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Anderson Cooper 360 Degrees

Central California Quake; Dangerous Times: Threat Level Raised to Orange

Aired December 22, 2003 - 19:00   ET

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

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


ANNOUNCER: Live from the CNN Broadcast Center in New York, this is ANDERSON COOPER 360.
COOPER: Good evening. Welcome to 360. We are following a number of developing stories right now.

A deadly earthquake in California.

Plus, Rush Limbaugh, new claims of blackmail as he fights to keep his medical records secret. We'll have the latest from the courthouse on that.

But first, our top story. We take you to central California, jolted by a magnitude 6.5 earthquake. There are at least two deaths right now. One person unaccounted for.

The town of Paso Robles has some severe property damage, as you can see there. The quake hit at 11:16 a.m. Pacific time, with the epicenter near the coast, about 185 miles south of San Francisco and about the same distance north of Los Angeles.

The shock was felt in both big cities. CNN's Charles Feldman has details.

(BEGIN VIDEOTAPE)

CHARLES FELDMAN, CNN NATIONAL CORRESPONDENT (voice-over): In L.A., it made some people dizzy. In San Francisco, people could feel the unmistakable rolling sensation caused by an earthquake.

UNIDENTIFIED MALE: And everything just started swaying and rocking. A lot of people took off running.

FELDMAN: But in central California, there was no doubt this was a significant geological event.

ROSS STEIN, USGS SPOKESMAN: This is a magnitude 6.5 earthquake. It's a moderate size earthquake that caused modest damage in the local area. It's on a fault system we don't know as well as we would like, and this earthquake will help us to get to know it better.

FELDMAN: The quake and its many aftershocks caused some small buildings to collapse, including a building in Paso Robles that housed a historic clock tower. Many cars that were apparently unoccupied were smashed. Some 40,000 customers of Pacific Gas & Electric were without power after power lines went down near San Luis Obispo. The main earthquake was felt in the control room of the Diablo Canyon Nuclear Plant some 100 miles from the quake's epicenter. But officials there say the plant continued to operate.

In San Simeon, the famed Hearst Castle was evacuated. The historic site was once the home to newspaper mogul William Randolph Hearst. The earthquake was shallow, striking about five miles beneath the Earth's surface.

(END VIDEOTAPE)

FELDMAN: Now, shallow earthquakes tend to cause the most amount of damage. Fortunately, though, this earthquake occurred in a relatively sparsely populated part of California, and that should cut down on any injuries and certainly on fatalities -- Anderson.

COOPER: Thanks very much, Charles, live from Los Angeles.

Officer Scott Lee with the California Highway Patrol is joining us on the telephone from Paso Robles.

Thanks very much for being with us, Officer Lee. What can you tell about the damage in Paso Robles?

SCOTT LEE, CALIFORNIA HIGHWAY PATROL: Well, fortunately, our damage was pretty localized. We have a relatively small downtown area, about four square blocks. And we suffered some pretty extensive damage in that downtown area.

We are still trying to assess any collateral damage outside the area. But most of the damage was localized in the downtown area. And that's where the two fatalities occurred.

COOPER: And those two fatalities, was that -- I understand there was sort of an historic building in the town which had a clock tower. All of that collapsed. Is that how the two fatalities occurred?

LEE: Right. That's correct. The Clock Tower Building houses three retail businesses, and then one bakery. And, you know, as you can imagine, 11:30 on a morning that here in town, there were quite a bit of people downtown. And when the earthquake started, people tried to get out into the street, and these two people were struck by falling rubble.

COOPER: So there were a number of people in the building at the time. Any other injuries?

LEE: At this time, reports of injuries are still coming in. I talked to an individual at a local hospital who told me that they had about 25 people come in with minor to moderate-type injuries. Nothing serious at this point. So from a standpoint of injuries, at least at this point we've been fairly fortunate.

COOPER: And Officer Lee, we are looking at an aerial of the building. I'm seeing people it looks like literally digging out by hand in some cases. Is that correct?

LEE: That is correct. The city of Paso Robles put out a request for mutual aid. And as a result of that request, we had officers from local police jurisdictions, county sheriff's department, California Highway Patrol. And the California Conservation Corps has dispatched a crew that's out there now doing all the handiwork that you see being done, trying to make sure that we can access the building and just confirm that there is nobody else injured or killed inside.

COOPER: And at this point of the day, several hours since this thing happened, can you confirm there's no one else inside?

LEE: We have no information that would lead us to believe there is anybody else inside, but certainly we want to be sure. And we will make sure we do a complete search of the building.

COOPER: Well, I know it's been a busy day for you. Officer Scott Lee, we're going to let you go. Thanks very much for the update. Appreciate it.

LEE: You bet.

COOPER: All right. Officer Scott Lee with the California Highway Patrol.

One local resident of Paso Robles was out for a walk with his wife when the quake hit. Hear from him what happened next.

(BEGIN VIDEO CLIP)

BRIAN ESKANDANIAN, PASO ROBLES RESIDENT: ... area where the center of town is. A large -- well, I shouldn't say large. A two- story building collapsed completely. And during -- in that area where the damage occurred, all the bricks that collapsed crushed about, I don't know, eight or nine cars.

Beyond that, you really can't get anywhere. The power is out. So everything is kind of like a bottleneck. Just getting out of that area is probably a good idea.

UNIDENTIFIED MALE: We were just getting information about the clock tower. Is that the same building that you saw?

ESKANDANIAN: Yes, it was the clock tower. Underneath it was a jewelry store, and just below it to the right is a bakery. And from what we saw, it looked like the whole side of the building just -- the top of the building just slid off on to the street.

UNIDENTIFIED MALE: Was there any indication that you could see that there might have been people trapped inside this building, or were you able to even concentrate on your surroundings as you tried to get to safety?

ESKANDANIAN: No, I couldn't tell. And to be honest with you, the fire department was there. They had pretty good control over what was going on. But due to the amount of damage, I imagine it will be a while before they find out whether or not anyone was in that building.

UNIDENTIFIED FEMALE: Now, Bijan, can you describe what you felt and the kind of motion that you felt when it struck?

ESKANDANIAN: Yes, we were -- my wife and I were taking our morning walk down Spring Street, which is the main thoroughfare in town. And it hit like a shockwave from a bomb blast. Almost knocked us off our feet.

And you could hear the sound. It was just a loud -- almost like an explosion. And as soon as we turned around, we could see people running out of the buildings on to the street.

(END VIDEO CLIP)

COOPER: That's from a local TV broadcast as the event was happening earlier today. We're going to continue to monitor it all throughout this hour and bring you some updates in about 20 minutes or so.

Now, of course California is no stranger to devastating earthquakes. I want to flash back for a moment. In 1994, the most recent deadly quake, Northridge, 57 people dead, $40 billion in damage.

And remember 1989, a 6.9 quake hit San Francisco and it hit hard. Sixty-three people killed there. Property damage estimated to be almost $6 billion.

Moving on tonight, if you wondered today how seriously authorities are taking the increased national threat level, well, we got one indication today. They are readying to deploy surface-to-air missiles mounted on vehicles around Washington and possibly New York. The threat this time, it seems, is not just idle chatter.

Homeland security correspondent Jeanne Meserve has the latest.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice over): Heightened security around national monuments, at airports, on the streets. We've seen it before, but many officials say we have never seen it like this. They are taking new additional steps, they say, because this alert is more intense. Security concerns are more serious than during any of the four previous periods at orange.

TOM RIDGE, HOMELAND SECURITY SECRETARY: The strategic indicators suggest that it is the most significant threat reporting since 9/11.

MESERVE: Not only has the volume of threat intelligence increased. According to a homeland security official, new specific and credible threat information has been uncovered. Some of it relating to the use of aircraft originating outside the U.S. as weapons for suicide attacks. The U.S. is asking airlines and foreign governments to bolster security, but experts say there is vulnerability. UNIDENTIFIED MALE: International (UNINTELLIGIBLE) standards are still voluntary. And we know that many countries around the world do not exercise those standards.

MESERVE: The intelligence mentions Washington, New York, Los Angeles, and as many as 10 other metropolitan areas, according to government sources. And intelligence about possible critical infrastructure targets like chemical and nuclear plants has been melded with risk and vulnerability assessments to provide governors with specific information about where to deploy resources.

GOV. GEORGE PATAKI (R), NEW YORK: Working with the MTA and the port authority to make sure that everything from airports to bridges, tunnels, and other mass transit facilities have had heightened security.

(END VIDEOTAPE)

MESERVE: Threat level orange will stretch past the holiday season. And some homeland officials predict it could last into February at a cost, experts say, of about $1 billion each week -- Anderson.

COOPER: Very expensive, indeed, Jeanne. Am I correct in understanding that this is not just a question of increased chatter, that phrase we've all heard so much about in the last couple of months, but these are -- this intelligence comes from sources who have been credible in the past.

MESERVE: It is coming, obviously, from some credible sources, some of it at least. But they say there are a range of different means they've used here. Some of it is human intelligence, some of it is intercepts of communications. Some of it is monitoring of Web sites and so forth.

So a number of different things compiled here to bring them to this conclusion that it should go up. Obviously the specific concern about airliners is said to be credible and specific.

COOPER: All right. Jeanne Meserve in Washington tonight. Thanks very much, Jeanne.

Terror of a different sort now, the latest on the Lee Boyd Malvo case. The same jurors who last week convicted him of murder, terrorism and weapons charges in connection with the D.C. sniper attacks, well they spent today facing the question of whether the teen should live or die.

Elaine Quijano has the latest now from Chesapeake, Virginia -- Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Hello to you, Anderson. They deliberated for several hours today, but the jury of four men and eight women will have to come back tomorrow. They are set to resume their work in the morning. They must decide whether Lee Malvo should die for his crimes or be sentenced to life in prison without parole. Now, the day began with testimony from three defense witnesses, including Lee Malvo's father, Leslie Malvo, who shielded his face from the cameras as he entered the courthouse. On the stand, he described his son in his early childhood as an affectionate boy. Part of the defense's argument that Malvo deserves mercy. That he was a respectful, obedient child who changed only after meeting John Muhammad.

But prosecutor Robert Horan said the crimes and evidence show Malvo's vileness to property (ph) of mind and future dangerousness. Horan also showed photographs of sniper victims before and after they were killed, and at one point referred to John Muhammad and Malvo both, saying, "They were an unholy team. A team that was as vicious, as brutal, as uncaring as you could find."

"Talk about John Muhammad all you want. Maybe it was his plan. Maybe it was his idea. But the evidence stamps this defendant as the shooter."

But defense attorney Craig Cooley appealed to the juror's sense of compassion. He brought with him with a fist-size stone, and he made reference to ancient times, when jurors would carry out executions by stoning the accused. As he held the stone, he told the jury, "You are not holding it, but you can feel the weight of the stone. The commonwealth urges you to vote to kill, to stain your stone with the blood of this child. Your humanity challenges you to let this stone lie."

