Return to Transcripts main page

CNN Newsroom

Commander's View in Iraq; Inquest into Daniel Smith's Death

Aired March 27, 2007 - 08:59   ET

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


TONY HARRIS, CNN ANCHOR: And good morning, everyone. You are in the CNN NEWSROOM.
I'm Tony Harris.

HEIDI COLLINS, CNN ANCHOR: And good morning. I'm Heidi Collins.

Watch events come in to the NEWSROOM live. Here's what's on the rundown for Tuesday, March 27th.

He calls the shots now in the Iraq war. The new head of Central Command in a one-on-one with our Kyra Phillips in Baghdad, an interview you'll see only on CNN.

HARRIS: An inquest getting under way today in the death of Daniel Smith. The coroner says his mother, Anna Nicole Smith, died from an accidental drug overdose.

COLLINS: A rare and expensive Ferrari totaled by a comic movie star. A costly crash. And nobody's laughing -- in the NEWSROOM.

In charge and on the ground, the new top U.S. commander in the Middle East is getting a first-hand look at the war in Iraq and the challenges. Can the U.S. regain control with the so-called troop surge? And will Washington allow enough time to achieve that mission?

CNN's Kyra Phillips has a one-one-one interview with Admiral William Fallon. He's the new head of U.S. Central Command. It's an interview you'll see only on CNN.

So, Kyra, what did the admiral have to say about the security situation there?

KYRA PHILLIPS, CNN CORRESPONDENT: Well, Heidi, as you can imagine, just walking through the streets of Baghdad, walking anywhere in Iraq, he has quite the entourage as he travels. He has to for security reasons. But at the same time, the Iraqi people flock to him.

He sits down, he has tea, and guess what they talk about? Security.

(BEGIN VIDEOTAPE)

PHILLIPS: Is that your biggest concern, security? Biggest challenge? ADM. WILLIAM FALLON, COMMANDER, U.S. CENTRAL COMMAND: Of course. Without security, and some sense of stability, that the people perceive that they can actually move forward with their lives, then we're not going to -- not going to be able to get there.

I was out actually in the streets the other day and took a little stroll and saw a lot of folks moving around. And they saw me. I'm not sure -- they probably didn't have any idea who I was, but they saw the entourage, so there must be something wrong.

PHILLIPS: You must be important.

FALLON: So, we came over, and the first thing the guy did was offer me a cup of tea. So, no sooner did I have the tea to my lips, than a large group of people, and they wanted to talk. And every one of them asked for more security, just give us some security.

Why? Because they want to go about their lives. They want to -- they want to do things.

PHILLIPS: Could you tell them, look, you'll have it, you'll have it in six months, you'll have it in a year? Were you able to say to them...

FALLON: Well, I can't make promises that I don't know whether we're going to keep. We're certainly going to be moving in that direction and trying.

The big piece of this, they have to really want it. Now, they say they want. They're going to have to demonstrate by actions that they will do everything they can to help us to identify those who are not likely or just definitely not willing to go abide by the rules of justice.

There are some killers that are still loose in this country. I think it's a very small percentage of the population. The idea that the whole country is at war with one another I think is absolutely not true, but there are some zealots here that will stop at nothing. And they don't care how many men, women or children they'll kill or maim.

PHILLIPS: And you don't think there's civil war?

FALLON: No, I don't think it's a civil war. There are factions that are fighting one another.

(END VIDEOTAPE)

PHILLIPS: And Heidi, that was what was really interesting about what the admiral said, is that it's the responsibility of the Iraqis as well to want that security. And what he was saying is, the U.S. military really depends on local intelligence.

There is so much that happens within the districts, within the regions, within the villages, and the locals know where the bad guys are, they know where they are hiding out. And yes, it's a tremendous risk for them to come forward and say something, but that's how coalition forces are getting their hands on members of al Qaeda, other militias and insurgents here in the country.

COLLINS: And it must say something, too, Kyra -- obviously, we know that Admiral Fallon, as he walks the streets in Iraq and talks with the people, does have quite a security situation for himself, and I'm sure he feels safe. But him walking around in the streets, I mean, is that rare for someone who is in charge of the entire operation to be able to do?

PHILLIPS: Actually, yes. Actually, it is, because it draws a lot of attention when you have such a big entourage, and it brings home the point that the streets of Baghdad are still very dangerous.

I mean, we have to travel the same way as well. I mean, we don't have air support and a convoy, obviously, like the head of Central Command, but it's very intense.

