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Anna Nicole Smith Legal Drama Continues; JetBlue Tries to Win Back Customer Support

Aired February 20, 2007 - 15:00   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 at the CNN World Headquarters in Atlanta.
The battle over burial: Howard K. Stern spells out what he says Anna Nicole Smith would have wanted.

Can't buy love? Well, JetBlue says it's willing to spend millions to win back the affections of disgruntled customers.

And serious questions over that proposed satellite radio merger. Our Susan Lisovicz is tuning in on all the details.

You're live in the CNN NEWSROOM.

It's the top of the hour, and they're fighting over her body and her baby -- the main players in the Anna Nicole Smith drama all in court today in two separate hearings more than 2,000 miles apart.

In Florida, the drama centers on Howard K. Stern on the witness stand.

He just took the witness stand again, Susan Candiotti, after a brief recess.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: He is there now. That's right.

Howard Stern, Anna Nicole Smith's longtime partner, is front and center on the witness stand right now, trying to prove to this court that he should have the remains of Anna Nicole Smith, not her mother. He has said he wants to take her back to the Bahamas to be buried.

Now, on the stand, he has testified so far to the court that he did have an intimate relationship with Anna Nicole Smith and was her lawyer as well. He also testified that she was inconsolable when her son, Daniel, died, and that he, on Anna Nicole Smith's behalf and at her request, purchased two double burial plots back in July. He even presented the contracts for that in court to try to, again, indicate that this is what she wanted. She wanted to be buried next to her son in the Bahamas.

(BEGIN VIDEO CLIP)

HOWARD K. STERN, ANNA NICOLE SMITH'S PARTNER AND ATTORNEY: I had pictures that I showed her. So, she picked out the two double plots side by side that Daniel is currently resting in and where she wants to be as well.

(END VIDEO CLIP)

CANDIOTTI: And, even though they had a so-called commitment ceremony in the Bahamas, Stern also just testified moments ago that they had planned to get married this very week in the Bahamas.

Also, in court, you are seeing two other people that include Anna Nicole Smith's mother, as well as her ex-boyfriend, Larry Birkhead, a model from out in California. They are teaming up together against Stern. Birkhead, the boyfriend, is expected to testify, along with Ms. Arthur, that he thinks that Smith's mother should be able to get the remains of her daughter to take her back to Texas. Remember, Birkhead claims that he is the father of the child -- a lot of issues to be played out as yet, a lot of testimony yet to be heard -- Don.

LEMON: All right, Susan Candiotti, if anything happens, we will come back to you live. Thank you so much for that.

And CNN's Pipeline service is streaming those proceedings in Florida live. Just go to CNN.com/Pipeline to start watching that.

Back in the air with a pledge to stay there -- JetBlue trying to save face and customers, after almost a week of delays and cancellations.

Our senior correspondent, Allan Chernoff, is talking to passengers at New York's JFK Airport. He joins us now.

Interested in what folks are saying there, Allan.

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Don, operations are back to 100 percent here in New York, but passengers are still having some trouble, trouble before they even get to the airport.

Many people are calling ahead, trying to make sure that their flight is actually going to depart, and depart on time. And they are calling and calling and calling, and they simply can't get through.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Well, that's impossible. You couldn't get through. I tried for hours, but I kept trying online. Online, you get the same information, and, then, two hours before we just arrived at the airport, I tried again on the phone, and you get that, due to the volume, you can't get through.

(END VIDEO CLIP)

CHERNOFF: So, she arrived two-and-a-half hours early for a flight to Orlando, which is scheduled to take off this afternoon.

Some people also checking on the Web sites, and they're having difficulty there -- the airline saying they are going to upgrade their Web site. They are also promising a bill of rights to customers, which will include vouchers, if you are delayed on the tarmac. So, for example, if you are delayed for three hours, sitting in the airplane, waiting to take off, JetBlue is saying you will get $100 towards another ticket.

If it's five hours, you will get a full round-trip voucher. Of course, that may not be enough to satisfy some customers. The other problem people are having, well, baggage -- as a result of what has happened over the past week, many people are still missing their bags. JetBlue is saying they hope, by the end of the day, to get those bags to their clients -- back to you, Don.

LEMON: Well, you're the guy who would know this, because you have been talking to a lot of passengers there. Do you think they're going to lose a lot of customers over this? I guess what I'm asking, is there a lot of loyalty there?

CHERNOFF: There is a lot of loyalty. Many people have flown JetBlue for a long time. And, remember, they're a low-fare airline. And there is nothing like cheap fares to attract customers. So, lots of people are very loyal.

But, of course, there are those that are swearing, never again, especially those people who were stuck on board for five, six, even longer, very long hours on that airplane -- Don.

LEMON: Well said.

Allan Chernoff, thank you so much for that.

A few more hours, then, it's up to the jury. The trial of Lewis Scooter Libby is winding down, with final arguments from both sides. Libby is accused of lying to the FBI and a grand jury about how he learned of a CIA operative's identity. Prosecutors say it's -- quote -- "not a case about scapegoating or bad memories."

