Return to Transcripts main page

CNN Live Saturday

Wildfires Continue To Rage In Nevada; Martha Stewart Gets Jail Time; Lance Armstrong Wins 13th Stage of Tour de France

Aired July 17, 2004 - 14:00   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.


FREDRICKA WHITFIELD, CNN ANCHOR: It is 2 p.m. on the East Coast, 11 a.m. out West. I'm Fredricka Whitefield at the CNN Global Headquarters in Atlanta.
Ahead this hour, Nevada's governor calls it the meanest ugliest wildfire he has seen. We'll go there for a live look.

Plus, Al Qaeda's elusive strategy. It turns out they are all written down in black and white. Find out what's inside.

Martha Stewart gets a jail sentence. She's sad and angry. Her fans are furious and her neighbors, we'll hear what they have to say.

First, a look at what's happening in the news.

A U.S. soldier has been killed in northern Iraq when a roadside bomb went off near his convoy, another soldier wounded. That brings the number of U.S. military deaths in Iraq to 895.

At least six other people were killed in car-bomb attacks in Iraq. One blast hit the convoy of the Iraqi justice minister, killing four people, most of them believed to be guards. The minister was not injured.

Palestinian Authority President Yasser Arafat has rejected the resignation of Prime Minister Ahmed Qorei. Qorei offered to step down during an emergency cabinet session, called after a state of emergency was imposed.

Keeping you informed, CNN, the most trusted name in news.

Wildfires now burning in three Western states threatened thousands of additional acres in California, Nevada, and Idaho. The most serious has burned more than a dozen homes in Carson City, Nevada. Extremely dry conditions are making it difficult for firefighters to bring the blaze under full control.

In Southern California, hundreds of residents are returning home for the first time since a fire broke out earlier this week, about 45 miles north of Los Angeles.

And Idaho is enduring its first major fire of the year. Hundreds of acres have been burned in the Boise National Forest. It's not expected to be contained for at least another week.

Back to Nevada, where the governor is calling the fire situation in Carson City mean and ugly. We get the latest on that fight from CNN's Ted Rowlands, who joins us live -- Ted.

TED ROWLANDS, CNN CORRESPONDENT: Well, Fredricka, the good news is that overnight firefighters really did get control of this fire, which has plagued them for the last couple days. As you mentioned has been very destructive. Overnight they were able to pull the containment level up to 50 percent.

And the real reason for that was because the wind shifted again late yesterday afternoon and basically push the fire back into itself, into an area that had already burned, giving firefighters an attack strategy to go full force at this fire.

And this morning, it is a very different story. Most folks are back in their homes. Firefighters say they expect containment by the end of the week. As you mentioned, it was a very fierce fire. The reason for it, all of the dry fuels, not only here in Nevada but also around the entire Western region.

You can see where all these regions got burned out, where 16 homes were lost. The amazing part is homes that were not lost. There are literally dozens of these types of situations scattered around the hillside here, where firefighters were able to set up in front of homes in defense against the flames as they came in. They would basically push the flames around the structures and save them.

So, 16 homes were lost, situations where they just couldn't do anything and they had to evacuate. But the vast majority of it, was this where homes were saved. There was a lot of appreciation from homeowners here this morning as they have come back to their homes to find them completely untouched.

A lot of signs saying thank you, firefighters. A lot of emotion up here, from the folks that not only lost homes but also from the folks that have their homes intact -- Fredricka.

WHITFIELD: Ted, what about the resources? Do firefighters feel they have enough to try and contain what's left of the 50 percent?

ROWLANDS: They do, yes. They think it's really after today because of the situation with the wind shifting and giving them a chance to hammer it. They say they did have the resources they needed yesterday to take advantage of that. And they're very pleased with the amount of resources here.

The problem that they foresee is later this summer, around the Western region, you mentioned all the fires burning actively now. It's expected to only get worse because of all the fuel, which is the result of about seven-year drought in the West. That's the real concern, not only here in Nevada but across the Western region.

WHITFIELD: Ted Rowlands, in Carson City, Nevada, thanks very much.

(WEATHER FORECAST)

WHITFIELD: Now to the war on terror, the FBI suspects that Al Qaeda may be changing its recruiting strategy. A federal alert tells local authorities the terrorist network appears to be looking for non- Arabs to carry out possible attacks on U.S. soil.

The notice does not mention a possible time, place, or method of any potential attack. The Department of Homeland Security has said terrorists might attempt to disrupt the November elections.

A link between Al Qaeda and Iran has reportedly surfaced in the 9/11 Commission's investigation.

An article in the upcoming issue of "Newsweek" magazine reports that Tehran may have offered safe passage and clean passports to Al Qaeda fighters. Investigative Correspondent Michael Isikoff says the connection turned up in a December 2001 National Security Agency memo.

(BEGIN VIDEO CLIP)

MICHAEL ISIKOFF, INVESTIGATIVE REPORTER, "NEWSWEEK": The report makes clear that the Iranian government did not have advance knowledge of the attacks. But it did have this -- arrangement with Al Qaeda, which is quite serious and actually in the view of many counter- terrorism officials, and some on the commission, goes far beyond any connections that Al Qaeda had with the Iraqi government of Saddam Hussein.

In effect, the Iranian security services, by having this arrangement, were acting as helping to facilitate the September 11 attacks, whether they knew about the ultimate goal of the September 11 attacks or not.

(END VIDEO CLIP)

WHITFIELD: "Newsweek" says the details are part of the 9/11 Commission's final report, which is due out next week.

"The New York Times" is also previewing the 9/11 Commission's report. The newspaper says the commission's report will include a recommendation of a new Cabinet level post that would coordinate all U.S. intelligence agencies. Elaine Quijano is in Washington with details.

Now, you are at the White House, Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Good afternoon, Fredricka.

White House officials here are not commenting specifically on that "New York Times" article that you just mentioned. But recently we have heard President Bush say that he is open to the idea of intelligence reform and the White House now saying the president welcomes the September 11 Commission's report as a kind of jumping off point for those discussions.

But the topic of intelligence has come up during a number of the president's campaign appearances, also during his presidential trips. The president saying that he feels the quality and quantity of the U.S.'s intelligence needs to be improved and that there needs to be more human intelligence and better coordination among agencies.

Those comments from the president came just days after the scathing Senate Committee report that found the U.S.'s intelligence in the run up to the Iraq war was flawed.

Now, President Bush's Democratic opponent, John Kerry, has also raised this issue. Yesterday during a campaign appearance, Senator Kerry said that he believed the first step was to reorganize the way intelligence was gathered. And he said it was long overdue that there be a coordinator of national intelligence in the United States.

If, in fact, it turns out that the September 11 Commission's report does call for a new Cabinet level intelligence position, it would not be a surprise. Commissioners have at least hinted at that idea before. The arguments for that new post would probably echo those along the same lines that we heard a couple of years ago when the new Homeland Security Department was created.

That was a move that President Bush actually opposed at first and this time around, there would likely be resistance at the Pentagon and at the CIA, in part, because those agencies would lose some of the authority they have over the multi-billion dollar budgets.

But the official response from the Bush administration, right now, is that they are looking forward to seeing the report, but not commenting on that "New York Times" article -- Fredricka.

WHITFIELD: Elaine Quijano, at the White House, thanks very much.

Al Qaeda, apparently, has its own military style handbook. It's a biweekly publication called "Al Battar". And it offers a valuable insight into the terrorists' strategies. Sean Callebs is on that story and joins us from Washington -- Sean.

SEAN CALLEBS, CNN WASHINGTON CORRESPONDENT: Fredricka, exactly, the U.S.-led war on terror may have scattered Al Qaeda leaders, but they are still in touch with the organization's rank and file.

The Internet is providing a virtual training ground and at the same time spreading the group's message of Jihad. One of its most effective tools, a relatively new online magazine called "Al Battar", which means "The Sword".

Publishing began at the start of this year and it comes out twice a month. "Al Battar" has all the makings of a well-produced online periodical. It focuses on such measures as cleaning and care of weapons, physical training for its foot soldiers, and the way to set up a safe house, as well as how to stage a kidnapping.

Terror experts who track Al Qaeda on the web say it is no surprise Iraq has seen a rash of kidnappings. Not terribly long after "Al Battar" focused one of its editions on this topic.

(BEGIN VIDEOTAPE)

GABRIEL WEIMANN, U.S. INSTITUTE OF PEACE: Now here we are with a wave of kidnappings. And it is just not the idea of kidnappings, it is a detailed description, who should be chosen as a target, where should the action be held, how should the hostage be kept, about negotiation, informing the media, all of this is detailed in many, many pages.

(END VIDEOTAPE)

CALLEBS: The number of terrorist-operated Web sites has shot up exponentially in the past few years. Experts say they now monitor more than 4,000 such Web sites. And authorities say it is impossible to shut them down.

Al Qaeda watchers say modern terrorist groups employ what they refer to as "computer geeks" to put out advanced, sophisticated online sites. And while it may seem as though it may be good for the U.S. to try to shut down as many of these sites as possible, experts also say many of the sites provide intelligence and so called chatter about the possibility of future Al Qaeda operations -- Fredricka.

WHITFIELD: Sean Callebs, in Washington, thank you very much.

The British Open, the Olympic trials and Lance Armstrong's big day in the Tour de France. We'll have the latest in the world of sports.

And Martha Stewart is looking at five months in jail. Hear what she wishes she had done differently and what her neighbors are saying now.

(COMMERCIAL BREAK)

WHITFIELD: Well, several time zones ahead of us, some American athletes have already turned in a good days work. Matt Morrison is here with a check of what's happening in the sports world. And let's begin with Lance, because all eyes are on him at the Tour de France. How's he doing?

MATT MORRISON, CNN SPORTS: Yes, it could be the cocktail hour over in Paris by now, but I don't think Armstrong is sipping any champagne just about yet.

Lance Armstrong turned in a dramatic and amazing performance today at the Tour de France. Stage 13, probably the toughest of the stages, overcoming a flat tire and charged to the lead as Lance Armstrong climbed up the Pyrenees Mountains, 7 climbs in all. And he is, taking the stage victory, his second stage victory, along with his team, in this tour, 17th stage victory in 10 years on tour.