Now, as I said, the jury is set to resume its deliberations tomorrow. They are scheduled to begin their work at 9:00 a.m. Eastern.

Anderson, back to you.

COOPER: All right. Elaine Quijano, live in Virginia. Thanks very much, Elaine.

We are following a number of other stories right now "Cross Country." Let's take a look.

Washington, D.C.: Put away that syringe. A federal judge tells the Pentagon it cannot force soldiers or civilian employees to get anthrax vaccines. And the judge adds, even the FDA hasn't approved the vaccine for mass inoculations.

Also in Washington: rebirth. The D.C. Post Office, closed after anthrax-laced letters killed two of its workers, reopened. The Brentwood facility has been renamed to honor Joseph Curseen Jr. and Thomas Morris Jr. They both died after contracting anthrax two years ago.

Portsmouth, New Hampshire: to VP or not to VP. Democratic presidential frontrunner Howard Dean says he never offered retired General Wesley Clark a spot as his VP, should he get the nomination. Clark insists he did. Dean dangled the offer, Clark says, in a private meeting. San Francisco: flip the switch. After much of their weekend was spent in the dark, electricity has been fully restored to about 120,000 PG&E customers. The blackout was caused by fires at a power substation Saturday night. Despite the outage, Mayor Willie Brown said everyone behaved.

And that's a look at stories "Cross Country" tonight.

Martha Stewart in her own words. An exclusive interview. Hear what she says about her upcoming trial. That's just ahead.

Plus, Rush Limbaugh fights to keep his medical records sealed and claims he was blackmailed. We'll go live to the courthouse for that.

And a story that has shocked a country. A man on trial for eating and killing what he says was a willing victim. We'll talk with the lawyer for a man who has acted out his darkest desire.

But first, let's take a look "Inside the Box" at the top stories on tonight's network newscasts.

(COMMERCIAL BREAK)

COOPER: A lot of people gathering out in New York in the holidays.

In some respects, Martha Stewart made her millions during this holiday season, teaching the rest of us to bake the perfect pie or decorate the perfect tree. But this holiday isn't turning out to be the greatest of times for the queen of domestic engineering. She, of course, is about to go on trial for securities fraud.

In an exclusive interview with Larry King that airs later tonight, she says she is shocked at the whole affair.

(BEGIN VIDEO CLIP)

LARRY KING, "LARRY KING LIVE": Is all of this very shocking to you?

MARTHA STEWART, MARTHA STEWART LIVING OMNIMEDIA: No one is ever prepared for such a thing.

KING: I wouldn't imagine.

STEWART: No one. And no one is ever strong enough for such a thing. No one is -- you know, you have no idea how much worry and sadness and grief it causes.

KING: I would imagine, especially if someone thinks, I didn't do anything wrong.

STEWART: Exactly.

KING: So that's got to drive you berserk.

STEWART: Well, but that -- having done nothing wrong, allows you to sleep, allows you to...

KING: It does?

STEWART: ... allows you to continue your work, gives you -- gives you the opportunity to think about other things. But there's always the worry. I mean, a trial is coming up.

(END VIDEO CLIP)

COOPER: Well, the full interview with Martha Stewart is tonight on "LARRY KING LIVE" at 9:00 p.m. Eastern Time.

The governor of Illinois is eying Canada's drugs, just like Massachusetts and New Hampshire. Illinois officials believe their citizens can save millions of dollars by buying cheaper prescription drugs from up north, and they are asking the federal government for permission.

CNN's Chicago bureau chief, Jeff Flock, has details.

(BEGIN VIDEOTAPE)

JEFF FLOCK, CNN CHICAGO BUREAU CHIEF (voice-over): In one of those bottles is the synthetic hormone synthroid (ph). Carol Glover (ph), who works in the Illinois General Counsel's Office, takes it every day for her thyroid condition. One hundred tablets cost $71 at a U.S. pharmacy. In Canada, the same drug is $26.92.

UNIDENTIFIED FEMALE: I'm ready to jump in. I think it would be a great idea.

FLOCK: So does Illinois Governor Rod Blagojevich.

GOV. ROD BLAGOJEVICH (D), ILLINOIS: We are not asking for federal funding.

FLOCK: What he is asking in this letter to HHS Secretary Tommy Thompson is federal permission for a pilot program to buy Canadian drugs for Glover (ph) and 230,000 other Illinois state employees.

(on camera): Bottom line, what would this save you in your budget?

BLAGOJEVICH: Ninety-one million dollars it would save the state of Illinois.

FLOCK: First year?

BLAGOJEVICH: In the first year.

PETER PITTS, FDA: We feel that the plan is not well thought out. It's very risky, and it provides for illegal unsafe foreign drugs coming into this country.

FLOCK (voice-over): In a statement, the pharmaceutical industry agreed. The plan compromises patient safety. But Congressman Rahm Emmanuel says it's not about safety but loss profits for the drug companies.

REP. RAHM EMMANUEL (D), ILLINOIS: When somebody tells you it's ain't about money, it's about money.

FLOCK: Blagojevich just made "Money" Magazine's "People to Watch" list for his prescription drug ideas, and is trying a personal approach with Secretary Thompson, remembering that Thompson got 75 federal waivers to reform the state welfare system when he was governor of Wisconsin. Reform that became a national motto.

BLAGOJEVICH: All we're asking for is an opportunity to try something new.

(END VIDEOTAPE)

FLOCK: Illinois could decide to do what New Hampshire and the cities of Boston and Springfield, Massachusetts, have done, which is to set up their own program to buy drugs in Canada in violation of federal law. The folks in Springfield tell us they've already saved $1 million with theirs.

COOPER: All right. Jeff Flock, live in Chicago. Thanks, Jeff.

We're going to take a look now at some of the main international stories we're following. Let's check the "UpLink."

Jerusalem: shocking attack at a holy Muslim site. You see it there. Members of a small extremist Islamic group attacked Egypt's foreign minister, throwing shoes -- that's an insult there -- and shouting abuse at him as he tried to pray at the Al Aqsa Mosque. The foreign minister was rescued by bodyguards, and Israeli police treated briefly at a hospital and then headed back home to Egypt.

The Philippines: grieving for the dead. At least 127 people have died in devastating mudslides. You see them there. Rescuers say they found the bodies of entire families buried alive in their homes. Authorities blame the illegal logging for the landslides, which were triggered by a week of rain.

In Colombia: sweet freedom at last. After 101 days in captivity, rebels from the National Liberation Army released four Israelis and a Britain to a humanitarian commission. As you can see here, the hostages look tired and dirty, but they were all smiles and a lot of tears.

Bahrain: a special thanks. That's actor Ben Affleck visiting American troops stationed overseas. He spoke to troops from the aircraft carrier USS Enterprise, thanking them for their dedication and service.

That's a look at tonight's "UpLink."

The most bizarre crime of the year. This guy killed and ate a man, but his lawyer says he's not a murderer or a monster. I'll talk with the lawyer coming up. Also tonight, reality TV undressed. Has television -- have television executives finally crossed the line, gone too far? We'll take a closer look.

And a little later, talk of blackmail, as Rush Limbaugh fights to keep his medical records private. We'll go live to the courthouse to find out what's going on behind the scenes.

And that leads us to tonight's "Buzz." Is Rush Limbaugh being unfairly targeted? He said prosecutors are going on a fishing expedition. What do you think? Vote now, cnn.com/360. Results at the end of the show.

(COMMERCIAL BREAK)

COOPER: Welcome back. Before we begin our next story, we should alert you that some of what you are about to hear in the next two minutes may be disturbing. It's about a trial in Germany that has repulsed and captivated the country.

The legal charge is murder for sexual satisfaction. The defendant is a self-confessed cannibal. Two potential victims testified today at his trial. One witness, who says he was likely passed over because he was too fat. We should point out, one man, however, was killed and eaten by the defendant.

Stephanie Halasz is covering the trial.

(BEGIN VIDEOTAPE)

STEPHANIE HALASZ, CNN CORRESPONDENT (voice-over): Helping to carry files, Armin Meiwes once again looked relaxed as he entered his fifth day in court, standing trial on a charge for murder for sexual satisfaction. But there's much more to the story.

In March 2001, this man, Bernd Juergen Brandes, answered Meiwes' ad on the Internet, looking for a volunteer who could be slaughtered and eaten. Brandes did volunteer. Together, they cut off his genitals and together they ate them.

Three witnesses, all men who had answered similar ads from the accused, testified Monday. Meiwes also described how he had initially wanted to behead one of them, but upon meeting him in person found him not slim enough, not attractive enough.

An additional witness described he had sexual relations with the defendant since age 16 and have never noticed anything odd about Meiwes. He described Meiwes as very nice and cheerful.

Meiwes' lawyer wants him convicted for the lesser charge of killing on demand, which carries a maximum sentence in Germany of five years in prison. But psychologists have said even if he were to receive something less than a life sentence, he would still likely spend the rest of his life in a psychiatric institution.

Stephanie Halasz, CNN, Berlin. (END VIDEOTAPE)

COOPER: Well, earlier I spoke with Meiwes' defense attorney, Harald Ermel, about this disturbing case. I asked him the question I think a lot of people want to know: why did his client kill and partially eat his victim?

(BEGIN VIDEOTAPE)

HARALD ERMEL, ATTORNEY FOR ARMIN MEIWES (through translator): My client had the desire to eat a person and he wanted to keep it in his memory. And he was of the opinion that the only way of achieving this was eating him and making him part of himself.

COOPER: Prosecutors are alleging that this was a crime for sexual satisfaction, which carries a stiffer penalty than just a killing on demand. You say it was not for sexual satisfaction. How so?

ERMEL: This is a situation that sexual satisfaction is only the case when, at the time of the murder, sexual satisfaction was achieved at the time of the murder.

COOPER: Well, couldn't it still hold some sort of sexual allure, even if there was not sexual satisfaction at the moment of the killing? Some have testified he seemed very excited during the killing. He videotaped it, I imagine, to watch it later. And who knows what he planned to do while watching it later.

ERMEL: From the videotape, it is not obvious that he was sexually aroused, but only a general excitement is visible from them.

COOPER: But when you were interacting with him, when you are sitting, when you were talking with him, what is he like? Would you have any idea that he has these thoughts in his head?

ERMEL: No, absolutely not. This is not obvious. I've known him for many years, and I have represented him several times in various matters. And it was not obvious that he has this kind of manner and he was having these kinds of thoughts.

COOPER: So you were his lawyer before you even knew he was a cannibal or wanted to be a cannibal or dreamed about being a cannibal. When you found out, when he told you this, were you surprised?

