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Securities Fraud Charge Dropped Against Domestic Diva; Kerry/Edwards or Vice Versa?

Aired February 27, 2004 - 13:00   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.


MILES O'BRIEN, CNN ANCHOR: For Martha Stewart, it's a good thing indeed. For federal prosecutors, it's a fallen souffle, a wilted centerpiece, a rat in the proverbial punchbowl. It's the judge's decision to throw out the single most serious charge Stewart faced, lying to investors in her own company. The feds called it securities fraud, and it carried a potential penalty of 10 years in prison and a $1 million fine.
CNN's Allan Chernoff has the latest from the courthouse.

Hello, Allan.

ALLAN CHERNOFF, CNN CORRESPONDENT: Hello, Miles. And for the very first time during this entire trial, Martha Stewart has actually walked out for lunch. She's actually right now at a restaurant in Chinatown, about four blocks away from where we're standing. She has reason to celebrate.

As you said, the most serious charge, securities fraud, has been thrown out, the judge giving an opinion that she is finding an acquittal for Martha Stewart on this count number nine, securities fraud. The judge said in her opinion that there was insufficient evidence to support the charge, and for the jury to actually find Martha Stewart guilty of it, they would have had to speculate.

Now, this is not terribly shocking, because the judge herself at the beginning of the trial described this charge as being novel. At the same time, we should note that Martha Stewart is not entirely off the hook, because she still is confronting charges of obstruction of justice, as well as making false statements and conspiracy. And that is still expected to go to the jury.

It's still theoretically possible the judge could issue further opinions later today. She will be meeting with the attorneys this afternoon, but at this point, it appears Martha Stewart will still have to confront those other charges -- Miles.

O'BRIEN: Well, let me ask you this, Allan. Is the case against Martha Stewart unraveling as we speak?

CHERNOFF: I would not say that at all, because the securities fraud charge was totally separate from the other charges. It really had to do with the stock of Martha Stewart Living Omnimedia. The government was alleging that Martha Stewart was trying to defraud shareholders in that company by saying she did nothing wrong in selling her ImClone stock.

The other charges have to do with Martha Stewart's story that the reason she sold her ImClone stock was simply because it fell below $60 a share. Those were really the basis for the false statement charges and also for the conspiracy as well, is the obstruction of justice. So it's pretty much of a separate issue.

O'BRIEN: Allan Chernoff in Manhattan. Thanks very much -- Kyra.

KYRA PHILLIPS, CNN ANCHOR: And as San Francisco goes, so goes New Paltz. The City by the Bay has inspired the college town just north of New York City to hand out marriage licenses to same-sex couples. As in San Francisco, the New Paltz policy shift is the brainchild of its young Green mayor. And we don't mean Green as a putdown.

Jason West is a member of the Green Party.

CNN's Maria Hinojosa is in New Paltz City Hall right now. What's the latest, Maria?

HINOJOSA: Well, not inside City Hall, actually, Kyra. You know, most weddings don't necessarily happen with crowds around them, but that's what's happening here in New Paltz, about an hour and a half north of New York City. And it was last night that the mayor, the Green Party mayor, Jason West, decided that he wanted to start solemnizing same-sex marriages here. So far, about half a dozen have happened. Maybe you can take a look at what's happening now on stage.

There are couples who have been making their way down an island that is actually right here in the parking lot in front of City Hall. They've been going up to the stage. The mayor has been reading them -- actually pronouncing them husband and husband, wife and wife. They are not getting marriage licenses, because only the clerk could do that, and the clerk said that he or she was not going to do that. But they are in fact getting the marriage pronouncements.

Now, earlier today, the first couple that got married here were Jason McGowan Billiam van Roestenberg.

You were the first that did this. Now, you, Jeffrey, are a veteran of the first Gulf War.

JEFFREY MCGOWAN, MARRYING GAY COUPLE: Yes, I am.

HINOJOSA: And you, Billiam are -- you're a real estate broker here.

BILLIAM VAN ROESTENBERG, MARRYING GAY COUPLE: A real estate agent in beautiful downtown New Paltz and beautiful Hudson Valley.

HINOJOSA: Now, the mayor said that he knew you, that you were planning on doing this in the spring, but he decided that because of the turn of events on the national scale, that it needed to happen now. When did he tell you this, and what did you say in response? MCGOWAN: Well, we were talking about it before the new year, and we were saying how wonderful it would be to get married, because it was the holiday season, and then all of a sudden, all of the events went on out in San Francisco. And for us, we didn't want to turn our wedding day into a protest or civil disobedience, because it's really about us just loving one another and wanting to be married.

VAN ROESTENBERG: Jeffrey actually proposed to me on Christmas Eve, and we just wanted to be like everyone else -- like our family members who have been wed, and friends and neighbors. We're invited to all our neighbors here -- their weddings. We've been to one family next door, two other family members' weddings.

HINOJOSA: But in fact this is not a small wedding. There are hundreds of people here. You've got media from across the country. You've got supporters. You've also got some protesters. Do you feel that you are inserting yourselves into a civil rights movement that is happening now.

MCGOWAN: I think that -- yes, absolutely we are.

VAN ROESTENBERG: By happenstance.

MCGOWAN: By happenstance. It wasn't intentional. I mean, today was supposed to just be the day we got the license. That was it. But it turned into several thousands of our closest friends with cameras and pads and pens coming to visit, too.

HINOJOSA: What's going on for you, Billiam? What kind of a statement are you trying to make with this?

VAN ROESTENBERG: There is no statement. I just want to be equal. It's just fundamental human rights, that I can marry the person I've lived with for six years, to live together, to be proud, to announce it to our friends and family, just like everyone else. I don't want anything extra. We're members of our society and community here in the greater New Paltz area and Platicare (ph). Jeff's on the planning board, I'm on the zoning board. My family -- my sister Ivanna (ph) is here. We just want to be equal to everyone else.

And just in -- take advantage of what this wonderful, brave man, Jason West, has given us the opportunity. That's all it is.

HINOJOSA: Well, congratulations on your wedding day.

VAN ROESTENBERG: Thank you.

MCGOWAN: Thank you.

HINOJOSA: Not a quiet wedding day at all here in New Paltz, New York. They have been having weddings starting at about 12:30 Eastern time, and they're probably going to go on for at least a few more minutes. But that is the latest here in New Paltz -- a very large crowd. This is not anywhere near a quiet little wedding.

Not at all, Kyra. PHILLIPS: Like he said, thousands of his closest friends. Maria Hinojosa, we'll continue to check in with you. Thank you.

In California, meanwhile, the state attorney general has a proposition for the state's highest court -- settle this thing once and for all. With over 3,400 same-sex marriages and a tangle of lawsuits already on the books, the attorney general wants to skip ahead to the ultimate arbiter of the state law. He may or may not succeed. In the 1940s, the California court was the first in the nation to OK marriage between the races.

Little did they know when they raced to San Francisco that Rosie O'Donnell and Kelli Carpenter could have stayed much nearer their New York home to tie the knot. The O'Donnell-Carpenter nuptials were greeted by thunderous applause on the City Hall steps.

(BEGIN VIDEO CLIP)

ROSIE O'DONNELL, COMEDIAN: I would like to thank the City of San Francisco for this amazing ...

(APPLAUSE)

For the amazing stance that the mayor has taken and for all of the people here who assisted not just us but the thousands and thousands of other law-abiding, loving American families who want the rights that every other married couple is entitled to.

PHILLIPS: Well, O'Donnell says that she made the decision to wed during last year's "Rosie Magazine" trial in New York when the couple's private communications were not shielded by spousal privilege.

O'BRIEN: This hour's headline from Haiti actually comes out of the Pentagon. A three-ship task force, 2,200 Marines that may get the order to ship out as early as today. Potentially, that force could help with refugees or evacuate the embassy or help with the exit of embattled Haitian President Aristide. For now, though, all of that is hypothetical.

What's real is the violence and the imminent threat to Aristide in the Haitian capital, Port-au-Prince.

CNN's Lucia Newman is there.

LUCIA NEWMAN, CNN CORRESPONDENT: Hello, Miles. Indeed, there is a growing sense of lawlessness -- indeed, of anarchy in this city right now, and the whole country, but in Port-au-Prince, even, there was looting all morning at the port. Two people were killed. At this very time, there are truckloads of armed men patrolling the streets, terrorizing people, looting stores, pointing guns at people.

Some of them are chemares (ph). That's the name given to the armed gangs that support the president. Others are believed to be just delinquents taking advantage of the anarchy at the time. Businesses are all closed, gasoline station as well. People are trying to stay indoors. They are very, very frightened indeed.

At the airport today, there were scenes of despair as hundreds of foreigners -- Haitian Americans, Canadians, from all over, tried to leave the country. They hadn't been told that almost every flight in and out of Haiti has been canceled, Miles (AUDIO GAP) because their staff cannot make it safely to the airport. And so the scenes here are -- it's very, very concerning.

The rebels, meanwhile, are saying that they are surrounding the capital. They want to choke of Port-au-Prince to force President Aristide to resign, or to march on the palace itself and take him out by force, Miles.

O'BRIEN: CNN's Lucia Newman reporting live from Port-au-Prince. Thank you very much. Haiti.

Haiti, gay marriage, Iraq, jobs -- all fair game last night at that Democratic roundtable seen here on CNN. Well, actually, it was an oblong table. Anyway, the debaters today are focused squarely on Super Tuesday, now only four days away.

CNN's Frank Buckley covers all the angles for us from Los Angeles.

Hello, Frank.

FRANK BUCKLEY, CNN CORRESPONDENT: Hi there, Miles.

John Edwards was doing his best last night to draw distinctions with the frontrunner, John Kerry. He wasn't particularly forceful in the way he did it. He didn't fire off any particularly memorable lines, but he did try to show Democrats how he's different from Kerry, and how he could best beat President Bush. Here's what Edwards said about Kerry on trade policy.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D-NC), PRESIDENTIAL CANDIDATE: I voted against the African trade agreement. He voted for it. I voted against the Caribbean trade agreement. He voted for us. I wasn't in the Congress when NAFTA was passed. He voted for it. But when I campaigned for the Senate, I campaigned against it. And the reason is because these trade agreements do not have -- what, he's got a response?

UNIDENTIFIED MALE: He looks shocked.

EDWARDS: The reason, if I can just finish this. I'm sorry, I'm almost finished. The reason -- the reason I make this point is, these agreements did not have the kind of labor and environmental protections it needed.

(END VIDEO CLIP)

BUCKLEY: Now, Kerry was more focused on President Bush during this debate. Here is what he had to say about the president's proposed constitutional amendment to ban same-sex marriage.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I believe George Bush is doing this -- he's even reversed his own position. He's reversed Dick Cheney's position. He is doing this because he's in trouble. He's trying to reach out to his base. He's playing politics with the Constitution of the United States.

(CROSSTALK)

(END VIDEO CLIP)

BUCKLEY: But if any of the candidates gets credit for the best one-liners, the ones that might get repeated at the water cooler today, it was Al Sharpton.

(BEGIN VIDEO CLIP)

REV. AL SHARPTON (D), PRESIDENTIAL CANDIDATE: I disagreed with Kerry's vote on Iraq. I disagreed with Edwards on the Patriot Act, but I think on their worst day, they're better than George Bush. I think they have integrity. I think they have vision, and I think they can be talked to.

I think that we're dealing with a president that wants to gay bash. What about the other ten commandments? Let's make a constitutional amendment against presidents that lie. Let's deal with the whole thing (ph).

(END VIDEO CLIP)

BUCKLEY: Now, memorable lines like that from Sharpton will not help John Edwards, who is the last potential viable challenger to John Kerry. Many believe Edwards needed to get on the front page today with something fresh out of the debate, and he really didn't.

But Edwards said after the debate he felt good about his performance. Today, he's in Minnesota campaigning and, Miles, Kerry is here in California.

O'BRIEN: Frank, Edwards has been saying all along he didn't want to run a negative campaign. He was true to form last night while pointing out differences, nonetheless. Where does that leave him?

BUCKLEY: It leaves him in a really tough spot, Miles. Super Tuesday coming up -- he's down in the polls going into Super Tuesday. He's promised to be a positive guy. It leaves him with very little room.

There's one more debate on Sunday before Super Tuesday. If he wasn't going to start a campaign of going negative or doing something spectacular last night, I doubt that it's going to happen on the eve of Super Tuesday. If he goes negative, some people call that the Hail Mary pass. If he does that, it goes against the grain of who he's been as a campaigner, and for someone who does have a future in the party, perhaps even on this ticket, it really leaves him in a tough spot if he decides to go negative. Who knows what's going to happen between now and Tuesday?

O'BRIEN: All right, Frank Buckley. Thank you very much. Appreciate it. As you have no doubt heard, the single biggest day for the delegate jackpot is upon us. Tuesday, we'll have California, New York, Ohio, Minnesota, Connecticut, Maryland, Vermont, Massachusetts, Rhode Island and Georgia all in play. That's 1,151 delegates for those of you keeping score at home. And it will either make Kerry all but untouchable or it will make it a whole new ballgame for all of us.

PHILLIPS: Straight ahead, six murders stretching through six states. Who's responsible? Ed Lavandera on the trail of a suspected serial killer.

We were wrong. True confessions from one of America's most powerful defense secretaries. Robert McNamara in a new documentary -- what he has to say about Vietnam and the Kennedy era. We'll talk with the producer of "Fog of War."

Before the waves. Rough weather in California has surfers stoked, but we don't know about the reporter there.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: In the new Iraq, an interim constitution is apart of self government 101, but several key differences make it highly unlikely the document will be drafted by tomorrow's guideline. Iraq's governing council says thorny issues remain, like what role religion will play in the new government.

The temporary charter will serve as the framework for Iraq's legal system until a permanent constitution is adopted.

O'BRIEN: More now on the ripple effects of the unrest that is underway in Haiti. Some in the U.S. fear a tidal wave of Haitian refugees on the order of the exodus arising from the last time Jean- Bertrand Aristide was under fire. Now, should the U.S. take in Haitian boat people, or turn them away? Should the controversial U.S. policy toward Cuban refugees enter into all of this? Is there a double standard? All these questions on our mind today.

We're joined this hour by two U.S. congressman from Florida, Peter Deutsch, a Democrat, and Cliff Stearns, a Republican.

Good to have you both with us.

REP. CLIFF STEARNS (R), FLORIDA: Miles, glad to be with you.

REP. PETER DEUTSCH (D), FLORIDA: Great to be here. O'BRIEN: All right, Mr. Stearns, let's begin with you. Is this policy a wise policy, and perhaps more importantly, is it humane to those Haitians who seek the freedom of our shores?

STEARNS: Well, the wise policy that we have has been consistent since 1981, through Democrat and Republican presidents, which, basically, the Coast Guard stops people from coming from Haiti if they're coming here for economic reasons.

Now, this is a country that has a yearly income, on the average, of $250 a year. So if they get here, they'll make 50 times as much, just getting on welfare or some kind of Social Security supplemental income. So most of the folks are coming here for economic reasons.

O'BRIEN: Yes, but those -- let me ask you this.

(CROSSTALK)

STEARNS: Yes.

O'BRIEN: But those economic reasons stood before the problems cropped up there and will probably be there long after things settle down. So I guess you could make a case that that's prima facie evidence that there's something else that's motivating them to get on those boats.

STEARNS: Well, sure, and if people in Congress signal that it's OK, and they put a NASCAR flag down and they say go, the population is 7.5 million people. We took in 25,000. There's 70,000 that want to come over. At what point do we realize that this is a country about the size of Maryland, and they have a huge population.

I think we're better off trying to solve the problems -- economic problems there, and try to stabilize the country, instead of signaling that we're going to take a tidal wave of immigrants from Haiti.

O'BRIEN: Mr. Deutsch, the point is well taken here. If you say we open our arms to Haitians who can make it across the 600 miles of open water there to get to Florida, the floodgates will indeed open, somewhat literally, there. How do you get around that one?

DEUTSCH: Miles, I agree with you, but again, the point -- the issue that I brought up with you during the break, yesterday, the United States government deported people from Miami, Florida to Haiti.

And what a bipartisan group of members of Congress, in fact -- all of the members of Congress -- in fact three of Congressman Stearns Republican colleagues from Florida have joined me in an effort to request that the secretary of homeland security, in a humanitarian effort that he's allowed to do, that he's done in many other countries in the past, to stop the deportations, to set up a temporary protective status for these people so they literally are not sent to their deaths.

We're talking about people who are in the United States today who very well were scheduled to be deported to Haiti today. We're evacuating people from Haiti. Missionaries are evacuating from Haiti. To send people to their potential death is just wrong.

The secretary of homeland security has an obligation to stop those deportations today.

O'BRIEN: And that -- if it is in fact the case that these people are headed for certain death, clearly, these would be people who should be granted asylum here in the United States.

Mr. Stearns?

(CROSSTALK)

STEARNS: Miles, let's first of all say that Mr. Deutsch is speculating that they will be put to death, and I think anybody who says that is speculating ...

DEUTSCH: But, no, no, no. Cliff, Cliff, Cliff. The standard is not that they would be put to death.

(CROSSTALK)

STEARNS: Let me just answer the question.

DEUTSCH: Cliff, you're putting words in my mouth.

(CROSSTALK)

STEARNS: I heard you say -- that's wrong.

O'BRIEN: I'll tell you what. Mr. Stearns, speak, and then I'll let you get back to it, Mr. Deutsch.

Go ahead, Mr. Stearns.

STEARNS: Well, the point is that each individual case should be looked at, whether it's political asylum or economic asylum.

O'BRIEN: But it's hard to draw the line, isn't it?

STEARNS: With the economic conditions over there, it's impossible to send these people back unless it's political asylum, and I think that's very difficult to demonstrate. And if we send the wrong signal to this country, then people are going to flood over here. Like you said, Miles, a deluge. It will just be a tidal wave.

(CROSSTALK)

STEARNS: So I think we have got to be very careful how we approach this.

O'BRIEN: The deluge is something that would tax resources in southern Florida and would be a problem for your district.

DEUTSCH: Let me just tell you. The question is not certain death, but the statute says, Cliff, in Nicaragua, we didn't send people back. In Somalia, we didn't send people back. It's a temporary protective status.

Cliff, you wouldn't want to go to Haiti today and be in Port-au- Prince or another city, because it's not safe ...

STEARNS: Let me just say to Peter.

DEUTSCH: Under federal statute, there's an obligation from the secretary of homeland security to invoke temporary protective status for these people who are in Florida today ...

STEARNS: If -- let me answer your question.

O'BRIEN: What about that point? Why send them back now?

STEARNS: OK, the point is, you look at each individual case. Is it political asylum or economic? We have a policy. Since 1981, through Democrat and Republican president, if it's for economic asylum, we send them back. If it's political. You can demonstrate with each person that there is either economic or political asylum, so why not take it case by case.

O'BRIEN: Let me just -- let's wrap this up.

STEARNS: To put a blanket charge and say send them -- keep them all here, I think is sending the wrong signal to all the other people that are there ...

(CROSSTALK)

DEUTSCH: It's exactly what the statute provides when the conditions in the country are not safe.

O'BRIEN: Quick question. Quick question. Gentlemen ...

(CROSSTALK)

O'BRIEN: Let me just get my final question in, because we're really out of time as it is. I'm going to get in trouble. Is there a double standard when it comes to Haitians, and is racism at the root of this.

STEARNS: Can I answer that first?

O'BRIEN: Yes, quickly. Please.

STEARNS: OK, first of all, we gave them $300 million to help them. We've sent our troops over there many times. We took in 25,000 Haitians. We have done everything we can to stabilize that country. We're ready to help out again.

Plus, under President Bush, we've sent a lot money over there for HIV/AIDS, and so we are doing all we can. What we need to do is stable that, get a stable government -- then I think we can start to move forward with a legitimate society.

O'BRIEN: All right, Mr. Deutsch, final word. DEUTSCH: And you know what? Absolutely what we need to do is we need to stop the violence that's occurring on the island of Haiti today. We need to stop it. The French are taking the lead. Shame on the United States that the French are taking the lead in our backyard.

We can't send people back to Haiti today, tomorrow. The secretary needs to invoke temporary protective status for these people today. In Miami, before World War II, a boat went by this area right where I'm in the studio right now, and we didn't let people who were sent to their certain deaths. That's going on today right from these shores of south Florida, back to the island of Haiti.

O'BRIEN: We've got to leave it there, unfortunately. Peter Deutsch, Cliff Stearns, thank you both very much.

STEARNS: Thank you, Miles.

O'BRIEN: I know there's many more points to be made there, and I apologize for cutting this off. But once again, as I say, I'm going to the woodshed after the show for going long on this. Thank you, gentlemen. Appreciate it -- Kyra.

PHILLIPS: All right. I'm not talking about your two guests, I promise. We're talking about something else here. The lovable losers had to blame someone or something.

It took one zap and Cubs fans did farewell to that foul excuse for last year's demise. And the hair-free lifestyle of the bald and beautiful. How do they keep those heads so squeaky clean.

Jeanne Moos has clear-cut answers on the way.

O'BRIEN: What, no boom? Come on, they could have done better than that. But in any case, they say they have exorcised some demons in the Windy City. A few sparks and a cloud of smoke, and no boom! And the Chicago Cubs infamous Bartman Ball is gone, however, blown up or whatever it was, by a special effects expert.

Steve Bartman himself wasn't there to watch. You remember him. He's the goat -- I mean, the fan, many Chicagoans blame for costing the Cubs a chance at the World Series by reaching for the ball during game six of the National League championship series. He gets blamed for the Cubs slide after that.

Bad rap. Bad rap, Kyra.

PHILLIPS: Bad unwrap (ph). Another salvo in the big board battle over executive pay. Fred Katayama, live from the New York Stock Exchange with the play by play.

