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College Students' Tragic Trip to the Beach; Leader Learns He Has Cancer; FEMA Fake Out

Aired October 29, 2007 - 10:00   ET

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

HEIDI COLLINS, CNN ANCHOR: Fabulous football finale. Remember the play at Stanford/Cal back in 1982. The runs through the bands. Well, this one may actually top it. Take a look at this. Two seconds left in the Trinity University Millsaps College game. One pass, 15 laterals. A lot of huffing and puffing and one minute two seconds later, look at the highlighted bubble there. Trinity scores. Seven different Trinity players touched the ball, one of them four times, which I guess is legal or we'd be hearing about it. In the famous Stanford/Cal game. California needed only five laterals and look at the players.
Finally, he crosses the line. The announcers, behind all that, unbelievable, hysterically funny. Anyway, the game-winning kickoff return was interesting in that other one, the famous one. Let's see it again, shall we? I wish I could hear the announcers. Do we have those? Screaming and yelling and screaming and yelling. It was awesome. It's good for them. Very creative, too.

Good morning, once again, everybody. I'm Heidi Collins. Tony Harris is off today. Stay informed all day right here in the CNN NEWSROOM.

Here's what's on the rundown now. College students' tragic trip to the beach. Seven killed in a ferocious fire. This hour, we'll be hearing from campus representatives telling us how everyone is trying to cope.

A leader learns he has cancer. Israel's Ehud Olmert discloses his doctor's diagnosis and his own plans. We'll tell you about them in live report.

And freed after a teen sex sentence. What Genarlow Wilson is saying now about the case? It is Monday, October 29th. You are in the CNN NEWSROOM.

Two college campuses in mourning right now. Seven students on a weekend getaway are dead. Killed in this fire that tore through a North Carolina beach house. Six of the victims attended the University of South Carolina. The other was a Clemson student. One witness talked about what she saw.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: There was still flames and smoke burning, but then the firemen were busily working trying to get the fire out. They contained the fire, kept it from going to the house next door. They sprayed the house down next door, so it didn't catch the house on fire. Embers were flying over to the other side toward the ocean. The houses on the second row, but we were not aware -- we knew there were people in there, but we hope and prayed they had gotten out.

(END VIDEO CLIP)

COLLINS: This morning, federal agents from the Bureau of Alcohol, Tobacco and Firearms are helping lead the investigation. Grief counselors are available at the University of South Carolina. The names of the victims have not yet been released.

What's happening on campus this morning? Well, we are going to be talking to a student affairs vice president at the University of South Carolina coming up in just a few moments (INAUDIBLE) today.

He went to prison for having consensual sex with another teen. Hours after being freed, Genarlow Wilson thanks church members for helping to stoke public outrage. Most importantly, Georgia's Supreme Court also came to his aid. It ruled Friday. His ten-year sentence amounted to cruel and unusual punishment. Wilson served more than two years after rejecting a plea bargain. He sat down with CNN's Rick Sanchez for his first interview after being released from prison.

(BEGIN VIDEO CLIP)

RICK SANCHEZ, CNN CORRESPONDENT: So, you were willing to stay in a maximum security prison with rapists and with murders for principle.

GENARLOW WILSON, FORMER PRISONER: Of course.

SANCHEZ: And the principle was?

WILSON: I feel like it was a good cause.

SANCHEZ: You didn't want to be branded.

WILSON: I did not and I felt like they didn't intend for this to happen to people like myself and come to find out we were correct because they changed the law. It just didn't make it retroactive, so we went through the right court procedures and we got it done.

SANCHEZ: You would have been able to get out and walk as a free man, and the only thing is you would have carried with you this label of sexual offender.

WILSON: Exactly, but I might have had lesser time, but then again, I would have nowhere to go because I would have no home. I wouldn't be able to stay with my mother because I have a little sister. You know, when you're a sex offender, you can't be around kids. Basically that's like I can't even have kids myself, you know, so what is the point of life.

SANCHEZ: So you weren't willing to do that deal.

WILSON: Of course not. You have no future.

SANCHEZ: Although others did.

WILSON: Yes, you know, but I consider myself a different person. You know, I wanted more for myself and for my family, so I just had to -- you know, I had a little more difficult task.

SANCHEZ: And the new Genarlow is going to be how compared to the old Genarlow?

