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Iran Playing Increased Role in Iraq; Messianic Cult Behind Violent Clash; Former Press Secretary Shoots Holes in Scooter Libby's Defense; Smoking Urge: All in Your Head? State Department Preliminary Report on Israeli Weapons Use; Barbaro Put to Sleep; Mountain Lion Survivor's Condition Worsens

Aired January 29, 2007 - 13:00   ET

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


DON LEMON, CNN ANCHOR: Hello everyone. I'm Don Lemon, live from the CNN world headquarters in Atlanta.
KYRA PHILLIPS, CNN ANCHOR: I'm Kyra Phillips.

Saber rattling. How powerful is Iran's support in Iraq? The ongoing threat and the president's response.

LEMON: Post-Katrina New Orleans. Senators get an earful as New Orleans struggles to recover.

PHILLIPS: Barbaro won the Kentucky Derby and America's hearts. Today, a sad ending for the horse we were all rooting for.

You're live in the CNN NEWSROOM.

Another warning today to Iran not to meddle with its neighbor, Iraq. President Bush spoke this morning to National Public Radio.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If Iran escalates its military action in Iraq to the detriment of our troops and/or innocent Iraqi people, we will respond firmly.

(END VIDEO CLIP)

PHILLIPS: The president's latest broadside follows potentially worrisome comments made to "The New York Times" by a key Iranian diplomat. Iran's top envoy to Baghdad is quoted today as saying Iran plans to deepen its role in Iraq economically and militarily. He said it will offer training, equipment and advisers to the Iraqi armed forces and also plans to place a national bank in Baghdad.

In response an Iraqi official says his country will take any economic help that it can get.

Now, despite those offers of help, the United States insists that Iran is becoming increasingly involved in stirring up Iraqi insurgents. We get the latest now live from the Pentagon, CNN's Barbara Starr -- Barbara.

BARBARA STARR, CNN CORRESPONDENT: Well, Kyra, U.S. military and top U.S. intelligence officials have been saying for months now that Iran is behind some of the sophisticated attacks against U.S. troops.

(BEGIN VIDEOTAPE)

ROBERT GATES, SECRETARY OF DEFENSE: If you're in Iraq and trying to kill our troops, then you should consider yourself a target.

STARR (voice-over): That blunt warning from the new defense secretary, singling out Iran's growing involvement in the fighting inside Iraq. The State Department says it wants to unveil classified evidence that proves just that.

SEAN MCCORMACK, STATE DEPARTMENT SPOKESMAN: Where we are in the process is taking a look at the mountain of evidence that we do have.

STARR: But much of that information is already out there if you know where to look. Earlier this month, CIA director General Michael Hayden said Iran is shipping weapons into Iraq that are killing U.S. troops.

MICHAEL HAYDEN, CIA DIRECTOR: The EFPs are coming from Iran. They are being used against our forces. They are capable of defeating some of our heaviest armor. And in incident for incident, cause significantly more casualties than any other improvised explosive devices do, and they are provided to Shia militia.

STARR: Hayden is talking about explosively formed projectiles, sophisticated manufactured explosives capable of penetrating even a battle tank. Back in November Hayden bluntly warned that Tehran was stepping up its supply chain to Shia militias inside Iraq.

HAYDEN: The provision of them -- to them to capabilities that have been used against the coalition...

UNIDENTIFIED MALE: Absolutely.

HAYDEN: ... has been quite striking.

STARR: There is more. U.S. officials say in recent raids in Iraq they detained suspected Iranian operatives and found IEDs, rifles, mortar launchers, weapons with Iranian markings, maps, and shipping documents. They also say two suspects were senior members of the Iranian Revolutionary Guard.

And there's further evidence still.

GEN. JOHN ABIZAID, U.S. CENTRAL COMMAND: It's clear that money is coming in through their intelligence services. Training is probably being conducted inside Iran through various surrogates and proxies.

(END VIDEOTAPE)

STARR: And Kyra, again, intelligence and military officials say the trail of evidence all the way back to Tehran is very clear to them -- Kyra. PHILLIPS: USA -- USA definitely has its eyes on Iran. What about this attack that happened in Karbala? We've been following that, getting into the compelling video. What's the Pentagon saying about it?

STARR: Well, this is a very disturbing case, especially to U.S. military families, Kyra. What we are learning today is that, of the five families that had loved ones killed in that surprise attack last Saturday, a week ago Saturday in a compound in Karbala, some of those families did not learn until after news reports were published the actual circumstances of their loved one's death.

That is that four of the five soldiers were actually captured by Iranian -- Iraqi insurgents, taken away from the compound. Two of them found chained and dead in an SUV, a third one found dead on the road, a fourth soldier found barely alive and, in fact, he died on the way to the hospital.

What is clear now is that the families did not learn, not all of the families, at least, learned of these very disturbing details until after news reports came out.