Now, what you're going to hear about in the next hour is the other areas that he went to throughout Iraq -- Falluja, Anbar, Irbil. And he talks about the progress that he's seen in those areas. He talks about the economy, the activity, and that life is getting better for people in those areas, and he's seen the reconstruction.

So I'll tell you more about that in that part of the interview coming up then.

COLLINS: All right, Kyra. We look forward to it. Thanks.

HARRIS: In less than an hour, an inquest begins into the death of Anna Nicole Smith's son Daniel. It happened last September, just five months before the former playmate died of an accidental drug overdose.

CNN's Rusty Dornin has the latest from the Bahamas.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice over): Twenty-year-old Daniel Smith came here to the doctor's hospital in Nassau. He came to celebrate the birth of his baby sister. But three days after she was born, he was found dead in his mother's hospital room.

A medical examiner says he died of an overdose of methadone and two antidepressants. Police have now determined his mother died of an overdose, too, although the drugs were different. Her death, they determined, was accidental.

But was the son's death an accident, suicide or something else? That's what Bahamian investigators want to know. Chief magistrate Roger Gomez says his sudden death on such a festive occasion was very unusual.

ROGER GOMEZ, BAHAMIAN CHIEF MAGISTRATE: On the fact that he came to see his newly-born sister, and for him to just suddenly drop down dead, raises a lot of questions.

DORNIN: Now, as part of the inquest into his death, 40 witnesses will be questioned, including hospital staff, friends of Daniel, and police from the U.S. Even Larry Birkhead, the man claiming to be the father of Anna Nicole Smith's 6-month-old daughter, will be one of the first witnesses.

Another person authorities here definitely want to talk to -- Howard Stern.

GOMEZ: Oh, he would be a very key witness, because he is the only surviving person who was in that room when Daniel died. Anna Nicole, unfortunately, has died. And we were looking forward to hearing her evidence, but unfortunately we don't have it anymore because she has died.

DORNIN: One thing that will be talked about are these photos that show methadone found in Anna Nicole Smith's refrigerator after he died. Family and friends say the photos were staged. Anna Nicole Smith did not die from an overdose of methadone. But methadone did contribute to her son's death, according to the medical examiner's report.

(on camera): Are you still going to be interested in the fact that there was purported to be methadone in her refrigerator?

GOMEZ: Oh, yes. All that will be coming up at the inquest.

DORNIN: This is the courtroom where more than 40 witnesses will be questioned about the circumstances surrounding Daniel Smith's death. There will be seven jurors sitting over here.

They will reach a verdict. Their verdict will be given as a recommendation to the attorney general.

(voice over): They could vote death by misadventure here. That means accidental. Or suicide. But if there is evidence to prove criminal intent, they can draft criminal charges.

Tourists are no longer allowed at the graveside of Smith and her son. At the courthouse, the media crowd has gathered to hear the questions about Daniel Smith's death. Questions Bahamian officials hope will soon be answered.

(END VIDEOTAPE)

HARRIS: And Rusty Dornin joins us live now from Nassau.

My goodness, Rusty. Over 40 witnesses to hear from. This is going to take some time.

Who are we expecting to hear from today?

DORNIN: Well, the judge told us that they were going to try to get the witnesses from the U.S. up first, because they obviously would like to go home after testifying. But it looks like the medical experts would be the first ones to testify, because you have to lay the groundwork for what happened for -- surrounding Daniel Smith's death -- some of the hospital workers and some of the people who came to treat him when they found him in that hospital room unconscious.

So, we're expecting medical experts, followed by probably witnesses from the U.S. And, Tony, this inquest is expected to go on for the next three to four weeks.

HARRIS: I guess there are worse places to spend the next three or four weeks.

Rusty Dornin in Nassau, in the Bahamas for us.

Rusty, thank you.

COLLINS: Fire and ice, weather to the extreme. This is what you get in south Florida when rain doesn't fall. Wow.

Wildfires sweeping across tinder-dry brush. This blaze scorched nearly 300 acres in Lehigh Acres. One home was damaged, at least half a dozen other buildings were destroyed. At last word, the fire was fully contained, but firefighters say dry conditions could help it spread again.

No danger of a wildfire in this part of the country. Look at that. The High Sierras in California getting slammed with a spring snowstorm. Parts of that region are expecting up to a foot of snow.

So, I haven't lost the entire winter yet? I still might be able to go skiing if I go all the way out there?

CHAD MYERS, CNN METEOROLOGIST: You can still make it.

(WEATHER REPORT)

HARRIS: Taking the fifth. A key aide to the attorney general refuses to testify about the firings of eight federal prosecutors.