WILSON: I feel like it's going to be a more conservative, you know, more alert of, you know, what's going on around him and, you know, just thankful for what he has, you know, because back then, you know, when this seems like you have everything, you know, you feel like you have no words, you know, until it's all gone. And I know what it feels like to be without. You know, I don't ever want to feel like that again. I don't want to ever see the inside of a prison or a prison period.

SANCHEZ: And you'll make sure it doesn't happen. Good luck.

WILSON: Thank you.

(END VIDEO CLIP)

COLLINS: Later today you can see Rick Sanchez's entire interview with Genarlow Wilson. "Out in the Open" airs at 8:00 eastern and 5:00 pacific right here on CNN.

Southern California wildfires. Last week the federal response was praised especially when compared to hurricane Katrina. Once similarity though, FEMA gets a black eye. The blunder this time, a fake news conference, and today an apology. CNN's Jeanne Meserve is in Orange County now with more on this. Jeanne, you did just get off the phone with the FEMA director Paulison.

JEANNE MESERVE, CNN CORRESPONDENT: That's right. He called to apologize to say this was unacceptable and that it wouldn't happen again. What happened was that FEMA called a press conference last Tuesday on very short notice. Reporters weren't able to get there. So, FEMA staffers asked the questions. The reporters were able to call into the press conference but they could only listen, they couldn't ask any questions. Paulison said that's ridiculous. He says changes are being made in future.

Reporters would be given at least an hour's notice before there's a press conference and reporters who call in will the ability to ask questions. He said his investigation into this is still ongoing. At this point, he doesn't think it was premeditated, simply that the FEMA staff saw that report weren't there and they jumped in and asked questions, but he said it's unacceptable. There will be disciplinary action.

Meanwhile, out here in Orange County. The fire does continue, but firefighters say they are making significant progress against it. Now about 50 percent contained. Residents in communities around here who have been under mandatory evacuation orders still have not been able to go back to their homes permanently, but yesterday a few were allowed to make a ten-minute visit.

(BEGIN VIDEOTAPE)

MESERVE: Silverado Canyon has more than the look and feel of a ghost town. For the moment, it is.

UNIDENTIFIED MALE: Let me offer this.

MESERVE: Residents out of their homes more than a week congregate in a shopping center parking lot waiting for word they can return. Not yet. But authorities do take a few back to grab essentials. On the way, an offering of doughnuts to the sheriffs guarding their community.

UNIDENTIFIED MALE: Thanks.

MESERVE: And a quick stop at the post office to pick up a week's worth of mail.

UNIDENTIFIED FEMALE: I got my paycheck. That's what I was really waiting for, and then of course I got my Edison bill.

MESERVE: Then a look at the homes they weren't sure they would ever see again.

UNIDENTIFIED FEMALE: And I got some garbage in here, rotten eggs, but everything else is OK.

MESERVE: But still once inside, emotion gets the better of Judy Myers (ph).

UNIDENTIFIED FEMALE: Well, I'm just so thankful to come back. I think of all of our friends who have lost things.

MESERVE: When Raquel Prodiz arrived at her son's undamaged home, she dropped to her knees in prayer.

RAQUEL PRODIZ, SILVERADO CANYON RESIDENT: I only say thank you, God, for those blessings and for me and for my neighbors.

MESERVE: Helicopters taking on fire retardant proved the fight against this fire continues. But official say it is 50 percent contained and they are assessing when residents will be able to return for good.

JEFF WHITLEY, INCIDENT COMMANDER: We're making deliberate progress, and it's going our way.

(END VIDEOTAPE)

MESERVE: Officials say arson was the cause of this fire. The investigation into that continues. Investigators are shifting through thousands of tips that have come into a hotline, but still no search warrant, no suspects in this case. Heidi, back to you.

COLLINS: Wow, that's rotten news. All right, good luck to the investigators, certainly. Jeanne Meserve, thank you.

Firefighters battling wildfires on Hawaii's big island. Now about 400 people were forced to evacuate over the weekend but returned home yesterday. No homes were damaged. No injuries reported. Investigators do suspect arson. A fire official says nine fires were set along a coastal highway within minutes of each other. Although residents have been allowed to return, police say three separate fires are still burning. The fires have burned more than 2,000 acres.

Jacqui Jeras joining us this morning. A lot is going on, at least, it looks like that from your maps there, but last time we chatted no tropical storm knoll, seems like it was losing power.