ERMEL: Yes, I was very surprised when he opened himself to me and came to me and told me that he had killed a person, slaughtered a person, and partially eaten one. I never suspected this. It was not obvious in his behavior.

COOPER: If he's convicted of this charge, as you would like him, this killing on demand, and he serves six years, he gets out and he is walking the street six years from now, is that justice?

ERMEL: You're basing your statement on wrong claims. My client is not a monster. COOPER: If he's not a monster, what is he?

ERMEL: My client has dignity. My client has a personality. But he definitely has a defect. He doesn't have the possibility or hasn't had the possibility so far to behave in an area of his fetish the way he wanted to have, and his fetish is eating human flesh. And in the future, he will not do this anymore.

COOPER: All right. Mr. Ermel, I appreciate you joining us today. Thank you.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

COOPER (voice-over): The state wants to see Rush Limbaugh's confidential medical records. Is this really a fishing expedition?

The new reality of porn. Has sex on TV finally gone too far?

And 'tis better to give than to receive. But what about re- gifting?

We'll be right back.

(COMMERCIAL BREAK)

COOPER: Let's catch you up on some of tonight's top stories across the country. Cities, airports, transit systems, utilities and other possible target are ratcheting up security in response to the heightened terrorism threat level. The Department of Homeland Security raised the level to code orange, the second highest, due to reports of "imminent threats against the homeland."

Paso Robles, California, a strong quake shook south central California today killing at least two people in the colapse of an historic building. The 6.5 magnitude quake was felt as far away as Los Angeles to the south and San Francisco in the north more than 200 miles from the epicenter.

In a few minutes we'll take you live to the scene in Paso Robles, right there.

Gasoline prices are at a record high for a Christmas holiday week. The government says it's because demand at the pump is high and inventory is low. The national average price for regular unleaded is 1.48 and half cents a gallon.

President Bush lit the Hanukkah Menorah at the White House. To night is fourth night at eight day festival of light, which comemerates the Jews triumph rebelion against religious repression under the Syrian-Greek empire in 165 B.C.

And that is a look at the "Reset" tonight.

Now for "Justice Serve." As conservative talk show host Rush Limbaugh tries in court to keep his medical records sealed, new allegations surface that he's the victim of blackmail.

CNN's national correspondent Susan Candiotti has more.

(BEGIN VIDEOTAPE)

RUSH LIMBAUGH, RADIO TALK SHOW HOST: This standard operating procedure to raise the threat level...

SUSAN CANDIOTTI, CNN CORRESPONDENT (voice-over): While Rush Limbaugh was talking terrorism on his radio show, in a Florida courtroom, Limbaugh's attorney claimed his client had been the victim of extortion. That a former housekeeper and her husband allegedly blackmailed Limbaugh to keep his now admitted drug addiction and other matters a secret.

UNIDENTIFIED MALE: They demanded $4 million in order to keep this quiet and not sell this to the "Enquirer."

CANDIOTTI: His lawyer says Limbaugh refused to pay and wanted to tell the FBI. When he sought advice from colleagues.

UNIDENTIFIED MALE: He was told that if he made a complaint to law enforcement that the people in power would ignore the crimes being perpetrated against him and instead they'd target him because of who he was. He was told that his enemies would use the fact of this addiction as a weapon to discredit him.

CANDIOTTI: Limbaugh says he did end up paying a substantial amount of money to the Klien's (ph), what he calls extortion. The Klien's Lawyer denies they blackmailed Limbaugh. And says their story, sold to the "National Enquirer" is true that Limbaugh paid them $100,000 for prescription painkillers.

(END VIDEOTAPE)

CANDIOTTI: And that wasn't even the reason for the hearing today. A judge heard arguments over whether prosecutors have the right to read Limbaugh's medical records that were seized through a search warrant earlier this month. Prosecutors say it's necessary and relevant to their ongoing criminal investigation over whether Limbaugh illegally purchased prescription painkillers through what's known as doctor shopping. The defense says that Limbaugh's right to privacy has been violated, that prosecutors should have used subpoenas to talk to his lawyers, to his doctors, rather, and not used a search warrant. Well, a judge said he's going to rule on all of this tomorrow and Limbaugh says, not surprisingly, that he'll have more to say about all of this during his radio show tomorrow as well. Back to you, Anderson.

COOPER: Susan Candiotti live in Florida. Thanks very much, Susan.

We are going to talk more about this with Court TV anchor Lisa Bloom.

Lisa, thanks for being with us. LISA BLOOM, COURT TV: Hi, Anderson.

COOPER: First of all, I guess they backed off this notion of a plea negotiation earlier in the day. We heard there were some discussions going on between defense attorneys and prosecutors. Now the spokesman, at least for Rush Limbaugh sort of back off that saying not quite a plea.

BLOOM: Apparently it's off the table for today. A plea could happen before charges are filed, which is where we are now. After charge, even after a conviction.

COOPER: He's already admitted to having a problem. What more does he need to address?

BLOOM: Being addicted to drugs is not necessarily admitting to a crime if he got all of those drugs legally. The question is, was he doctor shopping? That's the felony under Florida law. If four different doctors are giving him prescription for the same medication, that's illegal. That's a felony punishable by up to five years in prison by under Florida law.

COOPER: Right, but doctor shopping -- I mean, what people say is illegal about it is if you are then using that medication to then sell on the street. I don't think anyone is making that allegation.

BLOOM: No, I think, if you go out and you have multiple doctors give you the prescription for the same medication, that's the felony under Florida law. If you then go out and illegally sell it, that's an additional felony of selling. But doctor shopping, per se, is illegal under Florida law.

COOPER: So, it doesn't neccesarily matter what the end results of it, whether you were intending to sell them on the street or use them for yourself. In the eye's of the law it doesn't matter.

BLOOM: Well, clearly selling is a much more seriously felony under Florida law and under federal law and under the law of every state. Selling illegal drugs is a very serious felony. Basically tricking doctors into giving you prescription drugs that you are not entitled to, that alone is a felony.

COOPER: This certainly raises a lot questions though about privacy and what people can keep secret. I mean, should the government be able to get a look at your confidential -- supposedly confidential medical record.

BLOOM: There's no question our medical records are a lot less private than they used to be. Insurance companies are entitled to look at them and they do all the time.

COOPER: But don't you have to consent to that sort of thing.

BLOOM: Well, you have consent to it. But you'd be surprised all those documents you sign every time you go to the doctor, basically gives a blanket consent to insurance companies to take a look virtually all the time. Now under law the investigators got a look at these documents but prosecutors can't unless they prevail at this hearing today. That decision we'll find out tomorrow.

COOPER: All right. Lisa Bloom, thanks very much.

BLOOM: Thank you.

COOPER: Well, of course we want to hear from you on this question. Today's "buzz" question is this, is Rush Limbaugh being unfairly targeted?

He calls it a fishing exhibition. Vote now, cnn.com/360. We'll have results at the end of the program.

Want to return to our top story, the deadly Californian earthquake.

CNN's frank Buckley is live from the town of Paso Robles, where emergency crews are beginning to tear down the building that collapsed earlier today.

Frank, what's the latest?

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Well, Anderson, let's just recap. There were two people killed here. There is still one person missing. No major injuries beyond that reported. But you can just look back here into the main street area of this community, and you can see right now the effort that's under way here. This was the most significant damage in this area, a primarily brick structure, brick and wood frame. You can see that it simply came tumbling down. And right now what's happening is an effort to make sure that this material comes all the way down so that it doesn't continue to pose a threat to rescue workers in this area and to other people in this community. So you can see they are sending in this machinery to take down what's left of the building.

As we continue to watch that, I'm going to talk to a Katherine Cazes who is a business owner, just a couple of businesses away from here. It's very loud as we see the building coming down.

Katherine, tell me, you were not here at the time of this, but you were at your home, is that right?

KATHERINE CAZES, STORE OWNER: Right.

BUCKLEY: Tell me what it felt like in this area.

CAZES: It was pretty strong. 6.5, that's pretty strong. Everything shakes, everything fell. You hit the ground, and you know, just lay down and wait until it's finished.

BUCKLEY: And to see what's happening here to your business district, can you tell me, first of all, you must know the people who work here and have businesses here.

CAZES: Mostly the House of Bread. I was there two days ago. BUCKLEY: It must be difficult for you to see this.

CAZES: It is because your business is your life. You know, you put so much effort into it and my building is, you know, majorly cracked as well and -- but I'm praying for the family and praise god we not -- we are alive.

BUCKLEY: All right, Katherine ,thank you very much for speaking with us. As we continue to look at what's happening here, Anderson, the work will continue here for quite some time. As we said, there is still one person unaccounted for and rescue workers will continue that search here -- Anderson.

COOPER: All right. Frank Buckley, thanks very much for that. Our thoughts are with them.

We are used to seeing sexy scenes and steamy competition on broadcast TV, reality shows. It's become par for the course. But now critic are saying some satellite and pay per view channels are crossing the line into what they call actual pornography. Julie Cevine has the details.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Welcome, everyone. It is time for our sex challenge.

JULIE CEVINE, CNN CORRESPONDENT (voice-over): Don't let the tiki torches fool you. This is not "Survivor."

UNIDENTIFIED FEMALE: Do you want to hit?

CEVINE: These women are competing for $100,000 and a one-year contract with an adult film distributor. They want to prove they can be porn stars and are doing it on reality TV.

UNIDENTIFIED FEMALE: So far it's been really good. The girls have been really nice. And There's only four of us. So, that kind of makes it easier because you don't have like a whole bunch girls like you would have on another reality show.

CEVINE: Viewers willing to pay $9.95 will get to watch 20-year- old Brie Anders (ph) and the other contestants perform sex scenes and take part in risque competitions. Producers say pushing the limits evolved naturally from network shows like "Temptation Island" and "Paradise Hotel."

UNIDENTIFIED MALE: The basic intrigue. We're only delivering what the consumer demands.

CEVENE: Producers of "Can You Be a Porn Star?" spent close to $3 million. They say the idea is to appear mainstream. Journalism professor Joe Saltzman has studied TV trends for 15 years. He isn't surprised by the reality TV and adult entertainment mix but says it does have its limits. JOE SALTZMAN, ASSOCIATE DEAN, USC ANNENBERG: I think that there will always be discretion when it comes to commercial television and that line is about as close as we're going to be.

CEVENE: The reality TV mix is the latest peg in the multi- billion-dollar porn industry. The Playboy Channel offers four reality-based programs, another show featuring vivid entertainment's female film stars is also in the works. Pay-per-view and premium channels are counting on the blend to equal big business.

UNIDENTIFIED MALE: Sex is never going to go away.

CEVENE: Julie Cevene, CNN, Los Angeles.

(END VIDEOTAPE)

COOPER: All right.