That story coming up in the NEWSROOM.

COLLINS: Also, close to colliding on the runway. Find out what is in the works to make things safer on the ground.

HARRIS: More than a dozen British sailors and marines still held by Iran. And now Britain takes a tougher stand.

The latest on a tense diplomatic standoff just ahead.

COLLINS: And time to hustle. Troops tangle with Taliban in Afghanistan. You get a front row seat.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (voice over): There are 10 of us exposed to the Taliban fire. The Marines desperately trying to find the firing points.

(END VIDEO CLIP)

COLLINS: Firefight and fallout in the NEWSROOM.

HARRIS: And another brutal beating caught on tape, and this time the victim is a 77-year-old man. Police want your help to find the suspect.

The story ahead.

Keep it here in the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: A tense standoff between Britain and Iran showing no signs of ending. But today, new signs of impatience from London.

British Prime Minister Tony Blair is renewing his call for Iran to release 15 British sailors and Marines. He says if diplomacy doesn't work, Britain is prepared to move to a different phase in the dispute. He doesn't say what that would be.

Iran says the HMS Cornwall crew members are healthy and being treated well. They were seized Friday while on duty on a disputed waterway at the northern end of the Persian Gulf. Iran says they illegally crossed into its territory. Britain says they were in Iraqi waters.

HARRIS: A new flare-up in the firing of federal prosecutors. Monica Goodling, a key aide to Alberto Gonzales, the attorney general, says she will take the Fifth. Goodling refusing to testify about the firings of eight U.S. attorneys to avoid possibly incriminating herself.

Just yesterday, Gonzales called on Justice officials to cooperate with congressional investigators, but Goodling's lawyer calls the inquiry politically charged. They say testifying could put Goodling in legal peril.

Keeping track of the presidential candidates, it is hard to do without a scorecard, and there are plenty to choose from.

We get more from CNN's Senior Political Analyst Bill Schneider, part of the best political team on television.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST (voice-over): How do you keep score in a political race where nobody will be voting for nearly a year? We have got polls, of course. But do they really mean much?

THOMAS MANN, SENIOR FELLOW IN GOVERNANCE STUDIES, BROOKINGS INSTITUTION: Poll ratings largely respect -- reflect sort of public standing, visibility, name recognition, while -- while fund-raising indicates their ability to put together a substantial organization.

SCHNEIDER: The first quarter totals will be out next month. Hillary Clinton is reported to have raised nearly $10 million just in the past week.

On the Republican side, John McCain tried to lower expectations. "We started late, our money-raising, and we're going to pay a price for it," McCain told reporters. McCain's advisers tried to pump up expectations for rival Mitt Romney by suggesting that Romney's fund- raising might outpace McCain's.

But a Romney aide stated flatly, McCain will be in first.

There's a question how much money really matters in the early states.

GORDON FISCHER, FORMER IOWA DEMOCRATIC PARTY CHANGE: You can get around and campaign in Iowa fairly inexpensively. And, so, I don't know that money is all that important.

SCHNEIDER: The key indicator in Iowa may be endorsements. Senator Clinton got a big one on Monday, when former Iowa Governor and presidential candidate Tom Vilsack endorsed her. The Vilsack endorsement could bring organization.

FISCHER: We have over 2,000 precincts in Iowa. And he was to the point where he was naming precinct chairs. So, he was far, far ahead of any of the other candidates in terms of organization.

SCHNEIDER: Clinton may be getting a big endorsement, but Barack Obama is drawing big crowds. Do crowds matter? Maybe not.

FISCHER: I would much rather, you know, appear in 500 different living rooms than have 500 people in one crowd.

SCHNEIDER (on camera): Polls, money, endorsements, organization, crowds, they are all different ways of keeping score before the race actually begins. Because once it does, the scoring next year will come very early and very fast.

Bill Schneider, CNN, Washington.

(END VIDEOTAPE)

COLLINS: An aide to Senator Jim Webb in trouble with the law. What was he doing with a gun and a loaded clip on Capitol Hill?

We'll find out in the NEWSROOM.

HARRIS: Also, a star turn gone bad. Which movie star made this million-dollar mistake in a rare Ferrari?

That's ahead in the NEWSROOM.

COLLINS: And the Mighty Mouse from Maine. Stick around. You'll find out why the creature is wearing a very big smile.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The smartest little thing I've ever seen in my life. I've never seen a mouse that smart. That mouse took my teeth. I just know it.

(END VIDEO CLIP)

COLLINS: Teeth. Now you're wondering about this story, aren't you?

