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Anderson Cooper 360 Degrees

Martha Stewart to Leave Board of Directors of Company She Founded; New Clues in Hunt for bin Laden; Race for President: Bush vs. Kerry

Aired March 08, 2004 - 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.


(BEGIN VIDEOTAPE)
ANDERSON COOPER, HOST (voice-over): Public enemy number one. Do reported sightings suggest we're closing in on Osama?

Martha Stewart living in a cell block, maybe. What fate awaits the lifestyle guru?

Invasion of the body snatchers? The UCLA cadaver chief caught in a grizzly trade.

Three girls swore this homeless man attacked them. Now, they are going to do time. We'll tell you why.

Murder after "Moonlet." A woman shoots her husband after watching daytime talk show tips.

And Gismo find a champion. Former Beirut hostage Terry Wait speaks out.

(END VIDEOTAPE)

ANNOUNCER: Live, from the CNN Broadcast Center in New York, this is ANDERSON COOPER 360.

COOPER: Good evening. Welcome to 360.

New information in the search for Osama bin Laden. Reports of series of safe houses along the Pakistan-Afghanistan border. Could it be the break U.S. forces are looking for? That in just a moment.

But first, our top story, breaking news in the saga of Martha Stewart. Just a short time ago, CNN has learned that Stewart will leave the board of directors of her company.

CNN's Jen Rogers is here with more -- Jen.

JEN ROGERS, CNN CORRESPONDENT: That's right, Anderson. CNN has learned from a source with knowledge of the board's activities that Martha Stewart will be leaving the board of directors of the company she founded, Martha Stewart Living Omnimedia. But it has yet to be determined whether she will resign her position or simply not run for re-election. Now, the company's board met today for several hours, but concluded its discussions without making any public statement. There may be an announcement later this week, according to our source.

Now, there are plenty of remaining questions for the board to address. Among them, taking the company private, which would mean less scrutiny from Wall Street, and a possible name change. Those are just some of the things that could be on the table -- Anderson.

COOPER: A name change would be quite major. All right. Jen Rogers, thanks for that.

Martha Stewart was in court again today, facing the possibility of years in prison. Here is CNN's Jason Carroll.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): Martha Stewart surely has had a number of tough meetings. Monday is no exception. She had to do what all convicted defendants do. For the first time, she met with her probation officer. She left without saying how it went, but briefly commented about her company.

The meeting took place on the 7th floor of the courthouse. It lasted about an hour. Legal experts talked about what typically happens.

UNIDENTIFIED MALE: They will do a preliminary interview. Then they'll set her up for a more expensive analysis, which will involve turning over tax returns, birth certificates, records of divorces, and a very, very detailed interview regarding her life.

CARROLL: It's spending part of life behind bars Stewart is trying to avoid. She will appeal her conviction. But most legal experts say winning an appeal isn't likely.

That leaves trying to spend the least amount of time in prison. A defendant can often get leniency if he or she accepts responsibility for their crime. Trial watchers say that may explain a change Stewart made on her Web site.

It initially read, "I am obviously distressed by the jury's verdict, but I continue to take comfort in knowing that I have done nothing wrong and that I have the enduring support of my family and friends." The New statement omits the phrase "I have done nothing wrong."

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: You can't accept responsibility if you're saying you did nothing wrong.

(END VIDEOTAPE)

CARROLL: Stewart and her stockbroker, Peter Bacanovic, are expected to be sentenced to 10 to 16 months in prison. Sentencing is scheduled for June 17 -- Anderson.

COOPER: All right. Jason, thanks very much.

Tonight, New clues in the search for Osama bin Laden. CNN has learned the mass murderer has established a network of safe houses along the Afghan-Pakistan border. It's information that may have major implications for hunting him down.

Let's get the latest from senior Pentagon correspondent Jamie McIntyre.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): The so-called spring offensive aimed at smoking Osama bin Laden is picking up steam along the border between Afghanistan and Pakistan. And there's some indication bin Laden may be feeling the heat.

Sources tell CNN that U.S. intelligence has found indications of a network of al Qaeda couriers and safe houses on the Afghanistan side of the border which could be a sign bin Laden may be planning to flee Pakistan, assuming that's where he is. Among the pressure points that could flesh bin Laden out of hiding, increased cooperation from Pakistani military forces and perhaps, more importantly, some of the tribes that rule the ungoverned border zone.

This video from the Arab network Al-Jazeera shows some 2,000 men from a tribe in the Wana region of western Pakistan along the Afghan border, who under pressure from the Pakistan government, are said to have joined the hunt for al Qaeda. This tribal leader says, "The Wana region is like a ship, and we're all on board."

Other pressure points include better technology, including 24/7 aerial surveillance from satellites, U-2 spy planes and predator drones, some armed with missiles, and better intelligence. U.S. troops and CIA operatives have forged closer ties with tribes in the border area where bin Laden is believed to be hiding. And that's providing more leads.

Still, U.S. commanders are trying to lower expectations.

GEN. JOHN ABIZAID, U.S. CENTRAL COMMANDER: Manhunts are not things that militaries do well. What we do well is put pressure on groups and organizations.

(END VIDEOTAPE)

MCINTYRE: Now, the Pentagon says it is not closing in on bin Laden. And officials here are dismissing some press reports suggesting that he's been sighted recently or that he eluded capture from Pakistani officials.

Nevertheless, there have been some tantalizing hints the U.S. may be getting some leads, including confirmation that a U.S. predator spy drone spotted a man believed to be bin Laden's number two, but they couldn't confirm his identity, nor could they take action quick enough -- Anderson.

COOPER: All right. Jamie McIntyre at the Pentagon.

Thanks, Jamie.

On the campaign trail today, Senator John Kerry surprised some observers by stating that a number of world leaders want to see him elected president. And you can bet the Bush campaign wasted no time in responding to that.

Senior political correspondent Candy Crowley is traveling with the Kerry campaign.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice-over): The president went to a rodeo in Texas Monday, which was enough for John Kerry to ride.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: And if the president of the United States can find the time to go to a rodeo, he can find the time to do more than one hour in front of a commission that is investigating what happened to America's intelligence and why we are not stronger today.

CROWLEY: Count on this to be the election year of the endless cycle, where no statement goes unanswered and no response goes unresponded to.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Two years after the attack on the World Trade Center, my opponent introduced a bill to cut the overall intelligence budget by $1.5 billion. His bill was so deeply irresponsible that he didn't have a single co-sponsor in the United States Senate.

CROWLEY: Anyone looking for a mild springtime on the campaign trail can look again. John Kerry told a group of donors that foreign leaders he met with told him they want Bush defeated. A Bush official called that remark outside the boundaries.

The story lines of the campaign are already set, and character development is the first chapter. The president thinks the senator is a waffling political opportunist with no core values.

BUSH: Senator Kerry voted for the Patriot Act, for NAFTA, for the No Child Left Behind Act, and for the use of force in Iraq. Now he opposes the Patriot Act, NAFTA, the No Child Left Behind Act, and the liberation of Iraq.

CROWLEY: The senator thinks the president is a radical ideologue who doesn't know what he's doing.

KERRY: He has run the most arrogant, inept, reckless, ideological foreign policy in the modern history of our country.

CROWLEY: Sometimes you wonder what they will be saying about each other by October.

Candy Crowley, CNN, West Palm Beach, Florida.

(END VIDEOTAPE)

COOPER: The race is certainly under way.

Well, tonight, a New CNN-USA Today-Gallup poll that has some good news for both candidates in it. The poll out today gives Kerry an eight-point lead over President Bush. The poll found that among likely voters, Kerry received 52 percent, compared to 44 percent for Mr. Bush. But at the same time, when asked, who do you think will win the White House, well, the majority think it's going to be Bush.

From the polls, we turn now to progress in Iraq. Remarkable progress when you think about it, really. Today, the Governing Council finally signed an interim constitution, hopefully paving the way for a free and democratic country.

Let's get more now from CNN Baghdad bureau chief Jane Arraf.

(BEGIN VIDEOTAPE)

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF (voice-over): Like proud parents, the U.S. administrator and British special representatives watched the ceremony unfold. First, the children, meant to grow up in democracy rather than dictatorship. U.S.-appointed Governing Council members, after delays, disagreements and false starts, bridged their differences.

With a special flourish, all signed their names and took their places in history. The signing took place against a backdrop of continuing attacks.

"Painful forces," the current head of the Governing Council said, "trying to stop Iraq's political process." "They forget that the will of the people is more powerful than their plans," he said.

The law entrenches a federal system, a demand by Iraqi Kurds who want to retain the power they have. "This is the first time we Kurds feel we are citizens equal to everybody," said Massud Barzani. He heads one of two Kurdish factions controlling northern Iraq.

(on camera): Signing the constitution is a major accomplishment. But it's perhaps a first step. Around this table at the Governing Council, there's a lot of hard work that will still have to be done.

(voice-over): Not everyone believes it can be done, creating a democratic Iraq. But for a country with a history written in blood, this document was an occasion to celebrate.

(END VIDEOTAPE)

COOPER: And Jane Arraf joins us now live from Baghdad.

Jane, you called it your piece a major accomplishment. Do you hear that from people on the streets? I mean, is there -- obviously, it's a big story there. But is there a huge level of excitement, at least in Baghdad?

ARRAF: It is really hard, Anderson, to get that out there amid the noise of the explosions that are still going on. Just before they signed this, for instance, there was a rocket attack in central Baghdad.

And when we go out in the streets and say to people, "So what do you think of this constitution?" They say, "We want security. Give us security first and then we'll be excited about a constitution."

They really are focusing right now on more simple, basic things. But the Governing Council members say they are going to go out there, explain to people why this is important, and hopefully get them on board -- Anderson.

COOPER: All right. Jane Arraf, live in Baghdad.

Thanks, Jane.

Right now, we're following a number of developing stories "Cross Country." Let's take a quick look.