It was apparently Iraqi ministry officials that first made that information public and, according to Army officials that we have spoken to here, they just couldn't keep up with the information coming out of Iraq, so they had to go back this weekend, find the families again, explain to them what had actually happened and apologized -- Kyra.

PHILLIPS: Barbara Starr, live from the Pentagon.

LEMON: We've had insurgents, jihadists, Ba'athists, sectarian militias and now, apparently a messianic cult. Iraqi police tell CNN a group called Soldiers of Heaven was behind yesterday's intense battle in and around Najaf, south of Baghdad. It's mostly over with at least 200 enemy fighters dead.

Arwa Damon is standing by in Baghdad with more for us -- Arwa.

ARWA DAMON, CNN CORRESPONDENT: Don, and the operation to clean up that area of that armed group lasted well over 24 hours. An Iraqi and U.S. forces, when they were able to find out the enemy that they were facing along those lines at that time, the information that came out was quite shocking.

(BEGIN VIDEOTAPE)

DAMON (voice-over): As dust from a sandstorm settles over the battlefield, new details emerge of the identity of the gunmen who put up some of the fiercest fighting that Iraq has seen this year.

Members of a Shia messianic cult calling themselves the Soldiers of Heaven, planning to attack the Shia holy city of Najaf. They massed in the hundreds, joined by foreign fighters, Sunni extremists, criminals and gangs. Intending to assassinate pilgrims, clerics, including Grand Ayatollah Ali al-Sistani, the most revered Shia cleric, called by many the Shia pope, and holy shrines, trying to destroy all that is sacred to Shia Islam, during Ashura, the holiest Shia ritual.

The cult's intent: to create more chaos to accelerate the return of the Mehdi, the savior of the Shia. The Mehdi is the 12th Shia imam. His followers believe that he disappeared down a well in Samarra in the 9th century and will return at a time of violent deaths and intense disputes, when people are experiencing great fear. His arrival will directly precede the day of judgment.

Iraqi officials describe the aftermath of the battlefield as being strewn with bodies of the gunmen, saying they killed hundreds of fighters and are investigating reports that the cult's leader was killed.

The enemy they faced so fierce, senior Iraqi officials say U.S. forces had to step in, taking the lead on the battlefield.

(END VIDEOTAPE)

DAMON: Some officials are calling this group insane. Others, though, are lamenting that the levels of death and destruction in Iraq have caused some Shias to believe that we have reached the end of the days -- Don.

LEMON: All right. Arwa Damon in Baghdad, thank you so much for that for that.

We want to tell you that a White House briefing is about to get under way. You're looking at live pictures there from the briefing room. As soon as that happens, we'll get it if you.

But of course, we'll suspect that they're talking about Iraq and Iran in this briefing. Two topics that are in the news very heavily today. As soon as that happens for you, a White House briefing, we'll have it for you right here in the CNN NEWSROOM.

PHILLIPS: Everyone thought he would make it, or maybe just hoped that he would. Barbaro took our breath away with his dazzling Kentucky Derby win and again when he broke down seconds into the Preakness stakes, two weeks later.

What followed was a super human effort to save a superstar athlete, though Barbaro's owners and doctors always said it was not about status or blood line or stud potential. It was just about the horse.

Today, those owners and doctors sadly decided that Barbaro's latest setback, an abscess in the right rear hoof, would be his last. The bay colt was put to sleep this morning at the Pennsylvania hospital that had been his home for eight months. Owner Roy Jackson says it was the right thing to do.

Well, he used to take questions from the press. Now it's from lawyers. The former spokesman for President Bush is testifying against Vice President Cheney's former right-hand man. Ari Fleischer took the witness stand in the perjury trial of Scooter Libby, the vice president's former chief of staff.

Joining us live from the D.C. courthouse, CNN's Brian Todd.

Brian, how did it go?

BRIAN TODD, CNN CORRESPONDENT: Well, Kyra, the prosecution didn't waste any time getting to a central argument, with Ari Fleischer taking the stand just a little over an hour ago.

They immediately tried to punch holes in Scooter Libby's central defense that he did not intentionally mislead investigators about the timeline when he learned about the covert identity of CIA operative Valerie Plame.

Mr. Fleischer taking the stand just after noon. The prosecutors immediately -- almost immediately started to ask him about a very critical meeting that he had with Scooter Libby on July 7, 2003. That was a lunch meeting in which Mr. Fleischer just testified that Scooter Libby at that meeting told him that former Ambassador Joe Wilson's wife worked at the CIA. Mr. Fleischer testified, "I think that he," meaning Scooter Libby, "mentioned her name, Valerie Plame" and that she worked in the counter-proliferation division of the CIA. He said that Mr. Libby told him that that information was hush-hush.