(MARKET REPORT)

PHILLIPS: Coming up, who wants to be a billionaire, besides Bill Gates, of course. We'll take a look at the world's wealthiest later this hour.

CNN's LIVE FROM continues after this break.

(COMMERCIAL BREAK)

O'BRIEN: A judge has dismissed the securities fraud charge against Martha Stewart. It was the most serious charge she was facing. It carried with it a penalty of up to 10 years in prison. The judge said prosecutors didn't provide sufficient evidence. Stewart still faces charges of obstruction of justice, conspiracy, and making false statements.

The battle over same-sex marriage hits the California supreme court today. Governor Arnold Schwarzenegger has ordered the state attorney general to take immediate steps to stop those weddings in San Francisco.

The attorney general is asking the court for a clarification whether San Francisco's action violates sate law.

The Bush administration says it plans to eventually stop the U.S. military's use of conventional landmines. They will be replaced by ones that have self-destruct mechanisms set for a period of time. However, the U.S. will not sign a landmark anti-landmine treaty endorsed by 150 other nations.

President Bush is meeting with German Chancellor Gerhard Schroeder. The weak U.S. dollar is one of the topics of discussion. Schroeder has warned that world trade could be harmed by any more shifts in the exchange rate between the dollar and the much-stronger euro.

PHILLIPS: There's growing concern that a serial killer may be responsible for a string of brutal deaths across the South. At least seven women have been killed in six states, and authorities from those states arrived in Oklahoma City to share notes.

Ed Lavandera joins us live from that area now. Ed?

ED LAVANDERA, CNN CORRESPONDENT: Hi, Kyra. We're live here in Oklahoma City. Behind me is the building where the Oklahoma State Bureau of Investigation is headquartered. Some four dozen investigators meeting up there today, comparing notes on those seven cases. Officially, talking about seven cases, but we do understand that they're actually looking at more than that. A lot of investors coming from six different Southern states to compare their notes on those cases, and they're still sure if they're dealing with a serial killer at this point.

(BEGIN VIDEO CLIP)

KELLY RUSHING, INVESTIGATOR: A photo from a surveillance camera.

(END VIDEO CLIP)

LAVANDERA: The blurry picture captured the last moments of a woman's life.

(BEGIN VIDEO CLIP)

RUSHING: This woman here is who we believe to be our victim.

(END VIDEO CLIP)

LAVANDERA: But since, she was last seen five months ago. This woman remains a complete mystery. Chief Deputy Kelly Rushing and a team of investigators don't know who she is. They know nothing about here.

(BEGIN VIDEO CLIP)

RUSHING: The last thing she said to anyone was, I've got a ride and I've got to go.

(END VIDEO CLIP)

LAVANDERA: Six hours after cameras showed here walking around a truck stop in Oklahoma with a backpack and wearing what looks like men's clothing, she was found dead along a highway in the Texas panhandle, the clothes and backpack nowhere to be found.

(BEGIN VIDEO CLIP)

RUSHING: Just discarded on the side of the road like a bag of trash.

(END VIDEO CLIP)

LAVANDERA: Investigators believe this case could be linked to similar murders in Oklahoma, Texas and four other states. In the last two years, some 10 women have been found dead along highways. In almost every case, the women were last seen at truck stops, and also had a history of prostitution.

Investigators say there are more similarities to these cases, but they're not ready to say they're all connected.

(BEGIN VIDEO CLIP)

JESSICA BROWN, INVESTIGATOR: We have entertained the idea we may be talking about a serial killer, but we have nothing at this point in time that directly links these homicides to one person.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We're looking at Casey's spirit house.

(END VIDEO CLIP)

LAVANDERA: Following ancient Seminole tradition, Casey Jo Pipestem was buried on her family's land in central Oklahoma. Pipestem was 19, and last seen in an Oklahoma City truck stop in January. She was found dead in Texas, her body thrown off a bridge into a creek. Here family worries that no one cares about these victims because of their lifestyles, and they want people to know that no one deserves to die like this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think if people looked at their background, I think what they would find is that they were human beings, that they were people with families.

(END VIDEO CLIP)

LAVANDERA: Now, there are no suspects in this case at this point, but given the similarities in these cases, that the women were all taken from truck stops, found along highways, authorities do believe, and this is based on what we've talked with several investigators about, they do believe that they are looking for a truck driver to be responsible in these murders.

Also, we do understand that in this meeting today, these investigators are also getting the help of FBI profilers to help them in their search for this killer.

Now who, or how many people might be involved isn't clear at this point, but they definitely are getting the help of the FBI in this case -- Kyra.

PHILLIPS: Ed Lavandera, live from Oklahoma City.

Other news across America now, the often-called bad boy of R&B is back in Atlanta area court today. Singer Bobby Brown has a probation hearing. The judge will determine if Brown violated a 1996 probation. Brown was recently charged with hitting his wife, singer Whitney Houston.

In southern California, the end of a grocery strike may soon be in the bag. The grocery workers' union has reached a tentative contract agreement with three supermarket chains. Some 70,000 grocery store clerks will vote on the deal over the weekend. The 4.5 month- old supermarket strike is the longest one in U.S. history.

Also in California ...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Themselves, coming out there, just (INAUDIBLE).

(END VIDEO CLIP)

PHILLIPS: The assignment you never want. Wild waves caught on tape in the Monterey Bay area yesterday. There were 23-foot swells. That's about three times as high as usual. Divers, kayakers and surfers all decide to say beachside.

O'BRIEN: A little channel surfing there. In any case, in the South, some weather woes as well to tell you about. After a winter storm dropped several inches of snow across the region, folks are ready to thaw out.

CNN meteorologist Chad Myers is in South Carolina with a forecast.

CHAD MYERS, CNN METEOROLOGIST: Things are a little bit slow across South Carolina this morning, and North Carolina. Places around Charlotte, 17 inches of snow. South Park, in Charlotte, 17 inches. When you get down the Triad, 18 inches. Where we are here, in Spartanburg, South Carolina, about nine inches officially fell. Now it's kind of compacting a little bit because the ground was so warm, so some of the snow is actually melting. And on the roadways here, seeing a couple of ruts.

Mostly, the cars are getting by. Mostly, the interstates are actually at this point in time really in good shape. Our temperatures are on up into the upper 30s, later today right around 40 degrees or so, and tomorrow, in fact, all the way to 48 degrees. So we start to warm things up, a lot of this melts by today and into tonight and then into tomorrow. The problem is, one of the problems, may of these areas that were seeing some melting today will have refreezing tonight. Watch yourself around sunset. That's when these roads are going to refreeze again.

When they go from shiny and black to a little bit hazy and white, you know they're starting to freeze. Also, later today, watch out for that black ice -- any of the stuff that just refreezes on the roadway could get very treacherous, especially right after sunset. Be careful out there.

Chad Myers, CNN, reporting from Spartanburg, South Carolina.

O'BRIEN: So, how's the weather on Mars, you may ask. Right, would you ask that?

PHILLIPS: Exactly what I was wondering.

O'BRIEN: Cold as Hades, all the time. Notice how I cleaned that up.

PHILLIPS: Thank you.

O'BRIEN: That's Mars. That's the Rover. There are two of those on Mars right now, roving around, giving us wonderful pictures. Hey, if you ever wondered what it would like to see a sunset on Mars, as we begin ...

PHILLIPS: The Mars ...

O'BRIEN: The "MARS MINUTE." Here it is, sunset on Mars. Just in case you need some help, Kyra, that is the sun on Mars.

PHILLIPS: Thank you so much.

O'BRIEN: And let's see if you can roll it, it should sync off. The real point here is scientifically is there's an awful lot of dust. There it goes, sets away, and there's your Martian sunset. A lot of dust in the area -- what does that mean? I don't know.

All right, let's go to the still images now. This one comes from Spirit. This is just a view of the rocky horizon, where it is headed, headed off in that direction to a place called the Bonneville Crater. Not sure why they named it that.

Next -- oh, that's Saturn. We kind of jumped the gun, but what the heck? I'll show you Saturn. This is way cool, Kyra.

PHILLIPS: I'm looking, I'm watching.

O'BRIEN: This has nothing to do with Mars. Farther beyond -- you know, my very educated mother just got us nine pizzas (ph) way out there where Saturn is -- served us. The S for served is Mars. And the Cassini spacecraft is now how far away would you guess?

You don't know.

PHILLIPS: I have no idea.

(CROSSTALK)

O'BRIEN: And (UNINTELLIGIBLE) weekly postcards of Saturn. It will arrive there in the summer and at the end of this year, send a probe down to the moon of Saturn called Titan.

PHILLIPS: I wish everybody could see Miles. His feet start stomping. His hands start doing the -- it's like going to the candy star, your little minute, minute on Mars.

O'BRIEN: Yes it is. All righty, well, going a little thin on top? I saw that Chad Myers -- Chad Myers might want to pay attention to this one from that standup, the poor guy.

Anyway, you could be part of a new fad, Chad. There are even toys on the market to help you maintain the look. Is that our read? That is our read.

PHILLIPS: Is that our read?

O'BRIEN: That is our read.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: Who will win the Academy Awards there this Sunday? Many South Africans will be watching. They're rooting for their hometown girl, Charlize Theron. She's nominated for best actress in her role as a serial killer in "Monster," and CNN's Charlene Hunter- Gault takes us to her old stomping grounds.

CHARLENE HUNTER-GAULT, CNN CORRESPONDENT: Cast your mind back 15 years and this tall, leggy blond might easily have been Charlize Theron. The tall, leggy blond taking Hollywood by storm -- remembered for her great imagination even then.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I remember her telling the children in her class that she was a princess in her previous life, and they really admired her and were absolutely in awe of her.

(END VIDEO CLIP)

HUNTER-GAULT: As are these young ballerinas, following at least here in Charlize's footsteps.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: That's because she's South African, and we're like, if she can make it, then we can all make it.

UNIDENTIFIED FEMALE: I actually go goose pimples right now.

(END VIDEO CLIP)

HUNTER-GAULT: Not far from Johannesburg, in this community of small farms, the seeds of stardom were also sown.

It was from this modest little house in Benoni that Charlize Theron used to dream big dreams, and although she's gone, those she left behind are dreaming big dreams for her now.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: (UNINTELLIGIBLE)

(END VIDEO CLIP)

HUNTER-GAULT: At the local Benoni meat market, rare memories.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Well, I know she likes a raw stake. (INAUDIBLE) she'd just take it out of the garlic and she eat it like that.

(END VIDEO CLIP)

HUNTER-GAULT: Despite the garlic ...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We feel good that she comes out of our neighborhood.

(END VIDEO CLIP)

HUNTER-GAULT: At her local grade school, more memories. Her geography teacher says she was a good student, but even then ...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Well, I remember her as a small little girl running around here and doing her acting in the room (ph).

(END VIDEO CLIP)

HUNTER-GAULT: And while the all-Afrikaans school of Charlize's childhood is no more, her inspiration is alive and well.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I just want to follow in her footsteps.

(END VIDEO CLIP)

HUNTER-GAULT: And while few of these youngsters have television sets, and the movie "Monster" is just being released now, they, along with the rest of the country, will be pulling from the girl from Benoni to bring home the Oscar on Sunday night.

Charlene Hunter-Gault, CNN, Benoni, South Africa.

O'BRIEN: Well, she went from a penniless single mother to a world-famous writer. You know who it is, right? J.K. Rowling, author of the Harry Potter series, you've heard of that tone, right?

Well, she joins the ranks of "Forbes'" finest. Our Fred Katayama has left his post. He's at a coffee shop trying to type out a very lucrative novel, right?

(COMMERCIAL BREAK)

O'BRIEN: Well, bald can be beautiful, but it takes some work to get the right shine. Now, one man is trying to simplify the shave with a baldie blade. Jeanne Moos, who else but Jeanne Moos.

JEANNE MOOS, CNN CORRESPONDENT: From Carville to Montel to Moby to ...

(BEGIN VIDEO CLIP)

MIKE MYERS, ACTOR: Mini Me.

(END VIDEO CLIP)

MOOS: Don't expect to kiss the baldie good by any time soon. Have you ever stood inches away from one in an elevator, wondering, how do they keep it that way?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: So you just drive it like a little car.

(END VIDEO CLIP)

MOOS: These days, baldies even have their own contraption, the HeadBlade.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You know, bald guys rub their head. So I realized, if you could take and put a blade on your finger, it would make shaving your head so much easier.

(END VIDEO CLIP)

MOOS: Most baldies shave every day or two with a regular razor, or an electric shaver. Some even resort to ne'er-do-wells like hair removal lotions. But the HeadBlade is under consideration for the design collection at the Museum of Modern Art, even if lumpy shaved heads don't necessarily look like works of arts.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Women are so incredibly curious about it, it's unbelievable. People want to come up and touch my head frequently.

(END VIDEO CLIP)

MOOS: CNN financial anchor, Ali Velshi, had nine days of growth.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Well, you're like a hippie.

ALI VELSHI, CNN FINANCIAL ANCHOR: Well, I know. I'm going to braid it ...

(END VIDEO CLIP)

MOOS: When he first tried out a HeadBlade.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You just glide it down your head.

(END VIDEO CLIP)

MOOS: Originally, the HeadBlade's creator thought of naming it ...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The Hair Jordan.

(END VIDEO CLIP)

MOOS: But Hair Jordan didn't pan out.

(BEGIN VIDEO CLIP)

MOOS: Can I sign him up? UNIDENTIFIED MALE: Yes, you can sign him up.

VELSHI: Oh, there's a buffing involved here.

(END VIDEO CLIP)

MOOS: There's even head lube that comes in either matte or glossy.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Depends what you want. I mean, not as much.

(END VIDEO CLIP)

MOOS: Baldies have come a long way since Telly Savalas.

(BEGIN VIDEO CLIP)

TELLY SAVALAS, ACTOR: Who loves you, baby.

(END VIDEO CLIP)

MOOS: And Mr. Clean.

(MUSIC)

MOOS: Why stop at grime when you can shine?

(BEGIN VIDEO CLIP)

MOOS: It's very shiny. I can see myself in it. Can I? Just a little?

(END VIDEO CLIP)

MOOS: Jeanne Moos, CNN, New York.

O'BRIEN: I'd definitely go for the high gloss if I was going to do it.

PHILLIPS: I think you should go for it.

O'BRIEN: Oh, yes, yes.

PHILLIPS: Eyebrows, too.

O'BRIEN: All right, let's talk money, shall we?

(MARKET REPORT)

(COMMERCIAL BREAK)

PHILLIPS: A decade in the slammer for Martha Stewart? Not now. The securities fraud charge dropped against the domestic diva. ALLAN CHERNOFF, CNN CORRESPONDENT: I'm Allan Chernoff at the federal courthouse in Manhattan. The judge says the evidence was so weak no jury could have found Martha Stewart of securities fraud. We'll have details.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D-NC), PRESIDENTIAL CANDIDATE: I think an Edwards-Kerry ticket would be powerful.

(END VIDEO CLIP)

O'BRIEN: Edwards-Kerry, Kerry-Edwards, in any case it was more Mr. Nice Guy for John Edwards and the question is where does that leave his candidacy and will the two of them be on the ticket together?

(BEGIN VIDEO CLIP)

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Once long ago this was the royal palace where young kings tried to rule the young country of Iraq. Several revolutions later, U.S. bombs have reduced it to rubble.

(END VIDEO CLIP)

PHILLIPS: From rubble to reviving history, the royal family of Iraq before Saddam Hussein, Jane Arraf with an exclusive look into a very unique family history.

O'BRIEN: All right, a personal favorite of mine, Oscar beat Allison. That's Allison Crouse, her haunting wonderful voice getting ready to perform at this Sunday's Academy Awards. She'll drop by for a visit a little bit later. You don't want to miss that.

From the CNN Center in Atlanta, I'm Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. This hour of CNN'S LIVE FROM starts right now.

Up first this hour off the table, Martha Stewart is savoring a judge's ruling depriving federal prosecutors of their juiciest allegation that Stewart committed fraud by lying to her own investors. She's still charged with lying to investors and conspiracy and obstruction of justice and that could be a recipe for prison but, for now, Stewart celebrates.

CNN's Allan Chernoff narrates from the courthouse -- Allan.

CHERNOFF: In fact, Kyra, Martha Stewart celebrated just about an hour ago. She left the courthouse for the first time for lunch during this entire trial. She went with her lawyers to a restaurant in China Town about four blocks away, smiling faces on everybody in her party.

Martha Stewart very pleased that the judge gave an opinion this morning saying the jury could not possibly have found her guilty of securities fraud, which had been the most serious charge against Martha Stewart carrying a possible prison term of up to ten years.

Martha Stewart had been charged with trying to defraud investors in her own company, Martha Stewart Living Omni Media by saying she did nothing wrong in selling her ImClone shares. Essentially, she was charged for proclaiming her innocence. The judge said that no reasonable jury could have found her guilty beyond a reasonable doubt and that jurors simply would have had to speculate.

As you said, Kyra, Martha Stewart still is confronting other criminal charges though. They include obstruction of justice, conspiracy and two counts of making false statements. The jury will get that case next Wednesday -- Kyra.

PHILLIPS: We'll be following it. Allan Chernoff, thank you -- Miles.

O'BRIEN: News across America now, the same-sex marriage storm moves east to the tiny town of New Paltz, New York. Several couples exchanged vows today despite state warnings that it's not legal. Mayor Jason West invites couples to sign up on the town's website.

Meanwhile, the California attorney general takes the same sex marriage issue to the State Supreme Court today. Across the bridge from San Francisco, Oakland City Council considers allowing gay and lesbian couples to wed there.

And striking grocery workers in Southern California vote this weekend on a tentative contract agreement. Some 70,000 clerks have been manning picket lines since October over lack of healthcare benefits.

PHILLIPS: Same-sex marriage, the Iraq War, and voting records some of the more prickly issues for the Democratic presidential candidates during last night's face off in California.

Senior Political Correspondent Candy Crowley presents some of the better moments of the CNN-L.A. Times Democratic Debate.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice-over): It is their least favorite subject but Rosie O'Donnell got married in San Francisco. Here they were in California at a debate. Of course they discussed gay marriage.

EDWARDS: This president is talking about first amending the United States Constitution for a problem that does not exist.

AL SHARPTON (D), PRESIDENTIAL CANDIDATE: The issue in 2004 is not if gays marry. The issue is not who you go to bed with. The issue is whether either of you have a job when you get up in the morning.

CROWLEY: And they hated every minute of it.

KERRY: This discussion we've just had is exactly where the Republicans want us to spend our time.

CROWLEY: In the oldie-but-goody category, the war on Iraq still a difficult subject for the two leading contenders who voted for the Iraq resolution.

UNIDENTIFIED FEMALE: It was a blank check, why?

EDWARDS: But those -- those -- what we did is we voted on a resolution. The answer is what we did is we voted on a resolution.

KERRY: I have a slightly different take from John on this. Let me make it very clear. We did not give the president any authority that the president of the United States didn't have. Did we ratify what he was doing, yes, but Clinton went to Haiti without the Congress. Clinton went to Kosovo without the Congress. And the fact is the president was determined to go evidently but we changed the dynamics.

LARRY KING, CNN ANCHOR: Do you regret your vote?

EDWARDS: I did what I believed was right at the time.

KING: Do you regret it?

EDWARDS: I believe I did what was right at the time.

KING: Do you regret it?

KERRY: I do not regret my vote. I regret that we have a president of the United States who misled America and broke every promise he made to the United States Congress.

CROWLEY: Save for the usual pithy comments from Al Sharpton and Dennis Kucinich, this was a relatively mild debate. John Kerry, the frontrunner, has nothing to win by being aggressive. He stayed above the fray.

(on camera): As for John Edwards, he is tied down by his own campaign rhetoric that he would not attack a fellow Democrat.

Candy Crowley, CNN, Los Angeles.

(END VIDEOTAPE)

O'BRIEN: Well, we all here at CNN certainly hoped you watched that debate last night but the truth of the matter is if you saw Bill Schneider yesterday, you didn't need to because he was ever so prescient on precisely what would happen that he foretold the future.

Bill Schneider, you said that John Edwards was at a pivotal moment whether he should go nice or go negative. You thought he would probably go nice and that's pretty much what happened, isn't it?

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Well, he tried to go a little bit negative on John Kerry. He raised some issues about Kerry's accepting money from lobbyists but he did it in a mild and even fairly friendly way.

He tried to depict himself as an outsider. Kerry is a Washington insider. But in the end, Kerry just sort of smothered him with a blanket of love and said there are no difference between us, John. We stand for the same things. I'm against lobbying. You're against lobbying. We have the same position on trade. Kerry just wouldn't let him get away with it.

O'BRIEN: So, is this the beginning then of the courtship of Mr. Edwards perhaps as a running mate?

SCHNEIDER: Well, a lot of Democrats watched that debate and they didn't see any bitterness. They didn't see any ranker. What they saw was a ticket, Kerry at the top, Edwards in second place, and they didn't exactly deny that, though Kerry said he hasn't made up his mind. He's still running for the nomination.

I think Democrats are delighted by this contest. Imagine two leading candidates battling it out, a spirited competition, but it's not dividing the party. It's uniting the party.

O'BRIEN: Possibilities for the number two slot on presumably John Kerry's ticket, assuming he gets the nomination, the top of the list Edwards comes to mind immediately. I assume it comes to mind with you. Pros and cons on that choice.

SCHNEIDER: Edwards the big pro is he's shown himself to be a good campaigner. He's popular in the party. He's likeable. The con is he doesn't have a lot of world experience and no military experience at a time when national security is crucial.

O'BRIEN: But is -- how crucial is that if, in fact, the person at the top of the ticket has plenty of it really in spades?

SCHNEIDER: It's not as crucial for the second place as for the top but it is very useful for the Democrats to be able to say we have a ticket that can match President Bush and Vice President Cheney on national security experience. It's very helpful.