The defense disagrees, saying Libby made good-faith efforts to tell the truth.

The case should go to the jury tomorrow.

The war on terror is definitely on, but the numbers may be off. A new report says the feds are using sloppy statistics to back up their progress.

Let's crunch the numbers now with CNN justice correspondent Kelli Arena.

Hi, Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Hi there, Don.

Well, it sure seems like the Justice Department is having a very hard time keeping track of how it's doing in the war on terror. The inspector general released a report today, which says that, in most cases, the DOJ got it wrong when it kept records of terrorism-related cases. For example, federal prosecutors counted immigration violations or marriage fraud and drug trafficking as terrorism cases. In other areas, it actually under-counted its terrorism successes. Now, the reason this is important is because this tracking system is really the only way that the public or Congress can gauge how well the war on terrorism is going, figure out what's working, what's not working, and where to put money.

So, if the stats are not correct, it could mean the difference, literally, between life and death. I mean, this is a dangerous world we live in.

LEMON: So, Kelli, how are they going to correct this problem?

ARENA: Well, the DOJ says: Wait a minute. You know, we have under-reported in some areas, and, in some places, we're accurate. We have a program in place to -- to -- to make sure that our -- our statistic-keeping is correct. The FBI is making great efforts on this front.

There is some disagreement when it comes to anti-terror. Justice would argue: Wait a minute. If we're looking at credit card fraud, for example, that's an anti-terrorism measure. The I.G. says: Well, wait. If there is absolutely no terrorism connection, it's not -- so a little bit of a gray here, as well.

LEMON: All right, Kelli Arena, our justice correspondent, thank you so much for that.

ARENA: You're welcome.

LEMON: Well, fast and getting faster -- a tidbit of intel on the terrorists of 2007 from America's newly sworn director of national intelligence.

President Bush swore in retired Vice Admiral Mike McConnell today at Boeing Air Force Base outside of Washington. McConnell says the U.S. is dealing with an ever-changing enemy.

(BEGIN VIDEO CLIP)

MIKE MCCONNELL, DIRECTOR OF NATIONAL INTELLIGENCE: Today's threats move at increasing speeds. The time needed to develop a terrorist plot, communicate it around the globe and put it into motion has been drastically reduced. The timeline is no longer a calendar; it is a watch. While the threats have changed, our responsibilities endure.

(END VIDEO CLIP)

LEMON: McConnell will oversee the nation's 16 intelligence agencies, including the CIA and the FBI. The position was established in 2004, on the recommendation of the 9/11 Commission. McConnell replaces the first national intelligence chief, John Negroponte, who is becoming deputy secretary of state. Safe and sound, thanks to a beacon, a dog, and the dogged efforts of rescuers -- ahead in the NEWSROOM, the 911 tapes from that rescue mission to save three climbers plucked from peril on Mount Hood.

And a deadly train blast in India leaves some survivors fighting for their lives and police on a determined search for suspects -- the latest straight ahead right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

LEMON: Well, it might be one of the quickest kidnap ordeals in Mideast history. Palestinian sources tell CNN, two American women and a British woman were kidnapped in the West Bank today, and freed less than an hour later -- the apparent motive, medicine.

Now, sources say a wounded militant seized the woman at a checkpoint near the town of Nablus. The man apparently hoped to exchange the hostages for money, so he could buy medicine -- no word on why there were -- they were released or what happened to that kidnapper.

Well, some very detailed sketches, but no suspects in custody in the train bombing that killed 68 people yesterday in India.

CNN senior international correspondent -- correspondent Satinder Bindra has the latest from New Delhi.

(BEGIN VIDEOTAPE)

SATINDER BINDRA, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): Janat Ali (ph) and others in his family worry and wait outside New Delhi hospital. Their cousin, 40-year-old Rana Shokatali (ph) and his family were on the train attacked late Sunday night in northern India.

Ali (ph), his wife and a 1-year-old baby survived the blast, and are being treated here. But their 15-year-old daughter and four other of their children died. Janat Ali (ph) was able to talk to his cousin in the hospital.

"He told me there was a blast," he says, "and then there was smoke everywhere. Suddenly, someone opened a window, and that increased the intensity of the fire."

The fire and smoke were so intense, Ali (ph) and his wife jumped off the train still cradling their 1-year-old.

"My cousin was then so overcome with smoke and gas," he says, "he could not get back on the train."

He watched his children die.

Ali (ph), his wife and baby have severe burns from the blast.

(on camera): Ali (ph) is a Pakistani national. He came to India with his family to attend a wedding. Now, because of what he may have seen, he's a critical witness. And Indian police officials have been talking to him.

(voice-over): The explosions occurred very close to Ali (ph). Authorities are also talking to other survivors. Police released sketches of two people they say planted crude bombs that were detonated with digital timers on the Pakistan-bound train.

