-three percent disapprove of what he's doing and how.

We're also getting a new look at whom Americans favor in the race for the White House in '08. Thirty-four percent of Democrats say they support Senator Hillary Clinton for their party's nomination. She's followed by Senator Barack Obama, former Senator John Edwards, and former vice president Al Gore.

Now, on the GOP side, almost a third of Republicans would like to see former New York mayor Rudy Giuliani as their party's candidate. Senator John McCain is close behind, with former House speaker Newt Gingrich and former Massachusetts governor Mitt Romney rounding out the top four.

LEMON: And we've been talking about all the folks who are throwing their hats into the ring, at least talking about exploratory committees. And we want to take you now to Nevada (sic). We're waiting for a live press conference in Santa Fe.

Bill Richardson, who is the governor of New Mexico -- New Mexico, sorry. I said Nevada. The governor from New Mexico, he is going to hold a press conference in just a short time. And we're going to bring that to you live.

So keep it right here. We'll keep you updated on that, and we'll talk about the governor of New Mexico, Bill Richardson, live press conference.

And we want to remind you, also, tomorrow -- or tonight, rather, presidential hopeful -- you see him there -- Governor Bill Richardson will be a guest on "LARRY KING LIVE."

Keep it right here.

NGUYEN: And soon as that happens live, we will bring it straight to you.

In the meantime, almost there. The jury pool in the Lewis "Scooter" Libby trial has been whittled down to 37. And in just a matter of hours, attorneys hope to have the final 12 jurors and four alternates seated.

Vice President Cheney's former chief of staff is accused of lying to federal investigators about the leaked identity of a CIA agent, Valerie Plame. He is not, though, accused of the leak itself. Be very clear on that. And his attorneys plan to call Cheney as a witness.

Opening statements are expected tomorrow.

LEMON: Well, until his indictment, Libby's lofty position was a fitting culmination of a sterling career. Now here's his resume.

(BEGIN VIDEOTAPE)

LEMON (voice over): He's the man with the sterling neoconservative resume. I. Lewis "Scooter" Libby served under Republican presidents in the State Department, the Pentagon, and the White House itself. He wielded the greatest influence as Vice President Dick Cheney's chief of staff and national security adviser.

Some friends and critics refer to Libby as "Dick Cheney's Dick Cheney." Libby also served as an assistant to President Bush. He made his name as a hawk on national security issues, especially the threat of biological and chemical attacks on the U.S.

In 2005, Libby resigned after being indicted in the CIA leak case.

One of Libby's first mentors was Paul Wolfowitz, President Bush's former deputy defense secretary. They first met when both were at Yale. Libby took a political science course taught by Wolfowitz. Wolfowitz brought Libby into the State Department in the Reagan administration in 1981. He later served in the Pentagon under President Bush's father.

Libby was born in Connecticut in 1950 and attended the elite prep school Phillips Academy. He graduated with honors from Yale and received a law degree from Columbia University.

Libby is the author of the novel "The Apprentice," published in 1996 to decent reviews. Libby is married and the father of two children.

(END VIDEOTAPE)

NGUYEN: Well, more bombs at more outdoor markets in and around Baghdad. One hundred people, maybe more, are dead.

A pair of car bombs did most of the damage today. Damage the Iraqi government calls horrible. At least 88 people are dead in those attacks. Almost twice as many wounded.

Now, hours later, a bomb ripped through a marketplace outside Baquba, north of the capital, killing 12, wounding 40.

The U.S. military, meanwhile, is trying to get to the bottom of a weekend attack in Karbala. Attackers there infiltrated a secure compound reportedly disguised as U.S. military officials. They killed five U.S. soldiers before escaping. Their fate today, well, it's not clear. Black Hawk down in Diyala Province to tell you about. A dozen Americans killed. This happened over the weekend northeast of Baghdad.

The U.S. military is investigating, but early findings point to hostile fire or a shoulder-fired missile. Four crewmembers and eight passengers died on one of the single deadliest days for U.S. troops since the start of the war in Iraq.