Well, with only two shopping days until Christmas, is it OK to give someone a gift that someone else gave you? It's the classics on (UNINTELLIGIBLE) dilemma.

Also tonight, what did Paris Hilton just learn about Al Sharpton? You're not going to believe it. Debutantes and the Democratic process in tonight's "Current," coming up in a moment.

(COMMERCIAL BREAK)

COOPER: All right. That's our e-mail address, CNN.com/360.

It's that familiar holiday dilemma. What do you do with that present you really don't want and there's no handy little gift receipt enclosed. Is it okay to regift or pass it along to someone else?

Professional ethicist Bruce Weinstein is the author of "What Should I Do? Four Simple Steps to Making Better Decisions in Everyday Life." He just gave me the book right here. I've got it right here.

Weinstein is the president of Ethics At Work, Incorporated. He's better known as the ethics guy. Good to finally meet you in person. We talked before. All right, we went out on the street and we asked people a lot of their holiday dilemmas because there are a lot of sort of special ethical dilemmas that arise around this time of the year. Let's play the first one and see if you can answer it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Every once in a while I get a gift that just doesn't suit my personality or that I don't really like very well. Is it OK for me to give that gift to somebody else without saying, hey, somebody gave this to me and I really didn't like it so I'm going to give it to you?

(END VIDEO CLIP)

COOPER: Regifting, is it OK? BRUCE WEINSTEIN, AUTHOR: It's absolutely ethical as long as we don't let the person who gave us the gift know about it because that could hurt their feelings.

COOPER: So you want to lie to the person?

WEINSTEIN: Well, we don't want to lie but we don't want to go out of our way to tell them the truth unless they ask for it. But, you know, the main thing is people give you a gift because they want to help you, they want to benefit you, they want to give you some sort of pleasure or something good in your life so the gift should be about the recipient, not the giver.

So if I give you a sweater that's red and orange and has black splotches all over it and I think you'd like it and you're horrified by it, you ought to give it away. In fact, you ought to give it to a shelter or a charitable organization or a homeless person who would enjoy it and who could benefit from it. There's no reason to keep something you don't like or don't need.

COOPER: All right. Let's look at the next person on the street.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Do you think it's wrong to return a present that somebody put a lot of thought into, but you didn't really like?

(END VIDEO CLIP)

COOPER: She's talking about returning to a store.

WEINSTEIN: There's nothing wrong with that either. Again, the purpose of the gift is to give pleasure to the recipient. So the gift should really symbolize what the relationship is about and although we don't want to hurt someone's feelings, who gave us the gift, we don't have to rub it in their face, "I gave the gift back or I returned it."

Let's say, the other day, I got two copies of the Casablanca DVD. Wonderful. But I don't need two copies. So I gave the second one to a friend but I said, "you know what, don't feel obligated to give me a gift in return because this is something that I have an extra one."

COOPER: What about tipping? I mean, around this time, suddenly, everyone seems to need a tip. I got a thing from the guys who deliver my newspapers about tipping. How do you decide what to do?

WEINSTEIN: Tipping is not an option. It is an obligation. It is an ethical obligation. Not a legal obligation, but an ethical obligation. We ought to tip 15 percent to 20 percent in restaurants and during the holiday season, we ought to tip anyone who has provided a valuable service to us over the course of the year.

COOPER: All right. Sounds like good advice. Bruce Weinstein, I appreciate you joining us. Thank you.

All right. Time to check on tonight's pop news current. Let's take a look at what's going on in the world of the ridiculous.

"New York Post" reports that Paris Hilton had no idea who the Reverend Al Sharpton was before she appeared on the "Saturday Night Live" episode he was guest hosting. Before she went on, she was briefed that Sharpton is running for president of the U.S. No word on whether anyone told her whether the president is a very powerful man and that the U.S. is the country where she lives.

The producers of "The Bachelor" are suing Bachelor Bob for promoting his new music CD without their permission. The suit is a rare case of reality show producers suing their own star. It's also believed to be the only suit sparked by Bob's CD that wasn't filed by someone who heard it.

FOX has green lit a new sitcom starring Redman and Method Man al though, reportedly, both Redman and Method Man had already gotten pretty green lit all by themselves.

And "Lord of the Rings: Return of the King" has made a whopping $125 million since its debut last week. $10 of those were mine. The box office receipts from the trilogy's climax confirm the nerds have completed their victory. We now rule the world and, yes, even high school quarterbacks think that we are cool. Good to know.

So have you noticed how many magazine are obsessed with making lists these days? Well, we have and we've made a list of the best of them. Stick around, that's in "Fresh Print."

Also, tonight, are you ready for 2004? Are you already sick of those calendars that are now just about everywhere? Jeanie Most has the scoop on next year's calendars. Stay with us.

(COMMERCIAL BREAK)

COOPER: Welcome back. For this -- I'm just responding to some e-mails. For this week's edition of "Fresh Print," we didn't want to limit ourselves to person of the year. I mean, why should "Time" magazine have all the fun. After all, a lot of magazines put out a lot of lists, naming the top somethings of the year or the year's best, who's, what's.

So tonight we proudly present some of AC360's magazine lists of the year.

(BEGIN VIDEOTAPE)

COOPER (voice-over): "Time" magazine named the American soldier person of the year. This is the third time in the last six years the magazine decided not to choose a single person. Last year, it was whistle-blowers. By the way, if the American soldier sounds familiar, back in 1950 "Time's" person of the year was the American fighting man.

"Sports Illustrated" also didn't pick just one person this year. They tapped two guys you probably should have heard of, Tim Duncan and David Robinson, sportsmen of the year. Some magazines, like "Gotham," don't like to rank their lists, leaving us to guess whether David Letterman or Rudolph Giuliani is a hotter get for your party.

"People" magazine, on the other hand, not so wishy-washy. Craziest love, Affleck and Lopez. That seems appropriate. Worst reality romance, "Joe Millionaire's" Mario (ph) and what's her name. "EW" picked, of course, entertainer of the year, "The Lord of the Rings" fellowship. "The Source" tapped the record label Interscope to top its power 30 of the year, though it's not quite clear what's being measured here.

"Wine Spectator" named Paloma's 2001 merlot wine of the year. Better luck next year, chateau (UNINTELLIGIBLE).

Finally, "Blender" and "Rolling Stone" list the 50 best albums of the year. "Spin" could only muster 40. "Rolling Stone" doesn't choose a number one, but "Spin" and "Blender" battle it out over whether it's "Elephant" by the White Stripes or the White Stripes' "Elephant." Maybe they should have taken a page from "Time" and just said 'musicians.'

(END VIDEOTAPE)

COOPER: All right. Well, if you think you are shopping for someone who has everything, think again. Jeanne Moos discovered there's a calendar for every taste or lack thereof.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Your old calendar's days are numbered, so what will it be for 2004? Lawn and garden mowers, Hawaiian shirts, spam?

UNIDENTIFIED MALE: Who would have thunk it?

MOOS: A calendar featuring recipes for spam burgers and spam kabobs.

UNIDENTIFIED MALE: For every noun, there's a calendar.

MOOS: Take the noun outhouses.

UNIDENTIFIED MALE: Now, look at them.

MOOS: From triangular to hubcap-adorned. Some 900 calendar club stores open up for a few weeks to catch the end of the year rush. And every year, there are new stars.

UNIDENTIFIED MALE: You know, nuns having fun. We just can't get enough of this calendar.

MOOS: Having fun playing hoolahoop, shooting, bowling. Oh Lord, spare me. Spare us of Silicon Valley calendar of surgically enhanced bosoms. Then there are page-a-day calendars, such as 365 tiny paper airplanes. Each page has directions for folding. Flying is your problem.

There are over 150 dog breed calendars. (on camera): So you are just coming in to buy the calendar because this is one of the dogs that...

UNIDENTIFIED FEMALE: Actually, my dog.

MOOS (voice-over): She's a breeder. Customers still manage to come up with nouns that don't have a calendar.

(on camera): She's looking for a submarine.

UNIDENTIFIED FEMALE: Only submarines.

MOOS (voice-over): No subs, but there are rats, pigs, even jackasses.

If you pick up after your dog, you might want to pick up the monthly dos calendar, featuring what dogs do, found or placed in scenes reflecting the seasons.

UNIDENTIFIED MALE: It was a huge seller the first year. And so this year we had, what, 10 times as many.

MOOS: For something that's meant to go on the wall, they sure seem to be getting more off the wall.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

COOPER: Not sure I'd want a doggy doo calendar.

All right. Do you have plans for New Year's? I hope you're going to spend it with me. I'm going to be live in Times Square, from 11:00 p.m. to 12:30 on the big night, covering all the craziness. And if you are going to have a big party, we want to be invited. So we're having a contest to pick the ultimate 360 New Year's Eve party. Not sure really what that entails, but if think you are going to have the ultimate party, let us know. Check out details at cnn.com/360. If we pick your party, we'll feature it live on the air on New Year's Eve. Should be quite some fun.

So, have you heard the story about Saddam's capture? Well, you probably heard a story about Saddam's capture. Which one is true? We'll take the fog of war to "The Nth Degree."

Plus, tomorrow, it would be cool to revisit all the great scandals of 2003, and we wouldn't want to do it without you. Join us tomorrow as we revisit the year's halls of shame.

But first, today's buzz -- is Rush Limbaugh being unfairly targeted? Rush Limbaugh being unfairly targeted? What do you think? Vote now, at cnn.com/360. Results when we come back.

(COMMERCIAL BREAK)

COOPER: Time now for "The Buzz." A lot of you have been e- mailing in. We asked you, is Rush Limbaugh being unfairly targeted? We're getting a lot of e-mails on this, as I said -- 22 percent yes, 78 percent of you said no. It's not a scientific poll, just your buzz. We appreciate it.

Tonight, the fog of truth to "The Nth Degree." The truth about Saddam Hussein's capture seems to get murkier by the day. Some news outlets, citing unnamed sources, say Saddam may have spat on a U.S. soldier who promptly replied with either a fist or a rifle butt. Now, that's different from the initial version, in which Saddam gave up saying, "I'm willing to negotiate," to which a U.S. soldier replied, "President Bush sends his regards."

Now there's even another report in some papers overseas that says Saddam had already been captured by Kurds and was really only handed over to the U.S.

So why the lack of clarity? Well, this certainly is not the first time. Remember Jessica Lynch? Early reports made her out to be a mini-Rambo, shooting Iraqis left and right. But you could argue those reports came out of the fog of war.

But according to President Bush, major combat operations have ended. So isn't it about time somebody flipped on the de-fogger of truth for the windshield of war? We don't need cute stories and made- up made for TV heroes. Reality will do just fine, thanks. Fog of war? How about a low-pressure system of truth, rolling in just about now. At least then you wouldn't need a weatherman to know which way the wind blows.