(WEATHER REPORT)

COLLINS: Meanwhile, we want to get this to you just in here to the CNN NEWSROOM. We are understanding that the Supreme Court is considering whether to cut even lower the judgment against Exxon Mobil Corporation in the Exxon Valdez oil spill that happened back in 1989. That judgment was first $5 billion. It's already been cut to $2.5 billion, and now once again they have agreed, the Supreme Court has agreed to look at that number one more time and possibly cut it even lower. Whether or not, that ruling is too excessive. If you may remember, 11 million gallons of oil spilled in Alaska's Prince William Sound when the huge tanker hit a reef. So, there you have it. Back in 1989. We'll stay on top on that one for you.

Meanwhile, a nanny job posted on Craig's list. A young woman goes for the interview and turns up dead. A 19-year-old expected to be charged today. Catherine Olson thought she was meeting a family new to the area. Minnesota police say she was lured by a killer. Police found her body stuffed in the trunk of her car.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: She found things online, and we would wring our hands and say have you checked these people out?

UNIDENTIFIED FEMALE: It seemed kind of fishy, but she was going to check it out and meet them.

UNIDENTIFIED MALE: If it didn't work, she assumed that she would be able to turn around and leave and come home, and it didn't work out that way.

(END VIDEO CLIP)

COLLINS: Craig's list founder, Craig Newmark says this has never happened before. He says the company works with police to solve crimes tied to the website. We do have some calls in this morning to speak with Newmark and police. We hope to have that for you a little bit later, right here on the CNN NEWSROOM.

A cancer diagnosis for one world leader. How serious is it and what are his plans going forward? We'll tell you after quick break.

(COMMERCIAL BREAK)

COLLINS: Welcome back, everybody. I'm Heidi Collins. You are in the CNN NEWSROOM.

College kids out for a fun getaway. Their lives cut short by a raging fire. Family and friends in mourning.

(COMMERCIAL BREAK)

COLLINS: First lady becoming the first elected female leader in Argentina. Cristina Fernandez Kirchner, declaring victory in Argentina's presidential election. Returns show her leading all rivals. It would be a job swap with her husband to serve in an Argentina senate. Well, there are obvious comparisons being made to Senator Hillary Clinton here. A former first lady running for president.

Israel's prime minister facing a cancer diagnosis this morning. He made the announcement at a news conference in Jerusalem this morning. We want to go live now to our Atika Shubert. Atika, good morning to you. Tell us a little about this news conference.

ATIKA SHUBERT, CNN CORRESPONDENT: Well, it was a surprise. Reporters were called in and told that the Prime Minister Ehud Olmert would speak about a medical condition, and in that press conference that's where he said that an annual checkup taken just a few weeks ago discovered a cancerous growth. Here's how he described it.

(BEGIN VIDEO CLIP)

EHUD OLMERT, ISRAELI PRIME MINISTER (THROUGH TRANSLATOR): This is a microscopic tumor that has not metastasized that can be removed with a brief surgical procedure. According to the doctors, it will not be necessary to have radiation treatment or chemotherapy.

(END VIDEO CLIP)

SHUBERT: Now, that surgery is expected to happen within the next few months. Doctors who were at that press conference say that his chances for recovery are excellent. That it should take just a few days to recover. They say that because the cancer was discovered at an early stage. It can be operated on surgically. It does not require chemotherapy and that the prime minister has an excellent chance of recovery, and it shouldn't impact his work. Now, Prime Minister Olmert also reiterated that he would continue with his duties as Prime Minister, Heidi.

COLLINS: All right. Very good. Some good news at least in the beginning of all this. Atika Shubert live from Jerusalem this morning. Thank you.

Taking on your insurance company. It doesn't have to take a toll on you. Gerri Willis is going to have some tips coming up in just a few minutes.

(COMMERCIAL BREAK) COLLINS: We want to quickly get you back to the story now that we have been telling you all morning long about this horrible beach house fire in North Carolina. Ocean Isle Beach, in fact, claimed the lives of seven students. Six of them from one college and one of them from another. We want to get directly to Will Frampton. He is with our affiliate, WLTX in Ocean Isle Beach, North Carolina.

I understand, Will, that you have just gotten off the phone with the Alcohol, Tobacco, and Firearms which has been a little bit interesting to us as to why they are involved in this investigation.