And Lance Armstrong knocked more than 5 minutes off the overall lead. He's still in second place, but no just 22 seconds back. And Armstrong having a terrific Saturday at the tour.

WHITFIELD: That is remarkable, because he was 9 minutes behind at one point.

MORRISON: Couple of days ago, yeah. WHITFIELD: Wow!

MORRISON: 9 minutes, 35 seconds.

WHITFIELD: Now, apparently there's a little controversy involving another world famous cyclist, American.

MORRISON: Well, the most famous American cyclist prior to Lance Armstron was Greg Lamond. He won 3 Tour de Frances. Really put cycling on the map as far as the U.S. is concerned. And in a interview with ESPN, Lamond continues to talk a little about Armstron and alleged drug use, or doping, which has been something that was a subject 4 or 5 years ago.

And since then, he has not brought the subject up, but he now says that Armstrong and members of the U.S. Postal Team have threatened their business interests based on what Lamond has said in the past about potential doping.

So, we got a little controversy going on there with -- you'd hope that American cyclists would stick together. Now the 2 most famous names in American cycling history, not the case.

WHITFIELD: Oh, man.

All right. Well, let's talk a little bit about the British Open now. There are some other American contenders, but who are they?

MORRISON: Yes, well who are they. You've heard of some, you haven't heard of others, Skip Kendall took the halfway lead into today's third round at Royal Troon, but he fell off the pace a little bit. Tiger Woods came up, Phil Mickelson, also with a good day.

Tell you about Tiger. First of all, flat out of the shoot, very quick. Tiger Woods birdied 3 of his first 4 holes and had 4 birdies on the front 9. It looked like he was ready to charge right to the top of the leader board, but on the back 9 he gave 1 stroke back, so 4 birdies and a bogie, Tiger checking in today, signing off with a 3 under 68. He is at 4 under par. That is 4 shots off the lead.

Phil Mickelson with another good day. He also shot a 3 under 68. He stands at 6 under par through 3 rounds. And that is still 2 shots off the lead.

Skip Kendall, as I mentioned, he slid back a little bit. And he is at 3 under after 3 rounds.

The leader is another American you might not have heard, Todd Hamilton. A young man who, not as young as you might think, 37-years- old, but a guy in his first full season on the PGA tour. And he now leads the British Open by 1 stroke over Ernie Ells. He is at 8 under par. A real neat story.

WHITFIELD: Wow. That's pretty impressive.

OK. We're in the throws of a pretty big weekend for the Olympic track and field trials. Marion Jones, we know she's onboard for long jump, but 200 is still kind of iffy right now...

MORRISON: Right. You know, she's on board in the field events, this is track and field, and she did win a bunch medals as a sprinter, you'd like to see her running on the track. And she still has an opportunity to make the U.S. Olympic team as a sprinter. But she's really got to turn jets, Fredricka.

Last night, in the preliminaries of the 200 meters, well she came off the turn looking kind of strong. Here she is in lane one, you'll see her at the bottom of the screen as she hits the straight-a-way. Looking pretty good, but then she just absolutely fades. And Marion Jones here in the white, at the bottom of your screen, just sort of pulls up and finishes last in this heat.

She has the 10th best time going into today's semifinals in the 200. Can't really tell if this was her lack of effort, or she pulled up on purpose. Nevertheless, if she's going to make it as a runner for the Athens Olympics, she's really got to get going. She's got to come in strong today in the semifinals, just to make the finals and hopefully 1 of 2 spots there.

WHITFIELD: Wow. And we know all about the suspicions and all that, but girlfriend just had a baby a year ago.

MORRISON: Yes.

WHITFIELD: And that is still pretty remarkable performance to be out there.

MORRISON: Well, there's no question she's had to overcome a lot: on a personal level, of course, the innuendo of the U.S. Anti-doping Agency investigation, her boyfriend and the father of her child, Tim Montgomery, is actually accused of doping by the U.S. Anti-doping Agency. So, yes, there's a lot of pressure going on.

WHITFIELD: And he is not going to Athens.

MORRISON: He is not.

WHITFIELD: All right. Matt Morrison, thanks very much.

MORRISON: Thanks, Fredricka.

Well, if Lance Armstrong does manage to win a record sixth Tour de France, he will be riding a Trek bicycle. The company in southern Wisconsin has made each bike Armstrong has ridden to victory in the past five years. CNN's Keith Oppenheim spoke to some of the employees about Lance's chances at making history.

(BEGIN VIDEOTAPE)

KEITH OPPENHEIM, CNN CORRESPONDENT (voice over): Eric Lynn rides 30 miles to get to the office.

ERIC LYNN, TREK BICYCLES: I'm working on colors and graphics for a variety of brands here at Trek.

OPPENHEIM: As he works, results from the Tour de France stream in on the web. Lance Armstrong is clearly Eric Lynn's hero.

LYNN: He's a great guy. He really is. And what an inspiration.

OPPENHEIM: On the road, Lynn explained he's a believer that Lance Armstrong will do what no one else has done before, win the tour six times.

(on camera): Is that just optimism that comes on in a cornfield or is that real?

LYNN: Oh, I think it's real. He's shown that he knows what it takes to be there at the end.

OPPENHEIM (voice over): Trek says the bikes Armstrong rides are designed with him in mind, but anyone can buy them in stores.

(on camera): This is the frame of one of them and this dimple in the construction makes it more aerodynamic, good for flat courses. And down below, we have the other Armstrong bike, which is less aerodynamic, but super lightweight, critical for the mountain stages.

(voice over): For employees, any frame from the upper end Madone line, could go to the champion.

JOHN RILEY, TREK PRODUCT MANAGER: They really don't know. They might be building Lance's Tour de France winning bike.

OPPENHEIM (voice over): The attachment to Armstrong is intense here. Roxanne Fairberg (ph) created a graphic display of The Tour. She remembers a big day three years ago.

UNIDENTIFIED FEMALE: I met Lance Armstrong here.

OPPENHIEM (on camera): Here?

UNIDENTIFIED FEMALE: Here. And in fact, I finagled to get my picture taken with him.

(LAUGHTER)

OPPENHEIM (voice over): For Eric Lynn, the roads of Wisconsin are far from France, but as he rides, he hopes Armstrong's successes are not yet a thing of the past.

LYNN: We all know we're so lucky to be a part of it right now. And I hope it keeps on coming for a long time.

OPPENHEIM: Keith Oppenheim, CNN, Waterloo, Wisconsin.

(END VIDEOTAPE)

WHITFIELD: Well, she's always had a mixed relationship with her neighbors but how are they reacting to her court sentence? We'll take you live to Westport, Connecticut.

Plus President Bush's decision to skip the NAACP convention, how he plans to undo some of the damage. Straight ahead.

(COMMERCIAL BREAK)

WHITFIELD: Martha Stewart is no shrinking violet. Facing five months in prison and another five months attached to an electric bracelet, while under home detention. Stewart told ABC's Barbara Walters she is not afraid of prison, but she does have regrets.

(BEGIN VIDEOTAPE)

MARTHA STEWART: There are certain people that I wish I had never met.

BARBARA WALTERS, ANCHOR, ABC NEWS: Want to name any names?

STEWART: No, I'm not naming any names. But you can guess who they are.

And of course, you're angry. I lost my job. I have lost my position in my company. I am no longer the chairman and CEO of Martha Stewart Living Omnimedia.

(CROSSTALK)

WALTERS: Which you created.

STEWART: A great company, you know. So that makes me both angry and sad.

(END VIDEOTAPE)

WHITFIELD: Stewart told her supporters she will be back. And she urged them to buy her products and encourage advertisers who abandoned her magazine and television show to return. CNN's Deborah Feyerick has been talking with Stewart's neighbors in Westport, Connecticut -- Deborah.

DEBORAH FEYERICK, CNN CORRESPONDENT: Well, Fredricka, a beautiful day here in Westport. A street fair going on. Lots of art, lots of music and lots of opinions of Martha Stewart and the sentence she has received.

Joining me, Michael Udell (ph) and Laura Appleman (ph).

First of all, the sentence? What do you think of it?

MICHAEL UDELL, I think overall, given the fact that I don't believe that the authorities should have gone after her, and wouldn't have if she hadn't been a personality, having done that, something had to happen. And I think five months is probably about appropriate.

FEYERICK: Now, Laura, what is interesting about being here in Westport, talking to people is the town is not exactly circling the wagons around her. As a matter of fact, there's a lot of animosity towards Martha Stewart, who spent many years here building her business.

UNIDENTIFIED FEMALE: That's true. Some people feel she alienated then by some of her behavior related to the taping of her programs here in town. And just other personal experiences people have had.

I, personally, haven't had anything real personal with her, but I think that I have talked to other people that have. And, you know, the news isn't always good.

FEYERICK: Now, she said yesterday, some people said she sounded apologetic. Others think she just sounded indignant and she was again, blaming other people. What's your opinion on that?

UNIDENTIFIED FEMALE: I think she sounded a little too much hubris, still. I think the marketing effort maybe was a little bit inappropriate, the -- please buy my products effort.

I think she could have been more contrite. I think it might have helped her case on appeal. Without being a lawyer, I guess I feel this is an individual. I don't think she gets it yet that she did break the law.

Having said that though, I can say that I think maybe she was treated unfairly. I think she was a scapegoated. I think that there was probably some plan to bring this on. I mean, she did the bad deed, but on the other hand, I think, you know, she was unfairly treated because she's a celebrity.

FEYERICK: Do you think -- she said she would be back. What do you think, Michael? Will she be back?

UNIDENTIFIED MALE: I think she's going to be back because she's a detail person. And doesn't give up on anything, as far as I have ever been able to tell. From the one experience I had with her, she does what she wants to do, and she usually succeeds.

Michael Udell, Laura Appleman thanks again. Lots of divergent views right here on Main Street -- Fredricka.

WHITFIELD: Deborah Feyerick, thanks very much, from Westport, Connecticut.

Martha Stewart is talking to Larry King in her first live primetime interview Monday night at 9:00 Eastern. She also will take your phone calls, only on CNN.

With the presidential election less than four months away, has Vice President Dick Cheney become a political liability? We'll ask CNN Political Analyst Ron Brownstein.

