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Countdown to 2008; Obama and Undecided Iowa Voters; DUI Crackdown

Aired December 31, 2007 - 14:00   ET

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


KYRA PHILLIPS, CNN ANCHOR: Hello, everyone. I'm Kyra Phillips at the CNN world headquarters in Atlanta, and you're live in the CNN NEWSROOM.
Here's another look now at that video that's raising new doubts about the death of Benazir Bhutto. The tape shows a man apparently aiming a gun at Bhutto's head. You see it right there in the circle. You hear three pops, then a loud explosion.

Well, the Pakistani government says that Bhutto wasn't killed by bullets or shrapnel, but a blow to the head that she purportedly suffered dropping back through her sunroof. But if you take a look here at close-up, it reveals that something lifted Bhutto's headscarf right in the moment that's in question.

And you heard it live just a short time ago, an exclusive interview with the widower of Benazir Bhutto, her temporary successor as head of the Pakistan Peoples Party. Asif Ali Zardari spoke to Wolf Blitzer from Larkana, Pakistan

(BEGIN VIDEO CLIP)

ASIF ALI ZARDARI, BHUTTO'S WIDOWER: The latest piece of evidence that has come on the television is a Channel 4 report of the exact way the assassin hit Benazir and the exact position. And everything is now very clear that she was shot. I maintained from the first day that she was shot either point blank or by a very high-powered sniper rifle. Now it seems she was shot nearly point blank by a pistol.

WOLF BLITZER, CNN ANCHOR: What about the Pakistani government's assertion that she hit her head on a latch going into the van, into the sunroof, and that was the cause of her death?

ZARDARI: That was three days ago. Since then, this footage was released on Channel 4, and that denies all their claims. It just proves that they have just been trying to muddy the water from the first day.

(END VIDEO CLIP)

PHILLIPS: Well, you can hear that entire interview start to finish in "THE SITUATION ROOM," 4:00 p.m. Eastern, right here on CNN.

(WEATHER REPORT)

PHILLIPS: Well, amazing what a few days of rain can do. Metro Atlanta escaped setting a record for driest year ever, but just barely thanks to a rainy Sunday. This area finishes the year with 31.85 inches of rain. That's 500th of an inch more than in 1954. The devastating drought has affected not only the upper third of Georgia, but most of Tennessee, Alabama, the Carolinas, and parts of Kentucky and Virginia.

So, are you ready to party? Well, the dress rehearsals are over, the stage is set, the clock is ticking to prepare to ring in 2008. A heck of a lot of balloons there as well. CNN is taking you live to Times Square tonight, and our Deborah Feyerick is there with a preview.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT: And the buzz is really beginning here in Times Square. You can see some of the people here behind me who have gathered today, who have come from all over the country and all over the world. We've spoken to people from China, from Israel, from France. All of them here to share in this event tonight.

We spoke to a couple of people just on the other side. They have staked their position. And as can you see, right over here, this is where the stage is. This is where all the acts are going to be taking place tonight. A lot of different bands coming to play.

Now, the ball is going to be dropping at 11:59, the building just behind me there. You can you see the number, you can see the pole, you can see all of these tourists who are hunkering down for the long haul.

About a million people expected to attend. And whether this is your idea of a good time or not, I can tell you that just before midnight, a lot of people will turn to see what is going on in Times Square. It is the pulse, it is the heartbeat of New Year's Eve, at least certainly here in New York.

Reporting from Times Square, Deborah Feyerick, CNN.

(END VIDEOTAPE)

PHILLIPS: CNN on New Year's Eve. We're going to bring that party to you live. Plus, we've got a look back at the year's top stories and big events. Anderson Cooper and comedian Kathy Griffin live from Times Square. It all starts at 11:00 Eastern, only on CNN.

Well, just three days to go, and the first of the nation's presidential contest is too close to call. On the Republican side, a new poll finds that Mitt Romney has a slim lead over Mike Huckabee. The MSNBC/McClatchy/Mason-Dixon poll -- why do I keep messing that up? I never get that right. It's too long.

It's based on phone calls likely to caucus-goers in Iowa and mirrors most other polls. It shows that an even closer race among Democrats, with John Edwards, Hillary Clinton, Barack Obama, they're all locked in virtually a dead heat. Well, to complicate matters, one of every five Iowa Democrats say that they could still change their minds before Thursday, which explains why candidates are here, there, and everywhere today.

Jessica Yellin doing her best to keep up with Obama.

Hey, Jessica.

JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT: Hi, Kyra.

You k now, we are -- it took us about 30 extra minutes circling around this town, and a local had to drive us to our location. They are so friendly here in Iowa. That's the plus of being here for so long.

