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Jury Selection Starts for Scott Peterson Trial; Activists Demand Same-Sex Marriages in New York City

Aired March 04, 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.


KYRA PHILLIPS, CNN ANCHOR: Tough questions in the Scott Peterson murder case. They're not for the accused; they're for the jury.
(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Are you telling us that in your opinion, Andy, it looks like he has taken steroids?

UNIDENTIFIED MALE: Oh, unequivocally, he's taken them. Without equivocation he's taken them. And, you know, I can say that with, you know, with utmost certainty.

(END VIDEO CLIP)

PHILLIPS: Steroids scandal shocker. Barry Bonds' former teammate speaks out.

And you know not to taken any wooden nickels. But you better learn to like this one. Big change for your pocket change.

From the CNN Center in Atlanta, I'm Kyra Phillips. Miles O'Brien is searching for Mars. CNN's LIVE FROM starts right now.

So have you ever cheated on your wife? Do you read "Field & Stream"? What are your feelings on bumper stickers?

Does any of this have anything to do with Scott Peterson's capital murder trial? Apparently yes. The answers to those questions and many others will decide the composition of the jury that will judge whether Peterson murdered his pregnant wife and unborn son and whether he lives or dies if convicted.

After many months of hearings, arguments and pretrial rulings, the real thing starts today.

CNN's Rusty Dornin sets the scene.

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RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Nearly 1,500 jurors are expected to file through this courtroom before a jury might be found for the Scott Peterson trial. Why so many? Because this trial is expected to last five months.

JOE RICE, JURY RESEARCH INSTITUTE: Two-thirds, three-quarters of those jurors are going to try their best to get out of that trial. Then we have to deal with the issue of familiarity and exposure to Scott Peterson and the attitudes and opinions they've already formed. And that's now going to reduce that pool once again.

DORNIN: San Mateo County, south of San Francisco, is mostly residential and tend to be upscale and somewhat conservative, say jury experts.

Defense attorney Mark Geragos says he's not sure an impartial jury can be found here and might request another change of venue.

Laci Peterson's mother believes otherwise.

SHARON ROCHA, LACI PETERSON'S MOTHER: There has to be enough people some place that haven't heard about it or aren't involved with it. Not everybody follows this.

DORNIN: Jurors must also be willing to consider the death penalty. Some experts say those jurors tend to support law enforcement.

RICE: I think the advantage is clearly to the prosecution. The whole process kind of stacks the jury in their favor. So I think the defense has a more difficult task.

DORNIN: Their task, according to experts, is to poke holes in what appears to be the prosecution's largely circumstantial case. Find jurors who maybe have concerns about law enforcement.

RICE: And would buy into the belief that, you know, maybe they didn't do their job. Maybe there's someone out there that still may have done this crime.

DORNIN: Jurors will fill out a more than 20-page questionnaire on everything from bumper stickers to whether they've had an extramarital affair and their views on the death penalty, in an effort by each side to sort out just the right juror.

Rusty Dornin, CNN, Redwood City, California.

(END VIDEOTAPE)

PHILLIPS: And in just a few minutes, we'll talk more about the Peterson case and several others with legal analyst Roger Cossack.

The gay wedding march, playing on in Portland, Oregon, unless state officials change their tune.

The day after Multnomah County started giving marriage license to same-sex couples, the governor is holding his piece, pending an opinion from the state attorney general.

New York state's attorney general says same-sex weddings raise serious constitutional concerns, while the mayor of tiny New Paltz pleaded not guilty last night to misdemeanor charges of solemnizing marriage licenses without a license. Meanwhile, New York City's gay marriage applicants are receiving a letter saying, "Thank you for visiting, but we're unable to grant your request."

Not everyone is taking rejection lightly.

CNN's Adaora Udoji tells us what they propose to do about it -- Adaora.

ADAORA UDOJI, CNN CORRESPONDENT: Kyra, today there was a big rally in downtown New York city, gathering at the municipal building. The rally really a symbol of the growing and rapid mobilization of gay and lesbian organizations around the issue of same-sex marriage here in New York.