LEMON: Michael Devlin's lawyers are outraged after the accused Missouri kidnapper spills at least a few beans in an unauthorized jailhouse interview. Details on who got in and what Devlin reportedly had to say. Details straight ahead in the NEWSROOM.

Plus...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The monster that's been known as the "Bike Path Rapist" has been taken into custody.

(END VIDEO CLIP)

NGUYEN: Behind bars, a man who police say lived a double life for 25 years. The Bike Path Rapist case, that's next in the NEWSROOM.

(COMMERCIAL BREAK)

LEMON: A developing story. Straight to the newsroom and T.J. Holmes.

T.J., an actual press conference instead of the Internet.

T.J. HOLMES, CNN ANCHOR: Yes, how about that? We'll take you live. We won't show you any more pictures of a Web site and a Web site announcement.

We've got a live person talking here. We've got, of course, Governor Bill Richardson, who announced over the weekend -- on Sunday, actually -- on a Web site, indeed, that, yes, he is going to be forming an exploratory committee to explore a run for the White House.

He's in Santa Fe here right now. And, of course, he is one of a number who actually made a -- made an announcement over the weekend. Of course, the big one, no doubt -- no offense to Governor Richardson here, but no doubt the big one over the weekend was Senator Hillary Clinton, who announced she is also in it, and she's in it to win it.

He just started this press conference a moment ago. We'll give you a listen to what he said at the top of that press conference.

Let's take a listen.

(BEGIN VIDEO CLIP)

GOV. BILL RICHARDSON (D), NEW MEXICO: I'm running for president because I believe I can take our country back and make a difference, that I'm the best qualified person to get this great nation back on track. I'm optimistic, I'm positive about the future. I am not afraid of the future.

It's clear that our next president must be able to accomplish critical goals and get us out of the dire situation created by the current administration. Our next president must be able to get us out of Iraq without delay. Our presence there is no longer needed.

I know the Middle east well. I've been a congressman, a U.N. Ambassador, Energy Secretary. We must turn over the security of Iraq to the Iraqis. We won't abandon them, but we must believe -- we must show we believe that we've done all we can.

(END VIDEO CLIP)

HOLMES: You heard him there at the end touting his -- touting his accomplishments, certainly saying that one of the advantages for voting for him possibly is that he is a governor, and that's a good thing.

So again, Governor Bill Richardson there. We were just listening to -- there you go again, taking a live picture of that press conference.

And again, he joins a crowded field here. About -- at least eight Democrats now who have gotten into this race. He's one of them.

But he will also be a guest this evening on "LARRY KING LIVE," doing the circuit now. Going around, getting his message out, and riding the heels of that big announcement of his that we did see on Sunday.

So there you have it, Governor Bill Richardson. So please tune into Larry King tonight and hear much more of what he has to say.

Back to you now -- Don.

LEMON: He's everywhere, and he did it live, instead of on the Internet, T.J.

We also want to tell our viewers -- thank you very much, T.J. -- tell our viewers that it's available on Pipeline. Just go to CNN.com and click on "Pipeline" if you still want to watch that press conference.

NGUYEN: In other news, today marks the 34th anniversary of Roe versus Wade, the Supreme Court decision legalizing abortion. And that means abortion rights supporters and opponents are demonstrating in the nation's capital.

That's where we find our Brianna Keilar with the latest on this.

Hi there, Brianna.

BRIANNA KEILAR, CNN CORRESPONDENT: Hi there, Betty.

It was January 22, 1973, when the Supreme Court ruled that Texas laws criminalizing abortion violated a woman's constitutional right to privacy. It was, of course, a victory for supporters of abortion rights. And every year since, opponents of abortion rights have marched here in Washington, met, of course, with protests by supporters of abortion rights.

Today, tens of thousands of people, perhaps more -- we're still waiting to get an official count -- are marching from the National Mall to the Supreme Court. And just like in past years, President Bush called them to express his support.