HARRIS: Wondering about him.

COLLINS: You better stick around. Denture adventure in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: An aide to Senator Jim Webb of Virginia expected in court today on weapons charges. He is accused of entering a Senate office building with a fully loaded pistol that belongs to Webb.

The senator's office identifies the aide as Phillip Thompson and says he is a former Marine, and a longtime friend and trusted employee. Capitol Police say Thompson was arrested at the Russell Senate Office at a security checkpoint, a congressional office, then briefed -- a congressional official who has been briefed on the incident says Webb gave the gun to Thompson when he was driving the senator to the airport. He says Thompson put the weapon in a briefcase and returned to Capitol Hill, apparently forgetting it was there.

COLLINS: We've heard a lot about how new research on stents and angioplasty can affect the medical world. But what does it mean for the companies that make them?

Stephanie Elam is "Minding Your Business" this morning.

Hi there, Stephanie. Interesting new report out here.

STEPHANIE ELAM, CNN CORRESPONDENT: Oh, yes. Hi, Heidi.

Well, what's interesting about this report is that it goes on to say that when you look at the difference between stents and prescription drugs, they are just as effective, both are, at keeping open arteries. But this is key for patients that are not high risk.

So looking at stable heart disease here, this is when it's useful. And we all know what stents are.

See that little gray part? That's the mesh metal wire area that goes into the artery and helps keep it open.

Well, this new study, according to the American College of Cardiology, says, well, you know what? Prescription drugs work. So that makes people wonder, well, what does this mean for the companies that make them? And specifically, it's actually better than you might think.

Abbott Labs has come out and said that research that they presented at this meeting in New Orleans actually showed that their drug-coated stent was better than the market leading stent which is made by Boston Scientific in both reducing re-clogging, as well as cutting back the number of adverse cardiac issues.

So, this news yesterday, it really hurt Boston Scientific stock. It was down about seven percent. Hit a four-and-a-half year low. While Abbott Laboratories, their stock was up about five percent -- Heidi.

COLLINS: Well, I know you're not a cardiologist, but what does it mean for the folks at home? I mean, should they be taking the pills or should they be getting a stent? It depends on how high risk you are?

ELAM: Right, because that's the issue. If you first hear this, you're thinking, well, wait a second, if I have a stent I'm concerned at this point. But really, the issue is high-risk patients, the stents are still the top way to go about making things better here.

This is the best way, it's the most effective. But they're saying for people who are at lower risk, then the drug-coated stents may be a good option there. Obviously, Abbott Laboratories, which sells its products currently overseas, is looking to get U.S. approval. And this data that came out at this meeting is likely to help them out there.

COLLINS: Yes, especially if they publicize it like they are.

ELAM: Like right now?

COLLINS: Yes, like right now.

What else are you watching today?

ELAM: We're just taking a look here at what else is going to happen here with the markets. We did see a little bit of a split market yesterday because of some concerns about the housing market. So we'll be keeping our eyes on that. We saw that new home sales were weaker than expected.

So, we'll keep our eyes on that.

COLLINS: All right. Very good.

Stephanie Elam "Minding Your Business" this morning.

Thanks, Stephanie.

ELAM: Sure.

HARRIS: The new man in charge, the same questions about security in Iraq.

(BEGIN VIDEO CLIP)

FALLON: If you take this in context of this population of 27 million, also, you're here in Baghdad, right next to the Green Zone. I've been all over this country in the last five days, and there are parts of it that are dramatically different.

(END VIDEO CLIP)

HARRIS: Iraq, view from the top. Our Kyra Phillips has an interview you'll see only on CNN.

That's ahead in the NEWSROOM.

COLLINS: Also, taking on the Taliban. British troops provide cover for their comrades inside the other war.

HARRIS: And friendly fire fallout. Four generals in trouble for mistakes in the aftermath of Pat Tillman's death.

Behind the investigation, in the NEWSROOM.

KATHLEEN KOCH, CNN CORRESPONDENT: I'm Kathleen Koch at Reagan National Airport. Federal officials are debating new technology to cut down on close calls on the runway.

That ahead in the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: Good morning, everybody. I'm Heidi Collins.

HARRIS: And I'm Tony Harris.

Welcome to CNN NEWSROOM. Good morning.

It happens almost every day. Maybe it's happened to you, a close call on an airport runway. Stopping those incursions and making runways safer the focus this hour in Washington.

More now from our Kathleen Koch, live at Reagan National Airport.

Kathleen, good morning. Why so much talk about this problem today?