I'll tell you something, it is so tight that the Democrats are all really going after each other now, trying to point out differences, and it's getting a lot less positive than it was. At the Obama event I just attended, there was a huge amount of enthusiasm. I talked to a bunch of undecided voters afterwards who said they really thought that this is a man they believed is true to his word, that he actually believes in what he's saying.

And that's sort of the consistent takeaway a lot of undecideds have given us. They raise questions about experience and maybe some questions about how he'll fare in the general election, but a lot of enthusiasm for him.

One thing that we have heard is he's gone after extensively some of the money that's pouring into the state to support both Senator Clinton and Senator Edwards. Obama has not accepted money from PACs, and he also is saying that he doesn't have this special outside group running ads for him. And here's one of the things he said about what he's calling the same old tricks.

Let's listen.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: The same old Washington tricks -- folks are pouring money in, undisclosed donors, independent expenditures. They are telling people that I'm not going to provide healthcare to everybody despite the fact that the experts say there will not be a single person in America who wants healthcare that can't get it, because we're subsidizing everybody.

People distorting my record, people sending out e-mails saying, you know what? He's got a funny name. But you know what? We've seen the script before. We've seen this movie before, and it will not work.

(END VIDEO CLIP)

YELLIN: And his message really that he emphasizes over and over is that if you believe things can be different, if you believe in bipartisanship, if you at least put your faith in that, then you can make it happen. It's a message that seems to click with a lot of voters, but Hillary Clinton's message clicks with the folks who show up for her, and so does Edwards' and his events.

So, it's a fierce fight, and the way they are trying to distinguish themselves at this very last bit is by really pointing out some of the -- what they think are the nastiness coming from the other campaigns, of course, never from their own -- Kyra.

PHILLIPS: Oh, Jessica. Come on. They never get nasty, Jessica Yellin.

YELLIN: No.

PHILLIPS: All right. Appreciate it, Jessica. We'll keep talking to you.

Also, we're going to follow up on all the other Democrats and the Republicans. We're all over, obviously, the U.S. following both parties and all the candidates. We'll have more throughout the next couple of hours.

Now, on New Year's Day, you can catch the game that real matters. Forget all those football games. Watch the battle of the presidential candidates.

It's all the contenders talking about the most important issues -- the economy, the war, immigration -- in their own words. CNN's "Ballot Bowl" tomorrow, beginning at 9:00 Eastern.

Polling violence in Kenya touched off by presidential elections. The bloodshed has left dozens of people dead. We're going to have the latest.

Also, the world through the eyes of Mike Luckovich. The award- winning cartoonist joining me right here to talk about some of the highlights, lowlights of the year. He's also working on a special cartoon for us right now.

Oh, can't wait -- oh, it involves Wolf Blitzer. This ought to be good. And Wolf's probably going to kill me.

We'll be right back.

(COMMERCIAL BREAK)

(NEWSBREAK)

PHILLIPS: If you're going to celebrate New Year's, please don't drink and drive. Cops will be out in full force, as always, and this year the federal government is spending millions of dollars to drive that message home.

Our Gary Nurenberg explains.

(BEGIN VIDEOTAPE)

GARY NURENBERG, CNN CORRESPONDENT (voice over): She was 20 years old.

JOANN GILLIN, MOTHER: She was an incredible kid.

NURENBERG: A big sister.

GILLIN: She had a lot of -- a lot of goals.

NURENBERG: Loved motorcycles.

JEFFREY VETTER, FATHER: Anything that was loud and fast.

NURENBERG: And working on cars.

VETTER: She was my grease monkey. She was a tomboy.

NURENBERG: Jeffrey Vetter's daughter Jesse was killed in a traffic accident caused by a man accused of drunk driving. It's the family's first holiday season without her.

GILLIN: Missing someone that you love so much is -- it's a feeling that never goes away.

UNIDENTIFIED MALE: Sir, have you been drinking tonight?

NURENBERG: The federal government is spending $7 million on an ad campaign whose theme is over the limit, under arrest. And thousands of local law enforcement agencies are beefing up enforcement over the holidays.

DAVID KELLY, NATIONAL HIGHWAY TRAFFIC SAFETY ADMIN: When people see the message and see it on television and see the message with the checkpoints and the lights and the extra police officers out there, they're going to know we're serious.

NURENBERG: But even if drunk drivers are caught...

CHUCK HURLEY, MADD: MADD estimates that more than 2.8 million drivers will be sharing the roads with the rest of us this holiday season. With three or more convictions.

NURENBERG: MADD, Mothers Against Drunk Driving wants to require that everyone convicted of drunk driving have a breath tester installed in their cars.

HURLEY: If they try to start the car after drinking and the breath tester will detect that, the car won't start.

NURENBERG: Hurley expects several state legislatures to pass the requirement in 2008. Four already have.