WILL FRAMPTON, WLTX CORRESPONDENT: Well, Heidi we're told by the mayor of this town that's just standard procedure. It's not just ATF. It is also the State Bureau of Investigations that always investigates cases like this. That's what the mayor told us last night. So we have been making phone calls to both ATF and the State Bureau of Investigations accordingly. We have heard back from ATF. Have not heard back from State Bureau of Investigations yet. But ATF says that they're pretty much channeling all information through the mayor's office here in town. But they did tell me they're not planning on having any more agents out here today. They're not planning on it. Of course, things can always change, but they've done their work for now and there will be a couple more days before we have any more, you know, concrete results on anything.

COLLINS: How does everybody seem to be doing there? I can't imagine as we look at this video of how awful it must have been.

FRAMPTON: It is kind of beyond words, Heidi. It's a very small island; about 500 people year round live here from what I'm told. (INAUDIBLE), a lot of people come out to vacation here. But talking to people who say they have never seen anything like this in 15 years here at least. You know, people had been coming here for that long. It's the first they've ever seen of this. And everyone I talked to, is still the shock. There's nowhere near wearing off yet. It's going to be that way for a few days around here.

COLLINS: Imagine so. I also know, Will, that obviously they have not released the identities of those students from the University Of South Carolina and also the one from Clemson that have been killed in this. Have they not been able to get word to the next of kin or any idea why it's going this way?

FRAMPTON: Well, Heidi, we do know that the bodies have been taken to UMC at Chapel Hill for identification, and we're told that could take some time. I'm looking at the house right now. I'm right in front of it and it's just - you know, some people did get out alive. Six did get out alive, but it's just charred. I mean it's still standing, but it's completely gutted. And you look up here and you realize, this is probably what started off as a wonderful, fun weekend for 13 college kids, and you look at this house and it just breaks your house because you know they were probably having a great time.

COLLINS: Has anyone had a chance, Will, and maybe it's you, you to speak with the kids who did make it out alive. Is there anything to be learned, I'm sure, from them and how it all happened?

FRAMPTON: We haven't caught up with them. You know, we do know that they were taken to a nearby hospital and released. We were told they were all released with, you know, some minor injuries here and there. We do know -- we're trying to catch up with these people who saw this, but there were some people who actually were right there yelling at them to jump out the window and just get out, you know, as fast as they could. That was yesterday morning. And so a couple of the kids did jump out of the window and made it to safety that way. But we've seen some friends or family out here today walking by.

Don't really know who they are exactly because we go to talk them and they're not in the mood to talk, as you can imagine. But clearly, they were just shaken, you can see them crying. You almost don't even want to go bother them, but, you know, they were here to see what happened.

COLLINS: Yes, I understand that completely. The only other thing that seemed so strange, it must have gone up so quickly because we do know, we have a reporting that, the correct smoke alarms were there and fire extinguishers inside that house. So it appears that there just was no chance to try to contain this thing before it went...

FRAMPTON: I don't know if you've -- by now I'm sure the video is making its way around, but there was some home video taken. And if you've seen it, it was a fireball. You could -- I was talking to one person yesterday who is staying a mile and a half away from here, and she could see it from where she was and she could smell it from a half mile away.

COLLINS: It almost looks like, again don't want to speculate obviously. I'm certainly no fire investigator, but just by looking at it and all the flames we have seen on this show, especially as of late, it almost looks like there's some type of combustible in there because of the way that those flames are literally just shooting out of the top of the house.

FRAMPTON: And the person who took that video said they heard explosions, the heard what they thought were quote "propane tanks going up or something." Again, we don't know that for sure, but that's what this witness and the person who took the video last night told us they heard and saw was. You know, what they thought were propane tanks going up and very loud explosions. Yeah, that would --

COLLINS: It's tragic. There's no question about that. And we're going to continue to try to learn a little bit more about what may have happened and how quickly it went up. Will Frampton, we sure appreciate your time this morning. Thanks so much from WLTX. More on that story, Ocean Isle Beach. We will be talking more about it here with the vice president from the University of South Carolina coming up shortly.

Meanwhile, we want to check out the DOW Jones Industrial averages now. We're up 37 points. Resting at 13847 after a pretty high close on Friday. Rounded out about 135 points to the positive. So that was a good thing. The NASDAQ where I'm being told is up 5 points right now. So, we'll continue to watch those numbers as always right here.