The coalition, called New York Marriage Now, brought out several hundred people. And they really had a two-part strategy.

First was to bring out lots of numbers to put pressure on Mayor Bloomberg to take a stand on the issue, to show that the issue is not going to go away, despite a decision by the attorney general yesterday after reviewing New York law.

He concluded that it prohibits same-sex unions, which bring us to the second part of the strategy today, by those who came to rally, which was several dozen couples, gays and lesbian couples, came to the municipal building down here to apply for a marriage license.

They were swiftly denied, based on the assessment made by the attorney general yesterday that the law in New York prohibits same-sex marriages. But many of them, of course, were not surprised, but they say it's a step in the right direction because now, with that denial, they can take the issue to court.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We want to have marriage, something that everybody recognizes, understands, and protects, throughout the country if we live this city, if we live the state.

UNIDENTIFIED MALE: This is the man that I love. This is the person I'm going to spend the rest of my life with, and why should I be denied a basic right?

(END VIDEO CLIP)

UDOJI: Now, the attorney general also said yesterday, though he was personally in support of same-sex marriages, that New York law did not -- did prohibit them.

Also, though, he added that he thought the marriage laws in New York did trigger some questions about equal protection concerns, which is why those couples who have now gone to the state, asked for that license, been rejected, can try to turn to the court to help resolve once and for all what should or can happen here in the state of New York -- Kyra. PHILLIPS: Adaora Udoji, thank you.

And polls show that most Americans oppose gay marriage, some Americans more than others. A Baptist church outside Birmingham, Alabama, proclaims a biblical prohibition to same-sex unions and a plague to those who violate it.

A pastor says it's a no-brainer, but a fellow pastor believes it's heartless.

(BEGIN VIDEO CLIP)

REV. CHRIS HAMLIN, PASTOR: I don't think God is going around zapping, cursing people.

It sends the wrong message that it's just -- that AIDS is still considered or seen as being a gay disease, and that just is not the case today.

(END VIDEO CLIP)

PHILLIPS: And that poll that I mentioned was conducted last month by CNN/"US Today"/Gallup poll, which shows that gay marriage opponents outnumber supporters by roughly 2-1 nationwide.

Two days post Super Tuesday, it debuts. Thursday, the first of re-election TV spots is on the air and making waves already.

Some relatives of 9/11 terror victims and the International Association of Firefighters are highly offended by a Bush ad containing fleeting images from Ground Zero.

The Bush team insists it's fitting and proper.

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KAREN HUGHES, ADVISER TO BUSH CAMPAIGN: I just respectfully, completely disagree. Your viewers just saw the ad. I think it's very tasteful. It's a reminder of our shared experience as a nation.

I mean, September 11 is not just some distant tragedy from the past. It really defined our future. I was at the White House when it happened. And it changed, forever, our national public policy.

And it's important the next president knows that and realizes we are still at war today because of that day. We're at war against terror. So it impacted our nation in so many ways, not...

(END VIDEO CLIP)

PHILLIPS: The TV buy amounts to some $10 million from a war chest bulging with more than $140 million and counting.

Now besides money, of course, the president is all but certain the Democratic opponent needs to find a running mate. To that end, John Kerry has tapped D.C. banker Jim Johnson to lead the search for a V.P. candidate.

That leaves Kerry own days free to try to narrow a nine-figure gap in fund-raising. Aides say Kerry took in $1.2 million just over the Internet in the 24 hours after Super Tuesday.

Kerry/Clinton 2004? Well, not so fast says one of the Clintons whose name is being mentioned, by Democrats. The junior senator from New York took it all in stride in a sit-down interview yesterday with CNN's Lou Dobbs.

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SEN. HILLARY CLINTON (D), NEW YORK: No. I'm having a great time being senator and talking to you about an issue that I care deeply about.

LOU DOBBS, "LOU DOBBS TONIGHT" HOST: Let me put it another way. Are you open to the idea?

CLINTON: You know, that is totally up to the nominee. And I don't think I would ever be offered. I don't think I would accept. Obviously, I want to do everything I can to see John Kerry elected president.