Now, it's very key. July 7 is when Mr. Fleischer just testified that Scooter Libby told him about Valerie Plame's identity. Mr. Libby has told investigators that he did not even learn about the Ms. Wilson's -- Ms. Plame Wilson's identity until three days after that, July 10, when he had a meeting with NBC's Tim Russert.

Now this is key here, because Mr. Libby is saying he didn't intentionally mislead investigators, that he just forgot about what he told them about the timelines.

And Mr. Fleischer, the prosecutors are trying to get him to actually portray that Mr. Libby and others in the White House were essentially very organized about, you know, what to say about Joe Wilson and about Joe Wilson's wife, about how to counter Mr. Wilson's claim in an op-ed piece that the Bush administration twisted its intelligence for going to war. Mr. Fleischer's testimony is key to that for the prosecution.

Earlier Cathy Martin, a former press aide to the vice president, finished her testimony. That was all about timelines of meetings and about conversations that Mr. Libby had with her and with the reporter.

This is really broad stroke here. This is an effort by the prosecution to portray the inner workings of the Bush White House and how organized the Bush White House was in trying to counter Joe Wilson's op-ed of 2003 in which Mr. Wilson essentially accused the White House of twisting its intelligence.

Mr. Fleischer's testimony this afternoon, Ms. Martin's testimony this morning and on Friday, part of a prosecution bid to portray this White House as being very organized and very meticulous in its campaign to counter Mr. Wilson. So Mr. Fleischer just taking the stand a little over an hour ago. The prosecution is still going to be talking to him when we come back from a lunch break at 1:30. So a lot of drama here in the courtroom. The prosecution really trying to shoot holes in Mr. Libby's defense -- Kyra.

PHILLIPS: Brian Todd, appreciate it.

LEMON: We want to get you to that White House briefing we told you just a short time ago. It appears Tony Snow, the White House spokesperson, is talking about Iran right now.

TONY SNOW, WHITE HOUSE PRESS SECRETARY: Again, we'll wait and see whether it's a positive development or not. You're talking about statements to the effect that the Iranians are thinking about opening a series of banks within Iraq and that they have also offered to do military cooperation.

What we've said is to the extent that anybody, including Iranians, are smuggling weapons, bringing in fighters, killing Americans, trying to destabilize the democracy in Iraq, we will take appropriate measures to defend our troops and also to defend the mission, but the Iranians understand that there's a burden of proof for them.

And so, it's an interesting statement. As I said before, we don't have much more on it and we don't have a lot of detail on it. But the Iraqi government is sovereign, and it certainly can make arrangements with its neighbors and, I dare say, it's not going to make arrangements that are going to be detrimental to its security or its prosperity.

UNIDENTIFIED MALE: You said something that the president might talk to the prime minister about, to find out where that's going or it's just simply...

SNOW: ... there are conversations. The prime minister talks regularly with the ambassador and other officials in Baghdad. So, I honestly don't know where they stand in terms of those conversations, but they may just discuss it.

UNIDENTIFIED MALE: Face value that they're trying to help their economy and want to cooperate.

SNOW: We'll just have to see. You don't take -- it's a statement. Let's see what the -- let's see what actions follow.

UNIDENTIFIED FEMALE: ... on balance the Bush administration see Iran's activities inside of Iraq as more of a positive than a negative?

SNOW: I didn't -- right now what we're seeing is some evidence that the Iranians have been involved in activities that have led to the deaths of American soldiers and also the deaths of innocent Iraqi civilians. And to the extent that that kind of activity continues, we will respond appropriately. What you're asking us to do is respond to something that hasn't happened. That's a statement of intent, and we'll see how they follow through on it. We would certainly welcome Iran to start playing a constructive role in the region.

And among other things they can stop smuggling arms. They could stop -- or at least contributing arms. They can stop contributing to terrorist organizations. They can stop supporting Hezbollah. They could, in fact, encourage people within the Middle East to promote peaceful negotiations with Israel on a two-state solution. There are a whole series of positive things they can do.

Now, on a separate but equally important track, they can accept the offer that the United States and other nations have made to give them peaceful, civil nuclear power in exchange for their renouncing any programs, verifiably, that can lead to the creation of nuclear weapons. And we have certainly extended our hand in terms of much warmer, more constructive relations, should they do so.

UNIDENTIFIED FEMALE: Is it fair to say the Bush administration still considers Iran's role largely negative inside of Iraq?

SNOW: Again, what we have seen -- let me -- I'm going to twist it in a different direction. We would love to see them to start playing a positive role.

UNIDENTIFIED FEMALE: Has you seen anything positive? I mean, why would you believe this might be a positive role?

SNOW: We don't believe. We just -- as I just said, Martha, let's see what the actions are. You've characterized accurately the situation which is we have a statement. Let's see what happens in terms of actions and then we'll assess them.