VETTER: I just want anyone to think about drinking and getting behind the wheel, think twice. Because it takes innocent lives and it's not fair.

NURENBERG: Gary Nurenberg, CNN, Washington.

(END VIDEO CLIP)

PHILLIPS: Well, a tear-jerker essay wins a little girl some Hannah Montana tickets until organizers discover it was a mother of a scam.

(COMMERCIAL BREAK)

PHILLIPS: Well, as we close out 2007 we remember a few new phrases that change the way we speak. Our favorite is "I-Report," because you helped us bring breaking news to our viewers a lot faster than ever. And who can forget this one -- "Don't tase me, bro"? An I-Report classic.

CNN's Rick Sanchez revisits the shock heard around the world.

(BEGIN VIDEOTAPE)

RICK SANCHEZ, CNN CORRESPONDENT (voice-over): It begins as an ordinary town hall forum at the University of Florida. The guest -- Massachusetts Senator John Kerry.

UNIDENTIFIED MALE: Sir...

SANCHEZ: Then, student Andrew Meyer comes to the mike.

ANDREW MEYER, STUDENT, UNIVERSITY OF FLORIDA: How could you concede the election on the day?

SANCHEZ: He launches into a rambling series of questions, even making a reference to a sex act. Event organizers cut the microphone. That's when things heat up and I-Reporters go to work.

MILES DORAN, CNN I-REPORTER: He started interrupting and the police started moving in, so I clicked it to movie mode and just started rolling.

SANCHEZ: Miles Doran is there to cover Senator Kerry's visit for the campus news radio station.

DORAN: And once the police brought him up to the back of the auditorium and started holding him, pushing him down to the ground and eventually tasering him...

MEYER: Don't tase me, bro! Ow!

DORAN: ... that's when a couple of people from the audience got up and you can hear in the video, they started screaming at the police telling them to stop.

UNIDENTIFIED FEMALE: Why are you doing that?

DORAN: Initially, I had thought that the police had -- it looked as though the police had acted well within their rights.

UNIDENTIFIED FEMALE: Back up, back up.

DORAN: But then as it quickly escalated into a freedom of speech issue and a police brutality issue...

MEYER: Ow, ow, ow!

DORAN: ... it was like, wow, OK, this is a much bigger deal than we thought it was going to be.

(END VIDEOTAPE)

PHILLIPS: Well, we got a ton of great I-Reports from the past year. You can see it all on our I-Report special, "Caught on Camera." Watch it tonight, 8:00 Eastern.

And it's not too late to vote on your favorite I-Reports of 2007. Just log on to our Web site, CNN.com/yearinreview.

(BUSINESS REPORT)

(COMMERCIAL BREAK)

PHILLIPS: Well, some of the laugh-out-loud, funniest cartoons from the year, and they're all from Mike Luckovich, of course, our favorite editorial cartoonist for "The "Atlanta Journal-Constitution." Mike's been sketching out actually a special one for our Wolf Blitzer and Candy Crowley.

Tell me about this one.

MIKE LUCKOVICH, CARTOONIST: Well, they are the, of course -- the crack political team...

PHILLIPS: Best political team on television.

LUCKOVICH: Best political team on television. And so I drew them.

You know, they are probably getting sick of Iowa, because aren't we all? I mean, it's a nice place, but the focus has been on Iowa for so long. So I drew them.

We'll go to our ace cameraman here. I drew them as the American gothic couple. Candy looks kind of ticked off though, doesn't she?

PHILLIPS: Yes. And you know what? She's a much happier person than that.

LUCKOVICH: She ain't happy with Wolf there.

PHILLIPS: You gave him Spock ears, I noticed.

LUCKOVICH: Yes.

PHILLIPS: Yes. That's pretty good, though. Not bad for doing that on the fly there.

LUCKOVICH: Well, made to order.

PHILLIPS: Will you send it so I can send it to them?

LUCKOVICH: Oh, I would love to.

PHILLIPS: And they are far from stoic, believe me.

LUCKOVICH: OK. Excellent. Yes.

PHILLIPS: Yes. They have a lot to say -- and will in the coming weeks

LUCKOVICH: Yes, they do. They do, because they are the top political team on TV.

PHILLIPS: Best political team on television.

LUCKOVICH: Best political team on TV -- on television.

PHILLIPS: We'll get you fixed in a minute.

LUCKOVICH: OK.

PHILLIPS: OK.

For you, the news story that really stood out the most in 2007?

LUCKOVICH: Oh, gosh. Well, of course, sometimes things are just tailor made for cartoonists, and that would have to be the Senator Larry Craig...

PHILLIPS: The little tap dance?

LUCKOVICH: The toilet -- the toilet thing.

PHILLIPS: The toilet tap dance?