You buy insurance to protect against disaster, but what happens when that disaster is actually your insurer refusing to pay your legitimate claim? Very frustrating. Here now with some more tips today on this incredibly alarming report. CNN financial editor Gerri Willis. Good morning to you there, Gerri.

GERRI WILLIS, CNN CORRESPONDENT: Good morning, Heidi. Good to see you. Well, if you're going to make a claim, the strongest claims are the ones with the most documentation. You need to get reliable estimates and pictures of your home with everything you've lost and how much it will cost to replace it. Include an idea of what you'll need for rent and living expenses while you're out of your house. Send all of this information to the insurance company in one package and then put a deadline on when you want the company to respond to you. Now, if you've compiled everything, a reasonable deadline is about a month.

COLLINS: Really? OK.

WILLIS: Give them a month. 30 days and then you'll be back to them.

COLLINS: Yes. It sounds like, you know, sometimes when you don't get the response that you want, that you have nowhere to go, but that's not really true, right?

WILLIS: No, well, you have to start with the company. If you are denied coverage or are only partially covered for damages, you have to go higher of the food chain. Go above the head of whoever you're dealing with. If you're not getting what you want from an adjuster, for example, ask for his or her supervisor. It can't hurt to ask the person you're dealing with what their settlement authority is. That is how much they can write a check for, the more obviously the better.

COLLINS: It seems like, Gerri, every time I ask to speak to a manager, they're just never around when I need to talk to them. I really hate that.

WILLIS: Yes.

COLLINS: What about getting outside help. So, you've tried everything with the company, and now you really feel like, I don't know, you need some sort of representation or something.

WILLIS: Well, if you tried everything with the company or you couldn't get a hold of the company, it may be time to seek help from the outside. First, file a complaint with your state's department of insurance. They're the regulators of this industry, but you may need to hire a lawyer or a public adjuster to get a full and fair settlement. The public adjusters can negotiate a damage claim on your behalf. Check out the National Association of Public Insurance Adjusters at napia.com. You can also hire an attorney, but that could be expensive. Keep in mind some lawyers may agree to a contingency fee. That is they would take part of your settlement. COLLINS: That's not so good either. What about, though, you finally get some type of payment, you're very excited. You open the envelope when it comes in the mail and you say, oh, is that all?

WILLIS: Yes, well, I think a lot of people have just that experience. If you receive a check for less than what you were expecting from your insurer, don't be so quick to cash it. You may just be signing away your rights to contest the entire amount you're owed. Don't accept checks that have words like full or final settlement written on them. Always ask questions. Always take your time with these kinds of decisions. You'll want to go quickly, but this is not the time to rush. If you have a question about this or any other topic send it to us at toptips@cnn.com. We love hearing from you and we answer your questions right here every Friday.

COLLINS: We sure do and these were some good ones today. Thank you so much, Gerri.

WILLIS: My pleasure.

COLLINS: Out of prison in the spotlight this morning. Genarlow Wilson went to church Sunday just hours after Georgia's Supreme Court ordered him freed. Wilson had been locked up more than two years. His crime? Having consensual sex with another teen. The states high court ruled his ten-year sentence amounted to cruel and unusual punishment. He sat down with CNN's Rick Sanchez for his first interview after being released.

(BEGIN VIDEO CLIP)

GENARLOW WILSON, FMR. PRISONER: You can't let everything that you've been through, you know, get the best of you and turn you bitter because you will never achieve anything. You know, I feel like everything I have done and everything that I've endured, it's only made me stronger as a person.

You have to be very open-minded to the situation. Of course, I believe that it was absurd, but, you know, I had to look at it that, you know, these gentlemen were doing their jobs and they felt like they were carrying out the law.

(END VIDEO CLIP)

COLLINS: Later today you can see Rick Sanchez's entire interview with Genarlow Wilson. "OUT IN THE OPEN" airs 8:00 Eastern, 5:00 Pacific, right here on CNN.

Gone in an instant -- seven college students dead in a house fire. As classes resume at the University of South Carolina, we'll talk to the student affairs vice president about dealing with the tragedy.

(COMMERCIAL BREAK)

COLLINS: Well, if you were following the campaign -- still about a year away when you can actually cast your votes, but that's OK. We've got debates to look at. We want to learn more about these candidates.