"These two people started arguing with the train's railway police," he says, "so they told them to get off the train when it slowed down. They got off the train at 11:30 p.m. Fifteen minutes later, the blast happened."

Rather than the usual blame game after a terrorist incident, both India and Pakistan say their ongoing peace process will continue. Pakistan's foreign minister, Khursheed Mehmood Kasuri, is in India's capital for three days of talks.

Janat Ali (ph) says, like many Indians and Pakistanis, he, too, wants peace.

"The people who attacked this train," he says, "were devils. I can't blame any government. I just want both countries to stay together."

But others are worried only about family. They light candles for relatives fighting for their lives at this hospital.

Satinder Bindra, CNN, New Delhi.

(END VIDEOTAPE)

LEMON: Well, coming up: serious questions over that proposed satellite radio merger. Our Susan Lisovicz is tuning in on the details.

Plus, this:

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: ... have different views, but it doesn't mean that we can't sit and talk about it and explain to each other. You don't have to totally understand, but you do have to respect.

(END VIDEO CLIP)

LEMON: A cultural exchange between Iran and America hits home for a student with ties to both countries -- the story ahead in the CNN NEWSROOM.

(COMMERCIAL BREAK)

LEMON: Well, look at that. Guess where that is? You see the beads? It's Bourbon Street -- thousands of people lining Bourbon Street in the French Quarter today for none other, Mardi Gras.

It is Fat Tuesday. And, so, they're going to blow it out right -- is -- someone is wearing an Anderson Cooper mask. Do you see... (LAUGHTER)

LEMON: ... right in the back?

They're going to blow it out, because Lent starts tomorrow. So, they have got 40 days of 40 nights of being good and not drinking, right? This is a live look, another shot along Bourbon Street.

I wonder if Susan Lisovicz, if she's ever been to Mardi Gras.

(LAUGHTER)

LEMON: She's going to talk about this merger from Sirius and XM.

Serious stuff happening in the radio sector on Wall Street.

SUSAN LISOVICZ, CNN CORRESPONDENT: You didn't even know. I have got...

LEMON: Oh, look.

(LAUGHTER)

LISOVICZ: Check this out.

(CROSSTALK)

LEMON: Hey, throw me something, Mrs. I will throw you -- there you go.

(LAUGHTER)

LEMON: Now, give me yours. Throw them in here.

(LAUGHTER)

LISOVICZ: I might break the camera, and then I would be in deep trouble.

LEMON: Yes. There is some skepticism...

(CROSSTALK)

LEMON: ... about things XM thing, though, right?

(LAUGHTER)

LISOVICZ: Absolutely. There's no question about it.

It sounds good on -- on paper, but they're the only two names in town in this very niche part of radio. Sirius is home to Howard Stern, the shock jock. It has proposed a nearly $5 billion takeover of its arch rival, XM, which is home to Oprah and friends.

So, yes, the merger would combine the only two players in satellite radio. And, yes, that has raised plenty of red flags for lawmakers and antitrust regulators alike.

The FCC actually has a rule on its books from 1997 that bans any one company from owning two licenses. So, for the Sirius-XM merger to go through, the FCC would have to toss that law, then get the green light from the Justice Department. The companies have to prove that satellite radio does compete with other media, like iPods, cell phones, and Internet radio.

And, then, they then have to assure regulators that the combination would best serve the public by increasing the quantity and diversity of programs available.

You can better believe, though, that terrestrial radio, which is the radio we grew up on, not a fan of this merger -- Don.

LEMON: Or, as I call it, free radio, right?

LISOVICZ: Free radio...

LEMON: Yes.

(CROSSTALK)

LISOVICZ: ... yes.

LEMON: Now, what about those subscribers whose satellite radio fees -- because you have got to buy the radio. You have got to buy all that stuff. What does it mean for them?

LISOVICZ: Well, we really don't know exactly yet.

This is a long way from actually coming -- becoming reality. Both companies now charge about the same, about $13 a month, for their service. They wouldn't say for sure if that would stay the same, but XM says they would have a strong incentive to keep prices low, to attract more subscribers.

Remember, they are both unprofitable. A combination would also provide consumers with more programming choices. Sirius has exclusive agreements with Ford and DaimlerChrysler to have radios pre-installed in their cars. XM has partnerships with GM and Honda. And XM says subscribers would not have to buy new equipment -- Don.

LEMON: Susan Lisovicz, real quick, how are the markets? I guess we want to know how the markets are doing.

(LAUGHTER)

LEMON: And you were checking just now, as I was asking, right?

LISOVICZ: Yes.

(LAUGHTER)

LISOVICZ: Yes. Let the good times roll. It's -- we had a great week last week, the best week of the year for the three major averages. And we're looking at, you know, 12800, or you could even say 13000. The blue-chip average came within four points of 12800. It looks like we will have another record close. Investors are weighing a 2 percent drop in crude prices today, solid earnings from Wal-Mart.