In Washington: possible surgery for Ashcroft. A source says Attorney General John Ashcroft could have surgery tomorrow. He's in George Washington University Hospital being treated for his gallstone pancreatitis. Ashcroft went into the hospital last week after suffering stomach pain.

Boston: alcohol emergency. A new study -- just remarkable -- shows emergency room cases with their roots in alcohol abuse are three times higher than doctors thought they were. The research out today shows an annual average of 7.6 million ER visits for illness and injuries caused by alcohol abuse.

Moving on now to Baltimore Harbor, the search continues. Recovery teams spent another day in the frigid water searching for three people lost after a weekend water taxi accident. One person is known dead after the boat capsized on Saturday during a storm. Twenty-two other people were rescued.

In northern Ohio: nuclear plant reopening. It is possible the Davis Besse Nuclear Power Plant could reopen in about two weeks. The plant has been shut down for two years because of safety issues. The Nuclear Regulatory Commission says the plant can operate safely following repairs and management changes.

And Washington: gas attack. We're talking about gas prices. If you think gas prices have never been this high, well, you are almost right.

The government says the average price of self-serve regular has jumped to the third highest price on record, up 2.1 cents, to nearly $1.74 a gallon. Prices in some places are much higher.

That's a look at stories "Cross Country" for you tonight. What is going on at UCLA? A criminal scandal involving body parts and cadavers? Find out why two men have been arrested so far. It could be more.

Plus, an answer in the mystery surrounding Spalding Gray. Police find the missing actor's body. We'll talk about that ahead.

And a TV shooting. Why did one woman kill her husband in this home after watching "Montel Williams?" They were also smoking weed. Who knows what was involved.

It is a strange story. We'll have details coming up.

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

(COMMERCIAL BREAK)

COOPER: A rainy night here in New York.

A gruesome story continues to unfold in Los Angeles following charges that body parts donated for medical research were illegally sold for profit. The director of UCLA's Willed Body Program has been arrested. And today, the relatives of body donors filed suit against the university.

It all sounds like something out of a bad horror flick. National correspondent Frank Buckley has the latest.

(BEGIN VIDEOTAPE)

COOPER: The alleged sales of body parts were from cadavers donated to UCLA's Willed Body Program for medical education and research. Officials now believe some body parts were illegally sold for profit.

UNIDENTIFIED MALE: These alleged crimes violate the trust of the donors, their families, and UCLA. We are deeply sorry.

BUCKLEY: Arrested in the case, Henry Reid, UCLA's Willed Body Program director, and Earnest Nelson, an alleged middleman, who according to UCLA officials, sold the parts to research firms. Both men allegedly profited from the scheme.

UNIDENTIFIED MALE: We have no indication that the anatomical specimens involved in this case were used for anything other than medical research.

BUCKLEY: Nelson told the Los Angeles Times that he removed parts from approximately 800 cadavers over a six-year period, following a protocol provided by Reid. "I'd follow that protocol and they would charge me with receiving stolen body parts," he said.

Human tissue was used in everything from surgical products to medical instrument training. Institutions like UCLA can reallocate body parts to research firms for nominal fees, but profiting is prohibited.

PROF. MICHAEL SHAPIRO, UNIVERSITY OF SOUTHERN CALIFORNIA: We don't want to reduce persons and the representatives of persons, their body parts, to mere commodities.

(END VIDEOTAPE)

BUCKLEY: Now, we were not able to reach Reid for comment. But as to Nelson's allegations to the Los Angeles Times that 800 cadavers were involved here, UCLA officials believe that number is exaggerated. But they also concede that they don't know for sure, because they say that documents about their program are now in the hands of investigators.

And Anderson, you mentioned that the class action lawsuit was filed today on behalf of the family members whose loved ones donated their bodies. They say they are devastated about this news, that possibly those bodies may have been sold for profit -- Anderson.

COOPER: Unbelievable. All right. Frank Buckley, thanks from LA.

Mystery solved, at least somewhat here in New York. Two months after actor Spalding Gray vanished without a trace, authorities confirmed the worst. Gray's body was found yesterday and identified just this afternoon.

CNN's Maria Hinojosa has details.

(BEGIN VIDEOTAPE)

MARIA HINOJOSA, CNN URBAN AFFAIRS CORRESPONDENT (voice-over): Police pulled a body from Manhattan's East River Sunday. Missing almost two months, the decomposed body still had on the black corduroy pants Spalding Gray was wearing when last seen riding the Staten Island Ferry January 10.

Sixty-two-year-old Spading Gray, a performance artist, comic, writer, and actor, had been battling depression. He suffered a head injury in a car accident in Ireland in 2001, and, friends say, had attempted suicide several times since then.

UNIDENTIFIED FEMALE: After the car accident, you know, it really took its toll on him. And it took a long time for him physically to get back. And he still wasn't there completely. And mentally, it was a really long haul.

HINOJOSA: Police said the cause of death was still under investigation, and offered no details of why the body would end up miles from the ferry where he was last seen. Spalding Gray had the pose and the eyes of a thinker. His work was cerebral. Probably most famous for his autobiographical movie "Swimming to Cambodia."

UNIDENTIFIED FEMALE: He can see the smallest little detail and make a story out of that.

HINOJOSA: An acute awareness of life that perhaps made it unbearable for the man who made so many of us laugh.

Maria Hinojosa, CNN, New York.

(END VIDEOTAPE)

COOPER: It is very sad, indeed.

We're tracking a number of developing stories around the globe right now. Let's check tonight's "UpLink."

Port-au-Prince, Haiti: interim inauguration. Boniface Alexandre took the oath as interim president Monday, while thousands of demonstrators called for the return of ousted president, Jean-Bertrand Aristide. Six people died in weekend demonstrations. One gunmen was killed by U.S. Marines who were in the country, of course, trying to help keep the peace.

And in Africa, former President Aristide repeated his claim he was forced to leave Haiti.

Harare, Zimbabwe: suspected mercenaries in custody. On this plane, a U.S.-registered jet, 64 people have been seized by the government in Zimbabwe. Now, authorities there say military hardware was on the plane, and that the owners weren't telling the truth about who and what was on board. Strange story. We'll keep following it.

Caracas, Venezuela now: 100-year warning. Venezuela's president -- right there -- says he'd cut off oil exports to the U.S. and fight a 100-year war if Washington tried to invade the country. Hugo Chavez blames the U.S. for a failed coup and a current recall effort.

This weekend in Caracas, we should point out, at least, a half- million people marched to protest a ruling that there weren't enough signatures on petitions calling for the recall.

In London now: bark beagle, bark. Where are you? Scientists say the space probe that was lost as it was heading to Mars may have been headed. Nothing has been heard from the Beagle II since it was due to land on Christmas day. The four bright spots near the planned landing sight have been seen in new photographic images.

And that's a look at tonight's "UpLink."

He spent almost five years in captivity. Now, former Beirut hostage Terry Waite is demanding more rights for Gitmo detainees. He's going to join us to explain why.

Also tonight, inside prison walls. A look at where Martha Stewart may be doing some serious time.

And a little bit later on, talk show shooting. What drove a woman in this home to kill her husband after smoking pot and watching "Montel Williams?"

That ahead. We'll be right back.

(COMMERCIAL BREAK)

COOPER: So one-time hostage accuses the U.S. now of using terrorist tactics -- his words -- in the way it treats detainees at the U.S. Naval Base at Guantanamo Bay, Cuba. Terry Waite, you may remember was held for nearly five nears in Lebanon, was part of a group that marched to the White House today, calling for better treatment of the detainees.

More than 600 of them are being held at Gitmo. Suspects, of course, on the war on terror. Most are yet to be charged. Five British captives are set to be released.

Waite says the U.S. can't defeat terrorism by adopting their methods. What exactly does that mean? I asked him.

(BEGIN VIDEOTAPE)

TERRY WAITE, HELD HOSTAGE IN LEBANON: Well, what I mean by that is this, that in the days when I was captured, I was suspected by my captors of being an agent of government. I wasn't. I was a humanitarian negotiator.

And so they took me, they blindfolded me, and shackled me, and kept me in detention. Whilst in detention, I was, of course, denied all human rights. I had no access to the outside world, no access to any legal representation whatsoever. I was merely held on suspicion.

In the case of those who have been detained in Guantanamo Bay, they have been detained on suspicion. They have been put into the camps, they have been denied legal representation, they have been deliberately put outside the jurisdiction of the American courts.

They have not been allowed any contact with their families, apart from minimal contact, and it's only the Red Cross. So they've been given limited access to them.

COOPER: But I should point out, sir, that they do have three meals a day. The U.S. government also says they have adequate clothing, shelter. They have reading materials, and they have the means to send and receive mail, albeit perhaps not as frequent as they would like. The conditions they are being kept in are far different than the conditions you were being kept in.

WAITE: I'm not speaking about conditions. My conditions were harsh, and I've not made a comparison between conditions. I'm talking about due process of law.

Now, I can well understand, and I have great sympathy with the fact that people are afraid of terrorism. However, you don't defeat terrorism by this particular means. You don't make a unilateral decision to make what is nothing more than a large interrogation camp outside the jurisdiction of the courts.

COOPER: But these people were combatants in a war. I mean, they were picked up for the most part on the battlefields of Afghanistan, a few places elsewhere. I'm not quite sure -- I mean, some 10,000 people were rounded up. Ultimately, only some 650, I think, are still being kept at Guantanamo Bay. I'm not sure what status you think they should be held under.

WAITE: I mean, you raise a very interesting question of, on the so-called war on terrorism, where is the battlefield? Now, I agree, you see. It does present us with new challenges.

But if we want -- if we find that the existing laws are inadequate for this new situation, then there are means whereby we can get together collectively as a group of nations and draft appropriate legislation to deal with this type problem. Not by taking this unilateral action.

Unfortunately, the rule of law and international human rights conventions have been broken. And they're there for the protection of us all, and for all our freedoms. And you undermine them, you undermine all our freedoms.

COOPER: Terry Waite, we appreciate you joining us. Interesting discussion. Thank you.