KOCH: Well, Tony, right now federal officials here in Washington are having a forum looking at runway safety. The problem has been getting somewhat better in recent years, but they still feel like it's such a great threat. And they want to look at new technology that could improve the chances of increasing safety on the runways.

The NTSB actually gave us a sneak peek at some new animation of one of the most recent close calls. It happened just two months ago.

(BEGIN VIDEOTAPE)

KOCH (voice over): A Frontier Airbus A-319 is about to land in Denver, but as this just-released National Transportation Safety Board Animation of the January incident shows, it doesn't know a small plane has strayed onto the runway.

UNIDENTIFIED MALE: Frontier 297, go around. KOCH: The planes missed colliding by just 50 feet.

UNIDENTIFIED MALE: OK, 4216, where you at again?

UNIDENTIFIED MALE: Come back, 4216, yeah, we made a wrong turn there.

KOCH: Nearly every day on the nation's runways a plane gets too close to another aircraft, building, or vehicle on the ground. One in 10 runway incursions is serious, like this one in Los Angeles in 2004 when a controller cleared two planes to use the same runway.

UNIDENTIFIED MALE: Southwest 440 cancel take off clearance, hold in position.

KOCH: But federal safety officials are at odds over how to fix the problem. The Federal Aviation Administration Friday announced what most see as an interim step; quick approval of technology to give pilots a moving map display in the cockpit, similar to GPS used by drivers.

MARION BLAKEY, FAA ADMINISTRATION: Which run way am I on, is the basic question. Where am I going? This is very valuable information that the device would provide.

KOCH: But it has drawbacks. The unit won't show where other planes are, or alert pilots if a collision is imminent. The NTSB has been pushing for that type of system for more than a decade.

MARK ROSENKER, NTSB CHAIRMAN: Runway incursions are serious threats to aviation safety. We believe the FAA must do something, and do something quickly.

KOCH: The FAA says such technology is years away and that any improvement is just that.

BLAKEY: Well, following the NTSB's recommendation assumes the technology exists, which it does not, at this point.

KOCH: Pilots agree the moving map system, while not perfect, will increase safety. They also say it shouldn't have taken so long.

CAPT. MITCHELL SERBER, AIR LINE PILOTS ASSN.: It's very frustrating. The fact is that the technology has existed for many years.

(END VIDEOTAPE)

KOCH: The FAA says it hasn't been dragging its feet. It's simply took time to create a data base of all of the nation's runways. And also to begin putting these global positioning satellite receivers on aircraft, right now, only a few aircraft have them and they are still getting those onboard. Back to you, Tony.

HARRIS: OK, so Kathleen, when might we see these systems in aircraft? KOCH: The FAA says potentially by the end of the year, but it's really going to be up to the airlines to invest the money in them. The FAA is not going to require them. They will cost about $20,000 per system, so it will depend on the airlines. Will they invest the money, or will they say that's too much?

HARRIS: CNN's Kathleen Koch at Reagan National Airport. It always seems to come down to the money. Thank you.

KOCH: Always.

Solemn memories in the Canary Islands, that was the site of what is believed to be the world's worst aviation disaster on the ground. The collision between two 747s at Tenerife killed more than 500 people; 30 years ago the Pan Am plane collided with a JLM jet on the runway. Amazingly about 60 people survived the crash. Families of the victims are Tenerife today to see the dedication of a permanent memorial.

COLLINS: Pat Tillman's family is calling for a congressional investigation into how his death was handled. The family of the football star turned Army Ranger is dissatisfied with the military probe surrounding the friendly fire incident. CNN's Senior Pentagon Correspondent Jamie McIntyre reports.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice over): After three botched probes into the 2004 death of former NFL player turned Army Ranger Pat Tillman, the Army now says it's got it right.

GEN. RICHARD CODY, U.S. ARMY VICE CHIEF OF STAFF: In April 2004, the Army broke faith with the Tillman family in how Pat Tillman's death was reported and briefed to him. For that I am truly sorry, both as a general, and as an Army father.

MCINTYRE: This re-enactment shot by Army criminal investigators shows the exact hill in remote eastern Afghanistan where Corporal Tillman was killed by automatic weapons fire, from fellow Rangers who mistook him, and his Afghan guide for enemy ambushers.

The glare from the sun made it difficult to see. The lack of radio contact sealed Tillman's fate. He threw a smoke grenade to signal he was an American, but was mortally wounded seconds later. The investigators concluded the soldier who felled the national hero made a tragic, but honest mistake.