That wraps up the show tonight. Thanks for watching. "PAULA ZAHN NOW" is next.

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





Raised to Orange>


Aired December 22, 2003 - 19:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: Live from the CNN Broadcast Center in New York, this is ANDERSON COOPER 360.
COOPER: Good evening. Welcome to 360. We are following a number of developing stories right now.

A deadly earthquake in California.

Plus, Rush Limbaugh, new claims of blackmail as he fights to keep his medical records secret. We'll have the latest from the courthouse on that.

But first, our top story. We take you to central California, jolted by a magnitude 6.5 earthquake. There are at least two deaths right now. One person unaccounted for.

The town of Paso Robles has some severe property damage, as you can see there. The quake hit at 11:16 a.m. Pacific time, with the epicenter near the coast, about 185 miles south of San Francisco and about the same distance north of Los Angeles.

The shock was felt in both big cities. CNN's Charles Feldman has details.

(BEGIN VIDEOTAPE)

CHARLES FELDMAN, CNN NATIONAL CORRESPONDENT (voice-over): In L.A., it made some people dizzy. In San Francisco, people could feel the unmistakable rolling sensation caused by an earthquake.

UNIDENTIFIED MALE: And everything just started swaying and rocking. A lot of people took off running.

FELDMAN: But in central California, there was no doubt this was a significant geological event.

ROSS STEIN, USGS SPOKESMAN: This is a magnitude 6.5 earthquake. It's a moderate size earthquake that caused modest damage in the local area. It's on a fault system we don't know as well as we would like, and this earthquake will help us to get to know it better.

FELDMAN: The quake and its many aftershocks caused some small buildings to collapse, including a building in Paso Robles that housed a historic clock tower. Many cars that were apparently unoccupied were smashed. Some 40,000 customers of Pacific Gas & Electric were without power after power lines went down near San Luis Obispo. The main earthquake was felt in the control room of the Diablo Canyon Nuclear Plant some 100 miles from the quake's epicenter. But officials there say the plant continued to operate.

In San Simeon, the famed Hearst Castle was evacuated. The historic site was once the home to newspaper mogul William Randolph Hearst. The earthquake was shallow, striking about five miles beneath the Earth's surface.

(END VIDEOTAPE)

FELDMAN: Now, shallow earthquakes tend to cause the most amount of damage. Fortunately, though, this earthquake occurred in a relatively sparsely populated part of California, and that should cut down on any injuries and certainly on fatalities -- Anderson.

COOPER: Thanks very much, Charles, live from Los Angeles.

Officer Scott Lee with the California Highway Patrol is joining us on the telephone from Paso Robles.

Thanks very much for being with us, Officer Lee. What can you tell about the damage in Paso Robles?

SCOTT LEE, CALIFORNIA HIGHWAY PATROL: Well, fortunately, our damage was pretty localized. We have a relatively small downtown area, about four square blocks. And we suffered some pretty extensive damage in that downtown area.

We are still trying to assess any collateral damage outside the area. But most of the damage was localized in the downtown area. And that's where the two fatalities occurred.

COOPER: And those two fatalities, was that -- I understand there was sort of an historic building in the town which had a clock tower. All of that collapsed. Is that how the two fatalities occurred?

LEE: Right. That's correct. The Clock Tower Building houses three retail businesses, and then one bakery. And, you know, as you can imagine, 11:30 on a morning that here in town, there were quite a bit of people downtown. And when the earthquake started, people tried to get out into the street, and these two people were struck by falling rubble.

COOPER: So there were a number of people in the building at the time. Any other injuries?

LEE: At this time, reports of injuries are still coming in. I talked to an individual at a local hospital who told me that they had about 25 people come in with minor to moderate-type injuries. Nothing serious at this point. So from a standpoint of injuries, at least at this point we've been fairly fortunate.

COOPER: And Officer Lee, we are looking at an aerial of the building. I'm seeing people it looks like literally digging out by hand in some cases. Is that correct?

LEE: That is correct. The city of Paso Robles put out a request for mutual aid. And as a result of that request, we had officers from local police jurisdictions, county sheriff's department, California Highway Patrol. And the California Conservation Corps has dispatched a crew that's out there now doing all the handiwork that you see being done, trying to make sure that we can access the building and just confirm that there is nobody else injured or killed inside.

COOPER: And at this point of the day, several hours since this thing happened, can you confirm there's no one else inside?

LEE: We have no information that would lead us to believe there is anybody else inside, but certainly we want to be sure. And we will make sure we do a complete search of the building.

COOPER: Well, I know it's been a busy day for you. Officer Scott Lee, we're going to let you go. Thanks very much for the update. Appreciate it.

LEE: You bet.

COOPER: All right. Officer Scott Lee with the California Highway Patrol.

One local resident of Paso Robles was out for a walk with his wife when the quake hit. Hear from him what happened next.

(BEGIN VIDEO CLIP)

BRIAN ESKANDANIAN, PASO ROBLES RESIDENT: ... area where the center of town is. A large -- well, I shouldn't say large. A two- story building collapsed completely. And during -- in that area where the damage occurred, all the bricks that collapsed crushed about, I don't know, eight or nine cars.

Beyond that, you really can't get anywhere. The power is out. So everything is kind of like a bottleneck. Just getting out of that area is probably a good idea.

UNIDENTIFIED MALE: We were just getting information about the clock tower. Is that the same building that you saw?

ESKANDANIAN: Yes, it was the clock tower. Underneath it was a jewelry store, and just below it to the right is a bakery. And from what we saw, it looked like the whole side of the building just -- the top of the building just slid off on to the street.

UNIDENTIFIED MALE: Was there any indication that you could see that there might have been people trapped inside this building, or were you able to even concentrate on your surroundings as you tried to get to safety?

ESKANDANIAN: No, I couldn't tell. And to be honest with you, the fire department was there. They had pretty good control over what was going on. But due to the amount of damage, I imagine it will be a while before they find out whether or not anyone was in that building.

UNIDENTIFIED FEMALE: Now, Bijan, can you describe what you felt and the kind of motion that you felt when it struck?

ESKANDANIAN: Yes, we were -- my wife and I were taking our morning walk down Spring Street, which is the main thoroughfare in town. And it hit like a shockwave from a bomb blast. Almost knocked us off our feet.

And you could hear the sound. It was just a loud -- almost like an explosion. And as soon as we turned around, we could see people running out of the buildings on to the street.

(END VIDEO CLIP)

COOPER: That's from a local TV broadcast as the event was happening earlier today. We're going to continue to monitor it all throughout this hour and bring you some updates in about 20 minutes or so.

Now, of course California is no stranger to devastating earthquakes. I want to flash back for a moment. In 1994, the most recent deadly quake, Northridge, 57 people dead, $40 billion in damage.

And remember 1989, a 6.9 quake hit San Francisco and it hit hard. Sixty-three people killed there. Property damage estimated to be almost $6 billion.

Moving on tonight, if you wondered today how seriously authorities are taking the increased national threat level, well, we got one indication today. They are readying to deploy surface-to-air missiles mounted on vehicles around Washington and possibly New York. The threat this time, it seems, is not just idle chatter.

Homeland security correspondent Jeanne Meserve has the latest.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice over): Heightened security around national monuments, at airports, on the streets. We've seen it before, but many officials say we have never seen it like this. They are taking new additional steps, they say, because this alert is more intense. Security concerns are more serious than during any of the four previous periods at orange.

TOM RIDGE, HOMELAND SECURITY SECRETARY: The strategic indicators suggest that it is the most significant threat reporting since 9/11.

MESERVE: Not only has the volume of threat intelligence increased. According to a homeland security official, new specific and credible threat information has been uncovered. Some of it relating to the use of aircraft originating outside the U.S. as weapons for suicide attacks. The U.S. is asking airlines and foreign governments to bolster security, but experts say there is vulnerability. UNIDENTIFIED MALE: International (UNINTELLIGIBLE) standards are still voluntary. And we know that many countries around the world do not exercise those standards.

MESERVE: The intelligence mentions Washington, New York, Los Angeles, and as many as 10 other metropolitan areas, according to government sources. And intelligence about possible critical infrastructure targets like chemical and nuclear plants has been melded with risk and vulnerability assessments to provide governors with specific information about where to deploy resources.

GOV. GEORGE PATAKI (R), NEW YORK: Working with the MTA and the port authority to make sure that everything from airports to bridges, tunnels, and other mass transit facilities have had heightened security.

(END VIDEOTAPE)

MESERVE: Threat level orange will stretch past the holiday season. And some homeland officials predict it could last into February at a cost, experts say, of about $1 billion each week -- Anderson.

COOPER: Very expensive, indeed, Jeanne. Am I correct in understanding that this is not just a question of increased chatter, that phrase we've all heard so much about in the last couple of months, but these are -- this intelligence comes from sources who have been credible in the past.

MESERVE: It is coming, obviously, from some credible sources, some of it at least. But they say there are a range of different means they've used here. Some of it is human intelligence, some of it is intercepts of communications. Some of it is monitoring of Web sites and so forth.

So a number of different things compiled here to bring them to this conclusion that it should go up. Obviously the specific concern about airliners is said to be credible and specific.

COOPER: All right. Jeanne Meserve in Washington tonight. Thanks very much, Jeanne.

Terror of a different sort now, the latest on the Lee Boyd Malvo case. The same jurors who last week convicted him of murder, terrorism and weapons charges in connection with the D.C. sniper attacks, well they spent today facing the question of whether the teen should live or die.

Elaine Quijano has the latest now from Chesapeake, Virginia -- Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Hello to you, Anderson. They deliberated for several hours today, but the jury of four men and eight women will have to come back tomorrow. They are set to resume their work in the morning. They must decide whether Lee Malvo should die for his crimes or be sentenced to life in prison without parole. Now, the day began with testimony from three defense witnesses, including Lee Malvo's father, Leslie Malvo, who shielded his face from the cameras as he entered the courthouse. On the stand, he described his son in his early childhood as an affectionate boy. Part of the defense's argument that Malvo deserves mercy. That he was a respectful, obedient child who changed only after meeting John Muhammad.

But prosecutor Robert Horan said the crimes and evidence show Malvo's vileness to property (ph) of mind and future dangerousness. Horan also showed photographs of sniper victims before and after they were killed, and at one point referred to John Muhammad and Malvo both, saying, "They were an unholy team. A team that was as vicious, as brutal, as uncaring as you could find."

"Talk about John Muhammad all you want. Maybe it was his plan. Maybe it was his idea. But the evidence stamps this defendant as the shooter."

But defense attorney Craig Cooley appealed to the juror's sense of compassion. He brought with him with a fist-size stone, and he made reference to ancient times, when jurors would carry out executions by stoning the accused. As he held the stone, he told the jury, "You are not holding it, but you can feel the weight of the stone. The commonwealth urges you to vote to kill, to stain your stone with the blood of this child. Your humanity challenges you to let this stone lie."