O'BRIEN: Number two on our list of possibilities on the old dance card, Governor Bill Richardson, who you might remember from his role at the United Nations and you might remember now as being in New Mexico. Tell us exactly what the pros and cons are on him.

SCHNEIDER: Well he has one very big pro and that is that he is of Hispanic heritage. He was raised in Mexico City. He speaks Spanish fluently. Hispanics will be very excited, not just in New Mexico, the state where he's governor, but also in some crucial states like, shall I say, Florida, New Jersey, lots of other states.

Hispanics are a fast-growing group. They might turn out in huge numbers to vote for the first Hispanic ever to be on a national ticket. Plus, here's an extra added bonus ladies and gentleman, he's got foreign policy experience. He was an ambassador to the United Nations. He has negotiated with Saddam Hussein and with Kim Il-Song, so he has world experience which very few other Democrats can claim. O'BRIEN: All right, and finally on your list this one might come as a bit of a surprise to folks, old school Democrat here, Richard Gephardt and this goes right to the heart of where the Democrats need some help.

SCHNEIDER: And where the Democrats need some help is the heart of the country, the heartland of the country, the Midwest where Gephardt is from, Missouri. People who look at the map of red and blue states say now if the Democrats keep all the states, the blue states that Gore carried, what states can they pick up from Bush?

The answer is maybe Missouri, maybe Ohio. Those states are hurting badly because of the poor economy. They've lost a lot of jobs, manufacturing jobs. Dick Gephardt's issue is jobs, jobs, jobs. He is a Midwesterner. He's from Missouri. The idea is he can help the Democrats carry Ohio, Missouri and maybe some other Midwestern states that George Bush took. The problem there, of course, is he's a long-time Washington insider. So is John Kerry. It would very much look like a Washington ticket.

O'BRIEN: All right. Now here's one that might be a dark horse candidate, General Wes Clark. He's got the outsider status and yet he also has in this post 9/11 world he certainly has the military troughs if you will. So, what do you think of that one?

SCHNEIDER: That's a pretty good one. He did not distinguish himself as a campaigner because frankly he's new to the political campaign and he made a lot of rookie mistakes. On the other hand, he has three words after his name that all Democrats -- make Democrats' heart beat faster, Supreme Allied Commander. How about that? Retired four-star general, you can't beat that. I mean you want national security credentials, there you are.

O'BRIEN: I thought you were going to say CNN military analyst but I guess Supreme NATO Commander does trump that.

SCHNEIDER: That's true.

O'BRIEN: Bill Schneider, thank you as always.

SCHNEIDER: But he can use your name as a reference.

O'BRIEN: I'd be happy to offer a reference for you and everybody else in the political universe but, once again, telling us the future. Thanks very much from L.A. -- Kyra.

PHILLIPS: Well, you're going to get the most complete coverage of course of the ten Super Tuesday contests right here on CNN. The countdown begins Tuesday night, 7:00 p.m. Eastern, and continues until every race is decided.

Straight ahead, many Haitians have tried to flee their homeland for America only to be turned back. John Zarrella looks at differences in U.S. policy regarding Haitian and Cuban refugees.

Plus, discarded and almost forgotten, a royal family's history finds a home in Iraq.

And history is what the movie "Cold Mountain" is trying to make this weekend. We'll talk with singer Allison Crouse who will perform one of the songs from the movie at this weekend's Academy Awards. You won't want to miss her.

(COMMERCIAL BREAK)

PHILLIPS: Off now to Haiti and that could be the order given to a three ship U.S. Navy task force with 2,200 Marines. Pentagon officials tell CNN the deployment is being considered as a potential means of evacuating Americans or even Haiti's increasingly embattled president. Haitian rebels are gaining ground and closing in on Port- au-Prince.

We get the latest now from CNN's Lucia Newman. She's in the Haitian capital. Lucia, what do you know?

LUCIA NEWMAN, CNN CORRESPONDENT: Kyra, it's absolutely anarchy here in the capital at this moment, absolutely lawlessness. There's no one in charge. The police aren't to be seen anywhere. There's been widespread looting at the port.

We know of at least four people that have been killed execution style, according to witnesses. Reporters say one of them said that he was forced to witness the execution of one man right in front of him while he had a gun pointed at him as well.

At this hour, there are truckloads of armed men that are roaming the streets, terrorizing people, looting shops, robbing. People are staying indoors as much as possible. Almost all businesses are closed right now, Kyra. There are only a few stores open and people are rushing to load up on food as much as they can because they don't know what is going to happen next.

The capital is coming to a standstill and there were scenes of desperation at the airport in the meantime with hundreds of foreigners trying to get out of the country just to discover that almost every single flight in and out of Haiti has been cancelled.

American Airlines, Kyra, yesterday cancelled their five daily flights to and from Haiti and they say they won't resume flights until March 3rd at the earliest. People were crying. They just can't get out of here. They couldn't even leave the airport because the streets are just too dangerous -- Kyra.

PHILLIPS: What about the lives of the Americans there also? What's the threat level like against the Americans?

NEWMAN: It is not particularly aimed at Americans but just anyone who is on the way, anyone who is here. There is, as I mentioned already, a total lawlessness. There is nobody in control at this time.

The rebels, meanwhile, say that they are going to cut off the capital by land and by sea, choke off the capital Port-au-Prince, not allow any boats to come in either, any ships bringing in food or fuel, forcing them to go to the north, which they now control.

So, the idea is to bring President Aristide to his knees and get him out of the palace before they actually march in here and before there is a confrontation, a bloody confrontation presumably between Aristide supporters and the armed rebels but the people in the meantime are in the middle and the people who are roaming the streets right now aren't taking orders from anyone -- Kyra.

PHILLIPS: Lucia Newman reporting from Port-au-Prince. We'll continue to follow the story as things continue to heat up. Lucia, thank you -- Miles.

O'BRIEN: There's a battle brewing on Capitol Hill over the 9/11 commission. It looks as if some lawmakers who want to give the commission more time to do its work are threatening to hold up some popular legislation to get their way.

Congressional Correspondent Joe Johns joining us live from the Senate Gallery with more, hello Joe.

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: Hello, Miles.

The Senate this morning approved an extension of the commission deadline but, over on the other side of the capital, the House Republican leadership is refusing to bring the bill up. So, Senator John McCain of Arizona and Joe Lieberman are threatening to attach it to a stop-gap must pass spending bill for federal highways.

(BEGIN VIDEOTAPE)

JOHNS (voice-over): The 9/11 commission wants its deadline extended and President Bush says he agrees but the top Republican in the House, Speaker Dennis Hastert is opposed. Democrats suggest he's doing what the president really wants.

REP. NANCY PELOSI (D-CA), MINORITY LEADER: I think that Dennis Hastert is a reasonable man and that he will agree to letting us go forward. If he does not, I can only assume that he is doing the heavy lifting for the White House who never wanted this commission in the first place.

JOHNS: And a Democrat on the 9/11 commission is lashing out.

RICHARD BEN-VENISTE, 9/11 COMMISSION MEMBER: Speaker Hastert's position frankly is inexplicable. We see no reason why we shouldn't have the additional time and we think the American public strongly supports our work.

JOHNS: The commission has asked the deadline for its report to be moved from late May to late July, closer to the election. Hastert's aides say he doesn't want it to become a political football.

REP. DENNIS HASTERT (R-IL), HOUSE SPEAKER: What we want to do is get the commission and the report out as quickly as possible so that if there are problems we can solve those problems.

JOHNS: The speaker's lieutenants deny Hastert is playing bad cop to help the president.

REP. ROY BLUNT (R-MO), MAJORITY WHIP: I'm sure this is no deal and I'm also sure that if there's a good cop here the good cop is the speaker. The good cop position here is let's do what's best for the country.

JOHNS: The White House, when asked repeatedly whether Mr. Bush will personally pressure Hastert to drop his opposition, says only that the president supports an extension. The commission is also upset that the White House is saying the president and Vice President Cheney can only be questioned in private for one hour and only by the commission's chairman and vice-chairman.

Meanwhile, the families of the 9/11 victims still a potent force. Monica Gabrielle whose husband Richard was killed in the World Trade Center said if the White House truly wanted an extension it would be done.

MONICA GABRIELLE, 9/11 WIDOW: This White House is playing politics and it's unconscionable and despicable.

(END VIDEOTAPE)

JOHNS: The White House says the president and his chief of staff have tried to get the speaker to change his mind. McCain and Lieberman now are vowing to keep the pressure on -- Miles.

O'BRIEN: Joe Johns on Capitol Hill, thanks much.

Half a century later, memories of Iraq's royal family have a home.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: And I think a lot of Iraqis feel very sorry for what happened to the royal family. It's a tragedy.

(END VIDEO CLIP)

O'BRIEN: All right. This is our favorite piece of the day so you're not going to want to miss it, a peak at royal history is coming up. Jane Arraf did a fine job.

And lessons in the use of intelligence, how Israel fights terrorism.

(COMMERCIAL BREAK)

PHILLIPS: Well, a day to play for some, a day to dig out for others. The snow is more than a foot high in some parts of the Carolinas. You know what that means, no school today. A lot of businesses also closed for a second day. What about the weekend? Here's CNN's Orelon Sidney.

(WEATHER FORECAST)

(COMMERCIAL BREAK)

(COMMERCIAL BREAK)

(MARKET UPDATE)

PHILLIPS: And...

O'BRIEN: Welcome back. Well, you go ahead if you like.

PHILLIPS: Oh, no, no.

O'BRIEN: No, ladies first. I insist really.

PHILLIPS: He's Miles. I'm Kyra. We're going to continue this newscast. Here's what's all new this half hour.

O'BRIEN: What she said.

PHILLIPS: Their efforts are the same, desperate and dangerous but the results are often different. We're going to look at U.S. policy for Cubans and Haitians trying to enter the country.

O'BRIEN: The Cubs won't have that darn ball to blame anymore. Final moments for the (unintelligible) foul ball coming up. It's kind of a dud if you ask me.

PHILLIPS: Well, I'll tell you who's not a dud, Allison Krauss wow, flirting with Oscar we're told. We'll tell you why a bit later but first here's what's happening this half hour.

O'BRIEN: A blow for prosecutors in New York City. Martha Stewart case we're talking about. The judge has thrown out the most serious charge against her, securities fraud it was. That charge had accused Stewart of deceiving investors by lying about her sale of ImClone stock. Its investors in her own stock (UNINTELLIGIBLE). Left intact, charges of conspiracy, obstruction of justice and lying to investigators.

A special assignment. Sources tell the Associated Press a special prosecutor will be appointed to look into the recruiting scandal at the University of Colorado. Federal lawsuits have accused the school of using women and alcohol to lure prospective football players.

Shameful, that's how one Catholic bishop describes the national report on priestly sex abuse. It shows almost 11,000 allegations were made against more than 4,300 priests. All involve children from 1950 to the turn of the century. And church leaders are again apologizing to the victims.

A capital in chaos. Scenes of looting, carjacking and shootings in Port-au-Prince, Haiti. Rebels surround the city and now threaten a blockade. Despite mounting calls for his resignation, President Jean- Bertrand Aristide is holding fast. The U.S. is considering sending a three-ship task force of Marines to that island nation as a precaution. PHILLIPS: Love it or hate it, the U.S. policy towards Haitian refugees has at least been cut and dried to the point: turn around and go back home. It's back on the radar as Haitians by the hundreds risk death on flimsy boats in hopes of avoiding death by insurrection. Just like the early 1990s but so far at least on a smaller scale. Here's CNN's John Zarrella.

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN MIAMI BUREAU CHIEF (voice-over): A wooden sailboat off the coast of Haiti. On board, the people sing. Floating close by, the Coast Guard cutter Bear. It is early March 1989, nearly 15 years ago.

For Haitians looking for a better life, U.S. policy has been consistent for decades.

UNIDENTIFIED MALE: All 202 people we have on board are being repatriated.

ZARRELLA: Haitians fleeing poverty are considered economic migrants. Whether they will stopped or make it to U.S. soil, nearly all are sent home. Cubans were and until the early 1990s regarded differently. Fleeing communism Cubans were considered political refugees. The United States nearly always opened its arms to embrace them no matter how they got here.

But when 30,000 Cubans left the island during the rafters crisis the policy changed. Cuba and the U.S. agreed, 20,000 Cubans could come to the United States legally every year. Those who still came illegally were subject to a new policy known as "wet foot/dry foot." Cubans stopped at sea are sent home. Those who make it to U.S. soil are allowed to stay.

It has led to some dramatic events. Desperation to reach the store. At least for Cuban refugees, if they make it, chances are, they can stay.

John Zarrella, CNN, Miami.

(END VIDEOTAPE)

O'BRIEN: News around the world now. Marking the end of an eight-year trial, a former Japanese cult leader was today convicted and sentenced to hang for masterminding the sarin gas attack on Tokyo's subway. It killed 12 and injured thousands, as you probably recall.

Police and protesters conflict on holy ground in Jerusalem. Israeli police say they stormed the Temple Mount today to scatter stone throwers who were targeting them. No injuries or damage are reported.

Barring a last-minute deal, Iraqi leaders will not make tomorrow's deadline for agreeing on a temporary constitution. Major obstacles remain like the role of religion in the government. The interim document will provide legal guidelines until Iraq adopts a permanent constitution.

U.S. soldiers ruffling through the ruins of a bombed Iraqi palace used by Saddam Hussein have found a historical treasure trove. We get more from CNN's Baghdad bureau chief, Jane Arraf.

(BEGIN VIDEOTAPE)

ARRAF (voice-over): It was a family's history packed into this vehicle. But it was Iraq's royal family. And they lost their home here half a century ago.

Almost 1,000 photographs, silver dishes and other items found in the rubble of what was once the royal palace and given to the Iraq Museum by the U.S. Army. The palace was taken over after the 1958 revolution, later by Saddam Hussein and bombed by the U.S. during the war.

The family's history was Iraq's. There were signed and numbered prints of King Faisal installed by the British as the king in the 1920s.

UNIDENTIFIED MALE: He's got the hint of a smile.

ARRAF: Photographs of Queen Alia, the wife of Faisal's son, King Ghazi. Only museum porter Abid Ateah (ph) who has worked at the museum for 63 years recognizes the faces from memory.

UNIDENTIFIED MALE (through translator): That is one of Ghazi's cars. It's a Mercedes.

ARRAF: King Ghazi met one of the most merciful ends of Iraq's Hashemite rulers. He died in a car crash in his twenties.

Two decades later, his young son, Faisal II, the crown prince and female relatives were shot dead. The crown prince's body dragged through the streets.

LAMIA GAYLANI, IRAQ MUSEUM: And you see the ruins of a family which is awful. And I think a lot of Iraqis feel very sorry for what happened to the royal family. It's a tragedy.

ARRAF: Their Hashemite cousins still rule Jordan, but the Iraqi royals who weren't killed were scattered.

(on camera): Once long ago, this was the royal palace where young kings tried to rule the young country of Iraq. Several revolutions later, U.S. bombs have reduced it to rubble. But once women in ballgowns danced here and young princes grew up to be tragic kings.

(voice-over): Some of the most interesting photos not seen in public before are candid ones. Many of the young Faisal who became king at the age of 3 with the death of his father. To be restored, a crumpled photo of Princess Zhaleah (ph) in a new dress. No hint of the despair that would lead her to kill herself at a young age. No hint of tragedy either in the carefree family photos retrieved from the ruins of a palace.

Jane Arraf, CNN Baghdad.

(END VIDEOTAPE)

PHILLIPS: Straight ahead, you're going to hear from, I guess you could say that a lot of us really love to listen to. Just a few seconds. Let's listen here.

(MUSIC)

PHILLIPS: Allison Krauss straight heed here on LIVE FROM... What a voice.

(COMMERCIAL BREAK)

PHILLIPS: Not exactly your typical recruiting ad, which is how the Japanese navy is trying to attract recruits. Actors dressed as sailors strut across the deck of a ship singing about love and peace. No word on whether the Village People will sue for copyright infringement.

O'BRIEN: I think roughly translated it is "YMCA." OK.

A suspected would-be suicide bomber died early this weekend in Gaza. His explosives apparently meant for a Jewish settlement exploded prematurely. Israelis say the bombers are teaching them hard lessons about dealing with terrorism. John Vause reports from Jerusalem.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT (voice-over): On buses, at cafes, in shopping malls, at universities, nightclubs and marketplaces, 139 suicide bombings in almost three and a half years. The peak came in March, 2002. Seventeen in that month alone, the worst at Netanyahu. Twenty-nine dead.

But since then, the untold story, say Israeli officials, is the number of foiled suicide bombers. Between the start of the Palestinian uprising in September 2000 and March 2002, Israel intercepted 31 would be bombers. But in almost two years since, it says it's foiled 283. At the same time, the number of successful suicide missions has fallen dramatically.

MAJ. SHARON FEINGOLD, IDF SPOKESPERSON: I don't think this is measured in terms of winning or losing. I think both sides are losing. But the Palestinians are losing more.

VAUSE: Sources within Israeli intelligence tell CNN they were caught off guard in the first few months of the violence. But not now. Eran Lerman was a senior officer with military intelligence.

ERAN LERMAN, FORMER SENIOR INTELLIGENCE OFFICER: We literally know every house in the Gaza Strip and the West Bank. And we, if we are told a story, we are in a position to check it. VAUSE: Lerman says it's a combination of high tech surveillance from drones, video cameras and observation posts combined with extensive human intelligence on the ground, including information from Palestinians themselves.

LERMAN: There are many Palestinians who bring information. It can be money. It can be, you know, a small operator caught in a dragnet and he just starts talking. And even the great heroes of the revolution end up telling us quite a lot one way or the other.

VAUSE: Every piece of information, he says, is methodically recorded to create a detailed picture not only of every Palestinian city, town and village, but also the social infrastructure, who's talking to whom.

MICHAEL TARAZI, PALESTINIAN AUTHORITY LEGAL ADVISER: There's undoubtedly a huge collaborator network within the Palestinian society. This is nothing new in occupations around the world. This is one of the ways of controlling the population.

VAUSE (on camera): Israel says the suicide bombers and other militants are still trying every day. Intelligence sources estimate that at any one time about 300 militants are actively preparing attacks. According to the Israelis, most of them are either caught in the act or sent running. Most, but not all.

(voice-over): Bus 19 blown apart in Jerusalem last month. Despite an average of 60 terrorist alerts a day, Israeli authorities were caught totally off guard. Eleven people dead, 50 wounded. Three weeks later, another suicide bombing, another eight people killed. Here, when there is an intelligence failure, it can often have deadly consequences.

John Vause, CNN, Jerusalem.

(END VIDEOTAPE)

O'BRIEN: Our series on terrorism concludes tonight with "INTELLIGENCE UNDER FIRE." National correspondent Susan Candiotti looks at intelligence tools used in the hunt for Osama bin Laden. That is tonight at 8:00 Eastern right here on CNN.

PHILLIPS: It's out of there. That cursed ball. Cubs fans take revenge.

(COMMERCIAL BREAK)

O'BRIEN: All right, here's the explosion. Oh, boy. Get ready. Dud! Come on. You've got to do better than that, guys.

But the important point for Chicago fans is the ball was obliterated. That's the foul ball that started the Cubs' spiral or so it is written in the Windy City. It was obliterated at the Hari Kari restaurant. I'm sure he's smiling as he looks down upon the scene. They paid up a $113,000 for the ball, turned it into an extravaganza and hopefully exorcised their demons. But don't take that one to the bank.

PHILLIPS: How much did they pay for the ball?

O'BRIEN: $113,000.

PHILLIPS: I thought it was 114 grand.

O'BRIEN: Geez. Would you give me a break?

(MARKET UPDATE)

(COMMERCIAL BREAK)

PHILLIPS: Well, we're just two days away from the 76th Annual Academy Awards and to say the excitement is building, according to Daryn Kagan, that's an understatement. She joining us with special notes on music and shoes at this year's show. My, goodness, what have you got, Daryn?

DARYN KAGAN, CNN ANCHOR: Kyra, is there anything besides music and shoes? That pretty much covers it for us as girlfriends, doesn't it?

PHILLIPS: Absolutely. There you go.

KAGAN: You talked about the excitement building. Really, it truly is. We can take the shot above me. You can see there have been huge plastic tents they have put up because it's been one big mosh pit. It's been so wet in Southern California.

And also they've covered the red carpet with plastic but that's coming off now, literally as I come to you live. The guys are actually pulling it off and committing to having no more rain in Southern California.

The producer of the show, Joe Roth (ph), told me a couple hours ago that at 6:00 tonight, this tent is coming down because they're convinced that there will be no rain, that it will not rain in Southern California. So keep your fingers crossed for that.

We're getting close to Oscar night two nights away. We have two people with us with us is who are very excited about that. Singer Allison Krauss will be performing two songs, and Stuart Weitzman. Anybody who shops for shoes knows Stuart is. And we're going to talk with Stuart in just a moment.

Allison, first to you, this is your first time performing at the Oscars. You're not performing one, but two songs.

ALLISON KRAUSS, SINGER: Yes, going to be a busy day.

KAGAN: Both from "Cold Mountain." "Scarlet Tide" and -- how do you say that?

KRAUSS: "'Ain True Love."

KAGAN: I guess that's from like an old English way of saying that.

KRAUSS: Sting wrote that kind of in the old style.

KAGAN: Kind of a good way to go to make your Oscar debut. Not with just Sting, but also Elvis Costello.

KRAUSS: It was really amazing when I got a chance to hear these songs and talent is talent and those guys are just amazing. You think of what will Sting writes like and in the pop music that he writes and then he sends this beautiful folk love song. And it's just amazing how widespread their talent.