BRIG. GEN. RODNEY JOHNSON, U.S. ARMY CRIMINAL INVEST. COMMAND: He was not negligent in engaging Corporal Tillman's position. A reasonable soldier would have concluded he was under fire, and acted as he did.

MCINTYRE: As for what happened after Tillman died, the Pentagon inspector general's report was scathing, labeling all three previous Army investigations deficient and blaming nine officers, including four generals, who could all face discipline.

Brigadier General Gary Jones, now retired, who did the last investigation, failed to pursue obvious inconsistencies, including why Tillman's uniform was burned, and why his Silver Star citation was part fact, part fiction.

Then-major general, now lieutenant general, Stanley McChrystal was faulted for submitting an inaccurate Silver Star recommendation, and failing to speak up when it was clear Tillman's death by friendly fire would make him ineligible for the award.

Then-colonel, now Brigadier General Jams Nixon was found to bear the primary responsibility for the failure to correct the record at the outset, because he decided to wait until the investigations were through, in violation of Army regulations.

But the sharpest criticism was reserved for Lieutenant General Phillip Kenzinger, now retired, accused of misleading investigators about what he knew at the time of Tillman's memorial service.

(On camera): So he said, at that point, he didn't know that patricide was a likely cause -- a likely reason for the death, and that didn't he find out until afterwards. And you didn't find that credible.

THOMAS GIMBLE, DOD ACTING INSPECTOR GENERAL: We didn't find that credible. We found evidence that he knew in the A-4 (ph) time frame.

MCINTYRE: Well, that sounds like lying.

GIMBLE: And the Army will look at that and we'll make a determination.

MCINTYRE: The fate of the four generals and five lower-ranking officers now rests in the hands of a four-star general who will decide what punishment, if any, is warranted.

Tillman's family will keep his posthumous Silver Star, but the accompanying citation will be changed to reflect something that has been missing for nearly three years, the truth. Jamie McIntyre, CNN, the Pentagon.

(END VIDEOTAPE)

COLLINS: This is what war sounds like.

(GUN BURSTS, MEN SHOUTING)

COLLINS: Front line duty in Afghanistan. See it happen in the NEWSROOM.

HARRIS: What do you say we get the business day started? OK, here we go.

(BELL CLANGING)

The Dow closed off nearly 12 points yesterday, so it begins the day at 12,469. As we take a look at the Big Board, we're going -- in the wrong direction. All right. The Dow down 51 points. Early, early, early. The Nasdaq off 9. We'll check all of the morning's business headlines with Susan Lisovicz here in the NEWSROOM

COLLINS: Right now, we're going to check the weather. That might be better, right? Chad?

(WEATHER REPORT)

COLLINS: He decided to change his sex. Now he may also have to change his town. CNN's Carol Costello explains.

(BEGIN VIDEOTAPE)

CAROL COSTELLO, CNN CORRESPONDENT: The city manager of Largo, Florida seemed hopeful. Steve Stanton believed he could still persuade the city council to let him keep his job, despite his plans to become a woman.

STEVEN STANTON, FIRED LARGO CITY MANAGER: This is real difficult. I wish I could say I'm sorry for being what I am. If I could have changed it, I certainly would have tried. And I did for, you know, 40-plus years. I would never have wanted to put any of you in a position that you all now find yourself in. I did not want to be in the position that I found myself in.

COSTELLO: At a final meeting with the council, successful public officials from around the country who are transgendered spoke on his behalf. Many in the gallery wore "Don't Discriminate" T-shirts.

UNIDENTIFIED FEMALE: Steve Stanton has been an exemplary administrator for you for years. The city of Largo has prospered and grown.

COSTELLO: But after some six hours of testimony the voices against him won out.

UNIDENTIFIED MALE: There's a couple people here that want to make Largo into a weirdo town.

COSTELLO: Stanton just could not overcome the wrenching public debate going on outside city hall.

UNIDENTIFIED MALE: This awful, bizarre, weird, for a person with a $120,000 a year salary, a nice family, wife and everything like this, that has to you know, announce something like this all of a sudden.

COSTELLO: By a vote 5-2 the city commission reaffirmed its decision to fire Stanton.

MARY GRAY BLACK, LARGO COMMISSIONER: I support the removal of the city manager from office, because I find it to be in the best interests of the residents of our city of Largo to do so.

COSTELLO: His firing prompted the city's mayor, a supporter, to worry about other employees, who in Florida, and 41 other states can legally be fired for being transgendered.

MAYOR PAT GERARD, LARGO FLORIDA: I'm hoping that there will come a time soon when our gay, lesbian and transgendered staff can feel like valued members of our community again, and feel they are safe in their jobs. Because that is not the case right now.