UNIDENTIFIED MALE: President can talk about trades tomorrow (ph). Does he -- he'd like to have fast track authority to negotiate in trade deals?

SNOW: Yes, absolutely. What he wants to do is to continue to have trade promotion authority every other president has had. It is the ability to negotiate in good faith trade agreements without there later being changed by Congress, which means you have to go back to the table and kind of renegotiate.

It is an important device in extending free trade and also allowing negotiators to operate effectively.

LEMON: And that's Tony Snow, the White House spokesperson, talking about reports that Iran wants to increase ties, its ties with Iraq, including everything from military to banking.

Tony Snow there saying that Iran is bolstering by doing that, is bolstering militias and insurgents in Iraq and the also region. And he would like to see Iran take a more positive role in getting that region back on track. So Tony Snow responding on that. If anything else comes out of that, we'll bring it to you. But if you want to keep watching and listening to that press conference you can go to CNN.com/Pipeline.

Well, how low will they go? Up next, the president's popularity sinks even more in the polls. How could the number figure end the next race for the White House? That's coming up.

PHILLIPS: American made cluster bombs used against Hezbollah. Did Israel violate the rules? Ahead in the NEWSROOM, a State Department report. Could it affect future arms deals?

LEMON: And a casual walk in the woods becomes a fight for survival.

(BEGIN VIDEO CLIP)

NELL HAMM, RESCUED HUSBAND FROM MOUNTAIN LION: His life was in jeopardy and we were fighting for his life.

(END VIDEO CLIP)

LEMON: Look at the pictures. He was attacked by a mountain lion, saved by his wife. That story is straight ahead in the CNN NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: A home away from home for military families in need. This is the newest Fisher House. Two of them are being dedicated in Texas today. We're following the live event right now. Actually, we're going to -- we're monitoring, actually, right now, and we're going to dip in.

Actually, they're watching a video presentation now of all the various troops that have been injured throughout the war in Iraq. You can see Senator Hillary Clinton side by side with Senator John McCain. A number of injured troops from various wars, including Iraq, right there next to them.

Now, the homes that we've been talking about, these Fisher Homes, allow military families to be close to loved ones who are being treated at nearby medical centers, including a brand-new center for the Intrepid. That's a state of the art rehab facility that's also being dedicated today.

CNN's Anderson cooper is there, and tonight "ANDERSON 360" reports on the toughest battle: healing heroes. You can catch that at 10 p.m. Eastern.

And musician and activist John Cougar Mellencamp is in Texas for the dedication of the Fisher House. He's going to join us live from San Antonio with more on taking care of the troops who put their lives on the line. That's next hour from the CNN NEWSROOM.

LEMON: Well, it's a small area of your brain no bigger than a silver dollar, but scientists believe it could play a big role in helping smokers kick the habit.

John Lawrence reports.

(BEGIN VIDEOTAPE)

JOHN LAWRENCE, CNN CORRESPONDENT (voice-over): For years millions of smokers have struggled to kick the habit. Now researchers say they have found a region of the brain that may hold the secret to getting people nicotine free.

BILL LLOYD, UNIVERSITY OF CALIFORNIA-DAVID MEDICAL CENTER: They found out that a group of smokers that had suffered a stroke that involved specifically that small area deep inside the brain called the insula, when these people recovered from their stroke, they didn't want a cigarette. They had no trouble quitting. They had no cravings.

LAWRENCE: The insula oversees urges and addictions. Stroke victims whose stroke did not damage the insula had a different result.

LLOYD: They went out and found another large group of stroke victims, all of whom were smokers, and their strokes did not involve the insula. And when they recovered from their strokes, most of them just went right back smoking, and when they tried to quit, they had the urge.

LAWRENCE: The findings were first reported in the latest edition of the journal "Science". Scientists are hoping that the discovery will lead to new treatment that focus in on the insula.

They also think it may help people who are addicted to other substances, as well.

I'm John Lawrence, reporting from Atlanta.

(END VIDEOTAPE)

PHILLIPS: So, how low will they go? Up next the president's popularity sinks even more in the polls. How could the number figure into the next race for the White House? We'll tell you.

LEMON: MySpace turns the tables on sex predators and teams up with people who track them. Liar beware. That's ahead in the CNN NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: T.J. Holmes, what is the story you're working for us out of California?

T.J. HOLMES, CNN ANCHOR: To California, a man that police out there are calling one of the most prolific child molesters, maybe the most prolific child molester in this country's history has been sentenced to 150 years in prison.

Essentially maybe here a life sentence for this man, Dean Schwartzmiller, a gentleman you're seeing right there. When he was arrested back in 2005. And when he was arrested by San Jose police what they found at his home was quite disturbing. Books, notebooks, memoirs, pages upon pages of written accounts of molestation of abuse of young boys.