(BEGIN AUDIO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: As we move forward, we've all got 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 AUDIO CLIP)

KEILAR: So where do Americans stand on the abortion issue? Well, a new CNN Opinion Research Corporation poll conducted in the past few days shows 29 percent of the people surveyed said the Supreme Court should overturn Roe v. Wade. More than twice that, 62 percent, said it should not.

Organizations on both sides of this debate admit that's probably not going to happen in the immediate future, but even so, state laws and some legal challenges have chipped away at the reach of Roe v. Wade, and a representative for Planned Parenthood that I spoke with today, Betty, said state laws that put restrictions on abortion, for instance, waiting periods, perhaps requiring a minor to involve a parent or judge in their decision to get an abortion, those are major concerns for them.

NGUYEN: Well, Brianna, let's get to the people making decisions. What are we expecting to hear from the Supreme Court that could give us some insight as to where Chief Justice Roberts and Justice Alito stand on abortion rights?

KEILAR: Well, Betty, at this point we don't know exactly where they stand on this issue. Wat we're waiting for is a decision on a case called Gonzalez versus Carhart. This could come as soon as the next few weeks, certainly before June.

And at issue is the constitutionality of that federal ban on a specific procedure that critics call partial-birth abortion. They're looking at that because it doesn't have an exception for the health of the mother if a woman's health is at risk.

Now, several years ago, the Supreme Court struck down a Nebraska state law that was very similar to this. So, if this court, with Alito, with Chief Justice Roberts, if they go a different way, that's going to signal the landscape of how they feel about abortion has changed. And then ultimately the question, Betty, will be, could that signal that sometime in the future perhaps Roe v. Wade might be overturned?

NGUYEN: A lot of people are watching this very closely. Brianna Keilar, we appreciate your time.

LEMON: Police say this man was a picture of a model citizen, a little league coach active in his church. Today he's accused of being a serial rapist.

That story is straight ahead right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

LEMON: Shock, relief and disbelief in Buffalo, New York. Police say they've arrested a sexual predator responsible for rapes and murders going back decades. But the suspect's friends and co-workers say he never could have done such a thing.

CNN's Fredricka Whitfield has the story.

(BEGIN VIDEOTAPE)

FREDRICKA WHITFIELD, CNN CORRESPONDENT (voice over): The so-called Buffalo "Bike Path Rapist" has eluded police in Buffalo, New York, for more than 25 years. But has his luck run out? Erie County officials are confident it has.

SHERIFF TIMOTHY HOWARD, ERIE COUNTY, NEW YORK: Because the monster that's been known as the "Bike Path Rapist" has been taken into custody.

WHITFIELD: Police announced this week the man responsible for multiple murders and rapes for over two decades is alleged to be this man, 49-year-old husband and father of two, Altemio Sanchez. A grand jury has voted to indict Sanchez for the 1990 murder of Linda Yalem and the 1992 murder of Majane Mazur.

Sanchez entered a plea of not guilty to those charges at his first court appearance.

FRANK CLARK, ERIE COUNTY DISTRICT ATTORNEY: We are alleging that during the course of that 25 years, while he wasn't being the model husband, father, employee, he was stalking and raping and killing women.

WHITFIELD: The arrest of Sanchez comes as a complete shock to his family, friends, and especially co-workers, who have worked with him for close to 20 years.

DAVE HEFFERON, CO-WORKER: If I was going to say a person that I would like to be like, personality and everything, I'd say him.

WHITFIELD: According to local residents, Sanchez has been the model citizen. Residing here in this suburban Buffalo neighborhood, he's hosted backyard parties, was coach to his son's basketball team, and was an active fund-raiser at his local church.

UNIDENTIFIED FEMALE: I cannot believe that it was Al, because he's the best neighbor you could ask for. WHITFIELD: Andrew Lotempio, attorney for Sanchez, has met several times with his client and agrees.

ANDREW LOTEMPIO, ATTORNEY FOR ALTEMIO SANCHEZ: This guy seems to be everybody's uncle. And I don't even see any flash of conning or phoniness in him.