Now, as I said, the jury is set to resume its deliberations tomorrow. They are scheduled to begin their work at 9:00 a.m. Eastern.

Anderson, back to you.

COOPER: All right. Elaine Quijano, live in Virginia. Thanks very much, Elaine.

We are following a number of other stories right now "Cross Country." Let's take a look.

Washington, D.C.: Put away that syringe. A federal judge tells the Pentagon it cannot force soldiers or civilian employees to get anthrax vaccines. And the judge adds, even the FDA hasn't approved the vaccine for mass inoculations.

Also in Washington: rebirth. The D.C. Post Office, closed after anthrax-laced letters killed two of its workers, reopened. The Brentwood facility has been renamed to honor Joseph Curseen Jr. and Thomas Morris Jr. They both died after contracting anthrax two years ago.

Portsmouth, New Hampshire: to VP or not to VP. Democratic presidential frontrunner Howard Dean says he never offered retired General Wesley Clark a spot as his VP, should he get the nomination. Clark insists he did. Dean dangled the offer, Clark says, in a private meeting. San Francisco: flip the switch. After much of their weekend was spent in the dark, electricity has been fully restored to about 120,000 PG&E customers. The blackout was caused by fires at a power substation Saturday night. Despite the outage, Mayor Willie Brown said everyone behaved.

And that's a look at stories "Cross Country" tonight.

Martha Stewart in her own words. An exclusive interview. Hear what she says about her upcoming trial. That's just ahead.

Plus, Rush Limbaugh fights to keep his medical records sealed and claims he was blackmailed. We'll go live to the courthouse for that.

And a story that has shocked a country. A man on trial for eating and killing what he says was a willing victim. We'll talk with the lawyer for a man who has acted out his darkest desire.

But first, let's take a look "Inside the Box" at the top stories on tonight's network newscasts.

(COMMERCIAL BREAK)

COOPER: A lot of people gathering out in New York in the holidays.

In some respects, Martha Stewart made her millions during this holiday season, teaching the rest of us to bake the perfect pie or decorate the perfect tree. But this holiday isn't turning out to be the greatest of times for the queen of domestic engineering. She, of course, is about to go on trial for securities fraud.

In an exclusive interview with Larry King that airs later tonight, she says she is shocked at the whole affair.

(BEGIN VIDEO CLIP)

LARRY KING, "LARRY KING LIVE": Is all of this very shocking to you?

MARTHA STEWART, MARTHA STEWART LIVING OMNIMEDIA: No one is ever prepared for such a thing.

KING: I wouldn't imagine.

STEWART: No one. And no one is ever strong enough for such a thing. No one is -- you know, you have no idea how much worry and sadness and grief it causes.

KING: I would imagine, especially if someone thinks, I didn't do anything wrong.

STEWART: Exactly.

KING: So that's got to drive you berserk.

STEWART: Well, but that -- having done nothing wrong, allows you to sleep, allows you to...

KING: It does?

STEWART: ... allows you to continue your work, gives you -- gives you the opportunity to think about other things. But there's always the worry. I mean, a trial is coming up.

(END VIDEO CLIP)

COOPER: Well, the full interview with Martha Stewart is tonight on "LARRY KING LIVE" at 9:00 p.m. Eastern Time.

The governor of Illinois is eying Canada's drugs, just like Massachusetts and New Hampshire. Illinois officials believe their citizens can save millions of dollars by buying cheaper prescription drugs from up north, and they are asking the federal government for permission.

CNN's Chicago bureau chief, Jeff Flock, has details.

(BEGIN VIDEOTAPE)

JEFF FLOCK, CNN CHICAGO BUREAU CHIEF (voice-over): In one of those bottles is the synthetic hormone synthroid (ph). Carol Glover (ph), who works in the Illinois General Counsel's Office, takes it every day for her thyroid condition. One hundred tablets cost $71 at a U.S. pharmacy. In Canada, the same drug is $26.92.

UNIDENTIFIED FEMALE: I'm ready to jump in. I think it would be a great idea.

FLOCK: So does Illinois Governor Rod Blagojevich.

GOV. ROD BLAGOJEVICH (D), ILLINOIS: We are not asking for federal funding.

FLOCK: What he is asking in this letter to HHS Secretary Tommy Thompson is federal permission for a pilot program to buy Canadian drugs for Glover (ph) and 230,000 other Illinois state employees.

(on camera): Bottom line, what would this save you in your budget?

BLAGOJEVICH: Ninety-one million dollars it would save the state of Illinois.

FLOCK: First year?

BLAGOJEVICH: In the first year.

PETER PITTS, FDA: We feel that the plan is not well thought out. It's very risky, and it provides for illegal unsafe foreign drugs coming into this country.

FLOCK (voice-over): In a statement, the pharmaceutical industry agreed. The plan compromises patient safety. But Congressman Rahm Emmanuel says it's not about safety but loss profits for the drug companies.

REP. RAHM EMMANUEL (D), ILLINOIS: When somebody tells you it's ain't about money, it's about money.

FLOCK: Blagojevich just made "Money" Magazine's "People to Watch" list for his prescription drug ideas, and is trying a personal approach with Secretary Thompson, remembering that Thompson got 75 federal waivers to reform the state welfare system when he was governor of Wisconsin. Reform that became a national motto.

BLAGOJEVICH: All we're asking for is an opportunity to try something new.

(END VIDEOTAPE)

FLOCK: Illinois could decide to do what New Hampshire and the cities of Boston and Springfield, Massachusetts, have done, which is to set up their own program to buy drugs in Canada in violation of federal law. The folks in Springfield tell us they've already saved $1 million with theirs.

COOPER: All right. Jeff Flock, live in Chicago. Thanks, Jeff.

We're going to take a look now at some of the main international stories we're following. Let's check the "UpLink."

Jerusalem: shocking attack at a holy Muslim site. You see it there. Members of a small extremist Islamic group attacked Egypt's foreign minister, throwing shoes -- that's an insult there -- and shouting abuse at him as he tried to pray at the Al Aqsa Mosque. The foreign minister was rescued by bodyguards, and Israeli police treated briefly at a hospital and then headed back home to Egypt.

The Philippines: grieving for the dead. At least 127 people have died in devastating mudslides. You see them there. Rescuers say they found the bodies of entire families buried alive in their homes. Authorities blame the illegal logging for the landslides, which were triggered by a week of rain.

In Colombia: sweet freedom at last. After 101 days in captivity, rebels from the National Liberation Army released four Israelis and a Britain to a humanitarian commission. As you can see here, the hostages look tired and dirty, but they were all smiles and a lot of tears.

Bahrain: a special thanks. That's actor Ben Affleck visiting American troops stationed overseas. He spoke to troops from the aircraft carrier USS Enterprise, thanking them for their dedication and service.

That's a look at tonight's "UpLink."

The most bizarre crime of the year. This guy killed and ate a man, but his lawyer says he's not a murderer or a monster. I'll talk with the lawyer coming up. Also tonight, reality TV undressed. Has television -- have television executives finally crossed the line, gone too far? We'll take a closer look.

And a little later, talk of blackmail, as Rush Limbaugh fights to keep his medical records private. We'll go live to the courthouse to find out what's going on behind the scenes.

And that leads us to tonight's "Buzz." Is Rush Limbaugh being unfairly targeted? He said prosecutors are going on a fishing expedition. What do you think? Vote now, cnn.com/360. Results at the end of the show.

(COMMERCIAL BREAK)

COOPER: Welcome back. Before we begin our next story, we should alert you that some of what you are about to hear in the next two minutes may be disturbing. It's about a trial in Germany that has repulsed and captivated the country.

The legal charge is murder for sexual satisfaction. The defendant is a self-confessed cannibal. Two potential victims testified today at his trial. One witness, who says he was likely passed over because he was too fat. We should point out, one man, however, was killed and eaten by the defendant.

Stephanie Halasz is covering the trial.

(BEGIN VIDEOTAPE)

STEPHANIE HALASZ, CNN CORRESPONDENT (voice-over): Helping to carry files, Armin Meiwes once again looked relaxed as he entered his fifth day in court, standing trial on a charge for murder for sexual satisfaction. But there's much more to the story.

In March 2001, this man, Bernd Juergen Brandes, answered Meiwes' ad on the Internet, looking for a volunteer who could be slaughtered and eaten. Brandes did volunteer. Together, they cut off his genitals and together they ate them.

Three witnesses, all men who had answered similar ads from the accused, testified Monday. Meiwes also described how he had initially wanted to behead one of them, but upon meeting him in person found him not slim enough, not attractive enough.

An additional witness described he had sexual relations with the defendant since age 16 and have never noticed anything odd about Meiwes. He described Meiwes as very nice and cheerful.

Meiwes' lawyer wants him convicted for the lesser charge of killing on demand, which carries a maximum sentence in Germany of five years in prison. But psychologists have said even if he were to receive something less than a life sentence, he would still likely spend the rest of his life in a psychiatric institution.

Stephanie Halasz, CNN, Berlin. (END VIDEOTAPE)

COOPER: Well, earlier I spoke with Meiwes' defense attorney, Harald Ermel, about this disturbing case. I asked him the question I think a lot of people want to know: why did his client kill and partially eat his victim?

(BEGIN VIDEOTAPE)

HARALD ERMEL, ATTORNEY FOR ARMIN MEIWES (through translator): My client had the desire to eat a person and he wanted to keep it in his memory. And he was of the opinion that the only way of achieving this was eating him and making him part of himself.

COOPER: Prosecutors are alleging that this was a crime for sexual satisfaction, which carries a stiffer penalty than just a killing on demand. You say it was not for sexual satisfaction. How so?

ERMEL: This is a situation that sexual satisfaction is only the case when, at the time of the murder, sexual satisfaction was achieved at the time of the murder.

COOPER: Well, couldn't it still hold some sort of sexual allure, even if there was not sexual satisfaction at the moment of the killing? Some have testified he seemed very excited during the killing. He videotaped it, I imagine, to watch it later. And who knows what he planned to do while watching it later.

ERMEL: From the videotape, it is not obvious that he was sexually aroused, but only a general excitement is visible from them.

COOPER: But when you were interacting with him, when you are sitting, when you were talking with him, what is he like? Would you have any idea that he has these thoughts in his head?

ERMEL: No, absolutely not. This is not obvious. I've known him for many years, and I have represented him several times in various matters. And it was not obvious that he has this kind of manner and he was having these kinds of thoughts.

COOPER: So you were his lawyer before you even knew he was a cannibal or wanted to be a cannibal or dreamed about being a cannibal. When you found out, when he told you this, were you surprised?