Now, in this particular case out in California, in San Jose, he was convicted of molesting, abusing two 12-year-old boys. Eleven felony counts and one misdemeanor count here is what he was convicted of. And now he's getting 150 years in prison.

The case itself, quite disturbing. They say over the years, over really the past three decades, Dean Schwartzmiller has essentially just been abusing victims all over the country in several states, hundreds even of accusers. He has convictions in several states, even more arrests in several states.

But, again, this is a man they called really one of the most prolific child molesters in this country's history. But now, he has been sentenced to 150 years in prison for molesting and abusing two 12-year-old boys out in San Jose, California -- Kyra.

PHILLIPS: All right. T.J., thanks for the update.

LEMON: After more than five years and several delays, Microsoft's newest operating system will be available at the stroke of midnight. Susan Lisovicz is at the New York Stock Exchange with all the details for us.

Lots of people awaiting this, aren't they?

SUSAN LISOVICZ, CNN CORRESPONDENT: Yes, a lot of geeks, Don. I know you were very excited about the...

LEMON: Are you calling me a geek? Are you calling me a geek? That's all I want to know.

LISOVICZ: I'm gauging your interest in this.

LEMON: Happy Monday to you, too. It's good to see you, as usual.

LISOVICZ: It's good to see you. I'm curious at your reaction to this one. It is kind of sophisticated, but then, again, it's coming from Microsoft and Bill Gates.

The latest version of windows is called Vista. There will be several variations, but Microsoft expects the home premium version to be the attraction for most consumers. It will sell for $300 -- $239. It can be upgraded from Windows XP for $159.

After spending $6 billion to develop Vista, Microsoft is planning one of the biggest marketing blitzes of all time. It says it's its biggest launch ever.

Today in New York, for instance, dancers scaled five stories above ground to display images of Vista and Microsoft Office 2007 icons. Can I just mention it is below freezing here in New York City.

Tomorrow the company's CEO, Steve Ballmer, will be inside and he'll greet customers at a Best Buy in Manhattan.

And with Comp USA, Best Buy, Circuit City openings in stores late tonight, the rollout of Vista is being likened to the release of video game consoles. Many retailers will offer door buster deals and will have NFL players on hand to sign autographs. Basketball star LeBron James is also lending his celebrity to the ads.

All in all, Ad Age says Microsoft is spending $500 million to promote Vista. So, what do you think, Don?

LEMON: It's a big to-do and let's hope those -- what is it, dancers -- they have some thermals under those tights. Because it's -- it's really cold.

LISOVICZ: Well, they're expending a lot of energy, but, it is -- yes, it is about 17 degrees here in Manhattan.

LEMON: Yes, and I think one thing, at least -- two things. They said this is better for children for monitoring. There they are, those dancers. For monitoring and keeping children safer on the Internet, at least. What are the experts saying about this?

LISOVICZ: Well, that's actually a very good point, is the greater security and reliability. A lot has changed in the last five years. And one of the big changes is that we've seen how vulnerable we are when we're on the computer, and especially children.

This will offer better search capabilities and, for serious gamers -- listen up, Don -- it has more realistic graphics.

But getting the system on to your computer could be tricky, so this is a downside. One big hurdle: you'll need serious hardware to take advantage of Vista's best features. Only the most expensive versions offer the new graphics and Arrow interface. So you may have to install more memory or a bigger hard drive. And even if you have a new PC that is labelled as Vista-ready, it still may not be capable of running on the premium versions. Any PC, in fact, that's more than a year or two old, is probably not compatible with Vista.

LEMON: Always a catch.

Yes. And it's a big catch if you have to spend on a new computer as well. Shares of Microsoft, in the meantime, are flat, overall stocks doing a little bit better than that.

(STOCK MARKET REPORT)

LISOVICZ: Coming up, you might not want to rush to file your 2006 tax return, because some of the 1099 info you get may be wrong. I'll have details next hour.

You're watching CNN, the most trusted name in news.

PHILLIPS: Hello, again, everyone. I'm Kyra Phillips, live at the CNN World Headquarters in Atlanta.

LEMON: And I'm Don Lemon.

He's been an outspoken critic of the war in Iraq, but he's firmly committed to taking care of wounded and recovering troops. John Mellencamp joins us live from San Antonio at the dedication of a new facility to do just that.

You're live right here in the CNN NEWSROOM.

Did Israelis fight fair in Lebanon? The Israeli government says it takes seriously a U.S. State Department report that it may have violated a weapons pact with Washington. A preliminary report, just sent to Congress, cites the use of U.S.-made cluster bombs in last summer's fight against Hezbollah.

Joining us now, CNN State Department correspondent Zain Verjee. Zain?