And some good news that we are getting in here: We have just confirmed that all eight of the GOP candidates for the YouTube debate that we do right here on CNN are going to attend and are going to debate one another.

Quickly for you -- New York City Mayor Rudy Giuliani, Arkansas governor -- former Arkansas Governor Mike Huckabee, California Representative Duncan Hunter, Arizona Senator John McCain, Texas Representative Ron Paul, former Massachusetts Governor Mitt Romney and California Representative Tom Tancredo. Also, Senator Fred Thompson. They have all confirmed that they will participate in this live forum that you have seen before here on CNN. The other side of the fence, if you will.

But want to make sure that you know you can always go to CNN.com/youtubedebates and post your questions for this Republican presidential candidate. The debate, once again, in case you didn't know, Wednesday, November 28th, from St. Petersburg, Florida. Your voice is going to be heard only on CNN, your home for politics. Pretty interesting event. All eight GOP candidates will be attending.

Want to get back to this story, though. Two college campuses certainly in mourning right now. Seven students on a weekend getaway are dead, killed in this fire that tore through a North Carolina beach house. Six of the victims attended the University of South Carolina. And the other victim was a Clemson student. Grief counselors offering help this morning on one campus, and federal agents from the Bureau of Alcohol, Tobacco and Firearms are helping to lead the investigation. The names of the victims have not yet been released.

Let's talk a little more about what's happening on campus this morning. You can only imagine how tough today will be. As we mentioned, six of the students attended the University of South Carolina.

Dennis Pruitt is the vice president for student affairs there.

Good morning to you, and certainly our condolences go out to you and your university this morning.

DENNIS PRUITT, V.P. FOR STUDENT AFFAIRS, UNIV. OF S.C.: Thank you very much. We appreciate that.

COLLINS: Yes, I know it's going to be a really, realm tough day. Can you tell us anything more about the weekend though? I mean, how many students actually traveled to Ocean Isle?

PRUITT: The information we have is that there were 13 students in the house. As you have mentioned, seven students died, six from the University of South Carolina, one from Clemson. There were six survivors at the house fire, and we're thankful for that.

I have to extend our thanks to the city of Ocean Isle, the mayor and the local law enforcement officials and the fire department, the community citizens. They were very compassionate to our students and to the survivors and their families, and to the families that went to the scene. We thank them very much for their compassion and their help.

COLLINS: Yes, and it's such a scary, scary looking fire, too. I'm sure you've seen some of the video. Just horrible to watch. Tell us a little bit more about the students, if you could. I think that there are 13 that you had told me were believed to be inside the home at the time. Also hearing that they all knew each other from their hometown?

PRUITT: They did. As is the case often, South Carolina is a tight-knit state. Students that come from out of state quickly become integrated into those communities and families. And some of the students were from Florence and Darlington, and some were from Greenville.

I do have to caution that we do not have confirmation yet on the names or the identifies of the students that have died, but I think the police are working closely with the families to alert them that once the medical examiner in Charleston -- in Chapel Hill makes that final determination, they will be notified about the status of their children.

COLLINS: Yes. We know this was not a university-sponsored event. Has that factored in at all? Has it made things more complicated, or maybe even easier, in dealing with all of this?

PRUITT: No, not at all. In particular because these students were members of two from fraternity groups. One was -- some were members of Tri Delta Sorority. The others of SAU (ph) Fraternity. Those are very tight-knit groups. They have alumni and friends around the country. The University of South Carolina family is very tight- knit, as I say, across the communities, across the state. So it has lots of interconnections among the students and their families, their communities, and naturally with their fraternity brothers and sisters.

COLLINS: Yes, that's going to be really tough. It kind of gives me a chill to think about. I know how close those greek members really are.

Tell us a little about what's going to happen this morning on campus.

PRUITT: Well, yesterday actually we had group meetings with the two fraternity groups and with other students in other residence halls, we had grief counselors, we had ministers, we had support staff to spend time with the students, to give a listening ear. Today we'll be doing the same, and with some individual follow-up with some of the students.

The president of the university is going to work today to try to contact the families of those survivors, and if we have names of those students who are suspected to have been killed, those families as well. We're reaching out to those families and those communities.

The university is planning a grieving ceremony. We're going to let the students help us decide what is in their best interests, and they'll be deciding that today, and we'll be announcing those plans about 2:00 this afternoon.

COLLINS: OK. Well, again, our condolences. I know you did not cancel classes. Was it important to you to see everyone come back today and try to be together?