Plus it, two campaign additions everyone agrees are an asset for the president. Barbara and Jenna Bush enter the spotlight.

And later on, has the end of the game finally come for Bobby Fischer? Those stories and more in the next half hour of CNN LIVE SATURDAY.

(COMMERCIAL BREAK)

WHITFIELD: Checking some stories now in the news, Palestinian Prime Minister Ahmed Qrei (ph) has offered his resignation but Palestinian authority Yasser Arafat has refused to accept it. In offering to step down Qorei cited failed peace efforts and a state of chaos in areas controlled by the Palestinian authority.

The battle against raging wild fires goes on this weekend in parts of the western United States. California, Nevada are two of the hardest hit areas. A blaze in northern Los Angeles County has charred more than 14,000 acres.

Five Pennsylvania miner who's narrowly escaped an accident that trapped nine others in a flooded tunnel for three days are suing the mine's owners and operators. The men claim they've suffered from posttraumatic stress, anxiety, depression and shock. Keeping you informed CNN the most trusted name in news.

Well it's just over a week before the first national convention in this year's race for the oval office. Democrats gather nine days from now in Boston. Ahead of the gatherings, both the Bush and Kerry campaigns are on the hunt for undecided voters. Today John Kerry's running mate John Edwards is courting voters in California. The nations biggest electrical prize. After his stop in the golden states, the senator from North Carolina heads to the hotly contested state of Florida.

Vice President Dick Cheney is putting his focus on the nation's heartland. This morning he attended a rally in Minneapolis. Speaking of Dick Cheney, he is still the focus of a lot of political speculation. Will he remain President Bush's running mate?

CNN political analyst Ron Brownstein is with us now from Los Angeles to talk about that issue and some other hot political topics. Good to see you Ron.

RON BROWNSTEIN, CNN POLITICAL ANALYST: Hi Fredricka.

WHITFIELD: All right well Cheney lately has been considered by some a liability and then just yesterday, we see him campaigning with a very popular Senator John McCain. How unusual is this?

BROWNSTEIN: Well it's very unusual. I think there has been very few elected officials, perhaps none other than John McCain who has campaigned for President Bush outside of their home state. Let's start with the obvious. There's only so much good that anybody can do someone running for president, any other politician. It's a very personal decision. Voters have a lot of information. Endorsements are of limited value.

But having said that within that context, John McCain is one of the few recognizable brands in American politics. I think he has a clear image with the public as someone who is independent, reform minded who reaches across party lines and the fact that John Kerry you know so publicly considered him as a possible running mate as well I think adds value to this embrace.

A further point I think that helps Dick Cheney and President Bush is that people know that John McCain disagrees with them on a lot of domestic issues and the fact that he feels that on balance, the ledger is still positive I think is a strong statement for the president.

WHITFIELD: Well interesting too that John McCain's name was kind of on a short list of possible replacements if the rumors were true in Washington if Vice President Cheney were to in some way step down.

BROWNSTEIN: Yes, well if rumors were horses, beggars would ride. Look, never say never when it comes to politics. If we get to the Republican convention and President Bush is in desperate straits somehow and he is trailing by double digits, who knows what will enter the realm of possibility. But right now this is not really something that we should be worrying about at this kind of high level.

The Bush family does not like to make this kind of decision under pressure. I think the president really tends to dig in his heels when people are asking him to remove people. Loyalty is an important family trait. The base likes Dick Cheney. And perhaps more importantly Dick Cheney is so personally identified with so many of the key decisions, especially the defining decision of this presidency, the decision to invade Iraq, the removing him I think would be seen at home and abroad as an effect of admission of error which is something else this president doesn't like.

WHITFIELD: Well perhaps something the Bush administration is worrying about is its image and alienating perhaps itself after refusing to speak before the NAACP last week and now next week, President Bush will be speaking before the National Urban League. Is that enough to make up for snubbing the NAACP?

BROWNSTEIN: Well snub or no snub, President Bush was going to lose the vast majority of African American votes. I think he only got like one in 12 in 2000, it is probably go to be somewhere around there in 2004. The Urban League is a somewhat more congenial environment for him than the NAACP; it is a more centrists to organizations, less perhaps even political, certainly ideological.

He's probably going to stress his ownership agenda, I would guess talking about increasing home ownership for minorities. Small business ownership for minorities. Those kinds of things where he can relate I think better to the urban league perhaps than the NAACP which might want to focus on civil rights and other issues where he has more conflict with the organized minority community.

WHITFIELD: All right, and over a week now, the Democratic convention. Very popular Senator Hillary Clinton, some would say she is also very polarizing will apparently be in the opening remarks introducing her husband, former president. But this didn't come without ruffling a few feathers. What happened?

BROWNSTEIN: Well as I understand it, the Kerry campaign feels that Hillary Clinton's office and staff were fine with the original arrangement, which was that she was going to be part of a group of woman Democratic senators speaking. There was a great deal of turmoil among her supporters who felt it was not giving her due, did not reflect her presence and stature in the party.

The solution they come up with I think though is a little odd if the point is to underscore Hillary Clinton's emergence as a force in her own right within the Democratic party, is the solution that you would pick for that to have her introduce her husband, the former president. I don't know. But the fact is that's what they'll end up doing. It will give her a primetime spot apparently on Monday night, which is one, the few that the broadcast networks, unlike the cable networks are covering so it will help enhance her visibility possibly for something down the road.

WHITFIELD: Ron Brownstein, thanks very much for joining from us Los Angeles.

BROWNSTEIN: Thank you.

WHITFIELD: Well after years of being sheltered from the spotlight, President Bush's daughters are helping their father campaign. CNN's Judy Woodruff takes a closer look at the Bush twins and their debut on the political scene.

(BEGIN VIDEOTAPE)

JUDY WOODRUFF, CNN CORRESPONDENT (voice over): So far, Jenna and Barbara Bush's days on the campaign trail seem to consist of walking and standing. And smiling for the cameras and for the crowds. But after so many years of being sheltered from the family business of politics, the Bush daughters' public debut is a big deal.

LAURA BUSH, FIRST LADY: I want them to be involved if they want to, but at the same time, you know, I worry about the pain that, you know, they might have because they didn't choose this life, you know, their dad did.

WOODRUFF: For a couple of 22-year-old women, this may be the best part of it, glossy glamour shots in the August issue of "Vogue" magazine. In an interview for "Vogue," the Bush twins broke their silence about their family, their futures and their decision to join their parents in the campaign.

Jenna is quoted as saying, "It's not like he called me up and asked me. They've never wanted to throw us into that world, and I think our decision probably shocked them. But I love my dad, and I think I'd regret it if I didn't do this."

Barbara and Jenna have had a White House connection for almost two-thirds of their lives with their grandfather serving as vice president and then president before their own father won the top job. And yet, glimpses of them have been fleeting. Many Americans may only remember this, their run-ins with the law over alcohol three years ago when they were under age.

L. BUSH: Our children ought to be totally left alone and allowed to have a totally private life. They're not public citizens. They didn't run for office.

WOODRUFF: Now they are adults and the protective shield has been lowered. Jenna appears to have been the more outspoken sister in the "Vogue" interview praising her parents' marriage, calling her mom cute with funny quirks and describing her father's interactions with her boyfriends this way.

"He's not the shotgun dad type. He's the joking around to the point where he scares the heck out of them type." What's next for the Bush daughters? With an English degree from the University of Texas, Jenna says she plans to teach. She is has applied for a job in an elementary school in Harlem.

Barbara graduated from Yale and majored in humanities. She plans to work with AIDS afflicted children in Eastern Europe and Africa. But their father's campaign comes first.

Judy Woodruff, CNN reporting.

(END VIDEOTAPE)

WHITFIELD: Why chess and politics just don't miss. Bobby Fisher's story political activities and where they've landed him now.

And people in trouble with the law, a look back at how Scott Peterson, and Martha Stewart fared this week. That is all straight ahead.

(COMMERCIAL BREAK)

WHITFIELD: A quick look now around the world. Tears of anguish are flowing in southern India where grieving parents are burying their children. At least 90 children died when a massive fire spread through their thatched roof schoolhouse. Early reports suggest the fire might have been caused by an electrical short in the kitchen.

A court in Oman has sentenced an American woman to death for arranging her husband's murder. Police say Rebecca Thompson confessed to hiring two Omanie (ph) assailants to kill her husband Mark. The oil workers body was discovered last December. Relatives say the couple had moved from the U.S. to Oman more than two years ago.

Suspected U.S. army deserter Charles Robert Jenkins is due to arrive in Tokyo tomorrow. The former army sergeant has been living in North Korea since 1965 when he deserted to that country. U.S. Ambassador Howard Baker says Jenkin's illness could delay his transfer to U.S. custody.

Fugitive chess champ Bobby Fischer finds himself in check held by Japanese authorities on an immigration charge and wanted in America. CNN's Atika Schubert reports.

(BEGIN VIDEOTAPE)

ATIKA SCHUBERT, CNN CORRESPONDENT (voice over): Bobby Fischer, chess prodigy and grand master was once a national hero. In 197 2, Fisher then 29 years old roundly beat world chess champion Boris Spassky from the Soviet Union. It was hailed as a victory in the Cold War.

Now 61, he is a wanted man. He has been a fugitive since 1992 when he attended a Yugoslav chess tournament in violation of U.N. sanctions. Famously spitting on a letter from the U.S. government that warned him not to go.

BOBBY FISCHER: So this is my reply to the order not to defend my title here. That's my answer.

SCHUBERT: After that, Fischer went underground shuttling between Europe and Asia amid rumors that he continued to play chess on the Internet under assumed names. He surfaced occasionally to broadcast anti-Semitic rants against his home country. The most controversial aired on a Philippine radio program just after the World Trade Center attacks

FISCHER: "This is really wonderful news. A sign for the (beep) U.S. to get their heads kicked in. ads kicked in."

SCHUBERT: He also boasted of his place in history.

FISCHER: "You know when I won the World Championship in 1972, the U.S. was a football country, a baseball country. But nobody thought of it as an intellectual country. I turned all that around single handedly."

UNIDENTIFIED MALE: This was I think a very risky move.