The Dow is up 21 points. It's enough for it to be in record territory -- the Nasdaq composite, meanwhile, gaining 16 points, or two-thirds-of-a-percent.

And that is the latest from Wall Street. I will be back in 30 minutes for the closing bell -- back to you, Don.

LEMON: Thank you.

And I got your beads. Thank you so much.

(LAUGHTER)

LEMON: Right through the camera.

(LAUGHTER)

LEMON: All right, Susan, we will check in a little bit later.

James Brown' family is meeting in Aiken, South Carolina, today, hoping to work out details of his burial. Family squabbles have kept Brown without a final resting place since his death on Christmas morning.

Brown's partner, Tomi Rae Hynie, told Larry King she wants the godfather of soul buried just as he wished.

(BEGIN VIDEO CLIP, "LARRY KING LIVE")

TOMI RAE HYNIE, PARTNER OF JAMES BROWN: I know what James wanted. And that's what I'm fighting for.

LARRY KING, HOST, "LARRY KING LIVE": What did he want?

HYNIE: James wants to be bury on the property and he wants to be buried in the ground.

KING: On the property where the -- where the house is?

HYNIE: Our home.

KING: Mm-hmm.

HYNIE: We -- we had always planned to turn it into a museum. That was never -- that was something James and I talked about...

(CROSSTALK)

KING: So, he wants something like Presley? HYNIE: Yes, absolutely, absolutely.

KING: Mm-hmm.

HYNIE: And -- and James and I talked about this day for many years. And we knew everything that was going to happen, even down to the horrible things that have happened.

(LAUGHTER)

HYNIE: He knew it was going to happen.

But he wants to be in the ground. He wants 37 songs up on top of the biggest rock you can find. "Fret not thyself because of evil- doers." He said it in every interview he ever did. And that is what he wants on top of his grave.

(END VIDEO CLIP)

LEMON: And also at stake here is control of James Brown's estate, estimated to be worth between $100 million and $200 million.

Now, this viewer's note for you: Don't forget to watch "LARRY KING LIVE" every night, 9:00 p.m. Eastern, right here on CNN. And it appears he is going to be doing breaking developments on the Anna Nicole Smith case.

They differ on the war, but share what may be a bruising battle to square their presidential ambitions with their views and votes on Iraq. Hillary Clinton and John McCain -- straight ahead in the CNN NEWSROOM.

(COMMERCIAL BREAK)

LEMON: Hello, everyone. I'm Don Lemon, live at the CNN world headquarters in Atlanta.

A call for help -- we're just getting tape of the 911 phone call that summoned a rescue team to Mount Hood. You will hear it next, right here in the CNN NEWSROOM.

It is the bottom of the hour. Creature comfort and high-tech help, they both helped three stranded climbers survive a snowy ordeal on Oregon's Mount Hood. The climbers fell into an icy canyon Sunday. They were rescued yesterday and are recovering nicely today. They huddled with their dog, Velvet, for warmth. Plus, they carried an electronic locator, telling rescuers right where to look.

And those rescuers went through quite an ordeal themselves, as CNN's John Roberts found out.

(BEGIN VIDEO CLIP)

JOHN ROBERTS, CNN SENIOR NATIONAL CORRESPONDENT: ... in terms of the conditions, blizzard conditions, whiteout conditions, cold temperatures. How difficult was it for you all? BOB ALEXANDER, PORTLAND MOUNTAIN RESCUE: It wasn't pleasant. There was certainly the high winds. Visibility was really poor. We had to put in a line of wands to follow on the way back out. So, yeah, it was not a nice day on the mountain.

(END VIDEO CLIP)

LEMON: And one of the rescued climbers is in the hospital with a head injury, but doctors say she seems to be in good condition.

And this just in -- we're getting more on this story this afternoon.

Let's go to the newsroom, T.J. Holmes, who is -- you have been listening to the audio of those 911 calls from Mount Hood. What have you heard, T.J.?

T.J. HOLMES, CNN CORRESPONDENT: Yes.

It's tough, really kind of to -- to make out a lot what is being said. But you can certainly get the idea here of what was happening.

This now we are going to let you hear is a -- a snippet of these 911 tapes that have been released by the Clackamas County Sheriff's Department, the 911 call they received after the group of climbers, which were, of course, on that mountain, they saw three of their comrades go down, fall over that ledge there. And the 911 call was placed.

Listen.

(BEGIN AUDIO CLIP)

UNIDENTIFIED MALE: Are you with the people who are injured?

UNIDENTIFIED MALE: They fell into -- down an edge. And we can't see them. We can't make communications with them. We tried lowering down on a rope, and we couldn't...

(CROSSTALK)

UNIDENTIFIED MALE: How -- how far did they fall?

UNIDENTIFIED MALE: We don't know. (INAUDIBLE) can't find them.

UNIDENTIFIED MALE: Do you see them?

UNIDENTIFIED MALE: Yes. (INAUDIBLE)

UNIDENTIFIED MALE: OK. We see somebody.