PRUITT: We're a large community, 28,000 students. I think for youth sometimes students need to break away, and we made arrangements for those students who needed to go home or needed some reflection time, we made arrangements for those students not to go to class. But it's OK for the other students, I think, to go back and to start their normalcy.

COLLINS: OK, well, we certainly appreciate your time here, and of course wish you the best of luck in trying to get things back to normal.

PRUITT: Thank you. We appreciate the support of everyone around the country.

COLLINS: Terrific. Dennis Pruitt, vice president for student affairs, University of South Carolina, thanks again.

PRUITT: Thank you.

COLLINS: Identified undocumented workers. A controversial plan in New York now changing, with an assist from the Department of Homeland Security. We'll tell you what it's all about in just a moment.

(COMMERCIAL BREAK)

COLLINS: Another crash landing. Scandinavian Airlines now permanently grounding all 27 of its bombardier turboprop planes. The decision follows this hard landing in Denmark. You'll see it in just a moment. No one was injured, but it's just the latest problem with the plane's landing gear. There were several injuries in this crash. You see the landing gear on the right there totally collapse in Denmark last month.

The Canadian airplane maker urged all airlines to temporarily ground the planes after a string of problems. Many of the planes had just returned to the skies earlier this month. Horizon Air is the only American carrier currently using that aircraft.

Driver's licenses for undocumented immigrants. A controversial plan in New York now changing.

CNN's Jason Carroll takes a look.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): It was a controversial plan, created by New York's governor, Elliot Spitzer. He said illegal immigrants in the state should get driver's licenses. Immigrant groups liked the idea. The Department of Homeland Security did not, calling it a security risk.

Now a compromise for all licensed drivers in New York, whether illegal or not.

GOV. ELLIOT SPITZER (D), NEW YORK: In sum, this will be the most secure licensing system in the country.

Spitzer and DHS Secretary Michael Chertoff announced there will be three driver's licenses in New York. One will be for illegal immigrants. It requires they prove their state residence. It cannot be used to board planes or cross borders, and it will be marked "not for U.S. government purposes."

The second license is for U.S. citizens and will be similar to the existing one, except it will be harder to forge since it takes advantage of a DHS security program called Real I.D.

The third license will be available only to us citizens who live in Upstate New York, and will allow them to cross the Canadian border without a passport.

UNIDENTIFIED MALE: Do we want one single license for all New Yorkers? Yes! Do we want three different complicated driver's license? No!

CARROLL: Immigrant rights groups say Spitzer betrayed them. And say asking illegal immigrants to prove state residency in order to get a license will discourage many from applying.

UNIDENTIFIED MALE: Today New Yorkers are outraged at you're flip flopping and New Yorkers are ashamed to have someone like you as our governor!

UNIDENTIFIED FEMALE: It's time for us to stand up for sanity. New York has accepted our labor. It is time to recognize our humanity.

CARROLL: Those on the other side of the immigration debate aren't satisfied either.

JAMES CARAFANO, HERITAGE FOUNDATION: I'm not sure what New York is doing, quite frankly. I'm not sure what the governor has intended. But to actually come out to try to say we need to craft a way to incentivize people to live illegally in the United States, that just doesn't pass the common sense test.

CARROLL (on camera): The debate is not over, but those licenses are coming anyway -- expected in New York sometime late next year.

Jason Carroll, CNN, New York.

(END VIDEOTAPE)

COLLINS: Deeply disturbing, that's the response from clothing giant Gap after allegations of child labor in a factory contracted to make some of its clothing. That factory in India.

(BEGIN VIDEO CLIP)

MARKA HANSEN, PRES., GAP NORTH AMERICA: It's absolute horror. You know, it's sickening. There's nothing I can tell you but, you know, as a mother, child labor is absolutely unacceptable for us as a corporation, for me as an individual. I can't think of anything worse.

(END VIDEO CLIP)

COLLINS: It is reported some kids as young as 10 were forced to work 16-hour days in deplorable conditions. Gap blamed an unauthorized subcontractor. Now the store is promising to make things right, firing the vendor and vowing not to sell the clothing.

(BUSINESS HEADLINES)

COLLINS: It's the buzz in London.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Cocaine, sex, and the royal family are a damaging mix and a dangerous basis for blackmail.