WAITE: Thank you very much.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

COOPER (voice-over): What might prison hold for Martha Stewart?

And risk and reward: Mel Gibson's hefty take from "The Passion's" profits.

360 continues.

(COMMERCIAL BREAK)

COOPER: Time for "The Reset," tonight's top stories.

Prince in New jersey. Presidential poll. The latest CNN/"USA Today"/Gallup Poll suggests we'll see a very tight race. The poll gives Democrat John Kerry a 52 to 44 percent lead over President Bush among likely voters. Because of the margin of error, that's a dead heat.

Washington, D.C. soldiers and substances. A health survey warns that cigarette smoking and heavy drinking are on the rise, especially among younger troops. It says, illegal drug use remains far below civilian levels.

Seattle, Washington. The mayor says the city will recognize the marriages of gay municipal employees who tie the knot in places where same-sex unions have been legalized. While gay marriage remains illegal in the state of Washington, six gay couples filed suit saying Washington's law against same-sex marriage violates the state constitution. In New York, body recovered. The body of actor Spalding Gray was recovered from New York's East River. No finding on the cause of his death, but when Gray disappeared two months ago suicide was suspected. I'll have more on his death later on tonight.

Washington, D.C., a bigger bank. The Federal Reserve has approved Bank of America's acquisition of Fleet Boston Financial Corp. It was the last major regulatory barrier against the merger valued at nearly 1 trillion dollars.

Miami Florida, indirect TV. Simpson by may going back to court. Direct TV has filed a $22,000 lawsuit against the former football star, accusing him of pirating its television satellite signals. Simpson's lawyers denies the charge. 20,000, that's a lot of TV.

That's a look at your "Reset" tonight.

We learn just a short time ago that Martha Stewart is leaving the board of her company and she may be saying good-bye to freedom, heading to prison perhaps in Connecticut, not far from home now.

What could jail be like for the domestic diva?

CNN's Dan Lothian takes a look.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN CORRESPONDENT (voice-over): What could be the next address for the domestic diva Martha Stewart may be this federal facility in Danbury, just 20 miles north of her Connecticut home. But legal experts say a world away from her posh life style.

PAUL CALLAN, FMR,. FEDERAL PROSECUTOR: There's VIP section. You have a number. You are an inmate.

LOTHIAN: Sharing a large room like this one, with 80 other women, sleeping on bunks in small cubicles, doing manual labor. It is also where other high profile white collar inmates have surrendered their privacy, control and freedom as well. Like Leona Hensley convicted of mail fraud and tax evasion in the early '90s.

(on camera): But former inmates say, the average person confined at Danbury, is not a big name and not someone you want to mingle with at a cocktail party. Who are they?

CALLAN: Drug dealers or the girlfriend's of drug dealers who wound up involved in drug dealing or in bank robberies and that sort of thing.

LOTHIAN (voice-over): What's believed to be the other option for Stewart is another minimum security facility in West Virginia where some big names also spent time. From Jazz Singer Billie Holiday to the women who tried to assassinate President Ford, Sarah J. Moore and "Squeaky" Fromme.

From Wall Street to Main Street, Martha Stewart came to symbolize success. Her supporters believe she was unfairly targeted, on a fan Web site, prison is not where Martha Stewart belongs. But little will silence the voice of a unanimous jury.

Dan Lothian, CNN, Boston.

(END VIDEOTAPE)

COOPER: Our next guest knows about life as a federal inmate. David Novak spent a year in prison for mail fraud, he staged a phoney accident for insurance. Now, he counsels others how to survive prison. He even wrote a book about it, called "Downtime: A Guide to Federal Incarceration. I asked him how a person can prepare for life behind bars.

(BEGIN VIDEOTAPE)

DAVID NOVAK, AUTHOR, "DOWNTIME": Well, the unfortunate thing is no matter how much you've read or studied, there's really nothing that can substitute or prepare you for the visceral onslaught of emotion that your going to experience that first day.

COOPER: You served 11 months, I think at least almost 11 months at a federal prison camp in Florida for mail fraud.

What was it like for you?

I mean, your life was turned upside down.

NOVAK: Well, your life is turned you side down. You go from a life of -- I certainly had a comfortable life prior to going to prison. You know, Miss Stewart has an extremely comfortable life. Everything is turned upside down. In fact, you, basically, become one of the masses pretty quickly.

COOPER: Let's talk about what determines where you get sent. What determines where you get sent, what factors?

NOVAK: The Bureau of Prisons looks at a number of variables when determining what custody classification level an inmate will enjoy. Length of sentence, the type of offense, whether there is a history of violence and how they performed on bond.

COOPER: What advice do you have?

Is there a way to prepare for that emotional shock?

NOVAK: I think it's important that when your day comes, you're able to look in the mirror and accept the fact that you and you alone are responsible for puts yourself in that position. Second thing that's incredibly important is a white collar offender, especially a privileged one going into prison is recognizing that you are no better and no worse than anybody else in that facility.

COOPER: Anyway Martha Stewart can still remain involved in her company on a day to day hourly bases? NOVAK: No. As a matter of fact, federal inmates are specifically forbidden to participate in any way, shape, or form in the conduct of business. Miss Stewart will be allowed 300 minutes of phone time per month. All of the phone calls will be recorded as with any federal inmate. And a large number of them will also be monitored.

COOPER: How do you deal with the fear, I mean, as a prisoner?.

NOVAK: Well, you know, that's a real tough one to deal with. Regardless of how well prepared you are, you're going to go into prison looking like Bambi caught in headlights. One of the things that I found surprising was generally the kindness of other inmates. Within three or four days of getting to a minimum security facility, most people recognize, wow, my hierarchy has been addressed. My safety is OK. I've got shelter. I'll eat. Now I just have to hunker down and survive this.

COOPER: David Novak, thanks very much.

NOVAK: My pleasure, Anderson. Thank you.

(END VIDEOTAPE)

COOPER: It is unclear how well or even if Martha Stewart's company will bounce back. But stories like this don't always have a gloomy ending. Let's put this in prospective for a moment. In 2000 shoe maker Steve Madden was arrested on charges of money launders and securities fraud. Stock plunged from $16.13 to $5.50 when he was arrested. But even though Madden pleaded guilty to the charges, shares of the company have since stabilized. Today it is trading at $19.25.

President Bush appearing at two fundraisers in Texas today. He also made a pit stop at the Houston lives stock show and rodeo. Mr. Bush, is only the second sitting president to pay a visit to the Houston event. His dad was the first one. So, was he in the market for cattle in maybe, but he's also looking for few conservative men, all part of tonight's "Raw Politics."

(BEGIN VIDEOTAPE)

COOPER: It is the photo-op the White House Loves, President Bush talking with cowboys, checking out the bulls. The message, unspoken but clear, "Heck, I'm just a regular guy." The target -- southern socially conservative white men.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I thought there was a lot of bull in Washington D.C.

COOPER: It is the same crowd the Bush campaign was aiming for a couple weeks ago at the Daytona 500.

BUSH: Start your engines.

COOPER: NASCAR dads, rodeo men. They traditionally vote Republican. But a recent poll shows that Bush's lead over John Kerry among likely white male voters has shrunk to 5 points. Candidate Kerry wants these guys, too. He surrounds himself with veterans and worked hard to craft as a athlete and true sports fan. Twice last week Kerry through a football and baseball in front of the camera's. Earlier, he appeared at a hockey game.

The message, see, I'm just a regular guy, too. True, both men are millionaires and Yale graduates, but it is unlikely you will see that in a commercial anytime soon. "Raw Politics."

(END VIDEOTAPE)

COOPER: "Raw Politics" indeed.

So, could you serve on the Scott Peterson jury?

What do you think?

Lawyers are narrowing the field of potential juries in the murder trial. Coming up, we're going to look at those questionnaires that they've been asked to fill out. Long ones at that. We'll see what the answers may mean.

Also tonight, did watching TV actually lead a woman to kill her husband inside this house?

Strange story -- we'll explain.

(COMMERCIAL BREAK)

COOPER: Time now for "Justice Served." In Redwood City, California, more potential jurors in the Scott Peterson murder trial are filling out very lengthy questionnaires, asking their opinions from the death penalty to what magazines they read. We have been checking out the questionnaire and want to talk about it with 360 legal analyst Kimberly Guilfoyle Newsom. You have not only seen this questionnaire, you've also worked on questionnaires in other trials when you were a prosecutor.

First of all, they asked potential jurors opinions about extramarital affairs. Could this be a deciding factor whether or not a juror gets picked?

KIMBERLY GUILFOYLE NEWSOM, 360 LEGAL ANALYST: It is a huge issue in this case. People that are going to be, obviously, morally opposed to someone who has had an extramarital affair, that's somebody who might prejudge the case and already feel that Scott Peterson is guilty. That's something the defense is going to want to look for and the prosecution as well.

COOPER: I was surprised that they're asked about their religion.

GUILFOYLE NEWSOM: This is unusual. In this particular questionnaire, the judge said it was OK to put race, religion and political feelings or affiliations like conservative or liberal. These are big issues. They want a death qualified jury. The prosecutions does, so you will look for more conservative jurors. This is something usually judges won't let them get into.

COOPER: So the way it works is basically both sides -- prosecution and defense -- put their questions in a hat to the judge and the judge decides which ones are in and which ones are out?

GUILFOYLE NEWSOM: That's correct. They didn't let them ask, have you ever had an extramarital affair. The judge said, no way, that's not going to be part of this because people aren't going to answer that question honestly.

COOPER: Interesting. All right. I was looking at this questionnaire. There is a question about, do you have a bumper sticker? I have tried to answer a couple of these questions myself to see how I would do on this jury. I answered no because I don't have a bumper sticker even though I do have a car. What does the bumper sticker indicate? Would I be a good juror because I don't have a bumper sticker?