KAGAN: So it's one thing to go to the Oscars, another to perform. The bottom line is what are you going to wear and you don't just have to worry about dress, but shoes. And this is where we bring Stuart Weitzman in.

Stuart, every year you come up with this mega-million dollar pair of shoes. So tell us a little bit about what you're doing for Allison this year.

STUART WEITZMAN, SHOE DESIGNER: This year, Allison will be wearing a Cinderella inspired sandal. It's got a glass heel, glass top.

It looks sort of like this. The difference is that this shoe which is the original model from which I made is this $2 million sandal is covered with Swarovski crystals. But the original shoe is going to be made with Quiot (ph) diamonds, more than 500 of them, and a couple of very beautiful, rare precious stones include among the other 500.

KAGAN: So $2 million for the pair.

WEITZMAN: You get both shoes for that price. It's a bargain.

KAGAN: Allison, as if you're not nervous enough about singing in front of a worldwide audience, you're going to have $2 million on your feet.

KRAUSS: I don't want any of those gems falling off. Wouldn't like that very much. There's a guard who will be following the shoes around.

WEITZMAN: I'm going to be the guard.

KRAUSS: He's going to be. Give me those back, give me those shoes.

KAGAN: The only pair of feet that will be guarded at the Academy Awards belonging to Allison Krauss. So you have the $1 million voice and the $2 million shoes.

Let me ask you this. Either two of the songs, can you give us a few bars?

KRAUSS: No way, that would be crazy.

(CROSSTALK)

KAGAN: So we'll wait for Oscar night for the song and for the shoes. Good luck to everybody. It's going to be a big night. Allison Krauss, Stuart Weitzman. So there you have it.

Kyra, I know you've blown money on shoes in your day, but $2 million?

PHILLIPS: Wait a minute, can you grab Stuart and Allison real quickly. Don't let them leave. Did they leave already?

KAGAN: Come on back.

(CROSSTALK)

PHILLIPS: We have a -- first of all, I want to know from Stuart can I get a discount because I have dropped a load on some of his shoes. Hey, you're in on this.

O'BRIEN: I'm sorry. I was leaning back...

(CROSSTALK)

PHILLIPS: I was wondering if I could get a coupon maybe in the mail.

KAGAN: I'll work on that for you.

O'BRIEN: I've got to know this. Daryn, they probably can't hear us so I'll have you translate. What is a Quiot diamond?

KAGAN: We have two questions from our anchors in Atlanta, Kyra Phillips and Miles O'Brien. First of all, Kyra says she's spent so much money on Stuart Weitzman shoes she wants a coupon in the mail from you.

(CROSSTALK)

KAGAN: Miles we don't think is running around Stuart Weitzman shoes. His wife Sandy perhaps has. But Miles is our techie guys. He zeros in on specifics. He wants to know what a Quiot diamond is.

WEITZMAN: A Quiot is a very fine jeweler. And they hand cut diamonds with many facets to them and they're the people who actually carve the jewelry out of raw stone to create this beautiful pair of shoes.

KAGAN: Does that answer it for you, Miles?

O'BRIEN: Yes it did.

and one more thing. I've just got to ask Allison about this. For some reason, $2 million shoes and blue grass, I'm having a hard time... PHILLIPS: Talk about two different worlds.

O'BRIEN: The confluence of these worlds. Have her explain this.

KAGAN: Miles, you're going to have to try that one more time, $2 million...

O'BRIEN: I'm just trying to understand the confluence of $2 million shoes and the world of blue grass. Is she going to feel comfortable?

KAGAN: I got you here. A couple times and -- Miles O'Brien, one of your big fans and appreciates your blue grass music. But he's thinking blue grass music, $2 million shoes, not exactly a match there.

KRAUSS: No, it's not a match at all. It's crazy. I was wondering what he was thinking. But I thought he would fire me, but he hasn't yet.

Actually, when we first got the call that Stuart was interested in having my nasty feet wearing his shoes, I, you know, I'm like no, that's crazy. You know, it would be a little too strange.

And I talked to him on the phone and he was so nice and I was like I can't say no now, he was too nice. His daughters like our records so I thought that was such a nice thing.

O'BRIEN: There's the connection. It's the daughters.

KAGAN: There you go. Really, Stuart is a tough guy to say no to.

And just in case you're wondering, she already has a great pedicure.

(CROSSTALK)

PHILLIPS: Tell Stuart I'm a 7 1/2 and tell Allison Miles and I love her with Brad Paisley. OK?

KAGAN: OK. I will do both things for you guys.

O'BRIEN: I don't suppose she'll be doing any clogging in them shoes.

KAGAN: Don't forget our special on Sunday, 7:00 p.m. Eastern.

PHILLIPS: There's Daryn. But she won't be wearing that dress. She's actually going to be wearing another, a Vera Wang dress.

O'BRIEN: Did you ever do the buck dancing?

PHILLIPS: Oh, gosh. Daryn, I'm sorry.

All right, this will be a hard wrap, I promise. Daryn Kagan at the Academy Awards. Don't miss it this Sunday, February 29. She's looking hot. All right.

O'BRIEN: All right. A tiny New York town joins the gay marriage fight.

And we also have just down the Hudson River a big win for Martha Stewart today. All of this lies ahead as LIVE FROM... rolls on for a Friday.

(COMMERCIAL BREAK)

O'BRIEN: Welcome back to LIVE FROM. We're in the homestretch. And I'm Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips.

Here's what's happening this hour.

The judge in the Martha Stewart trial has thrown out the most serious charge against Stewart, securities fraud. The judge says prosecutors didn't present enough evidence to back it up. Stewart is still facing obstruction of justice, making false statements, and conspiracy charges. The case is expected to go to the jury next week.

Some human rights groups criticizing a new U.S. policy on land mines. Bush administration officials say the U.S. will not sign a global treaty banning land mines. But it will phase out land mines that aren't programmed to automatically self-destruct. U.S. officials say the new policy will dramatically reduce the risk posed to civilians.

The federal commission investigating the September 11 terrorist attacks is asking for more time to do its work. The Senate has approved a two-month extension, moving the deadline to the end of July. But it's not clear if the House will follow suit. House Speaker Dennis Hastert is against it. He says any delay might politicize the findings, coming so close to the November presidential election.

O'BRIEN: On top of the news agenda at this hour, Haiti's friends and neighbors watch and wait and worry while the nation sinks deeper into chaos. It now appears rebels who control most of northern Haiti plan to barricade the capital by land and sea before they move in.

Speaking of sea, the Bush administration may send a Marine expeditionary unit within shouting distance of Haiti's coast, but it doesn't favor boots on the ground, at least until Haiti's president and his unrelenting enemies come to terms.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're interested in achieving a political settlement, and we're still working to that effect. We're also at the same time planning for a multinational force that would go in and make sure that if aid needed to be delivered or there needed to be some stability, that it could go independent upon a political settlement. (END VIDEO CLIP)

O'BRIEN: The latest now from an increasingly desperate Port-au- Prince. We're joined by CNN's Lucia Newman on the line with us from there.

Lucia, what can you tell us?

NEWMAN: Well, Miles, the situation is still extremely fluid. It's still extremely chaotic. The police still not in control, if they ever will be in the short term of this city, which is now being patrolled by groups of armed thugs that are running around looting and threatening people, shooting people as well.

I just spoke to a reporter who had personally saw at least six bodies, some of them killed execution style, Miles. There's been widespread looting at the port, and as well as in stores and other businesses here in the city, and people are just afraid to go out of their homes. The airport is open, but there are no flights, so the hundreds of foreigners who are trying to get out of the country just simply cannot get out of here, Miles. The buses that normally take people to the neighboring Dominican Republic have also suspended their services.

And there were scenes of desperation really at the airport, people crying, saying, we don't know where to go. We can't leave this country. And, in the meantime, the president, even though he has been getting increasing pressure to resign, up until this very moment, Miles, he's saying, no, he won't leave. He's going to wait out his whole term. He won't leave until February of the year 2006. It's unsure now whether the city can last another day or two in this chaotic situation, though, Miles.

O'BRIEN: Lucia, what you describe is utter anarchy. And, sadly, of course, the people of Haiti are somewhat used to all of this. Do you have a sense that this is just something that they are watching, enduring as part of a whole political process?

NEWMAN: It's true that they've gone through a lot of political turmoil and chaos in the past, but that does not mean that they're standing by idly. I spoke to a historian and a political analyst who said that the Haitian people know what they want now. They've changed. They won't stand for any more autocratic, tyrannical governments or military dictatorships.

And the reason why Aristide is in the situation he is in now, he says, is because he continued to rule with the same old style of autocracy that the previous military dictatorships did. And so people, they want him out, but they also don't want to replace him with anarchy or with a dictatorship. It's unclear, though, what's going to happen.

The rebels say they have the city surrounded, that they are going to choke off the ports and not allow any ships to come in. Of course, they've cut off land access as well, unless the president steps down. And if he doesn't, they say they'll go into the palace and get him out, Miles.

O'BRIEN: And that of course, very ominous for Mr. Aristide. Is there any sense, you've been able to confirm one way or another if there is a backstop escape plan for Aristide and his entourage?

NEWMAN: Physically, I assume, and there are all indications that he can get out of the country. He has helicopters at his disposal. He can get the palace. Whether he chooses to do that or not is another matter, Miles.

O'BRIEN: ... Port-au-Prince, please, you and the crew stay safe there -- Kyra.

PHILLIPS: Other stories making news across America now.

California's same-sex marriage debate going to the state Supreme Court. California's attorney general is asking the court to decide if gay marriages are legal. More than 3,300 gay and lesbian couples have exchanged vows in San Francisco.

The same-sex marriage spree has spread east in New Paltz, New York, 75 Miles north of New York City. About a dozen gay and lesbian exchanged vows administered by Village Mayor Jason West. The state has warned West that the marriage licenses are illegal.

Allegations of rape tied to the University of Colorado's football team are getting greater attention. The Associated Press reports that Governor Bill Owens will appoint a special prosecutor to investigate that scandal. Seven women have accused Colorado football players or recruits of sexual assault. So far, no charges have been filed.

O'BRIEN: The judge in the Martha Stewart trial today dismissed the most serious charge against her, but Stewart is hardly off the hook.

Our Allan Chernoff joining us from New York to fill us in on all this -- hello, Allan.

CHERNOFF: Hello Miles.

Martha Stewart certainly not off the hook, but still in a very good mood, good mood enough that she went out for a celebratory lunch in Chinatown, four blocks away from here. Today, Judge Miriam Cedarbaum kicked out the most serious charge against Stewart, that of securities fraud, which did carry a potential prison term of up to 10 years.

The judge ruled that the evidence presented by government prosecutors was so weak that no reasonable jury could possibly have found Ms. Stewart guilty beyond a reasonable doubt. The securities fraud charge certainly was a very novel charge. Martha Stewart was charged with trying to prop up the stock of her own company, Martha Stewart Living Omnimedia, by proclaiming her innocence in her sale of ImClone securities.

Remember, the focus of this trial against Martha Stewart is that she lied about the true reason for her sale of ImClone stock. Now, she still does confront charges of obstruction of justice, conspiracy, and two counts of making false statements in regard to the sale of ImClone -- Miles.

O'BRIEN: CNN's Allan Chernoff in New York, thanks much -- Kyra.

PHILLIPS: Authorities from six states are meeting in Oklahoma City to discuss whether one person might be responsible for several unsolved murders. At least seven women have been killed over the past two years across Oklahoma, Texas, Arkansas Louisiana, Tennessee and Mississippi. Authorities began arriving today to discuss that issue and cite various similarities among the victims, including age range, a history of prostitution, and being last seen at truck stops along I- 40 in Oklahoma.

The jury in a Houston, Texas, murder trial is being exposed to some pretty graphic evidence in the murder trial of a woman charged with stabbing her husband almost 200 times. Today, the prosecution dragged the medical examiner across the courtroom to demonstrate how Wright's husband allegedly was dragged to his backyard grave. And wait until you see what happened yesterday.

CNN's Mike Brooks has that.

(BEGIN VIDEOTAPE)

MIKE BROOKS, CNN LAW ENFORCEMENT ANALYST (voice-over): Susan Wright, accused of murdering her husband Jeffrey by stabbing him 193 times, looked as if she could barely contain herself Wednesday as prosecutors, using the blood-soaked bed where the murder allegedly took place, reenacted how they believe she killed her husband.

Jurors looked on as assistant D. A. Paul Doyle was tied to the bed post by his wrists and ankles with neckties and terry cloth strips. Lead prosecutor Kelly Siegler then straddled Doyle as she questioned homicide detective Mark Reynolds.

KELLY SIEGLER, PROSECUTOR: Something like this and straddled him. And she's right-handed. And how do you think she held the knife? Attack at the head area first -- which side of his face are most of the injuries going to be on?

BROOKS: Defense Attorney Neal Davis, who denies that his client tied her husband to the bed, objected to the graphic demonstration.

NEAL DAVIS, DEFENSE ATTORNEY: It's overly theatrical and I think it's overly prejudicial to the jury.

BROOKS: The defense says the 27-year-old defendant killed her husband only in self-defense after years of abuse and only after he pulled a knife on her and she wrestled it away from him. Defense attorney Davis also said that Susan Wright had been beaten and raped at their home.

Prosecutors say that Jeffrey Wright was murdered by his wife on January 13, 2003 because she had religious concerns about divorce and that she wanted $200,000 from a life insurance policy. They allege that she then buried her husband's body under their backyard patio. On January 15, Susan Wright filed a report for domestic abuse. Prosecutors say that report is part of the murder cover-up.

Mike Brooks, CNN, Atlanta.

(END VIDEOTAPE)

O'BRIEN: Well, the numbers are startling, and some victims groups say they under-represent the problem. Today, U.S. Catholic bishops issued their long-awaited report on allegations of sexual abuse of minors by priests.

Our Jason Carroll has the sobering statistics and the reaction.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT: One of the members of the panel said that church leaders for far too long were acting like risk assessment managers rather than shepherds of the flock and that's why we're seeing the numbers that were released today.

Researchers found that, between 1950 and 1992, 4,392 clergy were accused of abuse. That represents about 4 percent of the 110,000 priests in active ministry. They were accused of abusing 10,667 victims. The average age of the victim just 12 years old. Most of the victims were enticed with either alcohol or drugs, most of the abuse taking place in the clergy's home or in a Parish. Researchers from the John Jay College of Criminal Justice -- they're the ones who actually crunched the numbers -- also found that only 14 percent of priests accused of abuse were actually reported to police by their bishops.

Another part of the report has to do with the causes behind the crisis. That part of it was overseen by a national review board of laypeople. They talked about the major causes behind the crisis.

ROBERT BENNETT, NATIONAL REVIEW BOARD: Dioceses and orders simply did not screen candidates for the priesthood properly. As a result, we found that many dysfunctional and psychosexually immature men were admitted into seminaries and orders ordained in the priesthood. One person we interviewed indicated, who were we to call -- to question a calling from God?

CHERNOFF: Bishop Wilton Gregory, who is the head of the U.S. Conference of Catholic Bishops, said that the church obviously did not do enough. And he had this message for victims.

BISHOP D. WILTON GREGORY, PRES., U.S. CONFERENCE OF CATHOLIC BISHOPS: On behalf of the bishops and the entire church in the United States, I restate, and reaffirm our apologies to all of you who have been harmed by those among us who violated your trust and the promises they made at their ordination.

The heartfelt sorrow that we feel for this violation and the often ineffective ways with which it was dealt has strengthened our commitment to do everything possible to see that it does not happen again.

CHERNOFF: Bishop Gregory also said the church did not do enough to reach out to victims. And many victims are now saying that the church is still not doing enough to reach out to them. And they're also very critical of this report, saying that the numbers should be much higher. They say that the researchers had to rely too much on bishops for their information and not enough on outside sources of information.

Jason Carroll, CNN, Washington.

(END VIDEOTAPE)

O'BRIEN: Talk about a walk on the wild side. Check out this spacewalk. Trouble is, they had to cut it short.

PHILLIPS: Then, how'd you like to work in space? We'll introduce you to Frederick Gregory. He's got one of the coolest jobs around, not to mention, he's a stud himself, wouldn't you say?

O'BRIEN: I suppose so, yes.

(LAUGHTER)

(COMMERCIAL BREAK)

O'BRIEN: Me and my toys.

(LAUGHTER)

O'BRIEN: A spacewalk outside the International Space Station ended early last night. Astronaut Mike Foale and cosmonaut Alexander Kaleri had to head back inside after condensation formed inside Kaleri's space suit. The thermal system kind of backfired.

Before returning, the men installed some scientific experiments outside. The rest of those items in the job jar will have to wait until the next crew of station keepers arrives.

Let's stay in space for a moment as we conclude our weeklong look at Black History Month. Our guest is a man who has broken all kinds of barriers in his high-flying career. He's the first African- American to command a space shuttle. And today, as deputy administrator of the Space Agency, he has risen to the top of the mostly white, white-scarf world of space flight.

We welcome to our program, NASA's deputy administrator and astronaut Fred Gregory.

FRED GREGORY, NASA DEPUTY ADMINISTRATOR: Hi, Miles. It's great to be here.

O'BRIEN: All right.

Let's talk about your rise to the top at NASA. Did you meet with a lot of racism along the way? You started in the astronaut corps back in 1978. Was there any overt signs of racism or was it a pure meritocracy?

GREGORY: See, I thought it was an excellent transition. I actually started that work a lot, lot earlier as being one of the first blacks in a Boy Scout troupe in Washington, D.C. and then the only in my class at the Air Force Academy. And so I guess I've been in that role quite a lot.

O'BRIEN: Everywhere you go, you're the first or near to being the first. What's that like?

GREGORY: Well, I guess I grew up in a family that said there are no obstacles. If it's a challenge, you just kind of work around it. And so, with kind of that positive approach, I took each as a challenge and had no problems with it.

O'BRIEN: What are your thoughts as you look not just at your own personal, wonderful career, but, as you look around, you look at the accomplishments of other African-Americans and minorities in NASA and in spaceflight? Are you proud of where it is now? Or do you see more work to be done?

GREGORY: You know, I am actually very proud.

And, of course, the ability -- or my ability to be here today is, you know, I have to build on -- stand on the shoulders of young ladies like Bessie Coleman in the early 1920s, the Tuskegee Airmen. I think without them, we would not be here today. But, you know, we have a responsibility to continue to excite kids of all types, so that, you know, this great adventure of moon, Mars and beyond becomes part of their culture, and they will be very interested in doing it.

O'BRIEN: Is there a gap, though, in getting them excited, young minority children? And, if so, why is it that way?

GREGORY: Well, I don't think there is a gap, Miles. We're spending a lot of time now wandering around to schools, specifically the Explorer schools that have an association with the agency.

And I am -- what is interesting is that I'm finding very little difference between, you know, the schools that have generally black or African-Americans vs. Asian vs. the white, primarily white schools. They are all extremely excited about the adventure and NASA. And I think we just need to continue to capitalize on it.

O'BRIEN: You know, you mentioned the adventure and being an astronaut. And that's an easy sell to kids. But perhaps the greater accomplishment of your career -- you might quibble with this, though -- is, rising as high as you have in management. Why haven't there been more minorities who have made it to the top in the highest realms of not just NASA, but bureaucracies in general in Washington?

GREGORY: You know, that's -- all I can tell you is that, you know, in the days before I came to NASA, actually, earlier than that, it was very difficult for African-Americans to get into the government to industry. There's a great opportunity now. Every day, I see more and more. And so I would look at it as a -- you know, as an ability now to come in to very interesting, into a very interesting role and participate and contribute to the future.

O'BRIEN: Fred Gregory, I want you to stay here for just a moment. Thank you for your thoughts on that.

But I want you to just hang around for the "Mars Minute," if you would. Let's start the clock. And I want to show a sunset on Mars, captured from the Spirit rover. Check out this shot, a little animation there, lower part of your screen. Get rid of that banner there. There, you see the sun setting on Mars. It's kind of got a blue ring around it.

When you see these pictures, Fred -- and this is just part of a long string of wonderful images that we've seen from these two rovers on Mars -- do you put yourself on the surface of Mars, and do you wonder how soon it would be before a human being will be there?

GREGORY: You know, I love that. I'm so glad you're showing it.

You know, the first thing that comes to my mind is, with less gravity there than Earth, could I run to the sun?

(LAUGHTER)

GREGORY: So that's the first part. I would guess that we would have our first humans on -- in Mars in 25, 30 years or so. I think that they will be able to come back and tell us what it's really like to be able to climb Olympus Mons, which is probably four times higher than Everest.

I think this is going to be an exciting trip and it will allow, you know, just like Lewis and Clark and those things, of a great amount of discovery, just based on this exploration. I would love to be able to do it, but I think it's going to be our kids.

O'BRIEN: You know what? Fred Gregory, you're in good shape. I'll bet you'll be in the hopper anyhow.

All right, listen, great pleasure having you join us. Great way to wrap up our look at Black History Month this week. And congratulations to you on all your accomplishments and best to you in the future.

GREGORY: Thanks, Miles.

O'BRIEN: All right. All right. A pleasure.

PHILLIPS: You got Lewis and Clark and you got Fred and Miles. Fred and Miles head to Mars.

O'BRIEN: I'm in. I'm in.

PHILLIPS: Sounds like a movie. O'BRIEN: Sandy would kill me, but...

(LAUGHTER)

O'BRIEN: All right, got to go. Break now.

(COMMERCIAL BREAK)

PHILLIPS: Well, at first, he was not supporting it. Now he says he is, House Speaker Dennis Hastert saying that he will support a 60- day extension for that 9/11 report. As you know, he felt it was going to be a political football in this campaign time, that 9/11 report investigating into what happened intelligence-wise during 9/11. Now Hastert changing his mind, 60-day extension. He's supporting it.

(MARKET UPDATE)

PHILLIPS: That wraps up this edition of LIVE FROM.