LUCKOVICH: And -- yes. And I've had so much fun with that cartoon -- or with that topic.

Can we show that cartoon? Oh yes. This is a two-panel cartoon, and the first panel there, a couple of gentlemen are in the restroom and they are saying, "Many Republicans are retiring. Who is left?"

And in the second panel you see the foot tapping. So, thank God Larry Craig has decided to remain for cartoonists.

PHILLIPS: All right.

What are the hardest things for us in Georgia, of course, with the drought? Very serious issue.

LUCKOVICH: Oh, the drought, yes. Oh, I'm telling you.

PHILLIPS: But of course, we like to find the humor in the seriousness.

LUCKOVICH: Well, yes. Well, here's the thing. You know, our current governor, Sonny Perdue, recently had a prayer vigil where they prayed for more rain. Now, I have nothing against prayer. However, I think that instead of prayer, we elected him not to be our pastor, but to be our governor. And he should be planning for these kinds of things

PHILLIPS: And so what exactly should he have done?

LUCKOVICH: He should have -- well, our last governor had on the books a reservoir was going to be -- another reservoir was going to be built.

PHILLIPS: OK.

LUCKOVICH: He took it away. So this, I've got them at their prayer vigil. And Sonny, our governor, is saying, "He works in mysterious ways. It's raining low-flow toilets."

PHILLIPS: Can I tell you something, Mike?

LUCKOVICH: Yes.

PHILLIPS: We've got the low-flow toilets. They don't work.

LUCKOVICH: They don't? Oh god.

PHILLIPS: No, they don't. You need to redo that cartoon.

LUCKOVICH: Maybe...

(CROSSTALK)

PHILLIPS: Actually, you know what? They are a joke, so go ahead and keep them in the cartoon.

LUCKOVICH: All right. All right. I will do that.

PHILLIPS: And we'll -- yes. The prayer worked, though. Look at all the days of rain that we got.

LUCKOVICH: Yes, but that's not because of Sonny. That's not his prayer. You know, that's just...

PHILLIPS: It's the big guy upstairs.

LUCKOVICH: Oh, yes. Well, he may be helping.

PHILLIPS: Come on. You're in church every Sunday.

LUCKOVICH: I know, I am.

PHILLIPS: My producer sees you in the second pew.

LUCKOVICH: I'm there, so I have to - God has a little bit to do with it. PHILLIPS: You know the power. All right, let's talk about Hillary Clinton. I'll tell you what. If I were Santa Claus and I knew Hillary Clinton were coming to sit on my lap, I would not bolt like he did in your cartoon

LUCKOVICH: Yes, both Edwards and Obama are really presenting tough competition for her. And there's something intrinsically funny about Hillary. I don't know what it is, but I love drawing Hillary cartoons. This was one right before Christmas. I've got the elf, he's holding a Starbucks coffee there and he's pointing to the empty Santa chair and he's telling Hillary he's at an Obama rally. Boy, is that a diss, huh?

PHILLIPS: So what's on her list?

LUCKOVICH: She's got on her list Iowa, New Hampshire, Nevada, South Carolina.

PHILLIPS: So why do you love to draw her?

LUCKOVICH: You know, she seems to me - you know, I like her. I think she's very -- she knows -- she's confident, but she's so programmed and I love that about her. And if she becomes president from a cartoonist standpoint, she would be a godsend because she comes with Bill and they -- you know, just recently, you know, during the campaign, you know, he's out there and he says something silly, kind of off script. We'd have four or maybe eight years of that.

PHILLIPS: You'd have a field day.

LUCKOVICH: It would be great.

PHILLIPS: You'd be getting a raise. I love this one. Of course I love Michelangelo. We've all gotten to see the famous Fresco right? No touching God. Tell me about this one.

LUCKOVICH: Well you know, I did this cartoon. I draw a couple often in my cartoons and this couple is looking at this painting and she is saying, is that Mike Huckabee? You see Mike Huckabee has cut a hole in this thing and he's put his face in there and he is, you know, very -- bringing religion into the race and very Christ-oriented, which is, you know, I sort of like separation of church and state and he has also said that he is where he is because of God's will. And I don't really think God is following the election that closely.

PHILLIPS: How come?

LUCKOVICH: You know, it's too early. We've got another year of this.

PHILLIPS: He waits until the very end to get involved.

LUCKOVICH: He's going to wait until the end. He's going to wait right until maybe end of October before he starts focusing on this whole thing.

PHILLIPS: Give us a preview for 2008. What are you hoping for? Know you're hoping for a lot of disasters for your cartoons

LUCKOVICH: That's the thing. Editorial cartoons, cartooning is a negative art form, so, you know, you want bad things or off-kilter things to happen. But I'm looking forward to a new cast because, you know, the Bush administration is sort of like a sitcom that's just gone on way too long and you're sick of all the characters and you just want it to be over and you want a new season to start.