GUILFOYLE NEWSOM: This is a great question. Defense attorneys like to put this on there because it can kind of show basically a political affiliation whether someone's conservative or liberal. Liberals tend to put bumper stickers, peace, free love, all of that, on their car. The important is the content of it. What's also interesting is if you're military background, then marines and people in the army tend to put bumper stickers as well. So content is most important but it really tells a lot about a person...

COOPER: So they think if you have a bumper sticker you would be good, what, for the prosecution?

GUILFOYLE NEWSOM: No, you would be good for the defense because you tend to be more liberal unless you are a marine and you have something like that, you know...

(CROSSTALK)

COOPER: They also ask about recreational activities. We have the list. Hiking, golf, fishing, boating. All of which I answered no to. I clearly am not a very outdoorsy (ph) person. Why do they want to know all this stuff?

GUILFOYLE NEWSOM: Well, Scott Peterson is an outdoors man. Lot of issues in this case about he was fishing, his alibi, he didn't know what he was fishing for, those things about tide, et cetera, dumping the body. And they want to see, also, if people are going to frown upon a guy going fishing on Christmas Eve instead of staying home with his pregnant wife. A fisherman may not think it's a bad idea and think it's perfectly acceptable. Someone else may really look on that with disfavor.

COOPER: OK, one of the other questions that caught my attention. They ask whether or not potential jurors watch shows. Larry King, Greta Van Susteren and Geraldo Rivera. I, of course, watch Larry King every night religiously. Why did they ask that question. Because you want to know about current events? GUILFOYLE NEWSOM: There's been a ton of coverage about these cases and you also want to see, again, it's kind of what your affiliation is. You tend to be a little more liberal or a little more conservative. Are you someone who watches like Bill O'Reilly or are you a really smart, reasonable person that watches Anderson Cooper. We're going to keep the Anderson Cooper jurors, I think.

COOPER: All right. Well, you're welcome back any time. Thanks very much.

Now, to a bizarre story in Oklahoma. A woman is accused of shooting and killing her husband after the couple watch a television show on domestic violence. And apparently the woman is not going to be facing charges. CNN's David Mattingly has details.

(BEGIN VIDEOTAPE)

DAVID MATTINGLY, CNN CORRESPONDENT: For one Oklahoma couple, marijuana, a handgun and a daytime talk show on domestic violence proved to be a deadly combination. While smoking marijuana in bed two weeks ago, Terry Lynn Carver (ph) claims her husband attacked her after she compared his behavior to that of violent husbands featured on the show they were watching.

LT. PAT KNOWLES, MAYS COUNTY SHERIFF'S DEPT.: It started an argument between the two. Sometime during this fight, a handgun was produced.

MATTINGLY: The program was an episode of the "Montel Williams Show," featuring testimonials from women who survived vicious attack from their husbands and boyfriends.

UNIDENTIFIED FEMALE: It was bad. We didn't get through the first story, the first interview.

MATTINGLY: Carver told police she shot and killed her husband with his gun accidentally after he went on a rampage, hitting her, shooting a hole in the headboard and trying to prevent her from calling 911.

UNIDENTIFIED FEMALE: He went off. I saw the look in his eye. He was mean.

MATTINGLY: A spokesperson for the "Montel Williams Show" tells CNN the program has no comment about the incident. No charges have been filed but police continue to investigate and await a coroner's report. With no witnesses, authorities tell CNN Ms. Carver story of pot, a gun and daytime talk TV could well become the final chapter in a five-year relationship with a history of domestic turbulence. David Mattingly, CNN.

(END VIDEOTAPE)

COOPER: This is not the first time a TV show has been linked with a death. Let's flash back to 1995. Remember this? During a "Jenny Jones" taping, Scott Amador (ph), who was gay, admitted that he had feelings for his friend, Jonathan Schmidt (ph). Schmidt, visibly embarrassed, laughed it off at the time. They flew home to Detroit together. Three days later, Schmidt (ph) shot Scott Amador to death. The episode never aired. Schmidt was found guilty in August 1999 and was sentenced to 25 to 50 years in prison.

Every Monday night we like to look at a story we call "That's Just Wrong." A homeless man spent eight months in jail. That's the subject of our "That's Just Wrong" coming up next.

We'll also talk about "The Passion of the Christ." It is breaking box office records and the bank for Mel Gibson, we'll give you the numbers.

Also tonight. "The Current." Remember that "Seamen" commercial from Japan? It's going to come back. See why. Set your VCR. You're going to want to record it. We'll be back.

(COMMERCIAL BREAK)

COOPER: Every Monday, we look at a story that we think, well, is just wrong. Tonight, the story of a homeless man who spent eight months in jail after three 12-year-old girls falsely accused him of attacking them. The homeless man is now out of jail, but the punishment for the false accusers? Well, we think that is just wrong.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN CORRESPONDENT (voice-over): This homeless man served eight months in jail for a crime he did not commit.

ERIC NORDMARK: I was nowhere near there.

TUCHMAN: Three 11-year-old girls accused Eric Nordmark of attacking them in a park in Garden Grove, California. But...

LT. MIKE HANDFIELD, GARDEN GROVE POLICE DEPARTMENT: These little girls lied. They're sophisticated in how they lied. They showed no remorse about lying that he was in custody, and they need to be dealt with.

TUCHMAN: And now they have. The three girls conspired to pick the number five photo in a six photo police line-up, falsely pinning blame on Nordmark to cover up the fact they were late coming home from school. The prosecutors wanted them to serve a sentence at least as long as Nordmark's time in jail. But instead, two of them received 45 days in a juvenile facility. The other, 30 days. With time already spent in custody, that girl will be free this week.

PAULA DRAKE, DEFENSE ATTORNEY: Believe me, they are awake now to what they did. They're very remorseful. And I think that the courts have made an impression upon them.

TUCHMAN: Nordmark, who is now living in Seattle, spent 251 days behind bars because of the lie. But he's putting more of the blame on police, saying kids are kids, and authorities did a faulty job. NORDMARK: I also would like from the Garden Grove Police Department to apologize to my mother. My mother has been through more -- her ordeal was probably worse than mine.

TUCHMAN: But because of his ordeal, Nordmark's attorney is threatening a lawsuit against the city if the settlement is not reached beforehand.

Gary Tuchman, CNN.

(END VIDEOTAPE)

COOPER: That is just wrong.

Time for some lighter news. Let's check tonight's "Current."

Former president of CBS Records, Walter Yetnikoff, has written a tell-all memoir about his wild life in the 1980s. Yetnikoff writes that much of his time at the helm of CBS Records was spent in a haze of alcohol and cocaine. Historians say Yetnikoff's revelation now completely explains Adam Ant. Goody two shoes, goody-goody two shoes.

Anna Kournikova is interested in pursuing an acting career. The tennis player says she's already had to turn down a role in a James Bond film because of all her sporting commitments. Apparently, in Russian, the phrase "sporting commitments" also means bar hopping and celebrity posing.

A woman is suing Bloomingdale's for allegedly videotaping her wearing thong underwear in a dressing woman. The woman, who is 60 years old, says she feels violated. Ma'am, so do we. So do we.

UNIDENTIFIED MALE: Sayonara, Godzilla. Japan's favorite monster will be reportedly making his last movie appearance in a new film this December. Studio executives say there are just no more new fans in Japan for Godzilla. When asked to comment, Godzilla had this to say.

COOPER: And in response to the Godzilla story, the Japanese navy released this commercial.

(MUSIC)

COOPER: "Seaman Ship." It is our favorite commercial here on 360.

Well, now to the passion of profit. Mel Gibson's movie is still number one at the box office, raking in more than $200 million so far and making Gibson, financially speaking, a very wise man. Miguel Marquez explains.

(COMMERCIAL BREAK)

MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): In God he trusts equals in God we trust. That's to say "The Passion" is a moneymaker. No one stands to make more than Mel Gibson.

PENELOPE PATSURIS, FORBES.COM: There is no question at this stage of the game that he's going to make a hunk of money.

UNIDENTIFIED FEMALE: And your total is $43.60.

MARQUEZ: Forbes.com says between merchandising, video and DVD sales and rentals, and of course a box office take rivaling epics like "Lord of the Rings," Gibson stands to make more than $300 million.

PATSURIS: Mel is probably going to get about 40 percent of the roughly 625 million that this will probably gross.

MARQUEZ: There's also money in the music. "The Passion of the Christ: The Soundtrack" has already sold more than 50,000 copies.

MARTIN GROVE, HOLLYWOOLDREPORTER.COM: This thing has legs beyond what anyone ever expected.

MARQUEZ: Financial legs carrying Gibson into financial nirvana. He spent millions of his own money to make the film, marketed it through Christian groups and kept up a steady stream of controversial buzz before its Ash Wednesday opening.

GROVE: Certainly he is now a hotly controversial superstar, which isn't good, but maybe it doesn't matter.

MARQUEZ (on camera): While the controversy could have a negative impact on Gibson's career in Hollywood, there's one thing that matters more. Making a low-cost film with profits of biblical proportions.

Miguel Marquez, CNN, Los Angeles.

(END VIDEOTAPE)

COOPER: Remembering a one-of-a-kind performer. Coming up on "The Nth," saying goodbye to Spalding Gray.

(COMMERCIAL BREAK)

COOPER: Tonight, a life lived to "The Nth Degree." In this age of spectacular special effects, computer graphics, vast digital landscapes, Spalding Gray offered audiences nothing at all to look at but himself. But out of himself, in monologues performed on stage and then in films based on those monologues, he created whole worlds, turning his fears and worries and thoughts and experiences into spellbinding tales.

Life might be hard, Spalding Gray seemed to be saying, but it makes a heck of a good story.

(BEGIN VIDEO CLIP)

SPALDING GRAY, ACTOR: Look how much of the jungle this movie controls.

(END VIDEO CLIP)

COOPER: Asked what exactly he was, whether actor, writer, playwright, performer, Spalding Gray described himself as a humanistic humorist reporter. Someone, in other words, filing dispatches from that sad and funny strip of territory that lies somewhere between birth and death.