UNIDENTIFIED MALE: (INAUDIBLE)

UNIDENTIFIED MALE: So, you were coming down, correct?

UNIDENTIFIED MALE: Yes, we were. Can you see three of them or just one?

UNIDENTIFIED MALE: I don't know what I see.

(END AUDIO CLIP)

HOLMES: So, there you're hearing, and getting an idea of what was happening there.

But, again, that was one of the climbers there. And you could hear in the background there, they're -- they're -- it sounds like the -- the group of climbers that saw their friends go over the ledge are -- are whistling and yelling out names.

The guy was saying to the 911 operator: We don't know how far they have fallen down. We can't see them.

And he is asking some of these fellow climbers: Do you see one of them? Do you see all three of them?

So -- so, again, it's almost kind of hard to make out, but you can certainly get the idea of what was happening there, a scary moment, when they, essentially, saw three of their friends just kind of disappear over a ledge, and didn't know exactly what had happened to them.

And -- and, certainly, they attempted their own little rescue effort there, and just couldn't get it done, and then had to call 911 -- so, a lot more to these tapes. We're certainly going through them. And -- but, yeah, it just gives us another -- another idea, another insight into what was happening on that mountain -- Don.

LEMON: Yes. And, you know, those are just into the CNN NEWSROOM.

HOLMES: And, for later on, we're going to get them transcribed, so the viewers can understand a little bit better what they are saying.

LEMON: T.J., thank you so much for that. It's cold. It's craggy and it's been known to be cruel, but Mt. Hood is still one of the most climbed peaks in the world. Here's a CNN fact check.

(BEGIN VIDEOTAPE)

LEMON: Mt. Hood dramatically soars to an elevation of 11,235 feet. A British Navy officer and his expedition were the first Europeans to see the mountain in 1792. They named it after British Admiral Lord Samuel Hood. Mt. Hood is the second most climbed mountain in the world after Japan's Mt. Fuji. The most popular time to climb is from May to mid July, but climbing is permitted year-round. The first ascent was in 1845. Since then more than 130 people have died trying. One of the nation's worst climbing disasters occurred on Mt. Hood it in 1986. Seven teenagers and two adult leaders froze to death while trapped in a storm. In 1976 three high school friends were rescued after surviving nearly two weeks in a snow cave on Mt. Hood. A dramatic rescue attempted four years ago when a helicopter crashed on Mt. Hood while trying to retrieve the bodies of three climbers. The crew amazingly survived. Mt. Hood also has had its fair of unusual successful climbs. The first wedding was held on the summit in 1915. Four hundred eleven people became the largest single group to climb to the top of Mt. Hood in 1936 and the famed climbing dog ranger is said to have climbed to Mt. Hood more than 50 times.

(END VIDEOTAPE)

LEMON: Now to the fight for Iraq. Baghdad, Taji, Tikrit, more bloody violence across Iraq today. The most spectacular attack used a chemical tanker to kill or sicken scores of people. CNN's Arwa Damon filed this report.

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN CORRESPONDENT: The violence across Iraq really demonstrating the various methods that the insurgency here has to target not only the Iraqi people, but also the Iraqi security forces and the U.S. military. Just to the north of Baghdad in Taji, a bomb placed inside a tanker carrying chlorine gas exploded outside of a restaurant, killing at least six Iraqis and wounding or poisoning more than 105.

In the capital Baghdad, an explosion outside of a fuel station also left five Iraqis dead and in the evening, mourners who were inside a funeral tent were the target of a suicide bomber. That attack also left five Iraqis dead, at least another 15 wounded. This violence coming as the Iraqi government, Iraqi security forces, and the U.S. military are trying to crack down on the capital Baghdad, but the violence they left over 20 Iraqis dead and over a hundred wounded, underscoring that just because there's a crackdown going on, this does not mean an end to the violence any time soon. Arwa Damon, CNN, Baghdad.

(END VIDEOTAPE)

LEMON: They're on opposite sides of the campaign trail with opposing views on Iraq. But Democratic Senator Hillary Clinton and Republican Senator John McCain both face skeptical voters. CNN's senior political analyst Bill Schneider has more.

(BEGIN VIDEOTAPE)

BILL SCHNEIDER, CNN CORRESPONDENT (voice-over): Hillary Clinton and John McCain are senators and Washington insiders. They are both facing voters who are angry and apprehensive about the war in Iraq and suspicious of Washington politicians who sound calculated and cautious.

UNIDENTIFIED FEMALE: I remain troubled, though, about your position on Iraq and your unwillingness to apologize to the American people for your vote to authorize the war. Could you explain? SEN. HILLARY CLINTON (D) NEW YORK: If the most important thing to any of you is choosing someone who did not cast that vote or who has said his vote was a mistake, then there are others to choose from. But, to me, the most important thing now is trying to end this war.

SCHNEIDER: Senator Clinton's response is not to be defensive.