SCHUBERT: Yet he made a strategic error in coming to Japan. Fischer was detained Thursday at the Tokyo's Norwegian (ph) Airport on an immigration violation. Japanese and U.S. officials will not say whether Fischer will be extradited to the U.S. to face charges an (INAUDIBLE) end games with the man once hailed as the world's greatest living chess player.

Atika Schubert, CNN, Tokyo.

(END VIDEOTAPE)

WHITFIELD: Martha Stewart talked about her anger and sadness, but did she get off easy? We'll ask our legal experts. Plus a look at the scene outside the courthouse yesterday.

UNIDENTIFIED FEMALE: Can your media tell me what suit Ken Lay had? Was it an Armani or a Calvin Klein? I didn't hear that. You helped nail Martha.

WHITFIELD: More of what Martha defenders had to say ahead on CNN LIVE SATURDAY.

(COMMERCIAL BREAK)

WHITFIELD: From domestic diva to prison maven, a federal judge this week sentenced Martha Stewart to five months in prison and five months home confinement. The charges stem from her questionable Imclone stock sale. That's just one of the cases we'll discuss in our "Legal Roundtable" and joining us as usual every Saturday, criminal defense attorney Richard Herman, also Avery Friedman, who is a civil rights attorney and law professor.

Good to see both you gentleman.

RICHARD HERMAN, CRIMINAL DEFENSE ATTORNEY: How are you Fred?

AVERY FRIEDMAN, CIVIL RIGHTS ATTORNEY: Hi.

WHITFIELD: I'm doing pretty good.

All right let's talk about Martha Stewart off the top. She was tearful apparently in her statement to the judge. And I can't help but wonder if in cases like this, does a judge have kind of a scenario a sentence if the defendant speaks and is contrite versus a scenario b sentence if they show no contrition or don't talk at all? Richard.

HERMAN: No, I think this sentence was set in stone probably a few days before yesterday and it really didn't matter what Martha said before Judge Cedarbaum. But she had to temper her words. Because if she really does waste her money and take this appeal, if she should win the appeal and have a retrial which is all she's going to get if she wins.

The government could use any admissions that she may have made to Judge Cedarbaum in their case in chief against her. So that's why she had to temper what she said. But if she takes this appeal, which she's going to do, the bottom line is even if she wins the appeal, she's going to get a new trial and she cannot possibly win this case.

WHITFIELD: And you can't want to go through this all over again. Avery would you advise your client to just, you know, what, it's five months, it's the minimum recommended sentence. Just do that time and get on with your life after the fact as opposed to waiting maybe a year for an appellate process to begin or end.

FRIEDMAN: We saw two Martha Stewarts, Fredricka. We saw the one who was contrite and pretended to be very humble in front of the federal judge and then we saw an arrogant Martha Stewart. And by the way if she prevails in the Court of Appeals, which she will not, if she does, what she said on the courthouse steps will be considered by the federal judge.

I actually agree with Richard. I think she has nothing to gain if she thinks she's going to beat the rap. It's not going to happen. We saw a sin sickle person who actually if I'm not mistaken compared herself to Nelson Mandela. As if she's in that league. And it was, I think, awful.

WHITFIELD: And she did that in an interview following saying even good people go to jail.

HERMAN: Fredricka she got a split sentence, five months home. Five months prison. The judge stayed her reporting pending the appeal, which is unheard of, nobody really does that.

WHITFIELD: Do you think she got a break?

FRIEDMAN: No, it's not unheard of. I think a lot of it had to do with the fact that Walter Dellinger, one of America's great heavyweight federal appeals lawyers is part of the team. I think that had a lot to do with it.

(CROSSTALK)

HERMAN: It had to do with the Blakely case that is what it is all about.

(CROSSTALK)

HERMAN: The sentencing guideline issue.

FRIEDMAN: It did not fit into this. I'm convinced that it was is the legal team, her new lawyer who has won amazing appeals for criminal defendants, convicted defendants. I think that's what happens here.

HERMAN: Whether she wins this appeal; she's going to trial again which she's going to lose. She made $100 million yesterday.

WHITFIELD: That may take place with the Martha Stewart case.

Let's move on to the Scott Peterson case, which had an awful lot of unusual developments this week. Everything from some blood found on sheets in his home to the questionable hair samples, et cetera. What is the prosecution doing here, Avery?

FRIEDMAN: Well, I think the prosecution again, theoretically is continuing to try to methodically build their case. A lot of it for example this week went to the concrete factory as the prosecution put it to create anchors to sink the body.

When it got right down to it, again the prosecution put the methodical evidence on but all they were able to show were basically markers where the picture was where the concrete was put together. So very, very little effective evidence this week.

WHITFIELD: Well Richard, how potentially incriminating might it be there are inconsistencies in Scott Peterson's statements to investigators and even on taped interviews immediately following his wife being missing?

HERMAN: OK, Fredricka those inconsistencies are definitely not a plus for Scott Peterson. But the prosecutor has lost complete credibility with this case beginning with the meringue incident, the opening, the obstruction by detective Brocchini, and now this incident this week in the cement factory where the mold that was supposedly used witch the prosecutor told this jury was used, the piece of cement, the anchor did not fit in that mold.

He's lost credibility, he is looking to give this guy the death chamber and he has lost all credibility with this jury. No way there's going to be a conviction.

FRIEDMAN: Lets answer the question, the question was what effect will those interviews have, and I think they will have significant effect on discrediting him. I can't disagree that a lot of the other evidence the prosecution intended to go forward with is going to be detrimental to them but Scott Peterson is going to have a problem with his outside interviews.

WHITFIELD: All right, Avery Friedman, Richard Herman always good to see you gentlemen. Thank you.

HERMAN: It is nice to see you to Fredricka.

FRIEDMAN: Nice seeing you Fredricka.

WHITFIELD: All right have a good weekend.

HERMAN: Take care.

FRIEDMAN: You too.

WHITFIELD: Well Martha Stewart's loyal fans from free Martha earrings to just about everything else. A look at how some chose to show their support outside the courtroom, next.

(COMMERCIAL BREAK)

WHITFIELD: One last word about Martha Stewart and her fans who still hold that hope she will walk free. CNN's Jeanne Moos reports.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice over): For a woman who has buttoned up as Martha Stewart, she sure has some colorful fans.

UNIDENTIFIED MALE: Free Martha.

UNIDENTIFIED MALE: Free Martha, free Martha.

MOOS: The choppers were circling ready for the obligatory OJesque car chase when Martha departed, members of the press were jumping, dodging traffic to get story, while the Save Martha Web site daily alert was at its highest level, fuchsia.

UNIDENTIFIED FEMALE: Why should Martha Stewart be in jail then? Why? Jail, bail, no jail for Martha.

MOOS: But jail it was despite dozens of female prayers to the Save Martha Web site. Please, dear God, give this merciless judge a heart for one day of her life. Is this the end of the Save Martha Web site?

UNIDENTIFIED MALE: Oh, my God. Well it's not the end of Martha.

MARTHA STEWART: I will be back. MOOS: Back from a fate described by the press in gruesome detail, Martha can expect to get the cell's bottom bunk because women older than 50 do not sleep in upper beds.

UNIDENTIFIED MALE: Five months in jail is five months too many. Five months house arrest might not be such a bad thing. Imagine what that house is going to look like when she gets out it.

MOOS: Save Martha may change to pardon Martha, 14,000 signatures have been collected asking for a presidential pardon. Martha thanked supporters.

STEWART: Like these lovely people over here.

MOOS: Lovely people like Linda Smith, upset over what she called the double standard Martha faced. For instance, when the press focused on the $6,500 Hermes bag Martha once carried into court.

UNIDENTIFIED FEMALE: Did you media tell me what will suit Ken Lay had, was it an Armani or a Calvin Klein? I didn't hear that. You helped nail Martha.

MOOS: The press itself got nailed for using frantic signals to beat the competition back when the guilty verdict came down four months ago. Red meant guilty.

JON STEWART, "THE DAILY SHOW WITH JON STEWART:" Look at me I'm Edward R Murrow.

MOOS: Well despite taunts from comedians, guess what --

UNIDENTIFIED FEMALE: You did do a signal.

UNIDENTIFIED FEMALE: You missed it.

UNIDENTIFIED FEMALE: Well now I think we got it.

MOOS: The red scarf was waving once again. This time red meant prison and though Martha wouldn't wear the scarf in the wrong season it worked for Fox News.

UNIDENTIFIED FEMALE: And Martha Stewart is going to prison for --

MOOS: Journalists struggled to convey the emotion Martha displayed in a courtroom with out a camera.

UNIDENTIFIED FEMALE: She was crying pretty much the whole time.

MOOS: Martha might approve of the earring entrepreneurs.

UNIDENTIFIED FEMALE: These are our free Martha earrings.

MOOS: But we think she would draw the line at the ball and chain handbag. May I?

UNIDENTIFIED MALE: Yes, it is a ball and chain; it looks well on your ankles or over your shoulders.

MOOS: An artist who calls himself itsy bitsy is auctioning several on eBay starting at $150 bucks each. If you want one, don't drag your feet.

UNIDENTIFIED MALE: It really should be worn on the ankle.

MOOS: Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

WHITFIELD: Still much more ahead on CNN LIVE SATURDAY. At the top of the hour, it's "Next@CNN." At 4:00 is, "CNN Live Saturday," in dollar signs, shopping for insurance, making sure you have the right medical insurance for you.

Do you know what to look for? Experts answer your phone calls and e-mails. At 5:00 "People in the News" today we profile Martha Stewart and Laci Peterson.

But first, Daniel Sieberg with a preview of the "Next@CNN."

DANIEL SIEBERG, CNN ANCHOR, NEXT@CNN: Ahead on "Next@CNN" a huge sophisticated radar now under construction may help protect the U.S. from a missile attack.

Also a robot reality check. Could they really act like the ones in the new movie "I Robot." Those stories and a lot more are coming up right after a check of the headlines from the CNN newsroom.

WHITFIELD: Now in the news a series of bomb attacks have killed at least eight people in Iraq. Including a U.S. soldier. Iraq's minister of justice escaped a car bombing in Baghdad that killed four others. The suicide attack in Mahodia (ph) left an Iraqi National Guard and the bomber dead and dozens of others wounded.