PHILLIPS: So you're saying you're so sick of the Bush administration that you can't even make them funny anymore?

LUCKOVICH: It's difficult, it's difficult. Occasionally they will surprise you and do something really silly and then I can still do a cartoon on them.

PHILLIPS: Mike Luckovich, always great to have you. It's so nice to wrap up the year with you.

LUCKOVICH: Oh well it's great to be here with you and the entire gang.

PHILLIPS: Look forward to next year.

LUCKOVICH: Thank you.

PHILLIPS: And you'll sign that cartoon for wolf and candy.

LUCKOVICH: All right.

PHILLIPS: All right, thank you. Maybe you can work on another one.

LUCKOVICH: I will, I'll do that.

PHILLIPS: Great to see you. Thanks Mike. AJC, if you don't live in Atlanta, you can get it online, you can see Mike's cartoons.

LUCKOVICH: AJC.com.

PHILLIPS: AJC.com, there you go, shameless plug.

All right, Baghdad bikers scooting through traffic and troubles. Two wheels are in these days in the Iraqi capital. We'll explain.

(COMMERCIAL BREAK)

PHILLIPS: 2007 will go down as the deadliest year yet for U.S troops in Iraq and Afghanistan -- 899 are reported killed in Iraq. Last year the total was 822. One hundred and sixteen have died in Afghanistan and most of the year's deaths in Iraq came in the first six months.

Since then, casualties have plummeted. The death toll for December is 21, the second lowest monthly toll of the year. The military credits increased troop strength and new support from Sunni tribal leaders for the drop in deaths.

Now since the war, Iraqis have adapted to their new normal and lots of different ways. And in Baghdad, for instance, where driving ranges from a headache to a death wish, many motorists are downsizing. CNN's Alphonso van Marsh reports.

(BEGIN VIDEOTAPE)

ALPHONSO VAN MARSH, CNN CORRESPONDENT, (voice over): The scooter is the two-wheeled wonder in traffic-clogged, car bomb-plagued Baghdad that a growing number of Iraqis say they can't live without.

MAJID KADHIM, SCOOTER SALESMAN, (through translator): Because of current circumstances and the traffic difficulties, add to that high fuel prices, all this has created a market for fast, easy and cheap transportation.

VAN MARSH: Cheap relatively speaking. A new scooter at Majid Kadhim's shop averages about $650. A used car costs at least three times that. Scooters need much less gas. The most popular, Chinese knockoffs of well-known models. Note that's a Youmha, not a Japanese Yamaha.

Traditional road rules don't exist in Baghdad. The most brazen or most heavily armed gets the right of way. But scooters can weave through the traffic, as well as security checkpoints and concrete blast walls meant to stop car bombers.

Soldiers and security firms almost prefer scooter drivers like Abrahim (ph) here, because unlike people in a regular car, they can see his entire body, knowing he's not a suicide bomber. Even a scooter laced with dynamite won't have the impact of a car stuffed with explosives. That can be the difference between life and death at Baghdad's numerous checkpoints.

No wonder Iraq's interior ministry says scooter and motorcycle registrations have gone up 50 percent in five months. And that's good business for mechanics Mohammed Mohsen.

MOHAMMED MOHSEN, MECHANIC, (through translator): If anything breaks, it's pretty easy to fix. Scooters are not sophisticated like a car. And repairs cost less.

VAN MARSH: Some scooter fans say they're less dangerous, too. In a city where bandits and militias operate, a scooter-jacking or kidnapping a scooter driver for ransom just isn't worth the effort.

Alphonso van Marsh, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: More than 100 people are dead in election-related violence in Kenya. Kenya's re-elected President Kibaki promised a crackdown today against political opponents who say the election was stolen.

Violence stretched from the capital of Nairobi. You can hear the bullets there to the smaller towns and villages across the African village. Today the State Department expressed congratulations to the Kenyan people for voting in record numbers, but it voiced concerns at reported irregularities and called on the Kenyan government to resolve any problems promptly.

The hunt for a man known as "Psycho." We're going to tell you why people in Phoenix want this man caught.

(COMMERCIAL BREAK)

PHILLIPS: In Phoenix today, good leads are reported in the hunt for a man known as "Psycho." Jose Francisco Mendoza allegedly shot six neighbors in a home Saturday night, then fired on responding police. Somehow no one was killed, but those who know the suspect say they are living in fear. The story now from Kevin Kennedy of CNN affiliate KPNX.

(BEGIN VIDEOTAPE)

KEVIN KENNEDY, KPNX CORRESPONDENT (voice-over): On the same street the ice cream man plays music and passes out goodies, the sound of gunfire rattled this neighborhood.