CLINTON: If the president won't end this war before he leaves office, then I will and I have a very good idea about how that can and should be done.

SCHNEIDER: McCain has the opposite problem. Republican audiences like his support for President Bush.

SEN. JOHN McCAIN (R) ARIZONA: I believe we can succeed. I can't guarantee success, but I guarantee failure will result in chaos.

SCHNEIDER: But they worry that his close identification with the war will make it difficult for him to get elected, especially if President Bush's troop buildup does not go well.

McCAIN: This is a terribly difficult time and Americans and people of Chicago are angry and frustrated and sad.

SCHNEIDER: McCain ran as a maverick in 2000. This time, his close ties to President Bush and his embrace of the Iraq cause are making him look more and more like the establishment candidate, at a time when both he and Senator Clinton are discovering, the voters are in an anti-establishment mood. Bill Schneider, CNN, Washington.

(END VIDEOTAPE)

LEMON: Remember, CNN is a place to see the first presidential debates of the new campaign season. Mark your calendar. It's April 4 and 5 and that's when CNN will co-host Republican and Democratic debates live from New Hampshire. And on November 4th, exactly one year from Election Day, CNN will air a Democratic candidate's debate. That will be live from Nevada.

Iranian boats in Iraqi waters. What is Tehran up to in the Persian Gulf? Find out more straight ahead in the CNN newsroom.

(COMMERCIAL BREAK)

LEMON: This just in, some said it was a cry for help. Remember the big news over the weekend that Britney Spears had shaved her head? Now there is something new. We're going to go to Harvey Levin, TMZ. He's reporting it and he's got the very latest for us. Harvey, what do you know?

HARVEY LEVIN, TMZ.COM: We know that Britney Spears has checked herself back into rehab. It happened today and it happened on the urging of her family, including her mother. She is in an inpatient facility in Los Angeles. We have kind of narrowed it down to one of two, but we can't say for sure which but definitely it's in Los Angeles. And, you know, this is, you know, from all accounts, almost essential to this woman because she was just in a complete downhill spiral.

LEMON: You know what, Harvey? Just listening to the news reports, it's been said that the person who she went in to ask to cut her hair refused to do it so she did it herself. Even this woman who was supposed to cut her hair said it was a cry for help and she sounded like a little girl who needed her family and needed her mother.

LEVIN: Interestingly though, her mother and others convinced her last week to check into rehab in Antigua at a facility that Eric Clapton founded and she went there and we know that she lasted less than 24 hours and just said it's not for me and she left. So her family has been really frustrated trying to get here into rehab. She's got a serious problem and she needs help and maybe this time she's willing to get it.

LEMON: We sort of watched this, watched her divorce and all the other rantings, her going out late with some of the celebs there in Hollywood, Paris Hilton, what have you. A couple of scandals happened after that. Then you have this. A lot of people said she was in a downward spiral. But just coming across the wires, Harvey, according to the Associated Press, your website as well, but it appears that we asked that the media respect her privacy, as well as those of her family and her friends at this time. That's according to her press person.

LEVIN: Correct.

LEMON: Yeah. What more do you know about this? Is this out of character do you think?

LEVIN: Well, I mean look, she's always been kind of a free spirit. She basically keeps her own counsel. She does not listen to a whole lot of people and she's been having, you know, serious problems.

LEMON: You know what, Harvey what I want to ask you? A lot of celebrities lately, we've heard of people going to rehab centers for years. We've heard about the Betty Ford clinic and tons and tons of celebrities going. But it appears now at an astronomical rate that these celebrities are checking into rehab and then checking out sometimes 24 hours later.

LEVIN: Yeah, I mean, some of it is kind of flighty. And, you know, sometimes people do it just for damage control. This really seems -- and this is from all that I know -- this is a situation where forget about damage control, image, anything else. She really needed to go in.

LEMON: Yeah. What are you hearing from your sources there? Do we know what it is? Is it depression? We don't know. Is it depression?

LEVIN: I mean, I know what it is from everybody I'm talking to, it's not depression. But I don't really want to be more specific than that. I mean, she's got a problem and clearly she had a substance abuse problem that forced her in a week ago and things have not changed and, you know, she needs help.

LEMON: Harvey Levin from TMZ, thank you very much. You know, this is always big news, especially on the web when there is a Britney Spears story, it is often the most clicked on story on any website. I think she was the most Googled person of the year last year. So we'll be right back in the CNN NEWSROOM. There is news, Britney Spears voluntarily checked into rehab, according to TMZ and also to the Associated Press. We're back in a moment.

(COMMERCIAL BREAK)

LEMON: That's what that is (INAUDIBLE) down there, plus, if can't be there we're going to take you there live. There it is, Bourbon Street and Mardi Gras. We have a coworker who is on vacation. He's hanging out. (INAUDIBLE) name is Andreas (ph). We hope he's being a good boy down Mardi Gras, Fat Tuesday. It's all over though at sundown. You got to be good for 40 days and 40 nights, no more sinning. There you go, a live shot of New Orleans. Mardi Gras through the eyes of a child. CNN's Soledad O'Brien and acclaimed film maker Spike Lee took on a special project asking 11 students from around New Orleans to document their lives as their city tries to come back. What better time to do it than Mardi Gras and here are three of the young documentarians in their own words.