In northern Iraq a U.S. soldier was killed in a roadside bomb blast. Palestinian Prime Minister --

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


Aired July 17, 2004 - 14:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: It is 2 p.m. on the East Coast, 11 a.m. out West. I'm Fredricka Whitefield at the CNN Global Headquarters in Atlanta.
Ahead this hour, Nevada's governor calls it the meanest ugliest wildfire he has seen. We'll go there for a live look.

Plus, Al Qaeda's elusive strategy. It turns out they are all written down in black and white. Find out what's inside.

Martha Stewart gets a jail sentence. She's sad and angry. Her fans are furious and her neighbors, we'll hear what they have to say.

First, a look at what's happening in the news.

A U.S. soldier has been killed in northern Iraq when a roadside bomb went off near his convoy, another soldier wounded. That brings the number of U.S. military deaths in Iraq to 895.

At least six other people were killed in car-bomb attacks in Iraq. One blast hit the convoy of the Iraqi justice minister, killing four people, most of them believed to be guards. The minister was not injured.

Palestinian Authority President Yasser Arafat has rejected the resignation of Prime Minister Ahmed Qorei. Qorei offered to step down during an emergency cabinet session, called after a state of emergency was imposed.

Keeping you informed, CNN, the most trusted name in news.

Wildfires now burning in three Western states threatened thousands of additional acres in California, Nevada, and Idaho. The most serious has burned more than a dozen homes in Carson City, Nevada. Extremely dry conditions are making it difficult for firefighters to bring the blaze under full control.

In Southern California, hundreds of residents are returning home for the first time since a fire broke out earlier this week, about 45 miles north of Los Angeles.

And Idaho is enduring its first major fire of the year. Hundreds of acres have been burned in the Boise National Forest. It's not expected to be contained for at least another week.

Back to Nevada, where the governor is calling the fire situation in Carson City mean and ugly. We get the latest on that fight from CNN's Ted Rowlands, who joins us live -- Ted.

TED ROWLANDS, CNN CORRESPONDENT: Well, Fredricka, the good news is that overnight firefighters really did get control of this fire, which has plagued them for the last couple days. As you mentioned has been very destructive. Overnight they were able to pull the containment level up to 50 percent.

And the real reason for that was because the wind shifted again late yesterday afternoon and basically push the fire back into itself, into an area that had already burned, giving firefighters an attack strategy to go full force at this fire.

And this morning, it is a very different story. Most folks are back in their homes. Firefighters say they expect containment by the end of the week. As you mentioned, it was a very fierce fire. The reason for it, all of the dry fuels, not only here in Nevada but also around the entire Western region.

You can see where all these regions got burned out, where 16 homes were lost. The amazing part is homes that were not lost. There are literally dozens of these types of situations scattered around the hillside here, where firefighters were able to set up in front of homes in defense against the flames as they came in. They would basically push the flames around the structures and save them.

So, 16 homes were lost, situations where they just couldn't do anything and they had to evacuate. But the vast majority of it, was this where homes were saved. There was a lot of appreciation from homeowners here this morning as they have come back to their homes to find them completely untouched.

A lot of signs saying thank you, firefighters. A lot of emotion up here, from the folks that not only lost homes but also from the folks that have their homes intact -- Fredricka.

WHITFIELD: Ted, what about the resources? Do firefighters feel they have enough to try and contain what's left of the 50 percent?

ROWLANDS: They do, yes. They think it's really after today because of the situation with the wind shifting and giving them a chance to hammer it. They say they did have the resources they needed yesterday to take advantage of that. And they're very pleased with the amount of resources here.

The problem that they foresee is later this summer, around the Western region, you mentioned all the fires burning actively now. It's expected to only get worse because of all the fuel, which is the result of about seven-year drought in the West. That's the real concern, not only here in Nevada but across the Western region.

WHITFIELD: Ted Rowlands, in Carson City, Nevada, thanks very much.

(WEATHER FORECAST)

WHITFIELD: Now to the war on terror, the FBI suspects that Al Qaeda may be changing its recruiting strategy. A federal alert tells local authorities the terrorist network appears to be looking for non- Arabs to carry out possible attacks on U.S. soil.

The notice does not mention a possible time, place, or method of any potential attack. The Department of Homeland Security has said terrorists might attempt to disrupt the November elections.

A link between Al Qaeda and Iran has reportedly surfaced in the 9/11 Commission's investigation.

An article in the upcoming issue of "Newsweek" magazine reports that Tehran may have offered safe passage and clean passports to Al Qaeda fighters. Investigative Correspondent Michael Isikoff says the connection turned up in a December 2001 National Security Agency memo.

(BEGIN VIDEO CLIP)

MICHAEL ISIKOFF, INVESTIGATIVE REPORTER, "NEWSWEEK": The report makes clear that the Iranian government did not have advance knowledge of the attacks. But it did have this -- arrangement with Al Qaeda, which is quite serious and actually in the view of many counter- terrorism officials, and some on the commission, goes far beyond any connections that Al Qaeda had with the Iraqi government of Saddam Hussein.

In effect, the Iranian security services, by having this arrangement, were acting as helping to facilitate the September 11 attacks, whether they knew about the ultimate goal of the September 11 attacks or not.

(END VIDEO CLIP)

WHITFIELD: "Newsweek" says the details are part of the 9/11 Commission's final report, which is due out next week.

"The New York Times" is also previewing the 9/11 Commission's report. The newspaper says the commission's report will include a recommendation of a new Cabinet level post that would coordinate all U.S. intelligence agencies. Elaine Quijano is in Washington with details.

Now, you are at the White House, Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Good afternoon, Fredricka.

White House officials here are not commenting specifically on that "New York Times" article that you just mentioned. But recently we have heard President Bush say that he is open to the idea of intelligence reform and the White House now saying the president welcomes the September 11 Commission's report as a kind of jumping off point for those discussions.

But the topic of intelligence has come up during a number of the president's campaign appearances, also during his presidential trips. The president saying that he feels the quality and quantity of the U.S.'s intelligence needs to be improved and that there needs to be more human intelligence and better coordination among agencies.

Those comments from the president came just days after the scathing Senate Committee report that found the U.S.'s intelligence in the run up to the Iraq war was flawed.

Now, President Bush's Democratic opponent, John Kerry, has also raised this issue. Yesterday during a campaign appearance, Senator Kerry said that he believed the first step was to reorganize the way intelligence was gathered. And he said it was long overdue that there be a coordinator of national intelligence in the United States.

If, in fact, it turns out that the September 11 Commission's report does call for a new Cabinet level intelligence position, it would not be a surprise. Commissioners have at least hinted at that idea before. The arguments for that new post would probably echo those along the same lines that we heard a couple of years ago when the new Homeland Security Department was created.

That was a move that President Bush actually opposed at first and this time around, there would likely be resistance at the Pentagon and at the CIA, in part, because those agencies would lose some of the authority they have over the multi-billion dollar budgets.

But the official response from the Bush administration, right now, is that they are looking forward to seeing the report, but not commenting on that "New York Times" article -- Fredricka.

WHITFIELD: Elaine Quijano, at the White House, thanks very much.

Al Qaeda, apparently, has its own military style handbook. It's a biweekly publication called "Al Battar". And it offers a valuable insight into the terrorists' strategies. Sean Callebs is on that story and joins us from Washington -- Sean.

SEAN CALLEBS, CNN WASHINGTON CORRESPONDENT: Fredricka, exactly, the U.S.-led war on terror may have scattered Al Qaeda leaders, but they are still in touch with the organization's rank and file.

The Internet is providing a virtual training ground and at the same time spreading the group's message of Jihad. One of its most effective tools, a relatively new online magazine called "Al Battar", which means "The Sword".

Publishing began at the start of this year and it comes out twice a month. "Al Battar" has all the makings of a well-produced online periodical. It focuses on such measures as cleaning and care of weapons, physical training for its foot soldiers, and the way to set up a safe house, as well as how to stage a kidnapping.

Terror experts who track Al Qaeda on the web say it is no surprise Iraq has seen a rash of kidnappings. Not terribly long after "Al Battar" focused one of its editions on this topic.

(BEGIN VIDEOTAPE)

GABRIEL WEIMANN, U.S. INSTITUTE OF PEACE: Now here we are with a wave of kidnappings. And it is just not the idea of kidnappings, it is a detailed description, who should be chosen as a target, where should the action be held, how should the hostage be kept, about negotiation, informing the media, all of this is detailed in many, many pages.

(END VIDEOTAPE)

CALLEBS: The number of terrorist-operated Web sites has shot up exponentially in the past few years. Experts say they now monitor more than 4,000 such Web sites. And authorities say it is impossible to shut them down.

Al Qaeda watchers say modern terrorist groups employ what they refer to as "computer geeks" to put out advanced, sophisticated online sites. And while it may seem as though it may be good for the U.S. to try to shut down as many of these sites as possible, experts also say many of the sites provide intelligence and so called chatter about the possibility of future Al Qaeda operations -- Fredricka.

WHITFIELD: Sean Callebs, in Washington, thank you very much.

The British Open, the Olympic trials and Lance Armstrong's big day in the Tour de France. We'll have the latest in the world of sports.

And Martha Stewart is looking at five months in jail. Hear what she wishes she had done differently and what her neighbors are saying now.

(COMMERCIAL BREAK)

WHITFIELD: Well, several time zones ahead of us, some American athletes have already turned in a good days work. Matt Morrison is here with a check of what's happening in the sports world. And let's begin with Lance, because all eyes are on him at the Tour de France. How's he doing?

MATT MORRISON, CNN SPORTS: Yes, it could be the cocktail hour over in Paris by now, but I don't think Armstrong is sipping any champagne just about yet.

Lance Armstrong turned in a dramatic and amazing performance today at the Tour de France. Stage 13, probably the toughest of the stages, overcoming a flat tire and charged to the lead as Lance Armstrong climbed up the Pyrenees Mountains, 7 climbs in all. And he is, taking the stage victory, his second stage victory, along with his team, in this tour, 17th stage victory in 10 years on tour.

And Lance Armstrong knocked more than 5 minutes off the overall lead. He's still in second place, but no just 22 seconds back. And Armstrong having a terrific Saturday at the tour.