WHITFIELD: It was a tip from a 1981 rape case that led police to focus their efforts on Sanchez. The prosecution plans to rely heavily on DNA, secretly obtained from utensils he used at a local restaurant where Sanchez and his wife had dined. Authorities claimed the DNA collected matches that of the DNA evidence at both the murder scenes and from several of the rape victims.

HOWARD: The probability of there being another individual that would match that DNA is actually in the quadrillions.

WHITFIELD: Rebecca Klauk is a manager at Sole restaurant and was there the night detectives came in seeking Sanchez's DNA.

REBECCA KLAUK, MANAGER, SOLE RESTAURANT: He showed me has badge and he said that he was here on a criminal investigation, and asked us please not to clear any of the glasses or utensils from the table.

WHITFIELD: Lotempio says he plans to challenge the validity of the DNA evidence.

LOTEMPIO: These things happened 16 and 25 years ago. That means that evidence has been sitting on a shelf somewhere unprotected, or maybe in a plastic bag but moved two or three times and touched 20 times.

WHITFIELD: He also plans to seek a change of venue, noting how the media and the prosecution have, in his words, already convicted his client.

LOTEMPIO: We've got the district attorney, the law enforcement officials going on the television and saying, we've got 100 percent DNA match.

WHITFIELD: Sanchez is being held without bail. And if convicted of both murders, could serve up to 50 years behind bars.

Fredricka Whitfield, CNN.

(END VIDEOTAPE)

NGUYEN: In another case, Michael Devlin's lawyers are outraged after the accused Missouri kidnapper spills at least a few beans in an unauthorized jailhouse interview. We have details on who got in and what Devlin reportedly had to say.

That's ahead in the NEWSROOM.

And a freak mishap sends a man hurling through a hotel window on the 17th floor. The amazing part is he will live to tell the tale.

You'll hear it next here 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 Phillips today.

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 are in the CNN NEWSROOM.

First, though, a controversial jailhouse conversation. The man accused of kidnapping two Missouri boys talks with a visitor, who turned 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, AMERICAN MORNING (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'm 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 doesn't want to do. I really don't want to have to put Shawn through that again. 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 VIDEOTAPE)

NGUYEN: Now Devlin's attorneys report him moved to what they consider a more secure location. But the Franklin County sheriff insists there is 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: 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 are 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 nine years old.

You aren't 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.

NGUYEN: How lucky is that?

LEMON: Police say he has some broken bones and internal injuries but must have had an angel on his shoulder. He's identified as a 29-year-old Wisconsin man in town for a dart tournament.

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

LEMON: I don't know.

NGUYEN: "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 CORRESPONDENT, CNN NEWSROOM (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, SPOKESMAN, "CONSUMER REPORTS": We decided we are 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, 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 3,100 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 own 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, Greg Hunter, CNN.

(END VIDEOTAPE)

NGUYEN: Fanning the flames of controversy, 12-year-old actress Dakota Fanning is the talk of Sundance. Starring in a film she'd be way too young to see without her parents. We have those details ahead in the CNN NEWSROOM.

BROOKE ANDERSON, CNN HOLLYWOOD 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 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's the name of the game at the Sundance Film Festival, which kicked off late last week. Joining us from Park City, Utah with much more is CNN's Brooke Anderson.

Hi, there, Brooke.

ANDERSON: Hi, Betty.

Speaking of money, yes, John Cusack's new film "Grace Is Gone" 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 it's 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 Right.

ANDERSON: 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, when they get pushed, shoved, compromised or attempted to be snuffed, it pisses 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/PRODUCER, "GRACE IS GONE": I don't think anybody that 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: "Hound Dogs" starring 12-year-old Dakota Fanning is also just a movie, but one that is swirling in controversy.

UNIDENTIFIED FEMALE (SINGING): You ain't nothin' but a hound dog crying all the time.