(BEGIN VIDEOTAPE)

CORNELL CARNEY (ph): Hi. My name is I'm Cornell Carney. I am 16 years old. I live in New Orleans. I'm from Charmaine (ph), Louisiana. I go to a school in New Orleans (INAUDIBLE) high school.

BRITNEY ROUEZ (ph): Hi, my name is Britney Rouez. I'm a 10th grader at Charmaine High School. Before the hurricane, just went to the parades just to have fun. Now, you go to parades to actually meet with family, meet with long friends you haven't seen in a while. In the show that we are here and we are standing strong for a place that we love and live.

JEREL (ph) (INAUDIBLE): I am Jerel (INAUDIBLE) and I'm 16 years old. I live in New Orleans, Louisiana and I attend (INAUDIBLE) senior high school. This is my school marching.

(END VIDEOTAPE)

LEMON: That was a report in conjunction with young documentarians along with our Soledad O'Brien. You can keep tabs on those children of the storm. Just tune into "American Morning" weekdays at 6:00 a.m. Eastern right here on CNN.

Let's check the weather now. A winter storm with extreme conditions is heading east. We've heard that a lot in the last couple of weeks. Rob Marciano, he's keeping watch in the CNN weather center. How's it going?

ROB MARCIANO, CNN METEOROLOGIST: Hi Don. Just watched some moisture roll across the deep south, across the Gulf coast, eastern Texas, parts of Louisiana. This could put a damper on the big easy here, but most of the action looks like it wants to stay north of I- 10. We'll see if that pans out. Temperatures mild so that part of the equation is being taken care of, 70 degrees right now in New Orleans with some cloud cover and some sprinkles around most of the rain north, 71 in Texas and in Jackson I should say, 78 degrees in Dallas, Texas.

Some of that air is trying to make its way northward. All right, this is something we haven't seen in a while, some moisture heading across the Ohio River valley, the Midwest and we're not seeing a whole lot of snow so that's good news. Cleveland back through Dayton into Cincinnati a little bit of rainfall, actually some heavier precip firing up just to the east of Dayton heading into parts of West Virginia, so be aware of that. In spots across the northeast later on tonight, it may be cold enough to see a little bit of wet snow out of this system so nothing too drastic. Certainly New York won't see a whole bunch, just a couple of flakes. It won't stick very much. 32 degrees in Boston so you may see some wet snow but it will be mostly north and west of the bigger cities tonight so that's good news.

The other main issue aside from the delays, which there are a few, 50 minute delays in New York LaGuardia and 15 minute delays right now in Newark. Is the Pacific northwest storm system which is bringing serious wind and some rain with it across parts of Oregon and Washington with winds gusting here at times to 60 miles an hour, but getting some much-needed snow. It's been pretty dry across this part of the country so they will take it and they'll take it now especially with those climbers off the hill. Good news there. Happy Mardi Gras. Don, back to you.

LEMON: Happy Mardi Gras and happy fat Tuesday, Rob Marciano and thank you for the weather report by the way.

MARCIANO: You bet.

LEMON: Take it and now especially with the climbers off the hill. Good news there. Happy Mardi Gras.

Iran is facing another UN deadline with an offer the west probably can't refuse. Iranian President Mahmoud Ahmadinejad says his country will stop enriching uranium if western nations do the same. Ahmadinejad says Iran will return to negotiations but only under quote, a fair atmosphere. The White House is unimpressed. Tomorrow is the date set by the UN Security Council for Iran to suspend enrichment or face further economic sanctions.

Testing the waters? The U.S. military tells CNN that on at least two separate days last week, Iranian control boats, patrol boats rather crossed into Iraqi waters at the northern end of the Persian Gulf and they stayed for several minutes before Iraqi forces told them to leave. Our sources say the Iranian boats did not approach oil terminals and so far at least the U.S. doesn't consider the moves aggressive or provocative.

Iran is a mystery to many Americans. Some students are trying to change that by reaching out to others around the world. For one in particular, the issue is personal. CNN's Jill Dougherty reports. (BEGIN VIDEOTAPE)

JILL DOUGHERTY, CNN CORRESPONDENT (voice-over): For 22-year-old Mitra Miri, talk of the U.S. possibly attacking Iran hits home.

UNIDENTIFIED MALE: When we're talking about the military option in Iran what we're talking about is strategic bombing.

DOUGHERTY: Miri is Iranian-American, to be precise, Iranian/Mexican/American.

What do we do to try to understand Islam? We come here to this room today.

DOUGHERTY: Taking part in a video conference on Iran with students at two U.S. universities and two locations in the Middle East, Miri, a senior at the University of Texas, says she's worried.