I'm Anderson Cooper. Thanks for watching. Coming up next, "PAULA ZAHN NOW."

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





Founded; New Clues in Hunt for bin Laden; Race for President: Bush vs. Kerry>


Aired March 8, 2004 - 19:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
ANDERSON COOPER, HOST (voice-over): Public enemy number one. Do reported sightings suggest we're closing in on Osama?

Martha Stewart living in a cell block, maybe. What fate awaits the lifestyle guru?

Invasion of the body snatchers? The UCLA cadaver chief caught in a grizzly trade.

Three girls swore this homeless man attacked them. Now, they are going to do time. We'll tell you why.

Murder after "Moonlet." A woman shoots her husband after watching daytime talk show tips.

And Gismo find a champion. Former Beirut hostage Terry Wait speaks out.

(END VIDEOTAPE)

ANNOUNCER: Live, from the CNN Broadcast Center in New York, this is ANDERSON COOPER 360.

COOPER: Good evening. Welcome to 360.

New information in the search for Osama bin Laden. Reports of series of safe houses along the Pakistan-Afghanistan border. Could it be the break U.S. forces are looking for? That in just a moment.

But first, our top story, breaking news in the saga of Martha Stewart. Just a short time ago, CNN has learned that Stewart will leave the board of directors of her company.

CNN's Jen Rogers is here with more -- Jen.

JEN ROGERS, CNN CORRESPONDENT: That's right, Anderson. CNN has learned from a source with knowledge of the board's activities that Martha Stewart will be leaving the board of directors of the company she founded, Martha Stewart Living Omnimedia. But it has yet to be determined whether she will resign her position or simply not run for re-election. Now, the company's board met today for several hours, but concluded its discussions without making any public statement. There may be an announcement later this week, according to our source.

Now, there are plenty of remaining questions for the board to address. Among them, taking the company private, which would mean less scrutiny from Wall Street, and a possible name change. Those are just some of the things that could be on the table -- Anderson.

COOPER: A name change would be quite major. All right. Jen Rogers, thanks for that.

Martha Stewart was in court again today, facing the possibility of years in prison. Here is CNN's Jason Carroll.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): Martha Stewart surely has had a number of tough meetings. Monday is no exception. She had to do what all convicted defendants do. For the first time, she met with her probation officer. She left without saying how it went, but briefly commented about her company.

The meeting took place on the 7th floor of the courthouse. It lasted about an hour. Legal experts talked about what typically happens.

UNIDENTIFIED MALE: They will do a preliminary interview. Then they'll set her up for a more expensive analysis, which will involve turning over tax returns, birth certificates, records of divorces, and a very, very detailed interview regarding her life.

CARROLL: It's spending part of life behind bars Stewart is trying to avoid. She will appeal her conviction. But most legal experts say winning an appeal isn't likely.

That leaves trying to spend the least amount of time in prison. A defendant can often get leniency if he or she accepts responsibility for their crime. Trial watchers say that may explain a change Stewart made on her Web site.

It initially read, "I am obviously distressed by the jury's verdict, but I continue to take comfort in knowing that I have done nothing wrong and that I have the enduring support of my family and friends." The New statement omits the phrase "I have done nothing wrong."

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: You can't accept responsibility if you're saying you did nothing wrong.

(END VIDEOTAPE)

CARROLL: Stewart and her stockbroker, Peter Bacanovic, are expected to be sentenced to 10 to 16 months in prison. Sentencing is scheduled for June 17 -- Anderson.

COOPER: All right. Jason, thanks very much.

Tonight, New clues in the search for Osama bin Laden. CNN has learned the mass murderer has established a network of safe houses along the Afghan-Pakistan border. It's information that may have major implications for hunting him down.

Let's get the latest from senior Pentagon correspondent Jamie McIntyre.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): The so-called spring offensive aimed at smoking Osama bin Laden is picking up steam along the border between Afghanistan and Pakistan. And there's some indication bin Laden may be feeling the heat.

Sources tell CNN that U.S. intelligence has found indications of a network of al Qaeda couriers and safe houses on the Afghanistan side of the border which could be a sign bin Laden may be planning to flee Pakistan, assuming that's where he is. Among the pressure points that could flesh bin Laden out of hiding, increased cooperation from Pakistani military forces and perhaps, more importantly, some of the tribes that rule the ungoverned border zone.

This video from the Arab network Al-Jazeera shows some 2,000 men from a tribe in the Wana region of western Pakistan along the Afghan border, who under pressure from the Pakistan government, are said to have joined the hunt for al Qaeda. This tribal leader says, "The Wana region is like a ship, and we're all on board."

Other pressure points include better technology, including 24/7 aerial surveillance from satellites, U-2 spy planes and predator drones, some armed with missiles, and better intelligence. U.S. troops and CIA operatives have forged closer ties with tribes in the border area where bin Laden is believed to be hiding. And that's providing more leads.

Still, U.S. commanders are trying to lower expectations.

GEN. JOHN ABIZAID, U.S. CENTRAL COMMANDER: Manhunts are not things that militaries do well. What we do well is put pressure on groups and organizations.

(END VIDEOTAPE)

MCINTYRE: Now, the Pentagon says it is not closing in on bin Laden. And officials here are dismissing some press reports suggesting that he's been sighted recently or that he eluded capture from Pakistani officials.

Nevertheless, there have been some tantalizing hints the U.S. may be getting some leads, including confirmation that a U.S. predator spy drone spotted a man believed to be bin Laden's number two, but they couldn't confirm his identity, nor could they take action quick enough -- Anderson.

COOPER: All right. Jamie McIntyre at the Pentagon.

Thanks, Jamie.

On the campaign trail today, Senator John Kerry surprised some observers by stating that a number of world leaders want to see him elected president. And you can bet the Bush campaign wasted no time in responding to that.

Senior political correspondent Candy Crowley is traveling with the Kerry campaign.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice-over): The president went to a rodeo in Texas Monday, which was enough for John Kerry to ride.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: And if the president of the United States can find the time to go to a rodeo, he can find the time to do more than one hour in front of a commission that is investigating what happened to America's intelligence and why we are not stronger today.

CROWLEY: Count on this to be the election year of the endless cycle, where no statement goes unanswered and no response goes unresponded to.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Two years after the attack on the World Trade Center, my opponent introduced a bill to cut the overall intelligence budget by $1.5 billion. His bill was so deeply irresponsible that he didn't have a single co-sponsor in the United States Senate.

CROWLEY: Anyone looking for a mild springtime on the campaign trail can look again. John Kerry told a group of donors that foreign leaders he met with told him they want Bush defeated. A Bush official called that remark outside the boundaries.

The story lines of the campaign are already set, and character development is the first chapter. The president thinks the senator is a waffling political opportunist with no core values.

BUSH: Senator Kerry voted for the Patriot Act, for NAFTA, for the No Child Left Behind Act, and for the use of force in Iraq. Now he opposes the Patriot Act, NAFTA, the No Child Left Behind Act, and the liberation of Iraq.

CROWLEY: The senator thinks the president is a radical ideologue who doesn't know what he's doing.

KERRY: He has run the most arrogant, inept, reckless, ideological foreign policy in the modern history of our country.

CROWLEY: Sometimes you wonder what they will be saying about each other by October.

Candy Crowley, CNN, West Palm Beach, Florida.

(END VIDEOTAPE)

COOPER: The race is certainly under way.

Well, tonight, a New CNN-USA Today-Gallup poll that has some good news for both candidates in it. The poll out today gives Kerry an eight-point lead over President Bush. The poll found that among likely voters, Kerry received 52 percent, compared to 44 percent for Mr. Bush. But at the same time, when asked, who do you think will win the White House, well, the majority think it's going to be Bush.

From the polls, we turn now to progress in Iraq. Remarkable progress when you think about it, really. Today, the Governing Council finally signed an interim constitution, hopefully paving the way for a free and democratic country.

Let's get more now from CNN Baghdad bureau chief Jane Arraf.

(BEGIN VIDEOTAPE)

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF (voice-over): Like proud parents, the U.S. administrator and British special representatives watched the ceremony unfold. First, the children, meant to grow up in democracy rather than dictatorship. U.S.-appointed Governing Council members, after delays, disagreements and false starts, bridged their differences.

With a special flourish, all signed their names and took their places in history. The signing took place against a backdrop of continuing attacks.

"Painful forces," the current head of the Governing Council said, "trying to stop Iraq's political process." "They forget that the will of the people is more powerful than their plans," he said.

The law entrenches a federal system, a demand by Iraqi Kurds who want to retain the power they have. "This is the first time we Kurds feel we are citizens equal to everybody," said Massud Barzani. He heads one of two Kurdish factions controlling northern Iraq.

(on camera): Signing the constitution is a major accomplishment. But it's perhaps a first step. Around this table at the Governing Council, there's a lot of hard work that will still have to be done.

(voice-over): Not everyone believes it can be done, creating a democratic Iraq. But for a country with a history written in blood, this document was an occasion to celebrate.

(END VIDEOTAPE)

COOPER: And Jane Arraf joins us now live from Baghdad.

Jane, you called it your piece a major accomplishment. Do you hear that from people on the streets? I mean, is there -- obviously, it's a big story there. But is there a huge level of excitement, at least in Baghdad?

ARRAF: It is really hard, Anderson, to get that out there amid the noise of the explosions that are still going on. Just before they signed this, for instance, there was a rocket attack in central Baghdad.

And when we go out in the streets and say to people, "So what do you think of this constitution?" They say, "We want security. Give us security first and then we'll be excited about a constitution."

They really are focusing right now on more simple, basic things. But the Governing Council members say they are going to go out there, explain to people why this is important, and hopefully get them on board -- Anderson.

COOPER: All right. Jane Arraf, live in Baghdad.

Thanks, Jane.

Right now, we're following a number of developing stories "Cross Country." Let's take a quick look.

In Washington: possible surgery for Ashcroft. A source says Attorney General John Ashcroft could have surgery tomorrow. He's in George Washington University Hospital being treated for his gallstone pancreatitis. Ashcroft went into the hospital last week after suffering stomach pain.