WHITFIELD: That is remarkable, because he was 9 minutes behind at one point.

MORRISON: Couple of days ago, yeah. WHITFIELD: Wow!

MORRISON: 9 minutes, 35 seconds.

WHITFIELD: Now, apparently there's a little controversy involving another world famous cyclist, American.

MORRISON: Well, the most famous American cyclist prior to Lance Armstron was Greg Lamond. He won 3 Tour de Frances. Really put cycling on the map as far as the U.S. is concerned. And in a interview with ESPN, Lamond continues to talk a little about Armstron and alleged drug use, or doping, which has been something that was a subject 4 or 5 years ago.

And since then, he has not brought the subject up, but he now says that Armstrong and members of the U.S. Postal Team have threatened their business interests based on what Lamond has said in the past about potential doping.

So, we got a little controversy going on there with -- you'd hope that American cyclists would stick together. Now the 2 most famous names in American cycling history, not the case.

WHITFIELD: Oh, man.

All right. Well, let's talk a little bit about the British Open now. There are some other American contenders, but who are they?

MORRISON: Yes, well who are they. You've heard of some, you haven't heard of others, Skip Kendall took the halfway lead into today's third round at Royal Troon, but he fell off the pace a little bit. Tiger Woods came up, Phil Mickelson, also with a good day.

Tell you about Tiger. First of all, flat out of the shoot, very quick. Tiger Woods birdied 3 of his first 4 holes and had 4 birdies on the front 9. It looked like he was ready to charge right to the top of the leader board, but on the back 9 he gave 1 stroke back, so 4 birdies and a bogie, Tiger checking in today, signing off with a 3 under 68. He is at 4 under par. That is 4 shots off the lead.

Phil Mickelson with another good day. He also shot a 3 under 68. He stands at 6 under par through 3 rounds. And that is still 2 shots off the lead.

Skip Kendall, as I mentioned, he slid back a little bit. And he is at 3 under after 3 rounds.

The leader is another American you might not have heard, Todd Hamilton. A young man who, not as young as you might think, 37-years- old, but a guy in his first full season on the PGA tour. And he now leads the British Open by 1 stroke over Ernie Ells. He is at 8 under par. A real neat story.

WHITFIELD: Wow. That's pretty impressive.

OK. We're in the throws of a pretty big weekend for the Olympic track and field trials. Marion Jones, we know she's onboard for long jump, but 200 is still kind of iffy right now...

MORRISON: Right. You know, she's on board in the field events, this is track and field, and she did win a bunch medals as a sprinter, you'd like to see her running on the track. And she still has an opportunity to make the U.S. Olympic team as a sprinter. But she's really got to turn jets, Fredricka.

Last night, in the preliminaries of the 200 meters, well she came off the turn looking kind of strong. Here she is in lane one, you'll see her at the bottom of the screen as she hits the straight-a-way. Looking pretty good, but then she just absolutely fades. And Marion Jones here in the white, at the bottom of your screen, just sort of pulls up and finishes last in this heat.

She has the 10th best time going into today's semifinals in the 200. Can't really tell if this was her lack of effort, or she pulled up on purpose. Nevertheless, if she's going to make it as a runner for the Athens Olympics, she's really got to get going. She's got to come in strong today in the semifinals, just to make the finals and hopefully 1 of 2 spots there.

WHITFIELD: Wow. And we know all about the suspicions and all that, but girlfriend just had a baby a year ago.

MORRISON: Yes.

WHITFIELD: And that is still pretty remarkable performance to be out there.

MORRISON: Well, there's no question she's had to overcome a lot: on a personal level, of course, the innuendo of the U.S. Anti-doping Agency investigation, her boyfriend and the father of her child, Tim Montgomery, is actually accused of doping by the U.S. Anti-doping Agency. So, yes, there's a lot of pressure going on.

WHITFIELD: And he is not going to Athens.

MORRISON: He is not.

WHITFIELD: All right. Matt Morrison, thanks very much.

MORRISON: Thanks, Fredricka.

Well, if Lance Armstrong does manage to win a record sixth Tour de France, he will be riding a Trek bicycle. The company in southern Wisconsin has made each bike Armstrong has ridden to victory in the past five years. CNN's Keith Oppenheim spoke to some of the employees about Lance's chances at making history.

(BEGIN VIDEOTAPE)

KEITH OPPENHEIM, CNN CORRESPONDENT (voice over): Eric Lynn rides 30 miles to get to the office.

ERIC LYNN, TREK BICYCLES: I'm working on colors and graphics for a variety of brands here at Trek.

OPPENHEIM: As he works, results from the Tour de France stream in on the web. Lance Armstrong is clearly Eric Lynn's hero.

LYNN: He's a great guy. He really is. And what an inspiration.

OPPENHEIM: On the road, Lynn explained he's a believer that Lance Armstrong will do what no one else has done before, win the tour six times.

(on camera): Is that just optimism that comes on in a cornfield or is that real?

LYNN: Oh, I think it's real. He's shown that he knows what it takes to be there at the end.

OPPENHEIM (voice over): Trek says the bikes Armstrong rides are designed with him in mind, but anyone can buy them in stores.

(on camera): This is the frame of one of them and this dimple in the construction makes it more aerodynamic, good for flat courses. And down below, we have the other Armstrong bike, which is less aerodynamic, but super lightweight, critical for the mountain stages.

(voice over): For employees, any frame from the upper end Madone line, could go to the champion.

JOHN RILEY, TREK PRODUCT MANAGER: They really don't know. They might be building Lance's Tour de France winning bike.

OPPENHEIM (voice over): The attachment to Armstrong is intense here. Roxanne Fairberg (ph) created a graphic display of The Tour. She remembers a big day three years ago.

UNIDENTIFIED FEMALE: I met Lance Armstrong here.

OPPENHIEM (on camera): Here?

UNIDENTIFIED FEMALE: Here. And in fact, I finagled to get my picture taken with him.

(LAUGHTER)

OPPENHEIM (voice over): For Eric Lynn, the roads of Wisconsin are far from France, but as he rides, he hopes Armstrong's successes are not yet a thing of the past.

LYNN: We all know we're so lucky to be a part of it right now. And I hope it keeps on coming for a long time.

OPPENHEIM: Keith Oppenheim, CNN, Waterloo, Wisconsin.

(END VIDEOTAPE)

WHITFIELD: Well, she's always had a mixed relationship with her neighbors but how are they reacting to her court sentence? We'll take you live to Westport, Connecticut.

Plus President Bush's decision to skip the NAACP convention, how he plans to undo some of the damage. Straight ahead.

(COMMERCIAL BREAK)

WHITFIELD: Martha Stewart is no shrinking violet. Facing five months in prison and another five months attached to an electric bracelet, while under home detention. Stewart told ABC's Barbara Walters she is not afraid of prison, but she does have regrets.

(BEGIN VIDEOTAPE)

MARTHA STEWART: There are certain people that I wish I had never met.

BARBARA WALTERS, ANCHOR, ABC NEWS: Want to name any names?

STEWART: No, I'm not naming any names. But you can guess who they are.

And of course, you're angry. I lost my job. I have lost my position in my company. I am no longer the chairman and CEO of Martha Stewart Living Omnimedia.

(CROSSTALK)

WALTERS: Which you created.

STEWART: A great company, you know. So that makes me both angry and sad.

(END VIDEOTAPE)

WHITFIELD: Stewart told her supporters she will be back. And she urged them to buy her products and encourage advertisers who abandoned her magazine and television show to return. CNN's Deborah Feyerick has been talking with Stewart's neighbors in Westport, Connecticut -- Deborah.

DEBORAH FEYERICK, CNN CORRESPONDENT: Well, Fredricka, a beautiful day here in Westport. A street fair going on. Lots of art, lots of music and lots of opinions of Martha Stewart and the sentence she has received.

Joining me, Michael Udell (ph) and Laura Appleman (ph).

First of all, the sentence? What do you think of it?

MICHAEL UDELL, I think overall, given the fact that I don't believe that the authorities should have gone after her, and wouldn't have if she hadn't been a personality, having done that, something had to happen. And I think five months is probably about appropriate.

FEYERICK: Now, Laura, what is interesting about being here in Westport, talking to people is the town is not exactly circling the wagons around her. As a matter of fact, there's a lot of animosity towards Martha Stewart, who spent many years here building her business.

UNIDENTIFIED FEMALE: That's true. Some people feel she alienated then by some of her behavior related to the taping of her programs here in town. And just other personal experiences people have had.

I, personally, haven't had anything real personal with her, but I think that I have talked to other people that have. And, you know, the news isn't always good.

FEYERICK: Now, she said yesterday, some people said she sounded apologetic. Others think she just sounded indignant and she was again, blaming other people. What's your opinion on that?

UNIDENTIFIED FEMALE: I think she sounded a little too much hubris, still. I think the marketing effort maybe was a little bit inappropriate, the -- please buy my products effort.

I think she could have been more contrite. I think it might have helped her case on appeal. Without being a lawyer, I guess I feel this is an individual. I don't think she gets it yet that she did break the law.

Having said that though, I can say that I think maybe she was treated unfairly. I think she was a scapegoated. I think that there was probably some plan to bring this on. I mean, she did the bad deed, but on the other hand, I think, you know, she was unfairly treated because she's a celebrity.

FEYERICK: Do you think -- she said she would be back. What do you think, Michael? Will she be back?

UNIDENTIFIED MALE: I think she's going to be back because she's a detail person. And doesn't give up on anything, as far as I have ever been able to tell. From the one experience I had with her, she does what she wants to do, and she usually succeeds.

Michael Udell, Laura Appleman thanks again. Lots of divergent views right here on Main Street -- Fredricka.

WHITFIELD: Deborah Feyerick, thanks very much, from Westport, Connecticut.

Martha Stewart is talking to Larry King in her first live primetime interview Monday night at 9:00 Eastern. She also will take your phone calls, only on CNN.

With the presidential election less than four months away, has Vice President Dick Cheney become a political liability? We'll ask CNN Political Analyst Ron Brownstein.

Plus it, two campaign additions everyone agrees are an asset for the president. Barbara and Jenna Bush enter the spotlight.