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Don, the state department is investigating Israel's use of U.S.-made cluster bombs in its fight against Hezbollah last year. As you mentioned, it's essentially a preliminary report. It's been sent off to Congress. It's a classified report, so we don't have details of what's specifically in it, but we understand from State Department officials who have told CNN that Israel likely violated a key agreement with the United States about the use of those cluster bombs, essentially targeting civilian areas and causing casualties.

The State Department spokesman, Sean McCormack, spoke a little while ago at the briefing, and here's what he had to say.

(BEGIN VIDEO CLIP)

SEAN MCCORMACK, STATE DEPARTMENT SPOKESMAN: It is a determination based on the facts that we, in a preliminary -- preliminary finding -- I have to emphasize preliminary, it's not a final judgment -- that there may likely could have been some violations of that agreement. So, under the law, we are required to report that to the Congress. And that is the step that we are taking today.

(END VIDEO CLIP)

VERJEE: Officials have told CNN also that it's important that, if there has been a violation, to hold Israel accountable. We understand that this report is entirely fact-based and that it is very, very technical. And one official telling CNN that it's going to take Congress a while just to get their heads around it. So the State Department is going to wait to hear from Congress next, to see what to decide, because there have been no policy recommendations in this report. Don?

LEMON: Zain, we heard from Sean McCormack at the State Department, but have we heard anything from Israel on this?

VERJEE: Yes, we have. Israel is saying, Look, while the State Department is pursuing ahead with their own investigation, Israel is connecting one, as well. They're also saying, Look, we're cooperating with the investigation. The spokesman for the Israeli embassy in Washington told CNN this: "Israel provided a detailed response to the administration's request for information on our use to halt Hezbollah's unprovoked fire against our civilian population centers.

"Israel suffered heavy casualties in these attacks," the statement went on to say, "and acted as any government would in exercising its right for self-defense." Israel says that they do not deliberately target civilians and during the war, Hezbollah was essentially using villages and civilians as shields, and Israel was really left with no choice. But they go on to say that the weapons are legal and the methods are legal.

LEMON: Zain, is there any precedent to this? Has this happened before? Any report like this to Congress ever?

VERJEE: There was. Back in 1982, after Israel invaded Lebanon, there was something that happened here in the United States. There was a report, it did go to Congress. And it was the same sort of accusation, using U.S.-made cluster bombs in civilian areas. The Reagan administration, at the time, did take action and they essentially banned the sale of weapons to Israel for a number of years, but experts have said that that was essentially really symbolic, because Israel went ahead and managed to make its own munitions, of which it is a big supplier of now.

LEMON: Zain Verjee at the State Department, thank you so much for that report.

PHILLIPS: Two years to go until the next presidential inauguration, but almost six Americans in ten wish the Bush presidency were already over. CNN's senior political analyst, Bill Schneider, here with a closer look at the newest polls.

Now, Bill, you have been crunching some of the numbers. It's adding up to a lot of trouble for the president. Doesn't seem like it's getting any better.

BILL SCHNEIDER, CNN SENIOR POLITICAL ANALYST: No, in fact, the latest batch of polls we have here -- five polls taken in mid-January -- and they all show the president in very bad shape. Here they are. You can see that first one, 30 percent is the Newsweek poll, that is the one taken after the president's State of the Union -- it's actually January 24th and 25th. Just 30 percent approval. The average of the five polls is 32 percent. Notice the CBS poll in the middle, CBS News, at 28 percent. That is really a very bad figure, when a president dips into the 20s.

Why should the president care about his approval ratings? He can't run for re-election again. Well, because they are a measure of his clout. If a president's approval ratings drop as badly as this, it means he has less ability to get things done, less ability to get his program passed. He'll be facing more defiance from Congress, including members of his own party, and that's exactly what's happening to this president. PHILLIPS: And Bill, not only that, but even when the presidency is up, this is something that he has to live with the rest of his life, the worst ratings since Nixon.

SCHNEIDER: That's right. Well, at least that 28 percent rating is very, very bad. The average, remember, is 32. But when -- if he's dipping into the 20s, getting below 30 percent here, he's getting into very bad territory, indeed. That's where his father was in 1992 before he was defeated after one term. It's where Jimmy Carter was before he was a one-term president tossed out of office. It's where Richard Nixon before Watergate, as you indicated. It's where Harry Truman was in 1952 when he decided he would not run for another term.

What it effectively means is a lot of Americans consider this presidency over.

PHILLIPS: Not only the presidency, but just what's happening in Iraq. I mean, take a look at the poll, I think it was last week that we talked about it, Bill, with all of you and the support for the war in Afghanistan, now 52 percent of Americans opposed to that. I mean, Iraq is tainting everything.

SCHNEIDER: Yes, there is a big spillover effect from Iraq. The war in Afghanistan was always more widely supported. It was the war that the United States went into just after 9/11. It was supported not just by the American people, but by the entire world because that was a country taken over by the Taliban. It was the base from which al Qaeda attacked -- planned its attack on the United States. And now most Americans, a narrow majority, but you're seeing Americans turning against the war in Afghanistan. Clearly, a spillover because of very angry feelings about what the United States is doing in Iraq.