Boston: alcohol emergency. A new study -- just remarkable -- shows emergency room cases with their roots in alcohol abuse are three times higher than doctors thought they were. The research out today shows an annual average of 7.6 million ER visits for illness and injuries caused by alcohol abuse.

Moving on now to Baltimore Harbor, the search continues. Recovery teams spent another day in the frigid water searching for three people lost after a weekend water taxi accident. One person is known dead after the boat capsized on Saturday during a storm. Twenty-two other people were rescued.

In northern Ohio: nuclear plant reopening. It is possible the Davis Besse Nuclear Power Plant could reopen in about two weeks. The plant has been shut down for two years because of safety issues. The Nuclear Regulatory Commission says the plant can operate safely following repairs and management changes.

And Washington: gas attack. We're talking about gas prices. If you think gas prices have never been this high, well, you are almost right.

The government says the average price of self-serve regular has jumped to the third highest price on record, up 2.1 cents, to nearly $1.74 a gallon. Prices in some places are much higher.

That's a look at stories "Cross Country" for you tonight. What is going on at UCLA? A criminal scandal involving body parts and cadavers? Find out why two men have been arrested so far. It could be more.

Plus, an answer in the mystery surrounding Spalding Gray. Police find the missing actor's body. We'll talk about that ahead.

And a TV shooting. Why did one woman kill her husband in this home after watching "Montel Williams?" They were also smoking weed. Who knows what was involved.

It is a strange story. We'll have details coming up.

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

(COMMERCIAL BREAK)

COOPER: A rainy night here in New York.

A gruesome story continues to unfold in Los Angeles following charges that body parts donated for medical research were illegally sold for profit. The director of UCLA's Willed Body Program has been arrested. And today, the relatives of body donors filed suit against the university.

It all sounds like something out of a bad horror flick. National correspondent Frank Buckley has the latest.

(BEGIN VIDEOTAPE)

COOPER: The alleged sales of body parts were from cadavers donated to UCLA's Willed Body Program for medical education and research. Officials now believe some body parts were illegally sold for profit.

UNIDENTIFIED MALE: These alleged crimes violate the trust of the donors, their families, and UCLA. We are deeply sorry.

BUCKLEY: Arrested in the case, Henry Reid, UCLA's Willed Body Program director, and Earnest Nelson, an alleged middleman, who according to UCLA officials, sold the parts to research firms. Both men allegedly profited from the scheme.

UNIDENTIFIED MALE: We have no indication that the anatomical specimens involved in this case were used for anything other than medical research.

BUCKLEY: Nelson told the Los Angeles Times that he removed parts from approximately 800 cadavers over a six-year period, following a protocol provided by Reid. "I'd follow that protocol and they would charge me with receiving stolen body parts," he said.

Human tissue was used in everything from surgical products to medical instrument training. Institutions like UCLA can reallocate body parts to research firms for nominal fees, but profiting is prohibited.

PROF. MICHAEL SHAPIRO, UNIVERSITY OF SOUTHERN CALIFORNIA: We don't want to reduce persons and the representatives of persons, their body parts, to mere commodities.

(END VIDEOTAPE)

BUCKLEY: Now, we were not able to reach Reid for comment. But as to Nelson's allegations to the Los Angeles Times that 800 cadavers were involved here, UCLA officials believe that number is exaggerated. But they also concede that they don't know for sure, because they say that documents about their program are now in the hands of investigators.

And Anderson, you mentioned that the class action lawsuit was filed today on behalf of the family members whose loved ones donated their bodies. They say they are devastated about this news, that possibly those bodies may have been sold for profit -- Anderson.

COOPER: Unbelievable. All right. Frank Buckley, thanks from LA.

Mystery solved, at least somewhat here in New York. Two months after actor Spalding Gray vanished without a trace, authorities confirmed the worst. Gray's body was found yesterday and identified just this afternoon.

CNN's Maria Hinojosa has details.

(BEGIN VIDEOTAPE)

MARIA HINOJOSA, CNN URBAN AFFAIRS CORRESPONDENT (voice-over): Police pulled a body from Manhattan's East River Sunday. Missing almost two months, the decomposed body still had on the black corduroy pants Spalding Gray was wearing when last seen riding the Staten Island Ferry January 10.

Sixty-two-year-old Spading Gray, a performance artist, comic, writer, and actor, had been battling depression. He suffered a head injury in a car accident in Ireland in 2001, and, friends say, had attempted suicide several times since then.

UNIDENTIFIED FEMALE: After the car accident, you know, it really took its toll on him. And it took a long time for him physically to get back. And he still wasn't there completely. And mentally, it was a really long haul.

HINOJOSA: Police said the cause of death was still under investigation, and offered no details of why the body would end up miles from the ferry where he was last seen. Spalding Gray had the pose and the eyes of a thinker. His work was cerebral. Probably most famous for his autobiographical movie "Swimming to Cambodia."

UNIDENTIFIED FEMALE: He can see the smallest little detail and make a story out of that.

HINOJOSA: An acute awareness of life that perhaps made it unbearable for the man who made so many of us laugh.

Maria Hinojosa, CNN, New York.

(END VIDEOTAPE)

COOPER: It is very sad, indeed.

We're tracking a number of developing stories around the globe right now. Let's check tonight's "UpLink."

Port-au-Prince, Haiti: interim inauguration. Boniface Alexandre took the oath as interim president Monday, while thousands of demonstrators called for the return of ousted president, Jean-Bertrand Aristide. Six people died in weekend demonstrations. One gunmen was killed by U.S. Marines who were in the country, of course, trying to help keep the peace.

And in Africa, former President Aristide repeated his claim he was forced to leave Haiti.

Harare, Zimbabwe: suspected mercenaries in custody. On this plane, a U.S.-registered jet, 64 people have been seized by the government in Zimbabwe. Now, authorities there say military hardware was on the plane, and that the owners weren't telling the truth about who and what was on board. Strange story. We'll keep following it.

Caracas, Venezuela now: 100-year warning. Venezuela's president -- right there -- says he'd cut off oil exports to the U.S. and fight a 100-year war if Washington tried to invade the country. Hugo Chavez blames the U.S. for a failed coup and a current recall effort.

This weekend in Caracas, we should point out, at least, a half- million people marched to protest a ruling that there weren't enough signatures on petitions calling for the recall.

In London now: bark beagle, bark. Where are you? Scientists say the space probe that was lost as it was heading to Mars may have been headed. Nothing has been heard from the Beagle II since it was due to land on Christmas day. The four bright spots near the planned landing sight have been seen in new photographic images.

And that's a look at tonight's "UpLink."

He spent almost five years in captivity. Now, former Beirut hostage Terry Waite is demanding more rights for Gitmo detainees. He's going to join us to explain why.

Also tonight, inside prison walls. A look at where Martha Stewart may be doing some serious time.

And a little bit later on, talk show shooting. What drove a woman in this home to kill her husband after smoking pot and watching "Montel Williams?"

That ahead. We'll be right back.

(COMMERCIAL BREAK)

COOPER: So one-time hostage accuses the U.S. now of using terrorist tactics -- his words -- in the way it treats detainees at the U.S. Naval Base at Guantanamo Bay, Cuba. Terry Waite, you may remember was held for nearly five nears in Lebanon, was part of a group that marched to the White House today, calling for better treatment of the detainees.

More than 600 of them are being held at Gitmo. Suspects, of course, on the war on terror. Most are yet to be charged. Five British captives are set to be released.

Waite says the U.S. can't defeat terrorism by adopting their methods. What exactly does that mean? I asked him.

(BEGIN VIDEOTAPE)

TERRY WAITE, HELD HOSTAGE IN LEBANON: Well, what I mean by that is this, that in the days when I was captured, I was suspected by my captors of being an agent of government. I wasn't. I was a humanitarian negotiator.

And so they took me, they blindfolded me, and shackled me, and kept me in detention. Whilst in detention, I was, of course, denied all human rights. I had no access to the outside world, no access to any legal representation whatsoever. I was merely held on suspicion.

In the case of those who have been detained in Guantanamo Bay, they have been detained on suspicion. They have been put into the camps, they have been denied legal representation, they have been deliberately put outside the jurisdiction of the American courts.

They have not been allowed any contact with their families, apart from minimal contact, and it's only the Red Cross. So they've been given limited access to them.

COOPER: But I should point out, sir, that they do have three meals a day. The U.S. government also says they have adequate clothing, shelter. They have reading materials, and they have the means to send and receive mail, albeit perhaps not as frequent as they would like. The conditions they are being kept in are far different than the conditions you were being kept in.

WAITE: I'm not speaking about conditions. My conditions were harsh, and I've not made a comparison between conditions. I'm talking about due process of law.

Now, I can well understand, and I have great sympathy with the fact that people are afraid of terrorism. However, you don't defeat terrorism by this particular means. You don't make a unilateral decision to make what is nothing more than a large interrogation camp outside the jurisdiction of the courts.

COOPER: But these people were combatants in a war. I mean, they were picked up for the most part on the battlefields of Afghanistan, a few places elsewhere. I'm not quite sure -- I mean, some 10,000 people were rounded up. Ultimately, only some 650, I think, are still being kept at Guantanamo Bay. I'm not sure what status you think they should be held under.

WAITE: I mean, you raise a very interesting question of, on the so-called war on terrorism, where is the battlefield? Now, I agree, you see. It does present us with new challenges.

But if we want -- if we find that the existing laws are inadequate for this new situation, then there are means whereby we can get together collectively as a group of nations and draft appropriate legislation to deal with this type problem. Not by taking this unilateral action.

Unfortunately, the rule of law and international human rights conventions have been broken. And they're there for the protection of us all, and for all our freedoms. And you undermine them, you undermine all our freedoms.

COOPER: Terry Waite, we appreciate you joining us. Interesting discussion. Thank you.

WAITE: Thank you very much.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

COOPER (voice-over): What might prison hold for Martha Stewart?