And later on, has the end of the game finally come for Bobby Fischer? Those stories and more in the next half hour of CNN LIVE SATURDAY.

(COMMERCIAL BREAK)

WHITFIELD: Checking some stories now in the news, Palestinian Prime Minister Ahmed Qrei (ph) has offered his resignation but Palestinian authority Yasser Arafat has refused to accept it. In offering to step down Qorei cited failed peace efforts and a state of chaos in areas controlled by the Palestinian authority.

The battle against raging wild fires goes on this weekend in parts of the western United States. California, Nevada are two of the hardest hit areas. A blaze in northern Los Angeles County has charred more than 14,000 acres.

Five Pennsylvania miner who's narrowly escaped an accident that trapped nine others in a flooded tunnel for three days are suing the mine's owners and operators. The men claim they've suffered from posttraumatic stress, anxiety, depression and shock. Keeping you informed CNN the most trusted name in news.

Well it's just over a week before the first national convention in this year's race for the oval office. Democrats gather nine days from now in Boston. Ahead of the gatherings, both the Bush and Kerry campaigns are on the hunt for undecided voters. Today John Kerry's running mate John Edwards is courting voters in California. The nations biggest electrical prize. After his stop in the golden states, the senator from North Carolina heads to the hotly contested state of Florida.

Vice President Dick Cheney is putting his focus on the nation's heartland. This morning he attended a rally in Minneapolis. Speaking of Dick Cheney, he is still the focus of a lot of political speculation. Will he remain President Bush's running mate?

CNN political analyst Ron Brownstein is with us now from Los Angeles to talk about that issue and some other hot political topics. Good to see you Ron.

RON BROWNSTEIN, CNN POLITICAL ANALYST: Hi Fredricka.

WHITFIELD: All right well Cheney lately has been considered by some a liability and then just yesterday, we see him campaigning with a very popular Senator John McCain. How unusual is this?

BROWNSTEIN: Well it's very unusual. I think there has been very few elected officials, perhaps none other than John McCain who has campaigned for President Bush outside of their home state. Let's start with the obvious. There's only so much good that anybody can do someone running for president, any other politician. It's a very personal decision. Voters have a lot of information. Endorsements are of limited value.

But having said that within that context, John McCain is one of the few recognizable brands in American politics. I think he has a clear image with the public as someone who is independent, reform minded who reaches across party lines and the fact that John Kerry you know so publicly considered him as a possible running mate as well I think adds value to this embrace.

A further point I think that helps Dick Cheney and President Bush is that people know that John McCain disagrees with them on a lot of domestic issues and the fact that he feels that on balance, the ledger is still positive I think is a strong statement for the president.

WHITFIELD: Well interesting too that John McCain's name was kind of on a short list of possible replacements if the rumors were true in Washington if Vice President Cheney were to in some way step down.

BROWNSTEIN: Yes, well if rumors were horses, beggars would ride. Look, never say never when it comes to politics. If we get to the Republican convention and President Bush is in desperate straits somehow and he is trailing by double digits, who knows what will enter the realm of possibility. But right now this is not really something that we should be worrying about at this kind of high level.

The Bush family does not like to make this kind of decision under pressure. I think the president really tends to dig in his heels when people are asking him to remove people. Loyalty is an important family trait. The base likes Dick Cheney. And perhaps more importantly Dick Cheney is so personally identified with so many of the key decisions, especially the defining decision of this presidency, the decision to invade Iraq, the removing him I think would be seen at home and abroad as an effect of admission of error which is something else this president doesn't like.

WHITFIELD: Well perhaps something the Bush administration is worrying about is its image and alienating perhaps itself after refusing to speak before the NAACP last week and now next week, President Bush will be speaking before the National Urban League. Is that enough to make up for snubbing the NAACP?

BROWNSTEIN: Well snub or no snub, President Bush was going to lose the vast majority of African American votes. I think he only got like one in 12 in 2000, it is probably go to be somewhere around there in 2004. The Urban League is a somewhat more congenial environment for him than the NAACP; it is a more centrists to organizations, less perhaps even political, certainly ideological.

He's probably going to stress his ownership agenda, I would guess talking about increasing home ownership for minorities. Small business ownership for minorities. Those kinds of things where he can relate I think better to the urban league perhaps than the NAACP which might want to focus on civil rights and other issues where he has more conflict with the organized minority community.

WHITFIELD: All right, and over a week now, the Democratic convention. Very popular Senator Hillary Clinton, some would say she is also very polarizing will apparently be in the opening remarks introducing her husband, former president. But this didn't come without ruffling a few feathers. What happened?

BROWNSTEIN: Well as I understand it, the Kerry campaign feels that Hillary Clinton's office and staff were fine with the original arrangement, which was that she was going to be part of a group of woman Democratic senators speaking. There was a great deal of turmoil among her supporters who felt it was not giving her due, did not reflect her presence and stature in the party.

The solution they come up with I think though is a little odd if the point is to underscore Hillary Clinton's emergence as a force in her own right within the Democratic party, is the solution that you would pick for that to have her introduce her husband, the former president. I don't know. But the fact is that's what they'll end up doing. It will give her a primetime spot apparently on Monday night, which is one, the few that the broadcast networks, unlike the cable networks are covering so it will help enhance her visibility possibly for something down the road.

WHITFIELD: Ron Brownstein, thanks very much for joining from us Los Angeles.

BROWNSTEIN: Thank you.

WHITFIELD: Well after years of being sheltered from the spotlight, President Bush's daughters are helping their father campaign. CNN's Judy Woodruff takes a closer look at the Bush twins and their debut on the political scene.

(BEGIN VIDEOTAPE)

JUDY WOODRUFF, CNN CORRESPONDENT (voice over): So far, Jenna and Barbara Bush's days on the campaign trail seem to consist of walking and standing. And smiling for the cameras and for the crowds. But after so many years of being sheltered from the family business of politics, the Bush daughters' public debut is a big deal.

LAURA BUSH, FIRST LADY: I want them to be involved if they want to, but at the same time, you know, I worry about the pain that, you know, they might have because they didn't choose this life, you know, their dad did.

WOODRUFF: For a couple of 22-year-old women, this may be the best part of it, glossy glamour shots in the August issue of "Vogue" magazine. In an interview for "Vogue," the Bush twins broke their silence about their family, their futures and their decision to join their parents in the campaign.

Jenna is quoted as saying, "It's not like he called me up and asked me. They've never wanted to throw us into that world, and I think our decision probably shocked them. But I love my dad, and I think I'd regret it if I didn't do this."

Barbara and Jenna have had a White House connection for almost two-thirds of their lives with their grandfather serving as vice president and then president before their own father won the top job. And yet, glimpses of them have been fleeting. Many Americans may only remember this, their run-ins with the law over alcohol three years ago when they were under age.

L. BUSH: Our children ought to be totally left alone and allowed to have a totally private life. They're not public citizens. They didn't run for office.

WOODRUFF: Now they are adults and the protective shield has been lowered. Jenna appears to have been the more outspoken sister in the "Vogue" interview praising her parents' marriage, calling her mom cute with funny quirks and describing her father's interactions with her boyfriends this way.

"He's not the shotgun dad type. He's the joking around to the point where he scares the heck out of them type." What's next for the Bush daughters? With an English degree from the University of Texas, Jenna says she plans to teach. She is has applied for a job in an elementary school in Harlem.

Barbara graduated from Yale and majored in humanities. She plans to work with AIDS afflicted children in Eastern Europe and Africa. But their father's campaign comes first.

Judy Woodruff, CNN reporting.

(END VIDEOTAPE)

WHITFIELD: Why chess and politics just don't miss. Bobby Fisher's story political activities and where they've landed him now.

And people in trouble with the law, a look back at how Scott Peterson, and Martha Stewart fared this week. That is all straight ahead.

(COMMERCIAL BREAK)

WHITFIELD: A quick look now around the world. Tears of anguish are flowing in southern India where grieving parents are burying their children. At least 90 children died when a massive fire spread through their thatched roof schoolhouse. Early reports suggest the fire might have been caused by an electrical short in the kitchen.

A court in Oman has sentenced an American woman to death for arranging her husband's murder. Police say Rebecca Thompson confessed to hiring two Omanie (ph) assailants to kill her husband Mark. The oil workers body was discovered last December. Relatives say the couple had moved from the U.S. to Oman more than two years ago.

Suspected U.S. army deserter Charles Robert Jenkins is due to arrive in Tokyo tomorrow. The former army sergeant has been living in North Korea since 1965 when he deserted to that country. U.S. Ambassador Howard Baker says Jenkin's illness could delay his transfer to U.S. custody.

Fugitive chess champ Bobby Fischer finds himself in check held by Japanese authorities on an immigration charge and wanted in America. CNN's Atika Schubert reports.

(BEGIN VIDEOTAPE)

ATIKA SCHUBERT, CNN CORRESPONDENT (voice over): Bobby Fischer, chess prodigy and grand master was once a national hero. In 197 2, Fisher then 29 years old roundly beat world chess champion Boris Spassky from the Soviet Union. It was hailed as a victory in the Cold War.

Now 61, he is a wanted man. He has been a fugitive since 1992 when he attended a Yugoslav chess tournament in violation of U.N. sanctions. Famously spitting on a letter from the U.S. government that warned him not to go.

BOBBY FISCHER: So this is my reply to the order not to defend my title here. That's my answer.

SCHUBERT: After that, Fischer went underground shuttling between Europe and Asia amid rumors that he continued to play chess on the Internet under assumed names. He surfaced occasionally to broadcast anti-Semitic rants against his home country. The most controversial aired on a Philippine radio program just after the World Trade Center attacks

FISCHER: "This is really wonderful news. A sign for the (beep) U.S. to get their heads kicked in. ads kicked in."

SCHUBERT: He also boasted of his place in history.

FISCHER: "You know when I won the World Championship in 1972, the U.S. was a football country, a baseball country. But nobody thought of it as an intellectual country. I turned all that around single handedly."

UNIDENTIFIED MALE: This was I think a very risky move.

SCHUBERT: Yet he made a strategic error in coming to Japan. Fischer was detained Thursday at the Tokyo's Norwegian (ph) Airport on an immigration violation. Japanese and U.S. officials will not say whether Fischer will be extradited to the U.S. to face charges an (INAUDIBLE) end games with the man once hailed as the world's greatest living chess player.