ERMEL: Yes, I was very surprised when he opened himself to me and came to me and told me that he had killed a person, slaughtered a person, and partially eaten one. I never suspected this. It was not obvious in his behavior.

COOPER: If he's convicted of this charge, as you would like him, this killing on demand, and he serves six years, he gets out and he is walking the street six years from now, is that justice?

ERMEL: You're basing your statement on wrong claims. My client is not a monster. COOPER: If he's not a monster, what is he?

ERMEL: My client has dignity. My client has a personality. But he definitely has a defect. He doesn't have the possibility or hasn't had the possibility so far to behave in an area of his fetish the way he wanted to have, and his fetish is eating human flesh. And in the future, he will not do this anymore.

COOPER: All right. Mr. Ermel, I appreciate you joining us today. Thank you.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

COOPER (voice-over): The state wants to see Rush Limbaugh's confidential medical records. Is this really a fishing expedition?

The new reality of porn. Has sex on TV finally gone too far?

And 'tis better to give than to receive. But what about re- gifting?

We'll be right back.

(COMMERCIAL BREAK)

COOPER: Let's catch you up on some of tonight's top stories across the country. Cities, airports, transit systems, utilities and other possible target are ratcheting up security in response to the heightened terrorism threat level. The Department of Homeland Security raised the level to code orange, the second highest, due to reports of "imminent threats against the homeland."

Paso Robles, California, a strong quake shook south central California today killing at least two people in the colapse of an historic building. The 6.5 magnitude quake was felt as far away as Los Angeles to the south and San Francisco in the north more than 200 miles from the epicenter.

In a few minutes we'll take you live to the scene in Paso Robles, right there.

Gasoline prices are at a record high for a Christmas holiday week. The government says it's because demand at the pump is high and inventory is low. The national average price for regular unleaded is 1.48 and half cents a gallon.

President Bush lit the Hanukkah Menorah at the White House. To night is fourth night at eight day festival of light, which comemerates the Jews triumph rebelion against religious repression under the Syrian-Greek empire in 165 B.C.

And that is a look at the "Reset" tonight.

Now for "Justice Serve." As conservative talk show host Rush Limbaugh tries in court to keep his medical records sealed, new allegations surface that he's the victim of blackmail.

CNN's national correspondent Susan Candiotti has more.

(BEGIN VIDEOTAPE)

RUSH LIMBAUGH, RADIO TALK SHOW HOST: This standard operating procedure to raise the threat level...

SUSAN CANDIOTTI, CNN CORRESPONDENT (voice-over): While Rush Limbaugh was talking terrorism on his radio show, in a Florida courtroom, Limbaugh's attorney claimed his client had been the victim of extortion. That a former housekeeper and her husband allegedly blackmailed Limbaugh to keep his now admitted drug addiction and other matters a secret.

UNIDENTIFIED MALE: They demanded $4 million in order to keep this quiet and not sell this to the "Enquirer."

CANDIOTTI: His lawyer says Limbaugh refused to pay and wanted to tell the FBI. When he sought advice from colleagues.

UNIDENTIFIED MALE: He was told that if he made a complaint to law enforcement that the people in power would ignore the crimes being perpetrated against him and instead they'd target him because of who he was. He was told that his enemies would use the fact of this addiction as a weapon to discredit him.

CANDIOTTI: Limbaugh says he did end up paying a substantial amount of money to the Klien's (ph), what he calls extortion. The Klien's Lawyer denies they blackmailed Limbaugh. And says their story, sold to the "National Enquirer" is true that Limbaugh paid them $100,000 for prescription painkillers.

(END VIDEOTAPE)

CANDIOTTI: And that wasn't even the reason for the hearing today. A judge heard arguments over whether prosecutors have the right to read Limbaugh's medical records that were seized through a search warrant earlier this month. Prosecutors say it's necessary and relevant to their ongoing criminal investigation over whether Limbaugh illegally purchased prescription painkillers through what's known as doctor shopping. The defense says that Limbaugh's right to privacy has been violated, that prosecutors should have used subpoenas to talk to his lawyers, to his doctors, rather, and not used a search warrant. Well, a judge said he's going to rule on all of this tomorrow and Limbaugh says, not surprisingly, that he'll have more to say about all of this during his radio show tomorrow as well. Back to you, Anderson.

COOPER: Susan Candiotti live in Florida. Thanks very much, Susan.

We are going to talk more about this with Court TV anchor Lisa Bloom.

Lisa, thanks for being with us. LISA BLOOM, COURT TV: Hi, Anderson.

COOPER: First of all, I guess they backed off this notion of a plea negotiation earlier in the day. We heard there were some discussions going on between defense attorneys and prosecutors. Now the spokesman, at least for Rush Limbaugh sort of back off that saying not quite a plea.

BLOOM: Apparently it's off the table for today. A plea could happen before charges are filed, which is where we are now. After charge, even after a conviction.

COOPER: He's already admitted to having a problem. What more does he need to address?

BLOOM: Being addicted to drugs is not necessarily admitting to a crime if he got all of those drugs legally. The question is, was he doctor shopping? That's the felony under Florida law. If four different doctors are giving him prescription for the same medication, that's illegal. That's a felony punishable by up to five years in prison by under Florida law.

COOPER: Right, but doctor shopping -- I mean, what people say is illegal about it is if you are then using that medication to then sell on the street. I don't think anyone is making that allegation.

BLOOM: No, I think, if you go out and you have multiple doctors give you the prescription for the same medication, that's the felony under Florida law. If you then go out and illegally sell it, that's an additional felony of selling. But doctor shopping, per se, is illegal under Florida law.

COOPER: So, it doesn't neccesarily matter what the end results of it, whether you were intending to sell them on the street or use them for yourself. In the eye's of the law it doesn't matter.

BLOOM: Well, clearly selling is a much more seriously felony under Florida law and under federal law and under the law of every state. Selling illegal drugs is a very serious felony. Basically tricking doctors into giving you prescription drugs that you are not entitled to, that alone is a felony.

COOPER: This certainly raises a lot questions though about privacy and what people can keep secret. I mean, should the government be able to get a look at your confidential -- supposedly confidential medical record.

BLOOM: There's no question our medical records are a lot less private than they used to be. Insurance companies are entitled to look at them and they do all the time.

COOPER: But don't you have to consent to that sort of thing.

BLOOM: Well, you have consent to it. But you'd be surprised all those documents you sign every time you go to the doctor, basically gives a blanket consent to insurance companies to take a look virtually all the time. Now under law the investigators got a look at these documents but prosecutors can't unless they prevail at this hearing today. That decision we'll find out tomorrow.

COOPER: All right. Lisa Bloom, thanks very much.

BLOOM: Thank you.

COOPER: Well, of course we want to hear from you on this question. Today's "buzz" question is this, is Rush Limbaugh being unfairly targeted?

He calls it a fishing exhibition. Vote now, cnn.com/360. We'll have results at the end of the program.

Want to return to our top story, the deadly Californian earthquake.

CNN's frank Buckley is live from the town of Paso Robles, where emergency crews are beginning to tear down the building that collapsed earlier today.

Frank, what's the latest?

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Well, Anderson, let's just recap. There were two people killed here. There is still one person missing. No major injuries beyond that reported. But you can just look back here into the main street area of this community, and you can see right now the effort that's under way here. This was the most significant damage in this area, a primarily brick structure, brick and wood frame. You can see that it simply came tumbling down. And right now what's happening is an effort to make sure that this material comes all the way down so that it doesn't continue to pose a threat to rescue workers in this area and to other people in this community. So you can see they are sending in this machinery to take down what's left of the building.

As we continue to watch that, I'm going to talk to a Katherine Cazes who is a business owner, just a couple of businesses away from here. It's very loud as we see the building coming down.

Katherine, tell me, you were not here at the time of this, but you were at your home, is that right?

KATHERINE CAZES, STORE OWNER: Right.

BUCKLEY: Tell me what it felt like in this area.

CAZES: It was pretty strong. 6.5, that's pretty strong. Everything shakes, everything fell. You hit the ground, and you know, just lay down and wait until it's finished.

BUCKLEY: And to see what's happening here to your business district, can you tell me, first of all, you must know the people who work here and have businesses here.

CAZES: Mostly the House of Bread. I was there two days ago. BUCKLEY: It must be difficult for you to see this.

CAZES: It is because your business is your life. You know, you put so much effort into it and my building is, you know, majorly cracked as well and -- but I'm praying for the family and praise god we not -- we are alive.

BUCKLEY: All right, Katherine ,thank you very much for speaking with us. As we continue to look at what's happening here, Anderson, the work will continue here for quite some time. As we said, there is still one person unaccounted for and rescue workers will continue that search here -- Anderson.

COOPER: All right. Frank Buckley, thanks very much for that. Our thoughts are with them.

We are used to seeing sexy scenes and steamy competition on broadcast TV, reality shows. It's become par for the course. But now critic are saying some satellite and pay per view channels are crossing the line into what they call actual pornography. Julie Cevine has the details.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Welcome, everyone. It is time for our sex challenge.

JULIE CEVINE, CNN CORRESPONDENT (voice-over): Don't let the tiki torches fool you. This is not "Survivor."

UNIDENTIFIED FEMALE: Do you want to hit?

CEVINE: These women are competing for $100,000 and a one-year contract with an adult film distributor. They want to prove they can be porn stars and are doing it on reality TV.

UNIDENTIFIED FEMALE: So far it's been really good. The girls have been really nice. And There's only four of us. So, that kind of makes it easier because you don't have like a whole bunch girls like you would have on another reality show.

CEVINE: Viewers willing to pay $9.95 will get to watch 20-year- old Brie Anders (ph) and the other contestants perform sex scenes and take part in risque competitions. Producers say pushing the limits evolved naturally from network shows like "Temptation Island" and "Paradise Hotel."

UNIDENTIFIED MALE: The basic intrigue. We're only delivering what the consumer demands.

CEVENE: Producers of "Can You Be a Porn Star?" spent close to $3 million. They say the idea is to appear mainstream. Journalism professor Joe Saltzman has studied TV trends for 15 years. He isn't surprised by the reality TV and adult entertainment mix but says it does have its limits. JOE SALTZMAN, ASSOCIATE DEAN, USC ANNENBERG: I think that there will always be discretion when it comes to commercial television and that line is about as close as we're going to be.

CEVENE: The reality TV mix is the latest peg in the multi- billion-dollar porn industry. The Playboy Channel offers four reality-based programs, another show featuring vivid entertainment's female film stars is also in the works. Pay-per-view and premium channels are counting on the blend to equal big business.

UNIDENTIFIED MALE: Sex is never going to go away.

CEVENE: Julie Cevene, CNN, Los Angeles.

(END VIDEOTAPE)

COOPER: All right.

Well, with only two shopping days until Christmas, is it OK to give someone a gift that someone else gave you? It's the classics on (UNINTELLIGIBLE) dilemma.