O'BRIEN: The whole week is wrapped up, as a matter of fact.

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





Kerry/Edwards or Vice Versa?>


Aired February 27, 2004 - 13:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: For Martha Stewart, it's a good thing indeed. For federal prosecutors, it's a fallen souffle, a wilted centerpiece, a rat in the proverbial punchbowl. It's the judge's decision to throw out the single most serious charge Stewart faced, lying to investors in her own company. The feds called it securities fraud, and it carried a potential penalty of 10 years in prison and a $1 million fine.
CNN's Allan Chernoff has the latest from the courthouse.

Hello, Allan.

ALLAN CHERNOFF, CNN CORRESPONDENT: Hello, Miles. And for the very first time during this entire trial, Martha Stewart has actually walked out for lunch. She's actually right now at a restaurant in Chinatown, about four blocks away from where we're standing. She has reason to celebrate.

As you said, the most serious charge, securities fraud, has been thrown out, the judge giving an opinion that she is finding an acquittal for Martha Stewart on this count number nine, securities fraud. The judge said in her opinion that there was insufficient evidence to support the charge, and for the jury to actually find Martha Stewart guilty of it, they would have had to speculate.

Now, this is not terribly shocking, because the judge herself at the beginning of the trial described this charge as being novel. At the same time, we should note that Martha Stewart is not entirely off the hook, because she still is confronting charges of obstruction of justice, as well as making false statements and conspiracy. And that is still expected to go to the jury.

It's still theoretically possible the judge could issue further opinions later today. She will be meeting with the attorneys this afternoon, but at this point, it appears Martha Stewart will still have to confront those other charges -- Miles.

O'BRIEN: Well, let me ask you this, Allan. Is the case against Martha Stewart unraveling as we speak?

CHERNOFF: I would not say that at all, because the securities fraud charge was totally separate from the other charges. It really had to do with the stock of Martha Stewart Living Omnimedia. The government was alleging that Martha Stewart was trying to defraud shareholders in that company by saying she did nothing wrong in selling her ImClone stock.

The other charges have to do with Martha Stewart's story that the reason she sold her ImClone stock was simply because it fell below $60 a share. Those were really the basis for the false statement charges and also for the conspiracy as well, is the obstruction of justice. So it's pretty much of a separate issue.

O'BRIEN: Allan Chernoff in Manhattan. Thanks very much -- Kyra.

KYRA PHILLIPS, CNN ANCHOR: And as San Francisco goes, so goes New Paltz. The City by the Bay has inspired the college town just north of New York City to hand out marriage licenses to same-sex couples. As in San Francisco, the New Paltz policy shift is the brainchild of its young Green mayor. And we don't mean Green as a putdown.

Jason West is a member of the Green Party.

CNN's Maria Hinojosa is in New Paltz City Hall right now. What's the latest, Maria?

HINOJOSA: Well, not inside City Hall, actually, Kyra. You know, most weddings don't necessarily happen with crowds around them, but that's what's happening here in New Paltz, about an hour and a half north of New York City. And it was last night that the mayor, the Green Party mayor, Jason West, decided that he wanted to start solemnizing same-sex marriages here. So far, about half a dozen have happened. Maybe you can take a look at what's happening now on stage.

There are couples who have been making their way down an island that is actually right here in the parking lot in front of City Hall. They've been going up to the stage. The mayor has been reading them -- actually pronouncing them husband and husband, wife and wife. They are not getting marriage licenses, because only the clerk could do that, and the clerk said that he or she was not going to do that. But they are in fact getting the marriage pronouncements.

Now, earlier today, the first couple that got married here were Jason McGowan Billiam van Roestenberg.

You were the first that did this. Now, you, Jeffrey, are a veteran of the first Gulf War.

JEFFREY MCGOWAN, MARRYING GAY COUPLE: Yes, I am.

HINOJOSA: And you, Billiam are -- you're a real estate broker here.

BILLIAM VAN ROESTENBERG, MARRYING GAY COUPLE: A real estate agent in beautiful downtown New Paltz and beautiful Hudson Valley.

HINOJOSA: Now, the mayor said that he knew you, that you were planning on doing this in the spring, but he decided that because of the turn of events on the national scale, that it needed to happen now. When did he tell you this, and what did you say in response? MCGOWAN: Well, we were talking about it before the new year, and we were saying how wonderful it would be to get married, because it was the holiday season, and then all of a sudden, all of the events went on out in San Francisco. And for us, we didn't want to turn our wedding day into a protest or civil disobedience, because it's really about us just loving one another and wanting to be married.

VAN ROESTENBERG: Jeffrey actually proposed to me on Christmas Eve, and we just wanted to be like everyone else -- like our family members who have been wed, and friends and neighbors. We're invited to all our neighbors here -- their weddings. We've been to one family next door, two other family members' weddings.

HINOJOSA: But in fact this is not a small wedding. There are hundreds of people here. You've got media from across the country. You've got supporters. You've also got some protesters. Do you feel that you are inserting yourselves into a civil rights movement that is happening now.

MCGOWAN: I think that -- yes, absolutely we are.

VAN ROESTENBERG: By happenstance.

MCGOWAN: By happenstance. It wasn't intentional. I mean, today was supposed to just be the day we got the license. That was it. But it turned into several thousands of our closest friends with cameras and pads and pens coming to visit, too.

HINOJOSA: What's going on for you, Billiam? What kind of a statement are you trying to make with this?

VAN ROESTENBERG: There is no statement. I just want to be equal. It's just fundamental human rights, that I can marry the person I've lived with for six years, to live together, to be proud, to announce it to our friends and family, just like everyone else. I don't want anything extra. We're members of our society and community here in the greater New Paltz area and Platicare (ph). Jeff's on the planning board, I'm on the zoning board. My family -- my sister Ivanna (ph) is here. We just want to be equal to everyone else.

And just in -- take advantage of what this wonderful, brave man, Jason West, has given us the opportunity. That's all it is.

HINOJOSA: Well, congratulations on your wedding day.

VAN ROESTENBERG: Thank you.

MCGOWAN: Thank you.

HINOJOSA: Not a quiet wedding day at all here in New Paltz, New York. They have been having weddings starting at about 12:30 Eastern time, and they're probably going to go on for at least a few more minutes. But that is the latest here in New Paltz -- a very large crowd. This is not anywhere near a quiet little wedding.

Not at all, Kyra. PHILLIPS: Like he said, thousands of his closest friends. Maria Hinojosa, we'll continue to check in with you. Thank you.

In California, meanwhile, the state attorney general has a proposition for the state's highest court -- settle this thing once and for all. With over 3,400 same-sex marriages and a tangle of lawsuits already on the books, the attorney general wants to skip ahead to the ultimate arbiter of the state law. He may or may not succeed. In the 1940s, the California court was the first in the nation to OK marriage between the races.

Little did they know when they raced to San Francisco that Rosie O'Donnell and Kelli Carpenter could have stayed much nearer their New York home to tie the knot. The O'Donnell-Carpenter nuptials were greeted by thunderous applause on the City Hall steps.

(BEGIN VIDEO CLIP)

ROSIE O'DONNELL, COMEDIAN: I would like to thank the City of San Francisco for this amazing ...

(APPLAUSE)

For the amazing stance that the mayor has taken and for all of the people here who assisted not just us but the thousands and thousands of other law-abiding, loving American families who want the rights that every other married couple is entitled to.

PHILLIPS: Well, O'Donnell says that she made the decision to wed during last year's "Rosie Magazine" trial in New York when the couple's private communications were not shielded by spousal privilege.

O'BRIEN: This hour's headline from Haiti actually comes out of the Pentagon. A three-ship task force, 2,200 Marines that may get the order to ship out as early as today. Potentially, that force could help with refugees or evacuate the embassy or help with the exit of embattled Haitian President Aristide. For now, though, all of that is hypothetical.

What's real is the violence and the imminent threat to Aristide in the Haitian capital, Port-au-Prince.

CNN's Lucia Newman is there.

LUCIA NEWMAN, CNN CORRESPONDENT: Hello, Miles. Indeed, there is a growing sense of lawlessness -- indeed, of anarchy in this city right now, and the whole country, but in Port-au-Prince, even, there was looting all morning at the port. Two people were killed. At this very time, there are truckloads of armed men patrolling the streets, terrorizing people, looting stores, pointing guns at people.

Some of them are chemares (ph). That's the name given to the armed gangs that support the president. Others are believed to be just delinquents taking advantage of the anarchy at the time. Businesses are all closed, gasoline station as well. People are trying to stay indoors. They are very, very frightened indeed.

At the airport today, there were scenes of despair as hundreds of foreigners -- Haitian Americans, Canadians, from all over, tried to leave the country. They hadn't been told that almost every flight in and out of Haiti has been canceled, Miles (AUDIO GAP) because their staff cannot make it safely to the airport. And so the scenes here are -- it's very, very concerning.

The rebels, meanwhile, are saying that they are surrounding the capital. They want to choke of Port-au-Prince to force President Aristide to resign, or to march on the palace itself and take him out by force, Miles.

O'BRIEN: CNN's Lucia Newman reporting live from Port-au-Prince. Thank you very much. Haiti.

Haiti, gay marriage, Iraq, jobs -- all fair game last night at that Democratic roundtable seen here on CNN. Well, actually, it was an oblong table. Anyway, the debaters today are focused squarely on Super Tuesday, now only four days away.

CNN's Frank Buckley covers all the angles for us from Los Angeles.

Hello, Frank.

FRANK BUCKLEY, CNN CORRESPONDENT: Hi there, Miles.

John Edwards was doing his best last night to draw distinctions with the frontrunner, John Kerry. He wasn't particularly forceful in the way he did it. He didn't fire off any particularly memorable lines, but he did try to show Democrats how he's different from Kerry, and how he could best beat President Bush. Here's what Edwards said about Kerry on trade policy.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D-NC), PRESIDENTIAL CANDIDATE: I voted against the African trade agreement. He voted for it. I voted against the Caribbean trade agreement. He voted for us. I wasn't in the Congress when NAFTA was passed. He voted for it. But when I campaigned for the Senate, I campaigned against it. And the reason is because these trade agreements do not have -- what, he's got a response?

UNIDENTIFIED MALE: He looks shocked.

EDWARDS: The reason, if I can just finish this. I'm sorry, I'm almost finished. The reason -- the reason I make this point is, these agreements did not have the kind of labor and environmental protections it needed.

(END VIDEO CLIP)

BUCKLEY: Now, Kerry was more focused on President Bush during this debate. Here is what he had to say about the president's proposed constitutional amendment to ban same-sex marriage.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I believe George Bush is doing this -- he's even reversed his own position. He's reversed Dick Cheney's position. He is doing this because he's in trouble. He's trying to reach out to his base. He's playing politics with the Constitution of the United States.

(CROSSTALK)

(END VIDEO CLIP)

BUCKLEY: But if any of the candidates gets credit for the best one-liners, the ones that might get repeated at the water cooler today, it was Al Sharpton.

(BEGIN VIDEO CLIP)

REV. AL SHARPTON (D), PRESIDENTIAL CANDIDATE: I disagreed with Kerry's vote on Iraq. I disagreed with Edwards on the Patriot Act, but I think on their worst day, they're better than George Bush. I think they have integrity. I think they have vision, and I think they can be talked to.

I think that we're dealing with a president that wants to gay bash. What about the other ten commandments? Let's make a constitutional amendment against presidents that lie. Let's deal with the whole thing (ph).

(END VIDEO CLIP)

BUCKLEY: Now, memorable lines like that from Sharpton will not help John Edwards, who is the last potential viable challenger to John Kerry. Many believe Edwards needed to get on the front page today with something fresh out of the debate, and he really didn't.

But Edwards said after the debate he felt good about his performance. Today, he's in Minnesota campaigning and, Miles, Kerry is here in California.

O'BRIEN: Frank, Edwards has been saying all along he didn't want to run a negative campaign. He was true to form last night while pointing out differences, nonetheless. Where does that leave him?

BUCKLEY: It leaves him in a really tough spot, Miles. Super Tuesday coming up -- he's down in the polls going into Super Tuesday. He's promised to be a positive guy. It leaves him with very little room.

There's one more debate on Sunday before Super Tuesday. If he wasn't going to start a campaign of going negative or doing something spectacular last night, I doubt that it's going to happen on the eve of Super Tuesday. If he goes negative, some people call that the Hail Mary pass. If he does that, it goes against the grain of who he's been as a campaigner, and for someone who does have a future in the party, perhaps even on this ticket, it really leaves him in a tough spot if he decides to go negative. Who knows what's going to happen between now and Tuesday?

O'BRIEN: All right, Frank Buckley. Thank you very much. Appreciate it. As you have no doubt heard, the single biggest day for the delegate jackpot is upon us. Tuesday, we'll have California, New York, Ohio, Minnesota, Connecticut, Maryland, Vermont, Massachusetts, Rhode Island and Georgia all in play. That's 1,151 delegates for those of you keeping score at home. And it will either make Kerry all but untouchable or it will make it a whole new ballgame for all of us.

PHILLIPS: Straight ahead, six murders stretching through six states. Who's responsible? Ed Lavandera on the trail of a suspected serial killer.

We were wrong. True confessions from one of America's most powerful defense secretaries. Robert McNamara in a new documentary -- what he has to say about Vietnam and the Kennedy era. We'll talk with the producer of "Fog of War."

Before the waves. Rough weather in California has surfers stoked, but we don't know about the reporter there.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: In the new Iraq, an interim constitution is apart of self government 101, but several key differences make it highly unlikely the document will be drafted by tomorrow's guideline. Iraq's governing council says thorny issues remain, like what role religion will play in the new government.

The temporary charter will serve as the framework for Iraq's legal system until a permanent constitution is adopted.

O'BRIEN: More now on the ripple effects of the unrest that is underway in Haiti. Some in the U.S. fear a tidal wave of Haitian refugees on the order of the exodus arising from the last time Jean- Bertrand Aristide was under fire. Now, should the U.S. take in Haitian boat people, or turn them away? Should the controversial U.S. policy toward Cuban refugees enter into all of this? Is there a double standard? All these questions on our mind today.

We're joined this hour by two U.S. congressman from Florida, Peter Deutsch, a Democrat, and Cliff Stearns, a Republican.

Good to have you both with us.

REP. CLIFF STEARNS (R), FLORIDA: Miles, glad to be with you.

REP. PETER DEUTSCH (D), FLORIDA: Great to be here. O'BRIEN: All right, Mr. Stearns, let's begin with you. Is this policy a wise policy, and perhaps more importantly, is it humane to those Haitians who seek the freedom of our shores?

STEARNS: Well, the wise policy that we have has been consistent since 1981, through Democrat and Republican presidents, which, basically, the Coast Guard stops people from coming from Haiti if they're coming here for economic reasons.

Now, this is a country that has a yearly income, on the average, of $250 a year. So if they get here, they'll make 50 times as much, just getting on welfare or some kind of Social Security supplemental income. So most of the folks are coming here for economic reasons.

O'BRIEN: Yes, but those -- let me ask you this.

(CROSSTALK)

STEARNS: Yes.

O'BRIEN: But those economic reasons stood before the problems cropped up there and will probably be there long after things settle down. So I guess you could make a case that that's prima facie evidence that there's something else that's motivating them to get on those boats.

STEARNS: Well, sure, and if people in Congress signal that it's OK, and they put a NASCAR flag down and they say go, the population is 7.5 million people. We took in 25,000. There's 70,000 that want to come over. At what point do we realize that this is a country about the size of Maryland, and they have a huge population.

I think we're better off trying to solve the problems -- economic problems there, and try to stabilize the country, instead of signaling that we're going to take a tidal wave of immigrants from Haiti.

O'BRIEN: Mr. Deutsch, the point is well taken here. If you say we open our arms to Haitians who can make it across the 600 miles of open water there to get to Florida, the floodgates will indeed open, somewhat literally, there. How do you get around that one?

DEUTSCH: Miles, I agree with you, but again, the point -- the issue that I brought up with you during the break, yesterday, the United States government deported people from Miami, Florida to Haiti.

And what a bipartisan group of members of Congress, in fact -- all of the members of Congress -- in fact three of Congressman Stearns Republican colleagues from Florida have joined me in an effort to request that the secretary of homeland security, in a humanitarian effort that he's allowed to do, that he's done in many other countries in the past, to stop the deportations, to set up a temporary protective status for these people so they literally are not sent to their deaths.

We're talking about people who are in the United States today who very well were scheduled to be deported to Haiti today. We're evacuating people from Haiti. Missionaries are evacuating from Haiti. To send people to their potential death is just wrong.

The secretary of homeland security has an obligation to stop those deportations today.

O'BRIEN: And that -- if it is in fact the case that these people are headed for certain death, clearly, these would be people who should be granted asylum here in the United States.

Mr. Stearns?

(CROSSTALK)

STEARNS: Miles, let's first of all say that Mr. Deutsch is speculating that they will be put to death, and I think anybody who says that is speculating ...

DEUTSCH: But, no, no, no. Cliff, Cliff, Cliff. The standard is not that they would be put to death.

(CROSSTALK)

STEARNS: Let me just answer the question.

DEUTSCH: Cliff, you're putting words in my mouth.

(CROSSTALK)

STEARNS: I heard you say -- that's wrong.

O'BRIEN: I'll tell you what. Mr. Stearns, speak, and then I'll let you get back to it, Mr. Deutsch.

Go ahead, Mr. Stearns.

STEARNS: Well, the point is that each individual case should be looked at, whether it's political asylum or economic asylum.

O'BRIEN: But it's hard to draw the line, isn't it?

STEARNS: With the economic conditions over there, it's impossible to send these people back unless it's political asylum, and I think that's very difficult to demonstrate. And if we send the wrong signal to this country, then people are going to flood over here. Like you said, Miles, a deluge. It will just be a tidal wave.

(CROSSTALK)

STEARNS: So I think we have got to be very careful how we approach this.

O'BRIEN: The deluge is something that would tax resources in southern Florida and would be a problem for your district.

DEUTSCH: Let me just tell you. The question is not certain death, but the statute says, Cliff, in Nicaragua, we didn't send people back. In Somalia, we didn't send people back. It's a temporary protective status.

Cliff, you wouldn't want to go to Haiti today and be in Port-au- Prince or another city, because it's not safe ...

STEARNS: Let me just say to Peter.

DEUTSCH: Under federal statute, there's an obligation from the secretary of homeland security to invoke temporary protective status for these people who are in Florida today ...

STEARNS: If -- let me answer your question.

O'BRIEN: What about that point? Why send them back now?

STEARNS: OK, the point is, you look at each individual case. Is it political asylum or economic? We have a policy. Since 1981, through Democrat and Republican president, if it's for economic asylum, we send them back. If it's political. You can demonstrate with each person that there is either economic or political asylum, so why not take it case by case.

O'BRIEN: Let me just -- let's wrap this up.

STEARNS: To put a blanket charge and say send them -- keep them all here, I think is sending the wrong signal to all the other people that are there ...

(CROSSTALK)

DEUTSCH: It's exactly what the statute provides when the conditions in the country are not safe.

O'BRIEN: Quick question. Quick question. Gentlemen ...

(CROSSTALK)

O'BRIEN: Let me just get my final question in, because we're really out of time as it is. I'm going to get in trouble. Is there a double standard when it comes to Haitians, and is racism at the root of this.

STEARNS: Can I answer that first?

O'BRIEN: Yes, quickly. Please.

STEARNS: OK, first of all, we gave them $300 million to help them. We've sent our troops over there many times. We took in 25,000 Haitians. We have done everything we can to stabilize that country. We're ready to help out again.

Plus, under President Bush, we've sent a lot money over there for HIV/AIDS, and so we are doing all we can. What we need to do is stable that, get a stable government -- then I think we can start to move forward with a legitimate society.

O'BRIEN: All right, Mr. Deutsch, final word. DEUTSCH: And you know what? Absolutely what we need to do is we need to stop the violence that's occurring on the island of Haiti today. We need to stop it. The French are taking the lead. Shame on the United States that the French are taking the lead in our backyard.

We can't send people back to Haiti today, tomorrow. The secretary needs to invoke temporary protective status for these people today. In Miami, before World War II, a boat went by this area right where I'm in the studio right now, and we didn't let people who were sent to their certain deaths. That's going on today right from these shores of south Florida, back to the island of Haiti.

O'BRIEN: We've got to leave it there, unfortunately. Peter Deutsch, Cliff Stearns, thank you both very much.

STEARNS: Thank you, Miles.

O'BRIEN: I know there's many more points to be made there, and I apologize for cutting this off. But once again, as I say, I'm going to the woodshed after the show for going long on this. Thank you, gentlemen. Appreciate it -- Kyra.

PHILLIPS: All right. I'm not talking about your two guests, I promise. We're talking about something else here. The lovable losers had to blame someone or something.

It took one zap and Cubs fans did farewell to that foul excuse for last year's demise. And the hair-free lifestyle of the bald and beautiful. How do they keep those heads so squeaky clean.

Jeanne Moos has clear-cut answers on the way.

O'BRIEN: What, no boom? Come on, they could have done better than that. But in any case, they say they have exorcised some demons in the Windy City. A few sparks and a cloud of smoke, and no boom! And the Chicago Cubs infamous Bartman Ball is gone, however, blown up or whatever it was, by a special effects expert.

Steve Bartman himself wasn't there to watch. You remember him. He's the goat -- I mean, the fan, many Chicagoans blame for costing the Cubs a chance at the World Series by reaching for the ball during game six of the National League championship series. He gets blamed for the Cubs slide after that.

Bad rap. Bad rap, Kyra.

PHILLIPS: Bad unwrap (ph). Another salvo in the big board battle over executive pay. Fred Katayama, live from the New York Stock Exchange with the play by play.