Atika Schubert, CNN, Tokyo.

(END VIDEOTAPE)

WHITFIELD: Martha Stewart talked about her anger and sadness, but did she get off easy? We'll ask our legal experts. Plus a look at the scene outside the courthouse yesterday.

UNIDENTIFIED FEMALE: Can your media tell me what suit Ken Lay had? Was it an Armani or a Calvin Klein? I didn't hear that. You helped nail Martha.

WHITFIELD: More of what Martha defenders had to say ahead on CNN LIVE SATURDAY.

(COMMERCIAL BREAK)

WHITFIELD: From domestic diva to prison maven, a federal judge this week sentenced Martha Stewart to five months in prison and five months home confinement. The charges stem from her questionable Imclone stock sale. That's just one of the cases we'll discuss in our "Legal Roundtable" and joining us as usual every Saturday, criminal defense attorney Richard Herman, also Avery Friedman, who is a civil rights attorney and law professor.

Good to see both you gentleman.

RICHARD HERMAN, CRIMINAL DEFENSE ATTORNEY: How are you Fred?

AVERY FRIEDMAN, CIVIL RIGHTS ATTORNEY: Hi.

WHITFIELD: I'm doing pretty good.

All right let's talk about Martha Stewart off the top. She was tearful apparently in her statement to the judge. And I can't help but wonder if in cases like this, does a judge have kind of a scenario a sentence if the defendant speaks and is contrite versus a scenario b sentence if they show no contrition or don't talk at all? Richard.

HERMAN: No, I think this sentence was set in stone probably a few days before yesterday and it really didn't matter what Martha said before Judge Cedarbaum. But she had to temper her words. Because if she really does waste her money and take this appeal, if she should win the appeal and have a retrial which is all she's going to get if she wins.

The government could use any admissions that she may have made to Judge Cedarbaum in their case in chief against her. So that's why she had to temper what she said. But if she takes this appeal, which she's going to do, the bottom line is even if she wins the appeal, she's going to get a new trial and she cannot possibly win this case.

WHITFIELD: And you can't want to go through this all over again. Avery would you advise your client to just, you know, what, it's five months, it's the minimum recommended sentence. Just do that time and get on with your life after the fact as opposed to waiting maybe a year for an appellate process to begin or end.

FRIEDMAN: We saw two Martha Stewarts, Fredricka. We saw the one who was contrite and pretended to be very humble in front of the federal judge and then we saw an arrogant Martha Stewart. And by the way if she prevails in the Court of Appeals, which she will not, if she does, what she said on the courthouse steps will be considered by the federal judge.

I actually agree with Richard. I think she has nothing to gain if she thinks she's going to beat the rap. It's not going to happen. We saw a sin sickle person who actually if I'm not mistaken compared herself to Nelson Mandela. As if she's in that league. And it was, I think, awful.

WHITFIELD: And she did that in an interview following saying even good people go to jail.

HERMAN: Fredricka she got a split sentence, five months home. Five months prison. The judge stayed her reporting pending the appeal, which is unheard of, nobody really does that.

WHITFIELD: Do you think she got a break?

FRIEDMAN: No, it's not unheard of. I think a lot of it had to do with the fact that Walter Dellinger, one of America's great heavyweight federal appeals lawyers is part of the team. I think that had a lot to do with it.

(CROSSTALK)

HERMAN: It had to do with the Blakely case that is what it is all about.

(CROSSTALK)

HERMAN: The sentencing guideline issue.

FRIEDMAN: It did not fit into this. I'm convinced that it was is the legal team, her new lawyer who has won amazing appeals for criminal defendants, convicted defendants. I think that's what happens here.

HERMAN: Whether she wins this appeal; she's going to trial again which she's going to lose. She made $100 million yesterday.

WHITFIELD: That may take place with the Martha Stewart case.

Let's move on to the Scott Peterson case, which had an awful lot of unusual developments this week. Everything from some blood found on sheets in his home to the questionable hair samples, et cetera. What is the prosecution doing here, Avery?

FRIEDMAN: Well, I think the prosecution again, theoretically is continuing to try to methodically build their case. A lot of it for example this week went to the concrete factory as the prosecution put it to create anchors to sink the body.

When it got right down to it, again the prosecution put the methodical evidence on but all they were able to show were basically markers where the picture was where the concrete was put together. So very, very little effective evidence this week.

WHITFIELD: Well Richard, how potentially incriminating might it be there are inconsistencies in Scott Peterson's statements to investigators and even on taped interviews immediately following his wife being missing?

HERMAN: OK, Fredricka those inconsistencies are definitely not a plus for Scott Peterson. But the prosecutor has lost complete credibility with this case beginning with the meringue incident, the opening, the obstruction by detective Brocchini, and now this incident this week in the cement factory where the mold that was supposedly used witch the prosecutor told this jury was used, the piece of cement, the anchor did not fit in that mold.

He's lost credibility, he is looking to give this guy the death chamber and he has lost all credibility with this jury. No way there's going to be a conviction.

FRIEDMAN: Lets answer the question, the question was what effect will those interviews have, and I think they will have significant effect on discrediting him. I can't disagree that a lot of the other evidence the prosecution intended to go forward with is going to be detrimental to them but Scott Peterson is going to have a problem with his outside interviews.

WHITFIELD: All right, Avery Friedman, Richard Herman always good to see you gentlemen. Thank you.

HERMAN: It is nice to see you to Fredricka.

FRIEDMAN: Nice seeing you Fredricka.

WHITFIELD: All right have a good weekend.

HERMAN: Take care.

FRIEDMAN: You too.

WHITFIELD: Well Martha Stewart's loyal fans from free Martha earrings to just about everything else. A look at how some chose to show their support outside the courtroom, next.

(COMMERCIAL BREAK)

WHITFIELD: One last word about Martha Stewart and her fans who still hold that hope she will walk free. CNN's Jeanne Moos reports.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice over): For a woman who has buttoned up as Martha Stewart, she sure has some colorful fans.

UNIDENTIFIED MALE: Free Martha.

UNIDENTIFIED MALE: Free Martha, free Martha.

MOOS: The choppers were circling ready for the obligatory OJesque car chase when Martha departed, members of the press were jumping, dodging traffic to get story, while the Save Martha Web site daily alert was at its highest level, fuchsia.

UNIDENTIFIED FEMALE: Why should Martha Stewart be in jail then? Why? Jail, bail, no jail for Martha.

MOOS: But jail it was despite dozens of female prayers to the Save Martha Web site. Please, dear God, give this merciless judge a heart for one day of her life. Is this the end of the Save Martha Web site?

UNIDENTIFIED MALE: Oh, my God. Well it's not the end of Martha.

MARTHA STEWART: I will be back. MOOS: Back from a fate described by the press in gruesome detail, Martha can expect to get the cell's bottom bunk because women older than 50 do not sleep in upper beds.

UNIDENTIFIED MALE: Five months in jail is five months too many. Five months house arrest might not be such a bad thing. Imagine what that house is going to look like when she gets out it.

MOOS: Save Martha may change to pardon Martha, 14,000 signatures have been collected asking for a presidential pardon. Martha thanked supporters.

STEWART: Like these lovely people over here.

MOOS: Lovely people like Linda Smith, upset over what she called the double standard Martha faced. For instance, when the press focused on the $6,500 Hermes bag Martha once carried into court.

UNIDENTIFIED FEMALE: Did you media tell me what will suit Ken Lay had, was it an Armani or a Calvin Klein? I didn't hear that. You helped nail Martha.

MOOS: The press itself got nailed for using frantic signals to beat the competition back when the guilty verdict came down four months ago. Red meant guilty.

JON STEWART, "THE DAILY SHOW WITH JON STEWART:" Look at me I'm Edward R Murrow.

MOOS: Well despite taunts from comedians, guess what --

UNIDENTIFIED FEMALE: You did do a signal.

UNIDENTIFIED FEMALE: You missed it.

UNIDENTIFIED FEMALE: Well now I think we got it.

MOOS: The red scarf was waving once again. This time red meant prison and though Martha wouldn't wear the scarf in the wrong season it worked for Fox News.

UNIDENTIFIED FEMALE: And Martha Stewart is going to prison for --

MOOS: Journalists struggled to convey the emotion Martha displayed in a courtroom with out a camera.

UNIDENTIFIED FEMALE: She was crying pretty much the whole time.

MOOS: Martha might approve of the earring entrepreneurs.

UNIDENTIFIED FEMALE: These are our free Martha earrings.

MOOS: But we think she would draw the line at the ball and chain handbag. May I?

UNIDENTIFIED MALE: Yes, it is a ball and chain; it looks well on your ankles or over your shoulders.

MOOS: An artist who calls himself itsy bitsy is auctioning several on eBay starting at $150 bucks each. If you want one, don't drag your feet.

UNIDENTIFIED MALE: It really should be worn on the ankle.

MOOS: Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

WHITFIELD: Still much more ahead on CNN LIVE SATURDAY. At the top of the hour, it's "Next@CNN." At 4:00 is, "CNN Live Saturday," in dollar signs, shopping for insurance, making sure you have the right medical insurance for you.

Do you know what to look for? Experts answer your phone calls and e-mails. At 5:00 "People in the News" today we profile Martha Stewart and Laci Peterson.

But first, Daniel Sieberg with a preview of the "Next@CNN."

DANIEL SIEBERG, CNN ANCHOR, NEXT@CNN: Ahead on "Next@CNN" a huge sophisticated radar now under construction may help protect the U.S. from a missile attack.

Also a robot reality check. Could they really act like the ones in the new movie "I Robot." Those stories and a lot more are coming up right after a check of the headlines from the CNN newsroom.

WHITFIELD: Now in the news a series of bomb attacks have killed at least eight people in Iraq. Including a U.S. soldier. Iraq's minister of justice escaped a car bombing in Baghdad that killed four others. The suicide attack in Mahodia (ph) left an Iraqi National Guard and the bomber dead and dozens of others wounded.

In northern Iraq a U.S. soldier was killed in a roadside bomb blast. Palestinian Prime Minister --

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