(END VIDEO CLIP)

COLLINS: Royal dilemma. Roil sting. Got your attention? Details for you in just a moment.

(COMMERCIAL BREAK)

COLLINS: Some pretty juicy stuff out of London. Someone allegedly tried to blackmail the royal family.

Keir Simmons of England's Independent Television Network has the details.

(BEGIN VIDEOTAPE)

KEIR SIMMONS, ITN REPORTER: Cocaine, sex and the royal family are a damaging mix and a dangerous basis for blackmail. Central to the alleged extortion, claims of drug use by royal assistants, and a video apparently showing one royal in a compromising position.

DICKIE ARBITER, ROYAL COMMENTATOR: If it is true, it is serious, but you have to ask yourself, royal -- where in the food chain is it, because the royal family consists of nearly 40 members.

SIMMONS: And ITV news has been told the alleged victim of blackmail is not a senior member of the royal family.

(on camera): Detectives reportedly used a room at the Hilton Hotel to set up a sting. At that meeting a copy of the video has been said to be played, and two people were arrested. (voice-over): The alleged blackmailers made their approach in August, but the news has just only emerged. Not surprising, says one former royal protection officer.

STEVE PARK, FMR. ROYAL PROTECTION OFFICER: I'm not surprised you haven't heard about it. Once the police are investigating, they don't want the royal family to be talking about it. It would subudacy (ph) in that case, and would definitely prejudice the case.

SIMMONS: Scotland Yard says two men, age 30 and 40, will appear at the Old Bailey in December.

(END VIDEOTAPE)

COLLINS: The Old Bailey is London's central courthouse where defendants are prosecuted.

Meanwhile, celebrating the Sox. Boston fans take to the streets after their team's second World Series title in four years. And they're not very happy about it at all.

(COMMERCIAL BREAK)

COLLINS: The president's attorney general nominee is coming under criticism. The criticism mixed into the Republican campaign for the White House.

CNN's Ed Henry explains.

(BEGIN VIDEOTAPE)

ED HENRY, CNN CORRESPONDENT (voice-over): After a smooth takeoff as President Bush's nominee for attorney general, Michael Mukasey has suddenly hit turbulence with key Republicans.

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: If he does not believe that waterboarding is illegal, then that would really put doubts in my mind.

HENRY: At issue, Mukasey's murky answers at confirmation hearings about whether waterboarding, which simulates drowning, is torture or not when used to get information out of terror suspects.

MICHAEL MUKASEY, ATTY. GEN. NOMINEE: If waterboarding is torture, torture is not constitutional.

HENRY: Republican John McCain, a former prisoner of war, expressed concern about such vagueness.

SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Anyone who says they don't know if waterboarding is torture or not has no experience in the conduct of warfare and national security.

HENRY: Pressed on whether this would lead him to vote against Mukasey's nomination, however, McCain hedged.

MCCAIN: I can't be that absolute, but I want to know his answer.

HENRY: But McCain has been absolute in knocking Republican presidential front-runner Rudy Giuliani for saying he's not sure if waterboarding is torture, a sign perhaps that McCain is concerned that actually voting against the president's nominee would hurt his own White House bid.

MARK PRESTON, CNN POL. EDITOR: Look, McCain right now can't afford to alienate any more Republican voters. We are less than 70 days before Iowa voters, Iowa Republicans, are going to vote for a president.

HENRY: Likewise, Democratic presidential candidates are using the Mukasey nomination to impress their liberal base by bashing the president more than the nominee.

SEN. CHRIS DODD (D), PRES. CANDIDATE: This administration has trampled all over the rule of law. I'm not about to confirm a nominee that would continue that process here.

HENRY (on camera): Bottom line is that senators in both parties will continue to raise sharp questions about Mukasey's semantical answers. But the nominee is still expected to be confirmed, just with less support than first predicted.

Ed Henry, CNN, Washington.

(END VIDEOTAPE)

COLLINS: No problem with support for the Red Sox. Beantown buzzing with cheers for their beloved Red Sox this morning. They are the champions. Boston completing a sweep over the Colorado Rockies in the world series. This is the Red Sox second title now in the last four seasons. Both times they swept their National League opponent. The Sox clinched the series in Colorado. but that didn't stop Red Sox nation from pouring into Boston's streets. Police in riot gear kept tabs on the crowd. They reported 37 arrests, mostly though for disorderly conduct.

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