JESUS LOPEZ, NEIGHBOR: They have been fighting lately, fist fights and this time they went at it with guns.

KENNEDY: Police say this 24-year-old Jose Francisco used an assault rifle. He fired several rounds at his neighbor's house, bullets pierced the front window. Inside, the TV is shattered and glass everywhere. Five people inside were hit.

TONY CASTILLO, SONS WERE SHOT: I don't know what's going on here. I just know it's got to stop.

KENNEDY: Tony Castillo's two boys were shot. One spent the day in surgery. Police say most of the people involved have gang ties. Family members fear this isn't over.

CASTILLO: If it keeps going, somebody is bound to die sooner or later.

KENNEDY: Many neighbors are afraid the escalating violence could found them. Flavio Sesmas is a father with little kids.

FLAVIO SESMAS, NEIGHBOR (through translator): I feel bad because I worry about my kids. I'm going to find somewhere else to live.

KENNEDY: Other neighbors are also thinking of moving and seeing this makes the decision almost easy. Most people living around here can't believe no one was killed.

(END VIDEOTAPE)

PHILLIPS: That story again from Kevin Kennedy of CNN affiliate KPNX. A candlelight vigil is planned in Carnation, Washington, today for six members of the Anderson family shot to death on Christmas Eve. The Anderson's daughter Michele , her boyfriend Joe McEnroe are charged with aggravated murder now. Police believe that a family feud over finances played a role into that bloodshed. McEnroe and Anderson fled north after the killings, but later came back to pretend they discovered the bodies. A hearing for both suspects is scheduled next week in Seattle. Prosecutors may seek the death penalty.

Troubles for the early GOP front-runner Rudy Giuliani, slipping in Iowa and New Hampshire. Could it be fatal to his campaign?

(COMMERCIAL BREAK)

PHILLIPS: That's right. It's the political season, and, of course, we're following all the presidential candidates, Democrats and Republicans. John McCain right now speaking in Londonerry, New Hampshire. This is a house party. Let's listen in for just a moment.

JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Including $1 million for the Woodstock House Museum. Now my friends, I know that was a cultural as well as a pharmaceutical experience, but if the people in northern New York want a museum to commemorate the Woodstock concert, then let them do it with their money, not your money, so we're going to stop it.

So let me just mention very quickly our economy. Our economy is shaky right now. We all know that and we're going to have to do a lot of things, and we're going to have to make sure that people who are struggling to make their mortgage payments are helped out so that they have a chance to keep their homes.

Meanwhile in Washington, we're pork barrelling their money that they could use to help these people who are struggling to keep their homes, the American dream, and we're going to make sure everything in our power to make sure that people can at least have some kind of pause here rather than experience such an increase in their payments and they lose their homes.

We'll have to stop spending $1 billion every day, every single day to pay for imported oil, $1 billion of our dollars goes overseas towards oil-producing companies. And my friends, some of that money goes to countries where the money will end up in the hands of terrorist organizations. What do you think it does to our outflow and our economy and our debt when we're sending $1 billion overseas and basically we're consuming the product we get in exchange for it?

And finally, we've got to get our fiscal house in order. We've got to stop this wasteful spending. We've got to fix Medicare and we've got to fix Social Security and we've got to do the hard things and not pass it on to another generation of Americans. We've got to have stability and fiscal responsibility.

PHILLIPS: John McCain talking about the economy, the mortgage crisis at a house party there in Londonderry, New Hampshire, stumping for votes and support obviously as we are approaching the 2008 presidential elections. You can go to cnn.com/video, watch it live if you want to continue.

Meanwhile, we're going to work our way around the country as other candidates are speaking as well. Now he still looks strong in national polls, but in Iowa, whose caucuses are Thursday and New Hampshire whose primary is next week, Rudy Giuliani is a dark horse at best. CNN's Jim Acosta is traveling with the Giuliani campaign.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN CORRESPONDENT (voice-over): The man once described as America's mayor is finding it a lot harder to run for president. At stops across New Hampshire, Rudy Giuliani brushed off questions about the state of his campaign.

UNIDENTIFIED MALE: Are you concerned about how your campaign is going in New Hampshire?

RUDY GIULIANI (R), PRESIDENTIAL CANDIDATE: We think it's going well. This is a great turnout.

ACOSTA: But a new American Research Group poll shows the former mayor is lagging behind John McCain and Mitt Romney, who are tied with 30 percent each. Giuliani finishes a distant fourth behind Mike Huckabee.

His campaign has long shrugged off individual state poll numbers, pointing instead to the former mayor's impressive showing in many national surveys. But New Hampshire pollster Andy Smith says Giuliani support in the Granite State is eroding surprisingly fast.

ANDY SMITH, NEW HAMPSHIRE POLLSTER: If he loses to Ron Paul in New Hampshire, he's got real trouble.