PHILLIPS: All right. Tell me about this "Newsweek" poll.

SCHNEIDER: Well, the "Newsweek" poll shows that 58 percent of Americans say they wish the Bush presidency was over. And as I indicated, you know, that's what happened to other presidents when their approval ratings dropped this low. Now, the voters have done what they could to mike that statement clear by voting for a Democratic Congress. And in that "Newsweek" poll, nearly two-thirds, 64 percent said they don't think the Democratic Congress has been assertive enough in challenging this president on Iraq. Of course, they just took over this month, but they're willing to be considering some resolutions in the next week or two to challenge the president. But the public wants them to be more assertive in challenging the president, specifically on the war in Iraq.

PHILLIPS: All right. I've been wanting to ask you about this because I got a chuckle from it. Senator Hillary Clinton in Iowa this weekend talking to voters, having a little fun.

Let's take a listen.

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SEN. HILLARY RODHAM CLINTON, (D) NEW YORK: What in my background equips me to deal with evil and bad men?

(END VIDEO CLIP)

PHILLIPS: OK, now, Bill, she came forward and said, "I'm not talking about my husband, what do you mean?"

But, OK, who's she talking about, Bill?

SCHNEIDER: Well, I don't know the question she was asked, but obviously, it appears to be her ability to lead the world and the country in the war on terror. She's introducing herself to Iowa voters. She's one of the best-known figures in the country. Almost 100 percent of Americans have an opinion about Senator Clinton, good or bad. But in Iowa, what's surprising is, you know, she hasn't campaigned there. She hasn't been there since 2003. Iowa voters are stubborn. They're the first in the nation caucus. They want to see the candidate. They want to touch them. They want to hear them up front, up close and personal. So she's really going to Iowa to introduce herself, because while she is number one in the polls among Democrats nationwide, voters in Iowa say, "We just haven't seen enough of her." So, she's starting out there as of this weekend.

PHILLIPS: Well, and she even said, "Look, you want me to be more relaxed, have more fun, crack a few jokes here and there. Now you guys are giving me a hard time because I'm talking about the evil men in my life."

But still, I mean, the women laughed, they identified.

SCHNEIDER: That's right. It is a very personal vote, the vote for president is the most personal vote Americans cast. This is someone that's going to be in their living rooms for a long time. And that's one reason why Iowa and New Hampshire come first. Those are small states. It's not because they're representative. It's because they're small and they can get a personal feel for these candidates, exactly what Iowa voters, caucus goers are doing right now.

PHILLIPS: Thank you, Bill Schneider.

LEMON: Everybody thought he would make it, or maybe we just hoped. Barbaro took our breath away with his dazzling Kentucky Derby win and again when he broke down second into the Preakness Stakes two weeks later. What followed was a superhuman effort to save a superstar athlete. But Barbaro's owners and doctors always said it was not about status or bloodline or stud potential, it was just about the horse.

Well, today those owners and doctors sadly decided that Barbaro's latest setback, an abscess in the right rear hoof, would be his last. The bay colt was put to sleep this morning at a Pennsylvania hospital that had been his home for about eight months. Owner Roy Jackson said it was the right thing to do.

PHILLIPS: Straight ahead, a casual walk in the woods becomes a fight for survival.

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UNIDENTIFIED FEMALE: His life was in jeopardy and we were fighting for his life.

(END VIDEO CLIP)

PHILLIPS: Attacked by a mountain lion, saved by his wife. That story straight ahead in the NEWSROOM.

LEMON: And he's written about pink houses, but now John Mellencamp's dedicated to the Fisher House. Up next in the NEWSROOM, he joins us live from San Antonio with more on taking care of troops who put their lives on the line.

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LEMON: Fair to serious, now critical. The worsening condition of a 70 year-old California man who was mauled last week by a mountain lion. Jim Hamm has undergone at least two operations and doctors are said to be worried about infection.

CNN's Chris Lawrence reports Hamm never would have made it to the hospital if it weren't for his wife.

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CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): Bandages can't begin to cover the puncture wounds and torn scalp, but Jim Hamm is only alive because of his wife, Nell.

NELL HAMM, WIFE: His life was in jeopardy. And we were fighting for his life.

LAWRENCE: Nell is 65 years old. Jim is 70. They go hiking two, three times a week but have never seen a mountain lion before last week, when a lion like this one pounced on Jim.

JIM HAMM, SURVIVED MOUNTAIN LION ATTACK: So he just wants to pin me down and start eating. He doesn't care.

LAWRENCE: It knocked Jim flat on his face.

J. HAMM: Then he got me in the mouth, and I got my thumb in his eye. And I jammed my thumb into his eye up to my knuckle.