And risk and reward: Mel Gibson's hefty take from "The Passion's" profits.

360 continues.

(COMMERCIAL BREAK)

COOPER: Time for "The Reset," tonight's top stories.

Prince in New jersey. Presidential poll. The latest CNN/"USA Today"/Gallup Poll suggests we'll see a very tight race. The poll gives Democrat John Kerry a 52 to 44 percent lead over President Bush among likely voters. Because of the margin of error, that's a dead heat.

Washington, D.C. soldiers and substances. A health survey warns that cigarette smoking and heavy drinking are on the rise, especially among younger troops. It says, illegal drug use remains far below civilian levels.

Seattle, Washington. The mayor says the city will recognize the marriages of gay municipal employees who tie the knot in places where same-sex unions have been legalized. While gay marriage remains illegal in the state of Washington, six gay couples filed suit saying Washington's law against same-sex marriage violates the state constitution. In New York, body recovered. The body of actor Spalding Gray was recovered from New York's East River. No finding on the cause of his death, but when Gray disappeared two months ago suicide was suspected. I'll have more on his death later on tonight.

Washington, D.C., a bigger bank. The Federal Reserve has approved Bank of America's acquisition of Fleet Boston Financial Corp. It was the last major regulatory barrier against the merger valued at nearly 1 trillion dollars.

Miami Florida, indirect TV. Simpson by may going back to court. Direct TV has filed a $22,000 lawsuit against the former football star, accusing him of pirating its television satellite signals. Simpson's lawyers denies the charge. 20,000, that's a lot of TV.

That's a look at your "Reset" tonight.

We learn just a short time ago that Martha Stewart is leaving the board of her company and she may be saying good-bye to freedom, heading to prison perhaps in Connecticut, not far from home now.

What could jail be like for the domestic diva?

CNN's Dan Lothian takes a look.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN CORRESPONDENT (voice-over): What could be the next address for the domestic diva Martha Stewart may be this federal facility in Danbury, just 20 miles north of her Connecticut home. But legal experts say a world away from her posh life style.

PAUL CALLAN, FMR,. FEDERAL PROSECUTOR: There's VIP section. You have a number. You are an inmate.

LOTHIAN: Sharing a large room like this one, with 80 other women, sleeping on bunks in small cubicles, doing manual labor. It is also where other high profile white collar inmates have surrendered their privacy, control and freedom as well. Like Leona Hensley convicted of mail fraud and tax evasion in the early '90s.

(on camera): But former inmates say, the average person confined at Danbury, is not a big name and not someone you want to mingle with at a cocktail party. Who are they?

CALLAN: Drug dealers or the girlfriend's of drug dealers who wound up involved in drug dealing or in bank robberies and that sort of thing.

LOTHIAN (voice-over): What's believed to be the other option for Stewart is another minimum security facility in West Virginia where some big names also spent time. From Jazz Singer Billie Holiday to the women who tried to assassinate President Ford, Sarah J. Moore and "Squeaky" Fromme.

From Wall Street to Main Street, Martha Stewart came to symbolize success. Her supporters believe she was unfairly targeted, on a fan Web site, prison is not where Martha Stewart belongs. But little will silence the voice of a unanimous jury.

Dan Lothian, CNN, Boston.

(END VIDEOTAPE)

COOPER: Our next guest knows about life as a federal inmate. David Novak spent a year in prison for mail fraud, he staged a phoney accident for insurance. Now, he counsels others how to survive prison. He even wrote a book about it, called "Downtime: A Guide to Federal Incarceration. I asked him how a person can prepare for life behind bars.

(BEGIN VIDEOTAPE)

DAVID NOVAK, AUTHOR, "DOWNTIME": Well, the unfortunate thing is no matter how much you've read or studied, there's really nothing that can substitute or prepare you for the visceral onslaught of emotion that your going to experience that first day.

COOPER: You served 11 months, I think at least almost 11 months at a federal prison camp in Florida for mail fraud.

What was it like for you?

I mean, your life was turned upside down.

NOVAK: Well, your life is turned you side down. You go from a life of -- I certainly had a comfortable life prior to going to prison. You know, Miss Stewart has an extremely comfortable life. Everything is turned upside down. In fact, you, basically, become one of the masses pretty quickly.

COOPER: Let's talk about what determines where you get sent. What determines where you get sent, what factors?

NOVAK: The Bureau of Prisons looks at a number of variables when determining what custody classification level an inmate will enjoy. Length of sentence, the type of offense, whether there is a history of violence and how they performed on bond.

COOPER: What advice do you have?

Is there a way to prepare for that emotional shock?

NOVAK: I think it's important that when your day comes, you're able to look in the mirror and accept the fact that you and you alone are responsible for puts yourself in that position. Second thing that's incredibly important is a white collar offender, especially a privileged one going into prison is recognizing that you are no better and no worse than anybody else in that facility.

COOPER: Anyway Martha Stewart can still remain involved in her company on a day to day hourly bases? NOVAK: No. As a matter of fact, federal inmates are specifically forbidden to participate in any way, shape, or form in the conduct of business. Miss Stewart will be allowed 300 minutes of phone time per month. All of the phone calls will be recorded as with any federal inmate. And a large number of them will also be monitored.

COOPER: How do you deal with the fear, I mean, as a prisoner?.

NOVAK: Well, you know, that's a real tough one to deal with. Regardless of how well prepared you are, you're going to go into prison looking like Bambi caught in headlights. One of the things that I found surprising was generally the kindness of other inmates. Within three or four days of getting to a minimum security facility, most people recognize, wow, my hierarchy has been addressed. My safety is OK. I've got shelter. I'll eat. Now I just have to hunker down and survive this.

COOPER: David Novak, thanks very much.

NOVAK: My pleasure, Anderson. Thank you.

(END VIDEOTAPE)

COOPER: It is unclear how well or even if Martha Stewart's company will bounce back. But stories like this don't always have a gloomy ending. Let's put this in prospective for a moment. In 2000 shoe maker Steve Madden was arrested on charges of money launders and securities fraud. Stock plunged from $16.13 to $5.50 when he was arrested. But even though Madden pleaded guilty to the charges, shares of the company have since stabilized. Today it is trading at $19.25.

President Bush appearing at two fundraisers in Texas today. He also made a pit stop at the Houston lives stock show and rodeo. Mr. Bush, is only the second sitting president to pay a visit to the Houston event. His dad was the first one. So, was he in the market for cattle in maybe, but he's also looking for few conservative men, all part of tonight's "Raw Politics."

(BEGIN VIDEOTAPE)

COOPER: It is the photo-op the White House Loves, President Bush talking with cowboys, checking out the bulls. The message, unspoken but clear, "Heck, I'm just a regular guy." The target -- southern socially conservative white men.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I thought there was a lot of bull in Washington D.C.

COOPER: It is the same crowd the Bush campaign was aiming for a couple weeks ago at the Daytona 500.

BUSH: Start your engines.

COOPER: NASCAR dads, rodeo men. They traditionally vote Republican. But a recent poll shows that Bush's lead over John Kerry among likely white male voters has shrunk to 5 points. Candidate Kerry wants these guys, too. He surrounds himself with veterans and worked hard to craft as a athlete and true sports fan. Twice last week Kerry through a football and baseball in front of the camera's. Earlier, he appeared at a hockey game.

The message, see, I'm just a regular guy, too. True, both men are millionaires and Yale graduates, but it is unlikely you will see that in a commercial anytime soon. "Raw Politics."

(END VIDEOTAPE)

COOPER: "Raw Politics" indeed.

So, could you serve on the Scott Peterson jury?

What do you think?

Lawyers are narrowing the field of potential juries in the murder trial. Coming up, we're going to look at those questionnaires that they've been asked to fill out. Long ones at that. We'll see what the answers may mean.

Also tonight, did watching TV actually lead a woman to kill her husband inside this house?

Strange story -- we'll explain.

(COMMERCIAL BREAK)

COOPER: Time now for "Justice Served." In Redwood City, California, more potential jurors in the Scott Peterson murder trial are filling out very lengthy questionnaires, asking their opinions from the death penalty to what magazines they read. We have been checking out the questionnaire and want to talk about it with 360 legal analyst Kimberly Guilfoyle Newsom. You have not only seen this questionnaire, you've also worked on questionnaires in other trials when you were a prosecutor.

First of all, they asked potential jurors opinions about extramarital affairs. Could this be a deciding factor whether or not a juror gets picked?

KIMBERLY GUILFOYLE NEWSOM, 360 LEGAL ANALYST: It is a huge issue in this case. People that are going to be, obviously, morally opposed to someone who has had an extramarital affair, that's somebody who might prejudge the case and already feel that Scott Peterson is guilty. That's something the defense is going to want to look for and the prosecution as well.

COOPER: I was surprised that they're asked about their religion.

GUILFOYLE NEWSOM: This is unusual. In this particular questionnaire, the judge said it was OK to put race, religion and political feelings or affiliations like conservative or liberal. These are big issues. They want a death qualified jury. The prosecutions does, so you will look for more conservative jurors. This is something usually judges won't let them get into.

COOPER: So the way it works is basically both sides -- prosecution and defense -- put their questions in a hat to the judge and the judge decides which ones are in and which ones are out?

GUILFOYLE NEWSOM: That's correct. They didn't let them ask, have you ever had an extramarital affair. The judge said, no way, that's not going to be part of this because people aren't going to answer that question honestly.

COOPER: Interesting. All right. I was looking at this questionnaire. There is a question about, do you have a bumper sticker? I have tried to answer a couple of these questions myself to see how I would do on this jury. I answered no because I don't have a bumper sticker even though I do have a car. What does the bumper sticker indicate? Would I be a good juror because I don't have a bumper sticker?

GUILFOYLE NEWSOM: This is a great question. Defense attorneys like to put this on there because it can kind of show basically a political affiliation whether someone's conservative or liberal. Liberals tend to put bumper stickers, peace, free love, all of that, on their car. The important is the content of it. What's also interesting is if you're military background, then marines and people in the army tend to put bumper stickers as well. So content is most important but it really tells a lot about a person...