GIULIANI: I've been tested by crisis and problems. I've shown very good results in dealing with crisis and in dealing with problems, including those in the area of safety and security.

ACOSTA: Defined by his handling of 9/11, Giuliani is consistently on message, vowing time and again to stay on offense as he puts it, in the war on terrorism. He briefly noted the increasingly negative tone of the race saying Ronald Reagan's commandment of not speaking ill of other Republicans only goes so far

GIULIANI: I have an 11th commandment that says don't criticize other Republicans, unless they criticize me.

ACOSTA: That message seemed to connect with undecided Republicans Sabrina and Gary Madison (ph), who said they appreciate what had they saw as a hesitancy to throw mud.

UNIDENTIFIED FEMALE: I hate negative campaigning and I think he was very valiant.

UNIDENTIFIED MALE: Much warmer than I expected. I mean, he's a New Yorker. ACOSTA: Other polls show Giuliani in third place in New Hampshire but either way, his campaign is counting on winning in later primaries such as Florida where some polls show he is out in front. And considering how well he's doing in New Hampshire, it may be more than just the weather that's better down South.

Jim Acosta, CNN, Bretton Woods, New Hampshire.

(END VIDEOTAPE)

PHILLIPS: And a race to the finish line. And it's only the first contest of this presidential campaign marathon. We're going to hear from the leading Democrats and the best political team on television in the next hour of the CNN NEWSROOM.

And on New Year's Day, catch the game that really matters, the battle of the presidential candidates. It's all the contenders talking about all the important issues, the economy, the war, immigration in their own words. CNN "Ballot Bowl" tomorrow beginning at 9:00 a.m. Eastern.

Republican Congressman Roger Wicker of Mississippi is making the jump from the House to the Senate. Governor Haley Barbour appointed Wicker today as Trent Lott's replacement until a special election is held next November. Lott, the number two Republican in the Senate, resigned earlier this month.

(BEGIN VIDEO CLIP)

REP. ROGER WICKER (R), MISSISSIPPI: During 13 years in the U.S. House of Representatives, and before that seven in the Mississippi legislature, I feel that I have established a clear record of service and establishment. I hope to build on that now in the United States Senate.

(END VIDEO CLIP)

PHILLIPS: And a special election will determine who holds the seat for the remainder of Lott's term which would have run through 2012.

Former Utah governor Mike Leavitt defending talks he once held with members of his staff about incorporating Mormon principles into his state policy. The "Salt Lake City Tribune" obtained public documents showing then Governor Leavitt and his aides met at private homes and at the governor's mansion. They reviewed stories from the Book of Mormon and how they applied to government. Leavitt is now secretary of health and human services. He says the church has never tried to influence his decisions in state or federal government. He says the meetings while he was governor were private and he wants the records removed from public archives.

Just getting word now. CNN has confirmed with Bureau of Prisons that Sarah Jane Moore was released on parole this morning. You may remember she was sentenced for the attempted assassination of former President Gerald Ford back in 1975 just outside the St. Francis Hotel in San Francisco just 17 days after Lynette "Squeaky" Fromme had attempted to assassinate Ford. She was released from the Federal Correctional Institution in Dublin, California. Not quite sure what the circumstances were, if it was due to good behavior or her time was up. We're working that. We'll let you know, but we're just getting word that she has been released.

Now imagine having babies six months behind. The math may not add up right, but we're going to explain what's behind one family's unusual baby boom.

(COMMERCIAL BREAK)

PHILLIPS: A shocked teen at a McDonald's in Washington state had a night at work that she will never forget. Danielle Miller says that gave birth in the fast food restaurant's bathroom Friday after feeling sick. A co-worker who went in to check on her asked the question of the night.

(COMMERCIAL BREAK)

JAYNAE HERRERA, CO-WORKER: Are you pregnant? Are you pregnant and she's like -- she's like I don't think so, I don't think so and a couple minutes later she's yelling saying the baby is coming out so I'm -- that's when I start kind of freaking out and I'm like what do you mean?

DANIELLE MILLER, NEW MOM: I was more in shock that I couldn't talk. I mean, I was shaking the whole entire time.

(END VIDEO CLIP)

PHILLIPS: All right. Do you believe her?

Miller says that she didn't stop shaking until 3:00 a.m. the next morning. She and her newborn son are doing fine. Miller apparently had no idea that she was pregnant.

Some sisters will do just about anything for each other and here's a case in point. A North Carolina woman became a surrogate mother when doctors said that her twin couldn't have kids. But the story gets even better. After she got pregnant her sister did, too. Reporter Scott Mason of CNN affiliate WRAL explains.