MITRA MIRI, IRANIAN-AMERICAN: I see Iran as many faces. I see my cousins, my aunts, my uncles, my (INAUDIBLE) over there. And knowing that I've had many of my Mexican side of the family sent over to Iraq to fight, it scares me to think that they could potentially be fighting against each other.

DOUGHERTY: She has visited Iran three times getting to know her family and how the reality of life there defies stereotypes.

MIRI: As I got to know my cousins, who are all very young, they love pop culture. They love the western world and they listen to Britney Spears, Michael Jackson. And I don't know. I realize that they want to learn from us. They, you know, they do love Americans. Their hearts bled when 9/11 happened.

DOUGHERTY: In 1979, Mitra Miri's father, then a student in the U.S., was caught up in the furor over the Iranian hostage crisis.

MIRI: A lot of people were scared at that time. And all they knew was Iranians took over the embassy.

DOUGHERTY: During this teleconference, the U.S. media came in for a lot of criticism for presenting a simplistic view of a highly complex situation and for painting Iran as a black hole of danger to the world. Despite high profile threats by Iran's president, the experts at this teleconference point out there's a wide variety of opinions among the Iranian people and within its government, something like the U.S. Mitra Miri says her family often sits around the table talking about Iran and the U.S. and maybe Tehran and Washington can do the same.

MIRI: We all have different views, but it doesn't mean that we can't sit and talk about it and explain to each other. You don't have to totally understand but you do have to respect.

DOUGHERTY: Jill Dougherty, CNN, Washington.

(END VIDEOTAPE) LEMON: There's some breaking news into the CNN newsroom. We want to get to CNN's Jamie McIntyre. It's about Walter Reed hospital. Jamie?

JAMIE MCINTYRE, CNN CORRESPONDENT That's right. Don, as you may be well aware, the focus of a big controversy has been some of the outpatient facilities at Walter Reed where wounded veterans of Iraq and Afghanistan war come for treatment after they've been released from Walter Reed hospital. I'm across the street at one of those facilities now where CNN has just had an exclusive interview with the Army secretary, the top civilian of the Army who pronounced himself unaware of the appalling conditions at some of these outpatient facilities, including this renovated hotel across the street. He said that this was a problem that was a leadership failure and that the Army was going to move swiftly to correct the situation both at this facility, which was the focus of a "Washington Post" expose that broke over the weekend and a review of other facilities around the country.

Both the Army secretary and the vice chief of staff, the second highest general in the Army, said that they had been to Walter Reed many times but they were completely unaware of the conditions at this facility right across the street where many soldiers get outpatient treatment after they've been released from the hospital. The Army said it's not a resource problem. They have the money to do the job right and they say they are going to institute corrective action, a plan that will report directly to the vice chief of staff of the Army to oversee this problem around the country to correct the conditions.

LEMON: All right, Jamie, thank you so much. We look forward to seeing that interview. We will get back to you shortly possibly in the "The Situation Room."

So let's check in with CNN's Wolf Blitzer. He's standing by in "The Situation Room." It's also what is coming up at the top of the hour. Hi Wolf.

WOLF BLITZER, CNN CORRESPONDENT: Hi guys, thanks very much. We're going to have a lot more on Jamie's breaking news on the Walter Reed Army Medical Center. That's coming up.

Also overcoming the racial divide in American politics. Barack Obama's presidential campaign has the issue in the spotlight. I'll talk about it with Massachusetts Governor Deval Patrick. He's only the second African-American since reconstruction to be elected governor of a state.

Also closing arguments in the trial of former White House aide Lewis "Scooter" Libby. Has the prosecution effectively made its case? Our senior legal analyst Jeff Toobin standing by with more.

And the CIA leak case puts the spotlight on Libby's former boss, that would be the Vice President, Dick Cheney. Is his power now diminished? We will talk about that with former presidential advisor David Gergen, all of that coming up right at the top of the hour here in "The Situation Room." Back to you.

LEMON: Look forward to that. The closing bell and a wrap of the action on Wall Street straight ahead.

(COMMERCIAL BREAK)

LEMON: Susan, what is the big finish on Wall Street?

SUSAN LISOVICZ, CNN CORRESPONDENT: Well, the big finish is a story that we talked a lot about over the past week and that is JetBlue, Don. You know, JetBlue announced its passenger bill of rights because of the horrendous delays that stranded thousands of passengers nationwide, hundreds of them in New York. They were frozen, they were inconvenienced. We all feel badly for them. But you may not know about 90 people who were stranded in Bermuda for six days! Stranded for six days! Think of all the snorkeling!

LEMON: That's Bermuda, it may not be so bad.

LISOVICZ: (INAUDIBLE) says JetBlue will cover the expenses. That's how we'll go out with another record close for the Dow Industrials. See you tomorrow, Don. A nice rally for the Dow and the three major averages continuing the momentum we saw last week. Now to go to "The Situation Room" and Wolf Blitzer.

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