COOPER: So they think if you have a bumper sticker you would be good, what, for the prosecution?

GUILFOYLE NEWSOM: No, you would be good for the defense because you tend to be more liberal unless you are a marine and you have something like that, you know...

(CROSSTALK)

COOPER: They also ask about recreational activities. We have the list. Hiking, golf, fishing, boating. All of which I answered no to. I clearly am not a very outdoorsy (ph) person. Why do they want to know all this stuff?

GUILFOYLE NEWSOM: Well, Scott Peterson is an outdoors man. Lot of issues in this case about he was fishing, his alibi, he didn't know what he was fishing for, those things about tide, et cetera, dumping the body. And they want to see, also, if people are going to frown upon a guy going fishing on Christmas Eve instead of staying home with his pregnant wife. A fisherman may not think it's a bad idea and think it's perfectly acceptable. Someone else may really look on that with disfavor.

COOPER: OK, one of the other questions that caught my attention. They ask whether or not potential jurors watch shows. Larry King, Greta Van Susteren and Geraldo Rivera. I, of course, watch Larry King every night religiously. Why did they ask that question. Because you want to know about current events? GUILFOYLE NEWSOM: There's been a ton of coverage about these cases and you also want to see, again, it's kind of what your affiliation is. You tend to be a little more liberal or a little more conservative. Are you someone who watches like Bill O'Reilly or are you a really smart, reasonable person that watches Anderson Cooper. We're going to keep the Anderson Cooper jurors, I think.

COOPER: All right. Well, you're welcome back any time. Thanks very much.

Now, to a bizarre story in Oklahoma. A woman is accused of shooting and killing her husband after the couple watch a television show on domestic violence. And apparently the woman is not going to be facing charges. CNN's David Mattingly has details.

(BEGIN VIDEOTAPE)

DAVID MATTINGLY, CNN CORRESPONDENT: For one Oklahoma couple, marijuana, a handgun and a daytime talk show on domestic violence proved to be a deadly combination. While smoking marijuana in bed two weeks ago, Terry Lynn Carver (ph) claims her husband attacked her after she compared his behavior to that of violent husbands featured on the show they were watching.

LT. PAT KNOWLES, MAYS COUNTY SHERIFF'S DEPT.: It started an argument between the two. Sometime during this fight, a handgun was produced.

MATTINGLY: The program was an episode of the "Montel Williams Show," featuring testimonials from women who survived vicious attack from their husbands and boyfriends.

UNIDENTIFIED FEMALE: It was bad. We didn't get through the first story, the first interview.

MATTINGLY: Carver told police she shot and killed her husband with his gun accidentally after he went on a rampage, hitting her, shooting a hole in the headboard and trying to prevent her from calling 911.

UNIDENTIFIED FEMALE: He went off. I saw the look in his eye. He was mean.

MATTINGLY: A spokesperson for the "Montel Williams Show" tells CNN the program has no comment about the incident. No charges have been filed but police continue to investigate and await a coroner's report. With no witnesses, authorities tell CNN Ms. Carver story of pot, a gun and daytime talk TV could well become the final chapter in a five-year relationship with a history of domestic turbulence. David Mattingly, CNN.

(END VIDEOTAPE)

COOPER: This is not the first time a TV show has been linked with a death. Let's flash back to 1995. Remember this? During a "Jenny Jones" taping, Scott Amador (ph), who was gay, admitted that he had feelings for his friend, Jonathan Schmidt (ph). Schmidt, visibly embarrassed, laughed it off at the time. They flew home to Detroit together. Three days later, Schmidt (ph) shot Scott Amador to death. The episode never aired. Schmidt was found guilty in August 1999 and was sentenced to 25 to 50 years in prison.

Every Monday night we like to look at a story we call "That's Just Wrong." A homeless man spent eight months in jail. That's the subject of our "That's Just Wrong" coming up next.

We'll also talk about "The Passion of the Christ." It is breaking box office records and the bank for Mel Gibson, we'll give you the numbers.

Also tonight. "The Current." Remember that "Seamen" commercial from Japan? It's going to come back. See why. Set your VCR. You're going to want to record it. We'll be back.

(COMMERCIAL BREAK)

COOPER: Every Monday, we look at a story that we think, well, is just wrong. Tonight, the story of a homeless man who spent eight months in jail after three 12-year-old girls falsely accused him of attacking them. The homeless man is now out of jail, but the punishment for the false accusers? Well, we think that is just wrong.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN CORRESPONDENT (voice-over): This homeless man served eight months in jail for a crime he did not commit.

ERIC NORDMARK: I was nowhere near there.

TUCHMAN: Three 11-year-old girls accused Eric Nordmark of attacking them in a park in Garden Grove, California. But...

LT. MIKE HANDFIELD, GARDEN GROVE POLICE DEPARTMENT: These little girls lied. They're sophisticated in how they lied. They showed no remorse about lying that he was in custody, and they need to be dealt with.

TUCHMAN: And now they have. The three girls conspired to pick the number five photo in a six photo police line-up, falsely pinning blame on Nordmark to cover up the fact they were late coming home from school. The prosecutors wanted them to serve a sentence at least as long as Nordmark's time in jail. But instead, two of them received 45 days in a juvenile facility. The other, 30 days. With time already spent in custody, that girl will be free this week.

PAULA DRAKE, DEFENSE ATTORNEY: Believe me, they are awake now to what they did. They're very remorseful. And I think that the courts have made an impression upon them.

TUCHMAN: Nordmark, who is now living in Seattle, spent 251 days behind bars because of the lie. But he's putting more of the blame on police, saying kids are kids, and authorities did a faulty job. NORDMARK: I also would like from the Garden Grove Police Department to apologize to my mother. My mother has been through more -- her ordeal was probably worse than mine.

TUCHMAN: But because of his ordeal, Nordmark's attorney is threatening a lawsuit against the city if the settlement is not reached beforehand.

Gary Tuchman, CNN.

(END VIDEOTAPE)

COOPER: That is just wrong.

Time for some lighter news. Let's check tonight's "Current."

Former president of CBS Records, Walter Yetnikoff, has written a tell-all memoir about his wild life in the 1980s. Yetnikoff writes that much of his time at the helm of CBS Records was spent in a haze of alcohol and cocaine. Historians say Yetnikoff's revelation now completely explains Adam Ant. Goody two shoes, goody-goody two shoes.

Anna Kournikova is interested in pursuing an acting career. The tennis player says she's already had to turn down a role in a James Bond film because of all her sporting commitments. Apparently, in Russian, the phrase "sporting commitments" also means bar hopping and celebrity posing.

A woman is suing Bloomingdale's for allegedly videotaping her wearing thong underwear in a dressing woman. The woman, who is 60 years old, says she feels violated. Ma'am, so do we. So do we.

UNIDENTIFIED MALE: Sayonara, Godzilla. Japan's favorite monster will be reportedly making his last movie appearance in a new film this December. Studio executives say there are just no more new fans in Japan for Godzilla. When asked to comment, Godzilla had this to say.

COOPER: And in response to the Godzilla story, the Japanese navy released this commercial.

(MUSIC)

COOPER: "Seaman Ship." It is our favorite commercial here on 360.

Well, now to the passion of profit. Mel Gibson's movie is still number one at the box office, raking in more than $200 million so far and making Gibson, financially speaking, a very wise man. Miguel Marquez explains.

(COMMERCIAL BREAK)

MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): In God he trusts equals in God we trust. That's to say "The Passion" is a moneymaker. No one stands to make more than Mel Gibson.

PENELOPE PATSURIS, FORBES.COM: There is no question at this stage of the game that he's going to make a hunk of money.

UNIDENTIFIED FEMALE: And your total is $43.60.

MARQUEZ: Forbes.com says between merchandising, video and DVD sales and rentals, and of course a box office take rivaling epics like "Lord of the Rings," Gibson stands to make more than $300 million.

PATSURIS: Mel is probably going to get about 40 percent of the roughly 625 million that this will probably gross.

MARQUEZ: There's also money in the music. "The Passion of the Christ: The Soundtrack" has already sold more than 50,000 copies.

MARTIN GROVE, HOLLYWOOLDREPORTER.COM: This thing has legs beyond what anyone ever expected.

MARQUEZ: Financial legs carrying Gibson into financial nirvana. He spent millions of his own money to make the film, marketed it through Christian groups and kept up a steady stream of controversial buzz before its Ash Wednesday opening.

GROVE: Certainly he is now a hotly controversial superstar, which isn't good, but maybe it doesn't matter.

MARQUEZ (on camera): While the controversy could have a negative impact on Gibson's career in Hollywood, there's one thing that matters more. Making a low-cost film with profits of biblical proportions.

Miguel Marquez, CNN, Los Angeles.

(END VIDEOTAPE)

COOPER: Remembering a one-of-a-kind performer. Coming up on "The Nth," saying goodbye to Spalding Gray.

(COMMERCIAL BREAK)

COOPER: Tonight, a life lived to "The Nth Degree." In this age of spectacular special effects, computer graphics, vast digital landscapes, Spalding Gray offered audiences nothing at all to look at but himself. But out of himself, in monologues performed on stage and then in films based on those monologues, he created whole worlds, turning his fears and worries and thoughts and experiences into spellbinding tales.

Life might be hard, Spalding Gray seemed to be saying, but it makes a heck of a good story.

(BEGIN VIDEO CLIP)

SPALDING GRAY, ACTOR: Look how much of the jungle this movie controls.

(END VIDEO CLIP)

COOPER: Asked what exactly he was, whether actor, writer, playwright, performer, Spalding Gray described himself as a humanistic humorist reporter. Someone, in other words, filing dispatches from that sad and funny strip of territory that lies somewhere between birth and death.

I'm Anderson Cooper. Thanks for watching. Coming up next, "PAULA ZAHN NOW."

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