LAWRENCE: Nell grabbed the biggest log she could lift and hit the animal's head as hard as she could.

J. HAMM: She was beating him the whole time. She was worn out from beating him. She said she didn't think she could beat him anymore. She was exhausted.

LAWRENCE: Finally, the jaws loosened and let Jim go.

So did she do the right thing?

UNIDENTIFIED MALE: She did exactly the right thing. That was to fight back. Not give up.

LAWRENCE (voice-over): Park ranger Maury Morningstar says you can't outrun a mountain lion.

Sightings like this one in residential areas are increasing. Attacks are still extremely rare. But three years ago a lion killed a biker who may have been kneeling down to fix a flat tire.

(on camera) We're more of a target...

UNIDENTIFIED MALE: Yes.

LAWRENCE: Because we're smaller.

UNIDENTIFIED MALE: Right. We're smaller. We look about the type of size of their type of prey. So that's the idea of we want you to stand up. Put your hands above your head and start yelling and screaming at it.

LAWRENCE (voice-over): The cat that attacked Jim was shot and killed. On examination, it looks like it hadn't eaten in weeks.

N. HAMM: I feel very blessed that Jim is alive, and I'm so very thankful for that.

LAWRENCE: Nell says they fought side-by-side, the same way they've done everything for the 50 years they've been together.

Chris Lawrence, CNN, Eureka, California.

(END VIDEOTAPE)

PHILLIPS: A dress rehearsal for Oscar night. The Screen Actors' Guild hands out its awards. We're going to hear for the winners straight ahead from the NEWSROOM.

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PHILLIPS: The SAG is not one of Hollywood's favorite words. fifty-one weeks out of the year it doesn't mean anything good. This week, though, it means honor and glory and just maybe more honor and glory on Oscar night.

CNN's Sibila Vargas recaps last night's Screen Actors' Guild awards.

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SIBILA VARGAS, CNN HOLLYWOOD CORRESPONDENT, AMERICAN MORNING (voice over): The world of film and television collided in a star- studded extravaganza at the Shrine Auditorium in Los Angeles for the Screen Actors' Guild Awards. (On camera): While the critics have spoken about the work of such performers as Helen Mirren and Forest Whitaker, at an awards show where the winners are chosen by their fellow actors, how would their peers decide?

(Voice over): Already crowned Hollywood royalty both Whitaker and Mirren continue to reign. Whitaker was honored for his outstanding performance in the lead role for "The Last King of Scotland," while Helen Mirren was chosen for "The Queen". The four-time winner was also honored for her performance as Elizabeth 1st in the television movie category.

HELEN MIRREN, ACTRESS, "THE QUEEN" AND "ELIZABETH I": It's incredibly exciting, but it's fleeting. And one has to recognize that fact as well. You know, you can't sort of hang on to it. You have to enjoy the moment, and then let it go.

VARGAS: Oscar nominees Eddie Murphy and Jennifer Hudson both took home actor statues for their supporting work in "Dreamgirls."

EDDIE MURPHY, "DREAMGIRLS": I've done all different types of movies and do something and step outside of what you do, and try to do something a little different, and for it to be well-received is -- that's a really great feeling.

JENNIFER HUDSON, "DREAMGIRLS": One we I'm -- I'm what -- winning the Golden Globe, the next week, I'm nominated for the Oscar, and winning the SAG Award in the middle of it! And then one day I'm interviewing with Oprah, the next day I'm interviewing with Barbara Walters. It's like -- ah!

ANNETTE BENNING, ACTRESS: The actor goes to the cast of "Little Miss Sunshine."

VARGAS: Perhaps the evening's biggest surprise came when the independent comedy, "Little Miss Sunshine", was honored for outstanding performance by a cast in a motion picture.

UNIDENTIFIED FEMALE: Hello. Um, I don't know. Who do you want to thank?

VARGAS: In the television categories the cast of fan favorite "The Office" was recognized as outstanding ensemble in a comedy series. The cast of "Grey's Anatomy" was recognized for their outstanding work, both as an ensemble, as well as individually. Miss Chandra Wilson taking home a statue for her work.

CHANDRA WILSON, "GREY'S ANATOMY": It's about those 10 cast members, sitting over there -- and the other one in rehab. You all just hold me together.

VARGAS: Sibila Vargas, CNN, Hollywood.

(END VIDEOTAPE)

PHILLIPS: And in the next hour of the CNN NEWSROOM , we're going to hear more from Eddie Murphy in that pretty fun interview he did about those awards. You won't want to miss it.

LEMON: No, don't want to miss that one. it's going to be very interesting.

Well, he has written about pink houses. But now John Mellencamp is dedicated to Fisher Houses. Up next in the NEWSROOM, he joins us live from San Antonio with more on taking care of troops who put their lives on the line.

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