COSTELLO: With his town divided, and his family in turmoil, Stanton believes he may have little choice but to move on.

STANTON: I don't know. Maybe there is a greater role for me in some other Largo, far, far from Florida. I'll find out.

COSTELLO: Carol Costello, CNN, Largo, Florida.

(END VIDEOTAPE)

HARRIS: We know what killed her. What about him? A formal investigation into the death of Anna Nicole Smith's Son gets underway today. Details coming up in the NEWSROOM.

COLLINS: And can you believe it? Another brutal beating caught on tape. This time the victim is a 77-year-old man. Police want your help to find the suspect. This story is coming up. Keep it right here in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: The Taliban on the attack in Afghanistan and coalition forces fighting back. ITV Reporter Bill Neely is with British troops.

(BEGIN VIDEOTAPE)

BILL NEELY, CNN INT'L. CORRESPONDENT (voice over): Dawn, and in the heartland of the Taliban, Royal Marines are poised for a risky patrol. In their sights the village of Zumbalay (ph), where Taliban gunmen have roamed freely for months.

UNIDENTIFIED MALE: That's where you're going to have to head first. And we'll have to crawl on the ground a bit.

NEELY: But as they move in, an ominous sign. The villagers move out. Fear was written all over small faces.

UNIDENTIFIED MALE: We got people flooding out of the area heading northeast.

NEELY: The troops call at a combat indicator. Armed men moving into position in compounds. The Marines enter the village. And for hours they patrol without incident. But the Taliban were waiting for their moment.

It came when, we, and the Marines were in open ground, their gunfire very close.

(GUNFIRE, SHOUTING)

We crawl along the ground, dragging the camera with us. There are 10 of us exposed to the Taliban fire, the Marines desperately trying to find the firing points. They see not one, but two Taliban positions, and call us forward into cover.

(ONGOING GUNFIRE)

Taliban grenades fly overhead, but by now their positions are under intense fire.

(ONGOING GUNFIRE)

Under covering fire, we reach the wall of a compound and half a dozen Marines. They catch glimpses of their attackers and begin firing mortars. Often the Taliban will shoot and scoot, this time they stay put.

UNIDENTIFIED MALE: (UNINTELLIGIBLE) hat with a red scarf on it.

UNIDENTIFIED MALE: Yeah?

UNIDENTIFIED FEMALE: Yeah, there!

(GUNFIRE)

(On camera): Well, the Taliban was here about two hours before springing their ambush. They're in two compounds just over there.

(GUN BURSTS)

And their using heavy bursts of automatic fire and rocket propelled grenades, two or three of which flew over our heads. As you can see, the Marines here are firing back in kind.

(Voice over): The compounds are 150 yards away, but what none of us knew was that the Taliban were in at least 12 other positions.

Then the assault on the compounds. Marines running for their lives across the open, killing ground.

(SOLDIER SHOUTING ORDERS)

(ONGOING GUNFIRE)

The Taliban hold their ground and hit back. A second wave of men go in. Now the Taliban are out, retreating along deep irrigation ditches.

UNIDENTIFIED MALE: Right. The Bravos could see leakers from that building; he's adjusting across to hit'em.

NEELY: What we were about to discover that the Taliban weren't finished.

UNIDENTIFIED MALE: I'm following up into the compounds to clear them to see if the Taliban is still there. NEELY (on camera): But it's not over yet?

UNIDENTIFIED MALE: Oh, it's not over yet. But these things, we're not trying to clear the whole way through this village.

That was quite close.

NEELY: It was close. A rocket fired from long range. By now the Taliban were using six kinds of weapons, like the Marines.

In Zumbalay's compounds they find ammunition boxes, unused weapons, but little else. The Taliban had pulled back, taking their guns, grenades and mortars with them. They were radioing for reinforcements after a fire fight that lasted two hours the troops began to withdraw.

(On camera): The problem for the Marines is there was only one way into this village. And there is only one way out. And this is it.

(Voice over): We left passing the poppy fields that provide the world with most of its heroin. Poppies, and trenches, and the sign of artillery shells whizzing overhead. It could be Flanders in World War I, but here there were no British casualties.

UNIDENTIFIED MALE: We assaulted the compound successfully. Killed at least four enemy Taliban with weapons.

NEELY: That's confirmed?

UNIDENTIFIED MALE: Confirmed. We saw them there dead. Actually a very successful day. We seized two weapons and killed four enemy.