(BEGIN VIDEOTAPE)

SCOTT MASON, WRAL CORRESPONDENT (voice-over): KC and Melissa are identical twins, and when Melissa and Michael couldn't have a baby, KC said but I can.

UNIDENTIFIED FEMALE: Said absolutely.

UNIDENTIFIED FEMALE: Out of the two embryos that they put inside my sister KC, one took and that was little Madeleine.

MASON: Little Maddie.

UNIDENTIFIED MALE: I thought it was going to be Matt, Matty. But we're good.

MASON: Madeleine was born Christmas day.

UNIDENTIFIED FEMALE: We couldn't ask for a better day or a better gift. It's awesome. I feel very blessed to have been able to do this for them.

UNIDENTIFIED FEMALE: But seeing her deliver this baby just made me even more happier to have her as a sister.

MASON: In a story about identical sisters, things naturally come in twos. In six months, one baby will become two babies because Melissa, who doctors said couldn't have a baby is going to have a baby and baby, what a surprise.

UNIDENTIFIED FEMALE: Oh, yeah, oh, yeah. It was a surprise.

UNIDENTIFIED MALE: We're due in June, so they will be six months apart.

UNIDENTIFIED FEMALE: Six months, we'll have another one.

UNIDENTIFIED MALE: Six month apart twins.

UNIDENTIFIED FEMALE: That's all they wanted were kids and now they are going to be bombarded with them.

MASON: What a bundle of joy.

UNIDENTIFIED FEMALE: The best gift.

MASON: Scott Mason, WRAL News, Cary.

(END VIDEOTAPE)

PHILLIPS: As we all get ready to welcome 2008 we decided to take a look back at 2007, a roller coaster of a year in the news.

(COMMERCIAL BREAK)

PHILLIPS: The calendar rolls over to 2008 down under. Check out how Australians ushered in the New Year, a fantastic light display over the famed Sydney Harbor. Auckland was the first big city to reach 2008 in New Zealand. Fireworks shooting up from a tower in the center of the city.

And of course one of the biggest parties here in the U.S., the Big Apple, at least a million people and even more millions of orange balloons expected to squeeze into New York's Times Square for the 100th anniversary of the ball drop. Live pictures right there as folks are starting to gather.

But before we let go of the past year, here's one more look at a few of the stories that held our interest and filled the airwaves.

(BEGIN VIDEOTAPE) UNIDENTIFIED MALE: Thank you for cutting my mike. Thank you. Are you going to arrest me? Excuse me. Excuse me. What are you arresting me for. I didn't do anything. Don't tase me, bro. Don't tase me. Ow! Ow!

LARRY CRAIG, FORMER SENATOR: I am not gay. I never have been gay.

UNIDENTIFIED FEMALE: Craig was arrested in June at the Minneapolis Airport for alleged lewd behavior in a men's bathroom known for sexual activity.

CRAIG: I did nothing wrong at the Minneapolis Airport.

UNIDENTIFIED FEMALE: The truth is when in politics, smoke is as deadly as the fire sometimes.

UNIDENTIFIED MALE: Memorabilia collector Bruce Fromong said he got quite a shock last Thursday in a Las Vegas hotel room. The victim claims Simpson's group took items away at gunpoint.

O.J. SIMPSON: Don't let nobody off this floor.

UNIDENTIFIED MALE: I want you to hang up.

SIMPSON: You mother. You think you can steal my (EXPLETIVE DELETED)

UNIDENTIFIED MALE: The people came in a military-style invasion.

UNIDENTIFIED FEMALE: The tree that had traditionally been a gathering place for white students, but when black students challenged that, three white students hung nooses from the branches.

UNIDENTIFIED FEMALE: I was very offended because that's a racial slur against us.

UNIDENTIFIED FEMALE: Reality is hitting hard in Hollywood. Nearly 12,000 writers, employed by TV and film studios, are striking. The writers want more money, as studios distribute shows and movies on computer, cell phone and MP3 players.

UNIDENTIFIED MALE: The studio has made it clear that they would rather shut down this town than reach a fair and reasonable deal.

UNIDENTIFIED FEMALE: Duane Dog Chapman caught on tape in a racial rant.

DUANE DOG CHAPMAN, BOUNTY HUNTER: I'm not going to take a chance ever in life of losing everything I've worked for for 30 years because some (EXPLETIVE DELETED) heard us say (EXPLETIVE DELETED) and turned us into the "Enquirer" Magazine.

I'm very sorry for using that word. Please don't think any less of me, and I'm going to fix it. UNIDENTIFIED FEMALE: Michael Vick, who has a $130 million contract with the NFL has been indicted for running the Bad Newz Kennel, a brutal training ground for fighting dogs.

MICHAEL VICK, NFL STAR: He told me to ask for forgiveness and understanding as I move forward.

(END VIDEOTAPE)

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