(MARKET REPORT)

PHILLIPS: Coming up, who wants to be a billionaire, besides Bill Gates, of course. We'll take a look at the world's wealthiest later this hour.

CNN's LIVE FROM continues after this break.

(COMMERCIAL BREAK)

O'BRIEN: A judge has dismissed the securities fraud charge against Martha Stewart. It was the most serious charge she was facing. It carried with it a penalty of up to 10 years in prison. The judge said prosecutors didn't provide sufficient evidence. Stewart still faces charges of obstruction of justice, conspiracy, and making false statements.

The battle over same-sex marriage hits the California supreme court today. Governor Arnold Schwarzenegger has ordered the state attorney general to take immediate steps to stop those weddings in San Francisco.

The attorney general is asking the court for a clarification whether San Francisco's action violates sate law.

The Bush administration says it plans to eventually stop the U.S. military's use of conventional landmines. They will be replaced by ones that have self-destruct mechanisms set for a period of time. However, the U.S. will not sign a landmark anti-landmine treaty endorsed by 150 other nations.

President Bush is meeting with German Chancellor Gerhard Schroeder. The weak U.S. dollar is one of the topics of discussion. Schroeder has warned that world trade could be harmed by any more shifts in the exchange rate between the dollar and the much-stronger euro.

PHILLIPS: There's growing concern that a serial killer may be responsible for a string of brutal deaths across the South. At least seven women have been killed in six states, and authorities from those states arrived in Oklahoma City to share notes.

Ed Lavandera joins us live from that area now. Ed?

ED LAVANDERA, CNN CORRESPONDENT: Hi, Kyra. We're live here in Oklahoma City. Behind me is the building where the Oklahoma State Bureau of Investigation is headquartered. Some four dozen investigators meeting up there today, comparing notes on those seven cases. Officially, talking about seven cases, but we do understand that they're actually looking at more than that. A lot of investors coming from six different Southern states to compare their notes on those cases, and they're still sure if they're dealing with a serial killer at this point.

(BEGIN VIDEO CLIP)

KELLY RUSHING, INVESTIGATOR: A photo from a surveillance camera.

(END VIDEO CLIP)

LAVANDERA: The blurry picture captured the last moments of a woman's life.

(BEGIN VIDEO CLIP)

RUSHING: This woman here is who we believe to be our victim.

(END VIDEO CLIP)

LAVANDERA: But since, she was last seen five months ago. This woman remains a complete mystery. Chief Deputy Kelly Rushing and a team of investigators don't know who she is. They know nothing about here.

(BEGIN VIDEO CLIP)

RUSHING: The last thing she said to anyone was, I've got a ride and I've got to go.

(END VIDEO CLIP)

LAVANDERA: Six hours after cameras showed here walking around a truck stop in Oklahoma with a backpack and wearing what looks like men's clothing, she was found dead along a highway in the Texas panhandle, the clothes and backpack nowhere to be found.

(BEGIN VIDEO CLIP)

RUSHING: Just discarded on the side of the road like a bag of trash.

(END VIDEO CLIP)

LAVANDERA: Investigators believe this case could be linked to similar murders in Oklahoma, Texas and four other states. In the last two years, some 10 women have been found dead along highways. In almost every case, the women were last seen at truck stops, and also had a history of prostitution.

Investigators say there are more similarities to these cases, but they're not ready to say they're all connected.

(BEGIN VIDEO CLIP)

JESSICA BROWN, INVESTIGATOR: We have entertained the idea we may be talking about a serial killer, but we have nothing at this point in time that directly links these homicides to one person.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We're looking at Casey's spirit house.

(END VIDEO CLIP)

LAVANDERA: Following ancient Seminole tradition, Casey Jo Pipestem was buried on her family's land in central Oklahoma. Pipestem was 19, and last seen in an Oklahoma City truck stop in January. She was found dead in Texas, her body thrown off a bridge into a creek. Here family worries that no one cares about these victims because of their lifestyles, and they want people to know that no one deserves to die like this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think if people looked at their background, I think what they would find is that they were human beings, that they were people with families.

(END VIDEO CLIP)

LAVANDERA: Now, there are no suspects in this case at this point, but given the similarities in these cases, that the women were all taken from truck stops, found along highways, authorities do believe, and this is based on what we've talked with several investigators about, they do believe that they are looking for a truck driver to be responsible in these murders.

Also, we do understand that in this meeting today, these investigators are also getting the help of FBI profilers to help them in their search for this killer.

Now who, or how many people might be involved isn't clear at this point, but they definitely are getting the help of the FBI in this case -- Kyra.

PHILLIPS: Ed Lavandera, live from Oklahoma City.

Other news across America now, the often-called bad boy of R&B is back in Atlanta area court today. Singer Bobby Brown has a probation hearing. The judge will determine if Brown violated a 1996 probation. Brown was recently charged with hitting his wife, singer Whitney Houston.

In southern California, the end of a grocery strike may soon be in the bag. The grocery workers' union has reached a tentative contract agreement with three supermarket chains. Some 70,000 grocery store clerks will vote on the deal over the weekend. The 4.5 month- old supermarket strike is the longest one in U.S. history.

Also in California ...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Themselves, coming out there, just (INAUDIBLE).

(END VIDEO CLIP)

PHILLIPS: The assignment you never want. Wild waves caught on tape in the Monterey Bay area yesterday. There were 23-foot swells. That's about three times as high as usual. Divers, kayakers and surfers all decide to say beachside.

O'BRIEN: A little channel surfing there. In any case, in the South, some weather woes as well to tell you about. After a winter storm dropped several inches of snow across the region, folks are ready to thaw out.

CNN meteorologist Chad Myers is in South Carolina with a forecast.

CHAD MYERS, CNN METEOROLOGIST: Things are a little bit slow across South Carolina this morning, and North Carolina. Places around Charlotte, 17 inches of snow. South Park, in Charlotte, 17 inches. When you get down the Triad, 18 inches. Where we are here, in Spartanburg, South Carolina, about nine inches officially fell. Now it's kind of compacting a little bit because the ground was so warm, so some of the snow is actually melting. And on the roadways here, seeing a couple of ruts.

Mostly, the cars are getting by. Mostly, the interstates are actually at this point in time really in good shape. Our temperatures are on up into the upper 30s, later today right around 40 degrees or so, and tomorrow, in fact, all the way to 48 degrees. So we start to warm things up, a lot of this melts by today and into tonight and then into tomorrow. The problem is, one of the problems, may of these areas that were seeing some melting today will have refreezing tonight. Watch yourself around sunset. That's when these roads are going to refreeze again.

When they go from shiny and black to a little bit hazy and white, you know they're starting to freeze. Also, later today, watch out for that black ice -- any of the stuff that just refreezes on the roadway could get very treacherous, especially right after sunset. Be careful out there.

Chad Myers, CNN, reporting from Spartanburg, South Carolina.

O'BRIEN: So, how's the weather on Mars, you may ask. Right, would you ask that?

PHILLIPS: Exactly what I was wondering.

O'BRIEN: Cold as Hades, all the time. Notice how I cleaned that up.

PHILLIPS: Thank you.

O'BRIEN: That's Mars. That's the Rover. There are two of those on Mars right now, roving around, giving us wonderful pictures. Hey, if you ever wondered what it would like to see a sunset on Mars, as we begin ...

PHILLIPS: The Mars ...

O'BRIEN: The "MARS MINUTE." Here it is, sunset on Mars. Just in case you need some help, Kyra, that is the sun on Mars.

PHILLIPS: Thank you so much.

O'BRIEN: And let's see if you can roll it, it should sync off. The real point here is scientifically is there's an awful lot of dust. There it goes, sets away, and there's your Martian sunset. A lot of dust in the area -- what does that mean? I don't know.

All right, let's go to the still images now. This one comes from Spirit. This is just a view of the rocky horizon, where it is headed, headed off in that direction to a place called the Bonneville Crater. Not sure why they named it that.

Next -- oh, that's Saturn. We kind of jumped the gun, but what the heck? I'll show you Saturn. This is way cool, Kyra.

PHILLIPS: I'm looking, I'm watching.

O'BRIEN: This has nothing to do with Mars. Farther beyond -- you know, my very educated mother just got us nine pizzas (ph) way out there where Saturn is -- served us. The S for served is Mars. And the Cassini spacecraft is now how far away would you guess?

You don't know.

PHILLIPS: I have no idea.

(CROSSTALK)

O'BRIEN: And (UNINTELLIGIBLE) weekly postcards of Saturn. It will arrive there in the summer and at the end of this year, send a probe down to the moon of Saturn called Titan.

PHILLIPS: I wish everybody could see Miles. His feet start stomping. His hands start doing the -- it's like going to the candy star, your little minute, minute on Mars.

O'BRIEN: Yes it is. All righty, well, going a little thin on top? I saw that Chad Myers -- Chad Myers might want to pay attention to this one from that standup, the poor guy.

Anyway, you could be part of a new fad, Chad. There are even toys on the market to help you maintain the look. Is that our read? That is our read.

PHILLIPS: Is that our read?

O'BRIEN: That is our read.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: Who will win the Academy Awards there this Sunday? Many South Africans will be watching. They're rooting for their hometown girl, Charlize Theron. She's nominated for best actress in her role as a serial killer in "Monster," and CNN's Charlene Hunter- Gault takes us to her old stomping grounds.

CHARLENE HUNTER-GAULT, CNN CORRESPONDENT: Cast your mind back 15 years and this tall, leggy blond might easily have been Charlize Theron. The tall, leggy blond taking Hollywood by storm -- remembered for her great imagination even then.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I remember her telling the children in her class that she was a princess in her previous life, and they really admired her and were absolutely in awe of her.

(END VIDEO CLIP)

HUNTER-GAULT: As are these young ballerinas, following at least here in Charlize's footsteps.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: That's because she's South African, and we're like, if she can make it, then we can all make it.

UNIDENTIFIED FEMALE: I actually go goose pimples right now.

(END VIDEO CLIP)

HUNTER-GAULT: Not far from Johannesburg, in this community of small farms, the seeds of stardom were also sown.

It was from this modest little house in Benoni that Charlize Theron used to dream big dreams, and although she's gone, those she left behind are dreaming big dreams for her now.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: (UNINTELLIGIBLE)

(END VIDEO CLIP)

HUNTER-GAULT: At the local Benoni meat market, rare memories.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Well, I know she likes a raw stake. (INAUDIBLE) she'd just take it out of the garlic and she eat it like that.

(END VIDEO CLIP)

HUNTER-GAULT: Despite the garlic ...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We feel good that she comes out of our neighborhood.

(END VIDEO CLIP)

HUNTER-GAULT: At her local grade school, more memories. Her geography teacher says she was a good student, but even then ...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Well, I remember her as a small little girl running around here and doing her acting in the room (ph).

(END VIDEO CLIP)

HUNTER-GAULT: And while the all-Afrikaans school of Charlize's childhood is no more, her inspiration is alive and well.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I just want to follow in her footsteps.

(END VIDEO CLIP)

HUNTER-GAULT: And while few of these youngsters have television sets, and the movie "Monster" is just being released now, they, along with the rest of the country, will be pulling from the girl from Benoni to bring home the Oscar on Sunday night.

Charlene Hunter-Gault, CNN, Benoni, South Africa.

O'BRIEN: Well, she went from a penniless single mother to a world-famous writer. You know who it is, right? J.K. Rowling, author of the Harry Potter series, you've heard of that tone, right?

Well, she joins the ranks of "Forbes'" finest. Our Fred Katayama has left his post. He's at a coffee shop trying to type out a very lucrative novel, right?

(COMMERCIAL BREAK)

O'BRIEN: Well, bald can be beautiful, but it takes some work to get the right shine. Now, one man is trying to simplify the shave with a baldie blade. Jeanne Moos, who else but Jeanne Moos.

JEANNE MOOS, CNN CORRESPONDENT: From Carville to Montel to Moby to ...

(BEGIN VIDEO CLIP)

MIKE MYERS, ACTOR: Mini Me.

(END VIDEO CLIP)

MOOS: Don't expect to kiss the baldie good by any time soon. Have you ever stood inches away from one in an elevator, wondering, how do they keep it that way?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: So you just drive it like a little car.

(END VIDEO CLIP)

MOOS: These days, baldies even have their own contraption, the HeadBlade.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You know, bald guys rub their head. So I realized, if you could take and put a blade on your finger, it would make shaving your head so much easier.

(END VIDEO CLIP)

MOOS: Most baldies shave every day or two with a regular razor, or an electric shaver. Some even resort to ne'er-do-wells like hair removal lotions. But the HeadBlade is under consideration for the design collection at the Museum of Modern Art, even if lumpy shaved heads don't necessarily look like works of arts.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Women are so incredibly curious about it, it's unbelievable. People want to come up and touch my head frequently.

(END VIDEO CLIP)

MOOS: CNN financial anchor, Ali Velshi, had nine days of growth.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Well, you're like a hippie.

ALI VELSHI, CNN FINANCIAL ANCHOR: Well, I know. I'm going to braid it ...

(END VIDEO CLIP)

MOOS: When he first tried out a HeadBlade.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You just glide it down your head.

(END VIDEO CLIP)

MOOS: Originally, the HeadBlade's creator thought of naming it ...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The Hair Jordan.

(END VIDEO CLIP)

MOOS: But Hair Jordan didn't pan out.

(BEGIN VIDEO CLIP)

MOOS: Can I sign him up? UNIDENTIFIED MALE: Yes, you can sign him up.

VELSHI: Oh, there's a buffing involved here.

(END VIDEO CLIP)

MOOS: There's even head lube that comes in either matte or glossy.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Depends what you want. I mean, not as much.

(END VIDEO CLIP)

MOOS: Baldies have come a long way since Telly Savalas.

(BEGIN VIDEO CLIP)

TELLY SAVALAS, ACTOR: Who loves you, baby.

(END VIDEO CLIP)

MOOS: And Mr. Clean.

(MUSIC)

MOOS: Why stop at grime when you can shine?

(BEGIN VIDEO CLIP)

MOOS: It's very shiny. I can see myself in it. Can I? Just a little?

(END VIDEO CLIP)

MOOS: Jeanne Moos, CNN, New York.

O'BRIEN: I'd definitely go for the high gloss if I was going to do it.

PHILLIPS: I think you should go for it.

O'BRIEN: Oh, yes, yes.

PHILLIPS: Eyebrows, too.

O'BRIEN: All right, let's talk money, shall we?

(MARKET REPORT)

(COMMERCIAL BREAK)

PHILLIPS: A decade in the slammer for Martha Stewart? Not now. The securities fraud charge dropped against the domestic diva. ALLAN CHERNOFF, CNN CORRESPONDENT: I'm Allan Chernoff at the federal courthouse in Manhattan. The judge says the evidence was so weak no jury could have found Martha Stewart of securities fraud. We'll have details.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D-NC), PRESIDENTIAL CANDIDATE: I think an Edwards-Kerry ticket would be powerful.

(END VIDEO CLIP)

O'BRIEN: Edwards-Kerry, Kerry-Edwards, in any case it was more Mr. Nice Guy for John Edwards and the question is where does that leave his candidacy and will the two of them be on the ticket together?

(BEGIN VIDEO CLIP)

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Once long ago this was the royal palace where young kings tried to rule the young country of Iraq. Several revolutions later, U.S. bombs have reduced it to rubble.

(END VIDEO CLIP)

PHILLIPS: From rubble to reviving history, the royal family of Iraq before Saddam Hussein, Jane Arraf with an exclusive look into a very unique family history.

O'BRIEN: All right, a personal favorite of mine, Oscar beat Allison. That's Allison Crouse, her haunting wonderful voice getting ready to perform at this Sunday's Academy Awards. She'll drop by for a visit a little bit later. You don't want to miss that.

From the CNN Center in Atlanta, I'm Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. This hour of CNN'S LIVE FROM starts right now.

Up first this hour off the table, Martha Stewart is savoring a judge's ruling depriving federal prosecutors of their juiciest allegation that Stewart committed fraud by lying to her own investors. She's still charged with lying to investors and conspiracy and obstruction of justice and that could be a recipe for prison but, for now, Stewart celebrates.

CNN's Allan Chernoff narrates from the courthouse -- Allan.

CHERNOFF: In fact, Kyra, Martha Stewart celebrated just about an hour ago. She left the courthouse for the first time for lunch during this entire trial. She went with her lawyers to a restaurant in China Town about four blocks away, smiling faces on everybody in her party.

Martha Stewart very pleased that the judge gave an opinion this morning saying the jury could not possibly have found her guilty of securities fraud, which had been the most serious charge against Martha Stewart carrying a possible prison term of up to ten years.

Martha Stewart had been charged with trying to defraud investors in her own company, Martha Stewart Living Omni Media by saying she did nothing wrong in selling her ImClone shares. Essentially, she was charged for proclaiming her innocence. The judge said that no reasonable jury could have found her guilty beyond a reasonable doubt and that jurors simply would have had to speculate.

As you said, Kyra, Martha Stewart still is confronting other criminal charges though. They include obstruction of justice, conspiracy and two counts of making false statements. The jury will get that case next Wednesday -- Kyra.

PHILLIPS: We'll be following it. Allan Chernoff, thank you -- Miles.

O'BRIEN: News across America now, the same-sex marriage storm moves east to the tiny town of New Paltz, New York. Several couples exchanged vows today despite state warnings that it's not legal. Mayor Jason West invites couples to sign up on the town's website.

Meanwhile, the California attorney general takes the same sex marriage issue to the State Supreme Court today. Across the bridge from San Francisco, Oakland City Council considers allowing gay and lesbian couples to wed there.

And striking grocery workers in Southern California vote this weekend on a tentative contract agreement. Some 70,000 clerks have been manning picket lines since October over lack of healthcare benefits.

PHILLIPS: Same-sex marriage, the Iraq War, and voting records some of the more prickly issues for the Democratic presidential candidates during last night's face off in California.

Senior Political Correspondent Candy Crowley presents some of the better moments of the CNN-L.A. Times Democratic Debate.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice-over): It is their least favorite subject but Rosie O'Donnell got married in San Francisco. Here they were in California at a debate. Of course they discussed gay marriage.

EDWARDS: This president is talking about first amending the United States Constitution for a problem that does not exist.

AL SHARPTON (D), PRESIDENTIAL CANDIDATE: The issue in 2004 is not if gays marry. The issue is not who you go to bed with. The issue is whether either of you have a job when you get up in the morning.

CROWLEY: And they hated every minute of it.

KERRY: This discussion we've just had is exactly where the Republicans want us to spend our time.

CROWLEY: In the oldie-but-goody category, the war on Iraq still a difficult subject for the two leading contenders who voted for the Iraq resolution.

UNIDENTIFIED FEMALE: It was a blank check, why?

EDWARDS: But those -- those -- what we did is we voted on a resolution. The answer is what we did is we voted on a resolution.

KERRY: I have a slightly different take from John on this. Let me make it very clear. We did not give the president any authority that the president of the United States didn't have. Did we ratify what he was doing, yes, but Clinton went to Haiti without the Congress. Clinton went to Kosovo without the Congress. And the fact is the president was determined to go evidently but we changed the dynamics.

LARRY KING, CNN ANCHOR: Do you regret your vote?

EDWARDS: I did what I believed was right at the time.

KING: Do you regret it?

EDWARDS: I believe I did what was right at the time.

KING: Do you regret it?

KERRY: I do not regret my vote. I regret that we have a president of the United States who misled America and broke every promise he made to the United States Congress.

CROWLEY: Save for the usual pithy comments from Al Sharpton and Dennis Kucinich, this was a relatively mild debate. John Kerry, the frontrunner, has nothing to win by being aggressive. He stayed above the fray.

(on camera): As for John Edwards, he is tied down by his own campaign rhetoric that he would not attack a fellow Democrat.

Candy Crowley, CNN, Los Angeles.

(END VIDEOTAPE)

O'BRIEN: Well, we all here at CNN certainly hoped you watched that debate last night but the truth of the matter is if you saw Bill Schneider yesterday, you didn't need to because he was ever so prescient on precisely what would happen that he foretold the future.

Bill Schneider, you said that John Edwards was at a pivotal moment whether he should go nice or go negative. You thought he would probably go nice and that's pretty much what happened, isn't it?

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Well, he tried to go a little bit negative on John Kerry. He raised some issues about Kerry's accepting money from lobbyists but he did it in a mild and even fairly friendly way.

He tried to depict himself as an outsider. Kerry is a Washington insider. But in the end, Kerry just sort of smothered him with a blanket of love and said there are no difference between us, John. We stand for the same things. I'm against lobbying. You're against lobbying. We have the same position on trade. Kerry just wouldn't let him get away with it.

O'BRIEN: So, is this the beginning then of the courtship of Mr. Edwards perhaps as a running mate?

SCHNEIDER: Well, a lot of Democrats watched that debate and they didn't see any bitterness. They didn't see any ranker. What they saw was a ticket, Kerry at the top, Edwards in second place, and they didn't exactly deny that, though Kerry said he hasn't made up his mind. He's still running for the nomination.

I think Democrats are delighted by this contest. Imagine two leading candidates battling it out, a spirited competition, but it's not dividing the party. It's uniting the party.

O'BRIEN: Possibilities for the number two slot on presumably John Kerry's ticket, assuming he gets the nomination, the top of the list Edwards comes to mind immediately. I assume it comes to mind with you. Pros and cons on that choice.

SCHNEIDER: Edwards the big pro is he's shown himself to be a good campaigner. He's popular in the party. He's likeable. The con is he doesn't have a lot of world experience and no military experience at a time when national security is crucial.

O'BRIEN: But is -- how crucial is that if, in fact, the person at the top of the ticket has plenty of it really in spades?

SCHNEIDER: It's not as crucial for the second place as for the top but it is very useful for the Democrats to be able to say we have a ticket that can match President Bush and Vice President Cheney on national security experience. It's very helpful.