ANDERSON: Some are criticizing filmmakers for featuring Fanning in a brutal rape scene. She told "The New York Times" she's mature enough to handle the part, saying, quote, "I'm getting older. I'll be 13 years old. I knew I was at the perfect age."

Films focus 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: The pastor is watching. I think you should stop this.

ANDERSON: "Gray's Anatomy" star, Isaiah Washington's recent use of an anti-gay slur came up at a Sundance event thrown by the Gay & 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 VIDEOTAPE)

ANDERSON: Speaking of the uproar over Dakota Fanning's new film, "Hound Dog", the president of the Catholic League, Bill Donahue (ph), 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.

"Hound Dog" 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'll be at the premiere tonight we're told. And we will be there as well. "Hound Dog" is currently seeking theatrical distribution.

NGUYEN: But no interviews. That just talks about the criticism, surrounding this film. In fact, we're going to be talking about 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. He has the latest on some on-screen controversies heating up this snowy Sundance Film Festival, including the movie "Hound Dog."

LEMON: First, Betty, we have breaking news desk. Our T.J. Holmes working on a developing story in the Middle East. Right, T.J.?

HOLMES: 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 is there in the area.

And Talal, I hope you're here with me. What can you tell me 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. It's about 15 meters. I heard a big explosion in Al Arabiya office. According to sources, and our crew down there, there is fire inside these offices and the Al Arabiya offices being destroyed completely.

According to the medical sources, up until now there is not any injuries in there, recorded to the hospital. The situation is still very tense around the tower and where Al Arabiya is being 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 you have.

To recap for you, here, a short time ago, just 15 minutes according to Talal there, a blast at the satellite office, actually the satellite channel of Al Arabiya, at their offices.

AP actually reporting that 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 one of their leaders. No idea just yet how much that might have had to do with this explosion that we see tonight.

Right now, no word on any injuries or -- right now, any deaths of anyone because the office was empty. That's a good thing, but a huge blast. Don't know what this might do to make it once again, make it even tougher.

There has been some infighting, of course, in the Palestinian government, Don.

LEMON: Right.

HOLMES: Don't know how much -- this is certainly not going to help the situation. Don't know if this is really going to just help this to flame up once again.

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

HOLMES: We sure will, we sure will.

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

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NGUYEN: There's a live look at the Sundance Film Festival. You can call it Sundance's shock and awe; torture, beastality, child rape. All have turned up on this year's screens. Should anything be left on the cutting room floor? 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, MOVIE EDITOR "US WEEKLY": Thanks for having me. You are nice and warm there.

NGUYEN: Oh, I am. But you aren't looking too bad in that big coat of yours. We want to get down to the issue of movie , "Hound Dog", 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 name movies like "Pirates of the Caribbean II." It's always been about boundary pushing, independent films. Films that push boundaries in sexual ways, in violent ways, in sociological ways.

Also, it is important to know that "Hound Dog" was written and directed by a 42-year-old woman, Deborah Campmire (ph). She said she worked very, very carefully with Dakota Fanning and that the central rape sequence in "Hound Dog" was achieved in the editing room, not on the stage.

She is 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: 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 are willing to view it, or not, we'll see later in the year when the movie comes out. But again, "Hound Dog" is a classic Sundance movie, in that it examines something that is going on in our culture that is not seen very often. You know, teens 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 (ph) 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 take a look.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You are 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?

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

(END 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 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" which had Jodie Foster, Dakota Fanny's long-time role model, as a child prostitute. Now while these films, in the '70s, were very controversial, they were also acclaimed. We look 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 the scene that you just showed. The director has been quoted saying that it's actually -- that scene divides people down gender lines.

Men think it's somewhat exploitive to see this young girl, in the '50s, 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 a 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.

SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT, CNN NEWSROOM: 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 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, maybe, thank for these lower prices?

LISOVICZ: The weather. That certainly is one reason. The recent plunge in oil prices is something, certainly, that is something we talk about on a daily basis. Crude 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.

As for stocks, 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 .75 of a percent. The Nasdaq also own .75 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 health care 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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