NEELY (voice over): But the battle had raged across two miles. A dozen Taliban were dead, twice that number fled. So, on one morning in one village, Marines had confronted their enemy and won. But the Taliban will be back. They are playing the long game on their ground, and they are many. And there are many villages, hundreds. And a long war ahead. Bill Neely, ITV News, Zumbalay (ph).

(END VIDEOTAPE)

COLLINS: A star turn, gone bad. Which movie star made this million dollar mistake, in a rare Ferrari? Yes, Ferrari. That's ahead in the NEWSROOM.

HARRIS: And you've heard of the mouse who roared. This could be the one who -- bit! Caught with the chompers, that's coming up in the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: We just got some information in her, coming to us from Washington, into CNN. We're are learning -- if you remember on Friday, we told you about Tony Snow, White House press secretary, going in to have a growth in his abdomen removed. He has learned, apparently, it is cancerous, and that it has likely spread to his liver. Still some testing being done. But apparently that is the headline here.

HARRIS: Well, and you'll recall Friday, it was -- I'm trying to remember if it was during, just before the daily white house news conference, the news briefing, or after. There was a gaggle. And a number of reporters were involved in that gaggle. That's when we learned -- I believe it was from Elaine Quijano, the news, coming out of that gaggle, that Tony Snow announced he was going to go in. And, you know, and have this growth looked at and have it removed. Out of an abundance of caution is sort of how he worded it at the time.

COLLINS: Yes, specifically because I think it's particularly scary because back in 2005 he did have colon cancer. He is 51 years old, had the colon removed in 2005, had six months of chemotherapy at that time.

So, obviously when you are sort of predisposed to this condition. We've been learning so much through Elizabeth Edwards now, too.

Just some really rotten news. But we do want to go ahead and bring you back to Friday when he first made this announcement. Let's listen for just a moment.

(BEGIN VIDEO CLIP)

TONY SNOW, SPOKESMAN, WHITE HOUSE: In a recent series of CAT scans and PET scans and MRIs, we found a small growth in my lower abdomen. Blood tests are negative, PET scans are negative, but out of an aggressive sense of caution I'm going in for surgery on Monday, and have it removed.

I'll be out for a few weeks because it's still, you know, they are going to cut me. And it will take me a little while to heal up. I'll come back here a little lighter, and I don't know, in a few weeks, maybe three or four weeks.

(END VIDEO CLIP)

HARRIS: You're never really comfortable, you can see it, there, talking about your own health condition, and the things going on in your life. This is certainly a very personal matter for Tony and his family. Man, you could see it there. Some sense of concern. It's not something you can just sort of joke and laugh away.

COLLINS: Surprising, too, just simply because those preliminary test results came back negative. They were talking about a small growth like the size of the tip of his small finger, apparently, in all of this.

We're going to continue to watch this story, of course, and see what else happens here. Once again, that headline, Tony Snow, the growth in his abdomen that was removed today has been found to be cancerous, and possibly spread to his liver.

HARRIS: That is the area of real concern, that it may have spread to the liver. And you're right, we'll continue to follow this story.

COLLINS: Meanwhile, now though, a new man in charge. The same questions about security in Iraq.

(BEGIN VIDEO CLIP)

ADM. WILLIAM FALLON, U.S. CENTRAL COMMAND: If you take this in context, of this population of 27 million -- also you're here in Baghdad -- right next to the green zone. I have been all over this country and the last five days, and there are parts of it are dramatically different.

(END VIDEO CLIP)

COLLINS: Iraq, view from the top. Our Kyra Phillips has an interview you'll see only on CNN in the NEWSROOM.

HARRIS: Anna Nicole Smith's son, next hour, a Bahamian court begins the inquest into the death of Daniel Smith. We'll take you there live in the NEWSROOM.

COLLINS: It's spring, so what's happening here? Snowstorms, just part of today's weather picture all across the country. The latest in the NEWSROOM

(COMMERCIAL BREAK)

COLLINS: Good morning, everybody. I'm Heidi Collins.

HARRIS: I'm Tony Harris. Stay informed in the NEWSROOM. Here's what's on the rundown.

Only on CNN, our Kyra Phillips talks with Admiral William Fallon in Baghdad, the new CENTCOM boss. His take on the war in Iraq and what he will do about Iran's meddling.

COLLINS: The diagnosis is bad for President Bush's spokesman Tony Snow. Just moments ago we learned cancer has returned and spread to his liver.

HARRIS: Gas prices surge, but gas savers sit on dealer's lots. Our guest tells us why hybrid sales aren't accelerating much. It is Tuesday, March 27. And you are in the NEWSROOM.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.voxant.com