O'BRIEN: Number two on our list of possibilities on the old dance card, Governor Bill Richardson, who you might remember from his role at the United Nations and you might remember now as being in New Mexico. Tell us exactly what the pros and cons are on him.

SCHNEIDER: Well he has one very big pro and that is that he is of Hispanic heritage. He was raised in Mexico City. He speaks Spanish fluently. Hispanics will be very excited, not just in New Mexico, the state where he's governor, but also in some crucial states like, shall I say, Florida, New Jersey, lots of other states.

Hispanics are a fast-growing group. They might turn out in huge numbers to vote for the first Hispanic ever to be on a national ticket. Plus, here's an extra added bonus ladies and gentleman, he's got foreign policy experience. He was an ambassador to the United Nations. He has negotiated with Saddam Hussein and with Kim Il-Song, so he has world experience which very few other Democrats can claim. O'BRIEN: All right, and finally on your list this one might come as a bit of a surprise to folks, old school Democrat here, Richard Gephardt and this goes right to the heart of where the Democrats need some help.

SCHNEIDER: And where the Democrats need some help is the heart of the country, the heartland of the country, the Midwest where Gephardt is from, Missouri. People who look at the map of red and blue states say now if the Democrats keep all the states, the blue states that Gore carried, what states can they pick up from Bush?

The answer is maybe Missouri, maybe Ohio. Those states are hurting badly because of the poor economy. They've lost a lot of jobs, manufacturing jobs. Dick Gephardt's issue is jobs, jobs, jobs. He is a Midwesterner. He's from Missouri. The idea is he can help the Democrats carry Ohio, Missouri and maybe some other Midwestern states that George Bush took. The problem there, of course, is he's a long-time Washington insider. So is John Kerry. It would very much look like a Washington ticket.

O'BRIEN: All right. Now here's one that might be a dark horse candidate, General Wes Clark. He's got the outsider status and yet he also has in this post 9/11 world he certainly has the military troughs if you will. So, what do you think of that one?

SCHNEIDER: That's a pretty good one. He did not distinguish himself as a campaigner because frankly he's new to the political campaign and he made a lot of rookie mistakes. On the other hand, he has three words after his name that all Democrats -- make Democrats' heart beat faster, Supreme Allied Commander. How about that? Retired four-star general, you can't beat that. I mean you want national security credentials, there you are.

O'BRIEN: I thought you were going to say CNN military analyst but I guess Supreme NATO Commander does trump that.

SCHNEIDER: That's true.

O'BRIEN: Bill Schneider, thank you as always.

SCHNEIDER: But he can use your name as a reference.

O'BRIEN: I'd be happy to offer a reference for you and everybody else in the political universe but, once again, telling us the future. Thanks very much from L.A. -- Kyra.

PHILLIPS: Well, you're going to get the most complete coverage of course of the ten Super Tuesday contests right here on CNN. The countdown begins Tuesday night, 7:00 p.m. Eastern, and continues until every race is decided.

Straight ahead, many Haitians have tried to flee their homeland for America only to be turned back. John Zarrella looks at differences in U.S. policy regarding Haitian and Cuban refugees.

Plus, discarded and almost forgotten, a royal family's history finds a home in Iraq.

And history is what the movie "Cold Mountain" is trying to make this weekend. We'll talk with singer Allison Crouse who will perform one of the songs from the movie at this weekend's Academy Awards. You won't want to miss her.

(COMMERCIAL BREAK)

PHILLIPS: Off now to Haiti and that could be the order given to a three ship U.S. Navy task force with 2,200 Marines. Pentagon officials tell CNN the deployment is being considered as a potential means of evacuating Americans or even Haiti's increasingly embattled president. Haitian rebels are gaining ground and closing in on Port- au-Prince.

We get the latest now from CNN's Lucia Newman. She's in the Haitian capital. Lucia, what do you know?

LUCIA NEWMAN, CNN CORRESPONDENT: Kyra, it's absolutely anarchy here in the capital at this moment, absolutely lawlessness. There's no one in charge. The police aren't to be seen anywhere. There's been widespread looting at the port.

We know of at least four people that have been killed execution style, according to witnesses. Reporters say one of them said that he was forced to witness the execution of one man right in front of him while he had a gun pointed at him as well.

At this hour, there are truckloads of armed men that are roaming the streets, terrorizing people, looting shops, robbing. People are staying indoors as much as possible. Almost all businesses are closed right now, Kyra. There are only a few stores open and people are rushing to load up on food as much as they can because they don't know what is going to happen next.

The capital is coming to a standstill and there were scenes of desperation at the airport in the meantime with hundreds of foreigners trying to get out of the country just to discover that almost every single flight in and out of Haiti has been cancelled.

American Airlines, Kyra, yesterday cancelled their five daily flights to and from Haiti and they say they won't resume flights until March 3rd at the earliest. People were crying. They just can't get out of here. They couldn't even leave the airport because the streets are just too dangerous -- Kyra.

PHILLIPS: What about the lives of the Americans there also? What's the threat level like against the Americans?

NEWMAN: It is not particularly aimed at Americans but just anyone who is on the way, anyone who is here. There is, as I mentioned already, a total lawlessness. There is nobody in control at this time.

The rebels, meanwhile, say that they are going to cut off the capital by land and by sea, choke off the capital Port-au-Prince, not allow any boats to come in either, any ships bringing in food or fuel, forcing them to go to the north, which they now control.

So, the idea is to bring President Aristide to his knees and get him out of the palace before they actually march in here and before there is a confrontation, a bloody confrontation presumably between Aristide supporters and the armed rebels but the people in the meantime are in the middle and the people who are roaming the streets right now aren't taking orders from anyone -- Kyra.

PHILLIPS: Lucia Newman reporting from Port-au-Prince. We'll continue to follow the story as things continue to heat up. Lucia, thank you -- Miles.

O'BRIEN: There's a battle brewing on Capitol Hill over the 9/11 commission. It looks as if some lawmakers who want to give the commission more time to do its work are threatening to hold up some popular legislation to get their way.

Congressional Correspondent Joe Johns joining us live from the Senate Gallery with more, hello Joe.

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: Hello, Miles.

The Senate this morning approved an extension of the commission deadline but, over on the other side of the capital, the House Republican leadership is refusing to bring the bill up. So, Senator John McCain of Arizona and Joe Lieberman are threatening to attach it to a stop-gap must pass spending bill for federal highways.

(BEGIN VIDEOTAPE)

JOHNS (voice-over): The 9/11 commission wants its deadline extended and President Bush says he agrees but the top Republican in the House, Speaker Dennis Hastert is opposed. Democrats suggest he's doing what the president really wants.

REP. NANCY PELOSI (D-CA), MINORITY LEADER: I think that Dennis Hastert is a reasonable man and that he will agree to letting us go forward. If he does not, I can only assume that he is doing the heavy lifting for the White House who never wanted this commission in the first place.

JOHNS: And a Democrat on the 9/11 commission is lashing out.

RICHARD BEN-VENISTE, 9/11 COMMISSION MEMBER: Speaker Hastert's position frankly is inexplicable. We see no reason why we shouldn't have the additional time and we think the American public strongly supports our work.

JOHNS: The commission has asked the deadline for its report to be moved from late May to late July, closer to the election. Hastert's aides say he doesn't want it to become a political football.

REP. DENNIS HASTERT (R-IL), HOUSE SPEAKER: What we want to do is get the commission and the report out as quickly as possible so that if there are problems we can solve those problems.

JOHNS: The speaker's lieutenants deny Hastert is playing bad cop to help the president.

REP. ROY BLUNT (R-MO), MAJORITY WHIP: I'm sure this is no deal and I'm also sure that if there's a good cop here the good cop is the speaker. The good cop position here is let's do what's best for the country.

JOHNS: The White House, when asked repeatedly whether Mr. Bush will personally pressure Hastert to drop his opposition, says only that the president supports an extension. The commission is also upset that the White House is saying the president and Vice President Cheney can only be questioned in private for one hour and only by the commission's chairman and vice-chairman.

Meanwhile, the families of the 9/11 victims still a potent force. Monica Gabrielle whose husband Richard was killed in the World Trade Center said if the White House truly wanted an extension it would be done.

MONICA GABRIELLE, 9/11 WIDOW: This White House is playing politics and it's unconscionable and despicable.

(END VIDEOTAPE)

JOHNS: The White House says the president and his chief of staff have tried to get the speaker to change his mind. McCain and Lieberman now are vowing to keep the pressure on -- Miles.

O'BRIEN: Joe Johns on Capitol Hill, thanks much.

Half a century later, memories of Iraq's royal family have a home.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: And I think a lot of Iraqis feel very sorry for what happened to the royal family. It's a tragedy.

(END VIDEO CLIP)

O'BRIEN: All right. This is our favorite piece of the day so you're not going to want to miss it, a peak at royal history is coming up. Jane Arraf did a fine job.

And lessons in the use of intelligence, how Israel fights terrorism.

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PHILLIPS: Well, a day to play for some, a day to dig out for others. The snow is more than a foot high in some parts of the Carolinas. You know what that means, no school today. A lot of businesses also closed for a second day. What about the weekend? Here's CNN's Orelon Sidney.

(WEATHER FORECAST)

(COMMERCIAL BREAK)

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(MARKET UPDATE)

PHILLIPS: And...

O'BRIEN: Welcome back. Well, you go ahead if you like.

PHILLIPS: Oh, no, no.

O'BRIEN: No, ladies first. I insist really.

PHILLIPS: He's Miles. I'm Kyra. We're going to continue this newscast. Here's what's all new this half hour.

O'BRIEN: What she said.

PHILLIPS: Their efforts are the same, desperate and dangerous but the results are often different. We're going to look at U.S. policy for Cubans and Haitians trying to enter the country.

O'BRIEN: The Cubs won't have that darn ball to blame anymore. Final moments for the (unintelligible) foul ball coming up. It's kind of a dud if you ask me.

PHILLIPS: Well, I'll tell you who's not a dud, Allison Krauss wow, flirting with Oscar we're told. We'll tell you why a bit later but first here's what's happening this half hour.

O'BRIEN: A blow for prosecutors in New York City. Martha Stewart case we're talking about. The judge has thrown out the most serious charge against her, securities fraud it was. That charge had accused Stewart of deceiving investors by lying about her sale of ImClone stock. Its investors in her own stock (UNINTELLIGIBLE). Left intact, charges of conspiracy, obstruction of justice and lying to investigators.

A special assignment. Sources tell the Associated Press a special prosecutor will be appointed to look into the recruiting scandal at the University of Colorado. Federal lawsuits have accused the school of using women and alcohol to lure prospective football players.

Shameful, that's how one Catholic bishop describes the national report on priestly sex abuse. It shows almost 11,000 allegations were made against more than 4,300 priests. All involve children from 1950 to the turn of the century. And church leaders are again apologizing to the victims.

A capital in chaos. Scenes of looting, carjacking and shootings in Port-au-Prince, Haiti. Rebels surround the city and now threaten a blockade. Despite mounting calls for his resignation, President Jean- Bertrand Aristide is holding fast. The U.S. is considering sending a three-ship task force of Marines to that island nation as a precaution. PHILLIPS: Love it or hate it, the U.S. policy towards Haitian refugees has at least been cut and dried to the point: turn around and go back home. It's back on the radar as Haitians by the hundreds risk death on flimsy boats in hopes of avoiding death by insurrection. Just like the early 1990s but so far at least on a smaller scale. Here's CNN's John Zarrella.

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN MIAMI BUREAU CHIEF (voice-over): A wooden sailboat off the coast of Haiti. On board, the people sing. Floating close by, the Coast Guard cutter Bear. It is early March 1989, nearly 15 years ago.

For Haitians looking for a better life, U.S. policy has been consistent for decades.

UNIDENTIFIED MALE: All 202 people we have on board are being repatriated.

ZARRELLA: Haitians fleeing poverty are considered economic migrants. Whether they will stopped or make it to U.S. soil, nearly all are sent home. Cubans were and until the early 1990s regarded differently. Fleeing communism Cubans were considered political refugees. The United States nearly always opened its arms to embrace them no matter how they got here.

But when 30,000 Cubans left the island during the rafters crisis the policy changed. Cuba and the U.S. agreed, 20,000 Cubans could come to the United States legally every year. Those who still came illegally were subject to a new policy known as "wet foot/dry foot." Cubans stopped at sea are sent home. Those who make it to U.S. soil are allowed to stay.

It has led to some dramatic events. Desperation to reach the store. At least for Cuban refugees, if they make it, chances are, they can stay.

John Zarrella, CNN, Miami.

(END VIDEOTAPE)

O'BRIEN: News around the world now. Marking the end of an eight-year trial, a former Japanese cult leader was today convicted and sentenced to hang for masterminding the sarin gas attack on Tokyo's subway. It killed 12 and injured thousands, as you probably recall.

Police and protesters conflict on holy ground in Jerusalem. Israeli police say they stormed the Temple Mount today to scatter stone throwers who were targeting them. No injuries or damage are reported.

Barring a last-minute deal, Iraqi leaders will not make tomorrow's deadline for agreeing on a temporary constitution. Major obstacles remain like the role of religion in the government. The interim document will provide legal guidelines until Iraq adopts a permanent constitution.

U.S. soldiers ruffling through the ruins of a bombed Iraqi palace used by Saddam Hussein have found a historical treasure trove. We get more from CNN's Baghdad bureau chief, Jane Arraf.

(BEGIN VIDEOTAPE)

ARRAF (voice-over): It was a family's history packed into this vehicle. But it was Iraq's royal family. And they lost their home here half a century ago.

Almost 1,000 photographs, silver dishes and other items found in the rubble of what was once the royal palace and given to the Iraq Museum by the U.S. Army. The palace was taken over after the 1958 revolution, later by Saddam Hussein and bombed by the U.S. during the war.

The family's history was Iraq's. There were signed and numbered prints of King Faisal installed by the British as the king in the 1920s.

UNIDENTIFIED MALE: He's got the hint of a smile.

ARRAF: Photographs of Queen Alia, the wife of Faisal's son, King Ghazi. Only museum porter Abid Ateah (ph) who has worked at the museum for 63 years recognizes the faces from memory.

UNIDENTIFIED MALE (through translator): That is one of Ghazi's cars. It's a Mercedes.

ARRAF: King Ghazi met one of the most merciful ends of Iraq's Hashemite rulers. He died in a car crash in his twenties.

Two decades later, his young son, Faisal II, the crown prince and female relatives were shot dead. The crown prince's body dragged through the streets.

LAMIA GAYLANI, IRAQ MUSEUM: And you see the ruins of a family which is awful. And I think a lot of Iraqis feel very sorry for what happened to the royal family. It's a tragedy.

ARRAF: Their Hashemite cousins still rule Jordan, but the Iraqi royals who weren't killed were scattered.

(on camera): Once long ago, this was the royal palace where young kings tried to rule the young country of Iraq. Several revolutions later, U.S. bombs have reduced it to rubble. But once women in ballgowns danced here and young princes grew up to be tragic kings.

(voice-over): Some of the most interesting photos not seen in public before are candid ones. Many of the young Faisal who became king at the age of 3 with the death of his father. To be restored, a crumpled photo of Princess Zhaleah (ph) in a new dress. No hint of the despair that would lead her to kill herself at a young age. No hint of tragedy either in the carefree family photos retrieved from the ruins of a palace.

Jane Arraf, CNN Baghdad.

(END VIDEOTAPE)

PHILLIPS: Straight ahead, you're going to hear from, I guess you could say that a lot of us really love to listen to. Just a few seconds. Let's listen here.

(MUSIC)

PHILLIPS: Allison Krauss straight heed here on LIVE FROM... What a voice.

(COMMERCIAL BREAK)

PHILLIPS: Not exactly your typical recruiting ad, which is how the Japanese navy is trying to attract recruits. Actors dressed as sailors strut across the deck of a ship singing about love and peace. No word on whether the Village People will sue for copyright infringement.

O'BRIEN: I think roughly translated it is "YMCA." OK.

A suspected would-be suicide bomber died early this weekend in Gaza. His explosives apparently meant for a Jewish settlement exploded prematurely. Israelis say the bombers are teaching them hard lessons about dealing with terrorism. John Vause reports from Jerusalem.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT (voice-over): On buses, at cafes, in shopping malls, at universities, nightclubs and marketplaces, 139 suicide bombings in almost three and a half years. The peak came in March, 2002. Seventeen in that month alone, the worst at Netanyahu. Twenty-nine dead.

But since then, the untold story, say Israeli officials, is the number of foiled suicide bombers. Between the start of the Palestinian uprising in September 2000 and March 2002, Israel intercepted 31 would be bombers. But in almost two years since, it says it's foiled 283. At the same time, the number of successful suicide missions has fallen dramatically.

MAJ. SHARON FEINGOLD, IDF SPOKESPERSON: I don't think this is measured in terms of winning or losing. I think both sides are losing. But the Palestinians are losing more.

VAUSE: Sources within Israeli intelligence tell CNN they were caught off guard in the first few months of the violence. But not now. Eran Lerman was a senior officer with military intelligence.

ERAN LERMAN, FORMER SENIOR INTELLIGENCE OFFICER: We literally know every house in the Gaza Strip and the West Bank. And we, if we are told a story, we are in a position to check it. VAUSE: Lerman says it's a combination of high tech surveillance from drones, video cameras and observation posts combined with extensive human intelligence on the ground, including information from Palestinians themselves.

LERMAN: There are many Palestinians who bring information. It can be money. It can be, you know, a small operator caught in a dragnet and he just starts talking. And even the great heroes of the revolution end up telling us quite a lot one way or the other.

VAUSE: Every piece of information, he says, is methodically recorded to create a detailed picture not only of every Palestinian city, town and village, but also the social infrastructure, who's talking to whom.

MICHAEL TARAZI, PALESTINIAN AUTHORITY LEGAL ADVISER: There's undoubtedly a huge collaborator network within the Palestinian society. This is nothing new in occupations around the world. This is one of the ways of controlling the population.

VAUSE (on camera): Israel says the suicide bombers and other militants are still trying every day. Intelligence sources estimate that at any one time about 300 militants are actively preparing attacks. According to the Israelis, most of them are either caught in the act or sent running. Most, but not all.

(voice-over): Bus 19 blown apart in Jerusalem last month. Despite an average of 60 terrorist alerts a day, Israeli authorities were caught totally off guard. Eleven people dead, 50 wounded. Three weeks later, another suicide bombing, another eight people killed. Here, when there is an intelligence failure, it can often have deadly consequences.

John Vause, CNN, Jerusalem.

(END VIDEOTAPE)

O'BRIEN: Our series on terrorism concludes tonight with "INTELLIGENCE UNDER FIRE." National correspondent Susan Candiotti looks at intelligence tools used in the hunt for Osama bin Laden. That is tonight at 8:00 Eastern right here on CNN.

PHILLIPS: It's out of there. That cursed ball. Cubs fans take revenge.

(COMMERCIAL BREAK)

O'BRIEN: All right, here's the explosion. Oh, boy. Get ready. Dud! Come on. You've got to do better than that, guys.

But the important point for Chicago fans is the ball was obliterated. That's the foul ball that started the Cubs' spiral or so it is written in the Windy City. It was obliterated at the Hari Kari restaurant. I'm sure he's smiling as he looks down upon the scene. They paid up a $113,000 for the ball, turned it into an extravaganza and hopefully exorcised their demons. But don't take that one to the bank.

PHILLIPS: How much did they pay for the ball?

O'BRIEN: $113,000.

PHILLIPS: I thought it was 114 grand.

O'BRIEN: Geez. Would you give me a break?

(MARKET UPDATE)

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PHILLIPS: Well, we're just two days away from the 76th Annual Academy Awards and to say the excitement is building, according to Daryn Kagan, that's an understatement. She joining us with special notes on music and shoes at this year's show. My, goodness, what have you got, Daryn?

DARYN KAGAN, CNN ANCHOR: Kyra, is there anything besides music and shoes? That pretty much covers it for us as girlfriends, doesn't it?

PHILLIPS: Absolutely. There you go.

KAGAN: You talked about the excitement building. Really, it truly is. We can take the shot above me. You can see there have been huge plastic tents they have put up because it's been one big mosh pit. It's been so wet in Southern California.

And also they've covered the red carpet with plastic but that's coming off now, literally as I come to you live. The guys are actually pulling it off and committing to having no more rain in Southern California.

The producer of the show, Joe Roth (ph), told me a couple hours ago that at 6:00 tonight, this tent is coming down because they're convinced that there will be no rain, that it will not rain in Southern California. So keep your fingers crossed for that.

We're getting close to Oscar night two nights away. We have two people with us with us is who are very excited about that. Singer Allison Krauss will be performing two songs, and Stuart Weitzman. Anybody who shops for shoes knows Stuart is. And we're going to talk with Stuart in just a moment.

Allison, first to you, this is your first time performing at the Oscars. You're not performing one, but two songs.

ALLISON KRAUSS, SINGER: Yes, going to be a busy day.

KAGAN: Both from "Cold Mountain." "Scarlet Tide" and -- how do you say that?

KRAUSS: "'Ain True Love."

KAGAN: I guess that's from like an old English way of saying that.

KRAUSS: Sting wrote that kind of in the old style.

KAGAN: Kind of a good way to go to make your Oscar debut. Not with just Sting, but also Elvis Costello.

KRAUSS: It was really amazing when I got a chance to hear these songs and talent is talent and those guys are just amazing. You think of what will Sting writes like and in the pop music that he writes and then he sends this beautiful folk love song. And it's just amazing how widespread their talent.

KAGAN: So it's one thing to go to the Oscars, another to perform. The bottom line is what are you going to wear and you don't just have to worry about dress, but shoes. And this is where we bring Stuart Weitzman in.