Also tonight, what did Paris Hilton just learn about Al Sharpton? You're not going to believe it. Debutantes and the Democratic process in tonight's "Current," coming up in a moment.

(COMMERCIAL BREAK)

COOPER: All right. That's our e-mail address, CNN.com/360.

It's that familiar holiday dilemma. What do you do with that present you really don't want and there's no handy little gift receipt enclosed. Is it okay to regift or pass it along to someone else?

Professional ethicist Bruce Weinstein is the author of "What Should I Do? Four Simple Steps to Making Better Decisions in Everyday Life." He just gave me the book right here. I've got it right here.

Weinstein is the president of Ethics At Work, Incorporated. He's better known as the ethics guy. Good to finally meet you in person. We talked before. All right, we went out on the street and we asked people a lot of their holiday dilemmas because there are a lot of sort of special ethical dilemmas that arise around this time of the year. Let's play the first one and see if you can answer it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Every once in a while I get a gift that just doesn't suit my personality or that I don't really like very well. Is it OK for me to give that gift to somebody else without saying, hey, somebody gave this to me and I really didn't like it so I'm going to give it to you?

(END VIDEO CLIP)

COOPER: Regifting, is it OK? BRUCE WEINSTEIN, AUTHOR: It's absolutely ethical as long as we don't let the person who gave us the gift know about it because that could hurt their feelings.

COOPER: So you want to lie to the person?

WEINSTEIN: Well, we don't want to lie but we don't want to go out of our way to tell them the truth unless they ask for it. But, you know, the main thing is people give you a gift because they want to help you, they want to benefit you, they want to give you some sort of pleasure or something good in your life so the gift should be about the recipient, not the giver.

So if I give you a sweater that's red and orange and has black splotches all over it and I think you'd like it and you're horrified by it, you ought to give it away. In fact, you ought to give it to a shelter or a charitable organization or a homeless person who would enjoy it and who could benefit from it. There's no reason to keep something you don't like or don't need.

COOPER: All right. Let's look at the next person on the street.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Do you think it's wrong to return a present that somebody put a lot of thought into, but you didn't really like?

(END VIDEO CLIP)

COOPER: She's talking about returning to a store.

WEINSTEIN: There's nothing wrong with that either. Again, the purpose of the gift is to give pleasure to the recipient. So the gift should really symbolize what the relationship is about and although we don't want to hurt someone's feelings, who gave us the gift, we don't have to rub it in their face, "I gave the gift back or I returned it."

Let's say, the other day, I got two copies of the Casablanca DVD. Wonderful. But I don't need two copies. So I gave the second one to a friend but I said, "you know what, don't feel obligated to give me a gift in return because this is something that I have an extra one."

COOPER: What about tipping? I mean, around this time, suddenly, everyone seems to need a tip. I got a thing from the guys who deliver my newspapers about tipping. How do you decide what to do?

WEINSTEIN: Tipping is not an option. It is an obligation. It is an ethical obligation. Not a legal obligation, but an ethical obligation. We ought to tip 15 percent to 20 percent in restaurants and during the holiday season, we ought to tip anyone who has provided a valuable service to us over the course of the year.

COOPER: All right. Sounds like good advice. Bruce Weinstein, I appreciate you joining us. Thank you.

All right. Time to check on tonight's pop news current. Let's take a look at what's going on in the world of the ridiculous.

"New York Post" reports that Paris Hilton had no idea who the Reverend Al Sharpton was before she appeared on the "Saturday Night Live" episode he was guest hosting. Before she went on, she was briefed that Sharpton is running for president of the U.S. No word on whether anyone told her whether the president is a very powerful man and that the U.S. is the country where she lives.

The producers of "The Bachelor" are suing Bachelor Bob for promoting his new music CD without their permission. The suit is a rare case of reality show producers suing their own star. It's also believed to be the only suit sparked by Bob's CD that wasn't filed by someone who heard it.

FOX has green lit a new sitcom starring Redman and Method Man al though, reportedly, both Redman and Method Man had already gotten pretty green lit all by themselves.

And "Lord of the Rings: Return of the King" has made a whopping $125 million since its debut last week. $10 of those were mine. The box office receipts from the trilogy's climax confirm the nerds have completed their victory. We now rule the world and, yes, even high school quarterbacks think that we are cool. Good to know.

So have you noticed how many magazine are obsessed with making lists these days? Well, we have and we've made a list of the best of them. Stick around, that's in "Fresh Print."

Also, tonight, are you ready for 2004? Are you already sick of those calendars that are now just about everywhere? Jeanie Most has the scoop on next year's calendars. Stay with us.

(COMMERCIAL BREAK)

COOPER: Welcome back. For this -- I'm just responding to some e-mails. For this week's edition of "Fresh Print," we didn't want to limit ourselves to person of the year. I mean, why should "Time" magazine have all the fun. After all, a lot of magazines put out a lot of lists, naming the top somethings of the year or the year's best, who's, what's.

So tonight we proudly present some of AC360's magazine lists of the year.

(BEGIN VIDEOTAPE)

COOPER (voice-over): "Time" magazine named the American soldier person of the year. This is the third time in the last six years the magazine decided not to choose a single person. Last year, it was whistle-blowers. By the way, if the American soldier sounds familiar, back in 1950 "Time's" person of the year was the American fighting man.

"Sports Illustrated" also didn't pick just one person this year. They tapped two guys you probably should have heard of, Tim Duncan and David Robinson, sportsmen of the year. Some magazines, like "Gotham," don't like to rank their lists, leaving us to guess whether David Letterman or Rudolph Giuliani is a hotter get for your party.

"People" magazine, on the other hand, not so wishy-washy. Craziest love, Affleck and Lopez. That seems appropriate. Worst reality romance, "Joe Millionaire's" Mario (ph) and what's her name. "EW" picked, of course, entertainer of the year, "The Lord of the Rings" fellowship. "The Source" tapped the record label Interscope to top its power 30 of the year, though it's not quite clear what's being measured here.

"Wine Spectator" named Paloma's 2001 merlot wine of the year. Better luck next year, chateau (UNINTELLIGIBLE).

Finally, "Blender" and "Rolling Stone" list the 50 best albums of the year. "Spin" could only muster 40. "Rolling Stone" doesn't choose a number one, but "Spin" and "Blender" battle it out over whether it's "Elephant" by the White Stripes or the White Stripes' "Elephant." Maybe they should have taken a page from "Time" and just said 'musicians.'

(END VIDEOTAPE)

COOPER: All right. Well, if you think you are shopping for someone who has everything, think again. Jeanne Moos discovered there's a calendar for every taste or lack thereof.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Your old calendar's days are numbered, so what will it be for 2004? Lawn and garden mowers, Hawaiian shirts, spam?

UNIDENTIFIED MALE: Who would have thunk it?

MOOS: A calendar featuring recipes for spam burgers and spam kabobs.

UNIDENTIFIED MALE: For every noun, there's a calendar.

MOOS: Take the noun outhouses.

UNIDENTIFIED MALE: Now, look at them.

MOOS: From triangular to hubcap-adorned. Some 900 calendar club stores open up for a few weeks to catch the end of the year rush. And every year, there are new stars.

UNIDENTIFIED MALE: You know, nuns having fun. We just can't get enough of this calendar.

MOOS: Having fun playing hoolahoop, shooting, bowling. Oh Lord, spare me. Spare us of Silicon Valley calendar of surgically enhanced bosoms. Then there are page-a-day calendars, such as 365 tiny paper airplanes. Each page has directions for folding. Flying is your problem.

There are over 150 dog breed calendars. (on camera): So you are just coming in to buy the calendar because this is one of the dogs that...

UNIDENTIFIED FEMALE: Actually, my dog.

MOOS (voice-over): She's a breeder. Customers still manage to come up with nouns that don't have a calendar.

(on camera): She's looking for a submarine.

UNIDENTIFIED FEMALE: Only submarines.

MOOS (voice-over): No subs, but there are rats, pigs, even jackasses.

If you pick up after your dog, you might want to pick up the monthly dos calendar, featuring what dogs do, found or placed in scenes reflecting the seasons.

UNIDENTIFIED MALE: It was a huge seller the first year. And so this year we had, what, 10 times as many.

MOOS: For something that's meant to go on the wall, they sure seem to be getting more off the wall.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

COOPER: Not sure I'd want a doggy doo calendar.

All right. Do you have plans for New Year's? I hope you're going to spend it with me. I'm going to be live in Times Square, from 11:00 p.m. to 12:30 on the big night, covering all the craziness. And if you are going to have a big party, we want to be invited. So we're having a contest to pick the ultimate 360 New Year's Eve party. Not sure really what that entails, but if think you are going to have the ultimate party, let us know. Check out details at cnn.com/360. If we pick your party, we'll feature it live on the air on New Year's Eve. Should be quite some fun.

So, have you heard the story about Saddam's capture? Well, you probably heard a story about Saddam's capture. Which one is true? We'll take the fog of war to "The Nth Degree."

Plus, tomorrow, it would be cool to revisit all the great scandals of 2003, and we wouldn't want to do it without you. Join us tomorrow as we revisit the year's halls of shame.

But first, today's buzz -- is Rush Limbaugh being unfairly targeted? Rush Limbaugh being unfairly targeted? What do you think? Vote now, at cnn.com/360. Results when we come back.

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COOPER: Time now for "The Buzz." A lot of you have been e- mailing in. We asked you, is Rush Limbaugh being unfairly targeted? We're getting a lot of e-mails on this, as I said -- 22 percent yes, 78 percent of you said no. It's not a scientific poll, just your buzz. We appreciate it.

Tonight, the fog of truth to "The Nth Degree." The truth about Saddam Hussein's capture seems to get murkier by the day. Some news outlets, citing unnamed sources, say Saddam may have spat on a U.S. soldier who promptly replied with either a fist or a rifle butt. Now, that's different from the initial version, in which Saddam gave up saying, "I'm willing to negotiate," to which a U.S. soldier replied, "President Bush sends his regards."

Now there's even another report in some papers overseas that says Saddam had already been captured by Kurds and was really only handed over to the U.S.

So why the lack of clarity? Well, this certainly is not the first time. Remember Jessica Lynch? Early reports made her out to be a mini-Rambo, shooting Iraqis left and right. But you could argue those reports came out of the fog of war.

But according to President Bush, major combat operations have ended. So isn't it about time somebody flipped on the de-fogger of truth for the windshield of war? We don't need cute stories and made- up made for TV heroes. Reality will do just fine, thanks. Fog of war? How about a low-pressure system of truth, rolling in just about now. At least then you wouldn't need a weatherman to know which way the wind blows.

That wraps up the show tonight. Thanks for watching. "PAULA ZAHN NOW" is next.

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