Stuart, every year you come up with this mega-million dollar pair of shoes. So tell us a little bit about what you're doing for Allison this year.

STUART WEITZMAN, SHOE DESIGNER: This year, Allison will be wearing a Cinderella inspired sandal. It's got a glass heel, glass top.

It looks sort of like this. The difference is that this shoe which is the original model from which I made is this $2 million sandal is covered with Swarovski crystals. But the original shoe is going to be made with Quiot (ph) diamonds, more than 500 of them, and a couple of very beautiful, rare precious stones include among the other 500.

KAGAN: So $2 million for the pair.

WEITZMAN: You get both shoes for that price. It's a bargain.

KAGAN: Allison, as if you're not nervous enough about singing in front of a worldwide audience, you're going to have $2 million on your feet.

KRAUSS: I don't want any of those gems falling off. Wouldn't like that very much. There's a guard who will be following the shoes around.

WEITZMAN: I'm going to be the guard.

KRAUSS: He's going to be. Give me those back, give me those shoes.

KAGAN: The only pair of feet that will be guarded at the Academy Awards belonging to Allison Krauss. So you have the $1 million voice and the $2 million shoes.

Let me ask you this. Either two of the songs, can you give us a few bars?

KRAUSS: No way, that would be crazy.

(CROSSTALK)

KAGAN: So we'll wait for Oscar night for the song and for the shoes. Good luck to everybody. It's going to be a big night. Allison Krauss, Stuart Weitzman. So there you have it.

Kyra, I know you've blown money on shoes in your day, but $2 million?

PHILLIPS: Wait a minute, can you grab Stuart and Allison real quickly. Don't let them leave. Did they leave already?

KAGAN: Come on back.

(CROSSTALK)

PHILLIPS: We have a -- first of all, I want to know from Stuart can I get a discount because I have dropped a load on some of his shoes. Hey, you're in on this.

O'BRIEN: I'm sorry. I was leaning back...

(CROSSTALK)

PHILLIPS: I was wondering if I could get a coupon maybe in the mail.

KAGAN: I'll work on that for you.

O'BRIEN: I've got to know this. Daryn, they probably can't hear us so I'll have you translate. What is a Quiot diamond?

KAGAN: We have two questions from our anchors in Atlanta, Kyra Phillips and Miles O'Brien. First of all, Kyra says she's spent so much money on Stuart Weitzman shoes she wants a coupon in the mail from you.

(CROSSTALK)

KAGAN: Miles we don't think is running around Stuart Weitzman shoes. His wife Sandy perhaps has. But Miles is our techie guys. He zeros in on specifics. He wants to know what a Quiot diamond is.

WEITZMAN: A Quiot is a very fine jeweler. And they hand cut diamonds with many facets to them and they're the people who actually carve the jewelry out of raw stone to create this beautiful pair of shoes.

KAGAN: Does that answer it for you, Miles?

O'BRIEN: Yes it did.

and one more thing. I've just got to ask Allison about this. For some reason, $2 million shoes and blue grass, I'm having a hard time... PHILLIPS: Talk about two different worlds.

O'BRIEN: The confluence of these worlds. Have her explain this.

KAGAN: Miles, you're going to have to try that one more time, $2 million...

O'BRIEN: I'm just trying to understand the confluence of $2 million shoes and the world of blue grass. Is she going to feel comfortable?

KAGAN: I got you here. A couple times and -- Miles O'Brien, one of your big fans and appreciates your blue grass music. But he's thinking blue grass music, $2 million shoes, not exactly a match there.

KRAUSS: No, it's not a match at all. It's crazy. I was wondering what he was thinking. But I thought he would fire me, but he hasn't yet.

Actually, when we first got the call that Stuart was interested in having my nasty feet wearing his shoes, I, you know, I'm like no, that's crazy. You know, it would be a little too strange.

And I talked to him on the phone and he was so nice and I was like I can't say no now, he was too nice. His daughters like our records so I thought that was such a nice thing.

O'BRIEN: There's the connection. It's the daughters.

KAGAN: There you go. Really, Stuart is a tough guy to say no to.

And just in case you're wondering, she already has a great pedicure.

(CROSSTALK)

PHILLIPS: Tell Stuart I'm a 7 1/2 and tell Allison Miles and I love her with Brad Paisley. OK?

KAGAN: OK. I will do both things for you guys.

O'BRIEN: I don't suppose she'll be doing any clogging in them shoes.

KAGAN: Don't forget our special on Sunday, 7:00 p.m. Eastern.

PHILLIPS: There's Daryn. But she won't be wearing that dress. She's actually going to be wearing another, a Vera Wang dress.

O'BRIEN: Did you ever do the buck dancing?

PHILLIPS: Oh, gosh. Daryn, I'm sorry.

All right, this will be a hard wrap, I promise. Daryn Kagan at the Academy Awards. Don't miss it this Sunday, February 29. She's looking hot. All right.

O'BRIEN: All right. A tiny New York town joins the gay marriage fight.

And we also have just down the Hudson River a big win for Martha Stewart today. All of this lies ahead as LIVE FROM... rolls on for a Friday.

(COMMERCIAL BREAK)

O'BRIEN: Welcome back to LIVE FROM. We're in the homestretch. And I'm Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips.

Here's what's happening this hour.

The judge in the Martha Stewart trial has thrown out the most serious charge against Stewart, securities fraud. The judge says prosecutors didn't present enough evidence to back it up. Stewart is still facing obstruction of justice, making false statements, and conspiracy charges. The case is expected to go to the jury next week.

Some human rights groups criticizing a new U.S. policy on land mines. Bush administration officials say the U.S. will not sign a global treaty banning land mines. But it will phase out land mines that aren't programmed to automatically self-destruct. U.S. officials say the new policy will dramatically reduce the risk posed to civilians.

The federal commission investigating the September 11 terrorist attacks is asking for more time to do its work. The Senate has approved a two-month extension, moving the deadline to the end of July. But it's not clear if the House will follow suit. House Speaker Dennis Hastert is against it. He says any delay might politicize the findings, coming so close to the November presidential election.

O'BRIEN: On top of the news agenda at this hour, Haiti's friends and neighbors watch and wait and worry while the nation sinks deeper into chaos. It now appears rebels who control most of northern Haiti plan to barricade the capital by land and sea before they move in.

Speaking of sea, the Bush administration may send a Marine expeditionary unit within shouting distance of Haiti's coast, but it doesn't favor boots on the ground, at least until Haiti's president and his unrelenting enemies come to terms.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're interested in achieving a political settlement, and we're still working to that effect. We're also at the same time planning for a multinational force that would go in and make sure that if aid needed to be delivered or there needed to be some stability, that it could go independent upon a political settlement. (END VIDEO CLIP)

O'BRIEN: The latest now from an increasingly desperate Port-au- Prince. We're joined by CNN's Lucia Newman on the line with us from there.

Lucia, what can you tell us?

NEWMAN: Well, Miles, the situation is still extremely fluid. It's still extremely chaotic. The police still not in control, if they ever will be in the short term of this city, which is now being patrolled by groups of armed thugs that are running around looting and threatening people, shooting people as well.

I just spoke to a reporter who had personally saw at least six bodies, some of them killed execution style, Miles. There's been widespread looting at the port, and as well as in stores and other businesses here in the city, and people are just afraid to go out of their homes. The airport is open, but there are no flights, so the hundreds of foreigners who are trying to get out of the country just simply cannot get out of here, Miles. The buses that normally take people to the neighboring Dominican Republic have also suspended their services.

And there were scenes of desperation really at the airport, people crying, saying, we don't know where to go. We can't leave this country. And, in the meantime, the president, even though he has been getting increasing pressure to resign, up until this very moment, Miles, he's saying, no, he won't leave. He's going to wait out his whole term. He won't leave until February of the year 2006. It's unsure now whether the city can last another day or two in this chaotic situation, though, Miles.

O'BRIEN: Lucia, what you describe is utter anarchy. And, sadly, of course, the people of Haiti are somewhat used to all of this. Do you have a sense that this is just something that they are watching, enduring as part of a whole political process?

NEWMAN: It's true that they've gone through a lot of political turmoil and chaos in the past, but that does not mean that they're standing by idly. I spoke to a historian and a political analyst who said that the Haitian people know what they want now. They've changed. They won't stand for any more autocratic, tyrannical governments or military dictatorships.

And the reason why Aristide is in the situation he is in now, he says, is because he continued to rule with the same old style of autocracy that the previous military dictatorships did. And so people, they want him out, but they also don't want to replace him with anarchy or with a dictatorship. It's unclear, though, what's going to happen.

The rebels say they have the city surrounded, that they are going to choke off the ports and not allow any ships to come in. Of course, they've cut off land access as well, unless the president steps down. And if he doesn't, they say they'll go into the palace and get him out, Miles.

O'BRIEN: And that of course, very ominous for Mr. Aristide. Is there any sense, you've been able to confirm one way or another if there is a backstop escape plan for Aristide and his entourage?

NEWMAN: Physically, I assume, and there are all indications that he can get out of the country. He has helicopters at his disposal. He can get the palace. Whether he chooses to do that or not is another matter, Miles.

O'BRIEN: ... Port-au-Prince, please, you and the crew stay safe there -- Kyra.

PHILLIPS: Other stories making news across America now.

California's same-sex marriage debate going to the state Supreme Court. California's attorney general is asking the court to decide if gay marriages are legal. More than 3,300 gay and lesbian couples have exchanged vows in San Francisco.

The same-sex marriage spree has spread east in New Paltz, New York, 75 Miles north of New York City. About a dozen gay and lesbian exchanged vows administered by Village Mayor Jason West. The state has warned West that the marriage licenses are illegal.

Allegations of rape tied to the University of Colorado's football team are getting greater attention. The Associated Press reports that Governor Bill Owens will appoint a special prosecutor to investigate that scandal. Seven women have accused Colorado football players or recruits of sexual assault. So far, no charges have been filed.

O'BRIEN: The judge in the Martha Stewart trial today dismissed the most serious charge against her, but Stewart is hardly off the hook.

Our Allan Chernoff joining us from New York to fill us in on all this -- hello, Allan.

CHERNOFF: Hello Miles.

Martha Stewart certainly not off the hook, but still in a very good mood, good mood enough that she went out for a celebratory lunch in Chinatown, four blocks away from here. Today, Judge Miriam Cedarbaum kicked out the most serious charge against Stewart, that of securities fraud, which did carry a potential prison term of up to 10 years.

The judge ruled that the evidence presented by government prosecutors was so weak that no reasonable jury could possibly have found Ms. Stewart guilty beyond a reasonable doubt. The securities fraud charge certainly was a very novel charge. Martha Stewart was charged with trying to prop up the stock of her own company, Martha Stewart Living Omnimedia, by proclaiming her innocence in her sale of ImClone securities.

Remember, the focus of this trial against Martha Stewart is that she lied about the true reason for her sale of ImClone stock. Now, she still does confront charges of obstruction of justice, conspiracy, and two counts of making false statements in regard to the sale of ImClone -- Miles.

O'BRIEN: CNN's Allan Chernoff in New York, thanks much -- Kyra.

PHILLIPS: Authorities from six states are meeting in Oklahoma City to discuss whether one person might be responsible for several unsolved murders. At least seven women have been killed over the past two years across Oklahoma, Texas, Arkansas Louisiana, Tennessee and Mississippi. Authorities began arriving today to discuss that issue and cite various similarities among the victims, including age range, a history of prostitution, and being last seen at truck stops along I- 40 in Oklahoma.

The jury in a Houston, Texas, murder trial is being exposed to some pretty graphic evidence in the murder trial of a woman charged with stabbing her husband almost 200 times. Today, the prosecution dragged the medical examiner across the courtroom to demonstrate how Wright's husband allegedly was dragged to his backyard grave. And wait until you see what happened yesterday.

CNN's Mike Brooks has that.

(BEGIN VIDEOTAPE)

MIKE BROOKS, CNN LAW ENFORCEMENT ANALYST (voice-over): Susan Wright, accused of murdering her husband Jeffrey by stabbing him 193 times, looked as if she could barely contain herself Wednesday as prosecutors, using the blood-soaked bed where the murder allegedly took place, reenacted how they believe she killed her husband.

Jurors looked on as assistant D. A. Paul Doyle was tied to the bed post by his wrists and ankles with neckties and terry cloth strips. Lead prosecutor Kelly Siegler then straddled Doyle as she questioned homicide detective Mark Reynolds.

KELLY SIEGLER, PROSECUTOR: Something like this and straddled him. And she's right-handed. And how do you think she held the knife? Attack at the head area first -- which side of his face are most of the injuries going to be on?

BROOKS: Defense Attorney Neal Davis, who denies that his client tied her husband to the bed, objected to the graphic demonstration.

NEAL DAVIS, DEFENSE ATTORNEY: It's overly theatrical and I think it's overly prejudicial to the jury.

BROOKS: The defense says the 27-year-old defendant killed her husband only in self-defense after years of abuse and only after he pulled a knife on her and she wrestled it away from him. Defense attorney Davis also said that Susan Wright had been beaten and raped at their home.

Prosecutors say that Jeffrey Wright was murdered by his wife on January 13, 2003 because she had religious concerns about divorce and that she wanted $200,000 from a life insurance policy. They allege that she then buried her husband's body under their backyard patio. On January 15, Susan Wright filed a report for domestic abuse. Prosecutors say that report is part of the murder cover-up.

Mike Brooks, CNN, Atlanta.

(END VIDEOTAPE)

O'BRIEN: Well, the numbers are startling, and some victims groups say they under-represent the problem. Today, U.S. Catholic bishops issued their long-awaited report on allegations of sexual abuse of minors by priests.

Our Jason Carroll has the sobering statistics and the reaction.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT: One of the members of the panel said that church leaders for far too long were acting like risk assessment managers rather than shepherds of the flock and that's why we're seeing the numbers that were released today.

Researchers found that, between 1950 and 1992, 4,392 clergy were accused of abuse. That represents about 4 percent of the 110,000 priests in active ministry. They were accused of abusing 10,667 victims. The average age of the victim just 12 years old. Most of the victims were enticed with either alcohol or drugs, most of the abuse taking place in the clergy's home or in a Parish. Researchers from the John Jay College of Criminal Justice -- they're the ones who actually crunched the numbers -- also found that only 14 percent of priests accused of abuse were actually reported to police by their bishops.

Another part of the report has to do with the causes behind the crisis. That part of it was overseen by a national review board of laypeople. They talked about the major causes behind the crisis.

ROBERT BENNETT, NATIONAL REVIEW BOARD: Dioceses and orders simply did not screen candidates for the priesthood properly. As a result, we found that many dysfunctional and psychosexually immature men were admitted into seminaries and orders ordained in the priesthood. One person we interviewed indicated, who were we to call -- to question a calling from God?

CHERNOFF: Bishop Wilton Gregory, who is the head of the U.S. Conference of Catholic Bishops, said that the church obviously did not do enough. And he had this message for victims.

BISHOP D. WILTON GREGORY, PRES., U.S. CONFERENCE OF CATHOLIC BISHOPS: On behalf of the bishops and the entire church in the United States, I restate, and reaffirm our apologies to all of you who have been harmed by those among us who violated your trust and the promises they made at their ordination.

The heartfelt sorrow that we feel for this violation and the often ineffective ways with which it was dealt has strengthened our commitment to do everything possible to see that it does not happen again.

CHERNOFF: Bishop Gregory also said the church did not do enough to reach out to victims. And many victims are now saying that the church is still not doing enough to reach out to them. And they're also very critical of this report, saying that the numbers should be much higher. They say that the researchers had to rely too much on bishops for their information and not enough on outside sources of information.

Jason Carroll, CNN, Washington.

(END VIDEOTAPE)

O'BRIEN: Talk about a walk on the wild side. Check out this spacewalk. Trouble is, they had to cut it short.

PHILLIPS: Then, how'd you like to work in space? We'll introduce you to Frederick Gregory. He's got one of the coolest jobs around, not to mention, he's a stud himself, wouldn't you say?

O'BRIEN: I suppose so, yes.

(LAUGHTER)

(COMMERCIAL BREAK)

O'BRIEN: Me and my toys.

(LAUGHTER)

O'BRIEN: A spacewalk outside the International Space Station ended early last night. Astronaut Mike Foale and cosmonaut Alexander Kaleri had to head back inside after condensation formed inside Kaleri's space suit. The thermal system kind of backfired.

Before returning, the men installed some scientific experiments outside. The rest of those items in the job jar will have to wait until the next crew of station keepers arrives.

Let's stay in space for a moment as we conclude our weeklong look at Black History Month. Our guest is a man who has broken all kinds of barriers in his high-flying career. He's the first African- American to command a space shuttle. And today, as deputy administrator of the Space Agency, he has risen to the top of the mostly white, white-scarf world of space flight.

We welcome to our program, NASA's deputy administrator and astronaut Fred Gregory.

FRED GREGORY, NASA DEPUTY ADMINISTRATOR: Hi, Miles. It's great to be here.

O'BRIEN: All right.

Let's talk about your rise to the top at NASA. Did you meet with a lot of racism along the way? You started in the astronaut corps back in 1978. Was there any overt signs of racism or was it a pure meritocracy?

GREGORY: See, I thought it was an excellent transition. I actually started that work a lot, lot earlier as being one of the first blacks in a Boy Scout troupe in Washington, D.C. and then the only in my class at the Air Force Academy. And so I guess I've been in that role quite a lot.

O'BRIEN: Everywhere you go, you're the first or near to being the first. What's that like?

GREGORY: Well, I guess I grew up in a family that said there are no obstacles. If it's a challenge, you just kind of work around it. And so, with kind of that positive approach, I took each as a challenge and had no problems with it.

O'BRIEN: What are your thoughts as you look not just at your own personal, wonderful career, but, as you look around, you look at the accomplishments of other African-Americans and minorities in NASA and in spaceflight? Are you proud of where it is now? Or do you see more work to be done?

GREGORY: You know, I am actually very proud.

And, of course, the ability -- or my ability to be here today is, you know, I have to build on -- stand on the shoulders of young ladies like Bessie Coleman in the early 1920s, the Tuskegee Airmen. I think without them, we would not be here today. But, you know, we have a responsibility to continue to excite kids of all types, so that, you know, this great adventure of moon, Mars and beyond becomes part of their culture, and they will be very interested in doing it.

O'BRIEN: Is there a gap, though, in getting them excited, young minority children? And, if so, why is it that way?

GREGORY: Well, I don't think there is a gap, Miles. We're spending a lot of time now wandering around to schools, specifically the Explorer schools that have an association with the agency.

And I am -- what is interesting is that I'm finding very little difference between, you know, the schools that have generally black or African-Americans vs. Asian vs. the white, primarily white schools. They are all extremely excited about the adventure and NASA. And I think we just need to continue to capitalize on it.

O'BRIEN: You know, you mentioned the adventure and being an astronaut. And that's an easy sell to kids. But perhaps the greater accomplishment of your career -- you might quibble with this, though -- is, rising as high as you have in management. Why haven't there been more minorities who have made it to the top in the highest realms of not just NASA, but bureaucracies in general in Washington?

GREGORY: You know, that's -- all I can tell you is that, you know, in the days before I came to NASA, actually, earlier than that, it was very difficult for African-Americans to get into the government to industry. There's a great opportunity now. Every day, I see more and more. And so I would look at it as a -- you know, as an ability now to come in to very interesting, into a very interesting role and participate and contribute to the future.

O'BRIEN: Fred Gregory, I want you to stay here for just a moment. Thank you for your thoughts on that.

But I want you to just hang around for the "Mars Minute," if you would. Let's start the clock. And I want to show a sunset on Mars, captured from the Spirit rover. Check out this shot, a little animation there, lower part of your screen. Get rid of that banner there. There, you see the sun setting on Mars. It's kind of got a blue ring around it.

When you see these pictures, Fred -- and this is just part of a long string of wonderful images that we've seen from these two rovers on Mars -- do you put yourself on the surface of Mars, and do you wonder how soon it would be before a human being will be there?

GREGORY: You know, I love that. I'm so glad you're showing it.

You know, the first thing that comes to my mind is, with less gravity there than Earth, could I run to the sun?

(LAUGHTER)

GREGORY: So that's the first part. I would guess that we would have our first humans on -- in Mars in 25, 30 years or so. I think that they will be able to come back and tell us what it's really like to be able to climb Olympus Mons, which is probably four times higher than Everest.

I think this is going to be an exciting trip and it will allow, you know, just like Lewis and Clark and those things, of a great amount of discovery, just based on this exploration. I would love to be able to do it, but I think it's going to be our kids.

O'BRIEN: You know what? Fred Gregory, you're in good shape. I'll bet you'll be in the hopper anyhow.

All right, listen, great pleasure having you join us. Great way to wrap up our look at Black History Month this week. And congratulations to you on all your accomplishments and best to you in the future.

GREGORY: Thanks, Miles.

O'BRIEN: All right. All right. A pleasure.

PHILLIPS: You got Lewis and Clark and you got Fred and Miles. Fred and Miles head to Mars.

O'BRIEN: I'm in. I'm in.

PHILLIPS: Sounds like a movie. O'BRIEN: Sandy would kill me, but...

(LAUGHTER)

O'BRIEN: All right, got to go. Break now.

(COMMERCIAL BREAK)

PHILLIPS: Well, at first, he was not supporting it. Now he says he is, House Speaker Dennis Hastert saying that he will support a 60- day extension for that 9/11 report. As you know, he felt it was going to be a political football in this campaign time, that 9/11 report investigating into what happened intelligence-wise during 9/11. Now Hastert changing his mind, 60-day extension. He's supporting it.

(MARKET UPDATE)

PHILLIPS: That wraps up this edition of LIVE FROM.

O'BRIEN: The whole week is wrapped up, as a matter of fact.

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