DOBBS: Do you think you would be helpful in that role as vice presidential candidate?

CLINTON: I think I can be helpful in my role as senator. I think I can do a lot to help people focus on the strengths of our candidate and the weaknesses frankly, of the opposition.

(END VIDEO CLIP)

PHILLIPS: Well two of Clinton's Senate colleagues say they might be interested if asked. They are Bill Nelson and Bob Graham, both of Florida. The latter, briefly a presidential contender, as you may remember.

Terror threats kept secret. Should the French government have warned train passengers about bomb threats?

(BEGIN VIDEO CLIP)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Without question, Iraq's health system has faltered. Some believe because of a cruel dictator who made his people pay for the embargoes placed on his country.

Others believe three wars in 20 years were more to blame.

(END VIDEO CLIP)

PHILLIPS: Our Dr. Sanjay Gupta, behind the scenes of the medical system in post-war Iraq.

And we'll take you inside the strategy of the Scott Peterson trial. Who will be picked for the jury?

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(WEATHER REPORT)

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PHILLIPS: So, what type of bumper stickers do you have on your car? Well, just one of a number of questions that potential jurors in the double trial of Scott Peterson will be asked.

Former CNN legal analyst turned ESPN legal star Roger Cossack here to talk about the highly publicized jury selection process.

How nice. Good to see you.

ROGER COSSACK, LEGAL ANALYST: Nice to see you. This is fun to be back here. This is like old times.

PHILLIPS: It's great to have you back.

Now we'll get down to the matter at hand. Let's talk about this 30-page questionnaire that potential jurors are going to have to fill out. What kind of questions are we talking about and why?

COSSACK: Well, you know, there's a real theory about all of this stuff. There's two theories. There's two competing theories.

One theory is you ask all these questions because you really do find things out that makes you better in selecting the jury or the jury person you want for your side. And then there's the other theory that says, you know what? Just shut your eyes and pick 12 names out of a hat, because it's going to be as good as anything you work on anyway.

So I guess they believe in the former theory, which is they can try and find out.

And bumper stickers is the one that you alluded to, is really one of the questions. And the theory behind that one is that when you're in your car, you're in a cocoon. You know, you're in there. You're listening to music. No one knows who you are. You're driving along.

So that if you want to identify yourself by putting some kind of a bumper sticker on, you know, "My kid's..."

PHILLIPS: "Death penalty."

COSSACK: "I'm against the death penalty." "I vote and I'm a Democrat." Or a Republican. Or "I'm pro choice," or I'm -- whatever it may be, you're making a statement to the world that says that you're aggressive, that you're not afraid to say who you are, that you're not afraid to speak up.

And so it's not so much what you have on your bumper sticker, although I'm sure if you said, "I think Peterson is guilty," they probably wouldn't want you. The defense wouldn't want you; the prosecution would.

But it's the idea that you'll put one on there.

So they ask you all kinds of these questions. Questions they might ask would be are you happy with your job?

PHILLIPS: Would you cheat on your wife?

COSSACK: Would you cheat on your wife? Although I don't think they'd get too many honest answers on that one.

Do you want to be on this jury?

There's many, many questions. And then they have sociologists who go over all these things, try and interpret the kinds of follow- ups and the kinds of responses, narrow it down.

And there are people -- People are pretty honest about this stuff. They'll tell you flat out. They'll say, "Listen, I think this guy's guilty." Or "I can't convict anyone." Or "I'm absolutely against the death penalty, and I'd never do it."

People are very honest in this. And you find these kind of things out, and they shut their eyes and try and make a decision.

PHILLIPS: Yes. And then they pick the names out of the hat.

COSSACK: Then they pick the names out of a hat.

PHILLIPS: All right. So a TV movie was made, of course it's on every network, every station talking about this case. Can you find a fair jury?

COSSACK: You know, you can find a fair jury. The ones that -- well, first of all, let me just say this.

The Constitution says you're not guaranteed the absolute fair jury, because that's impossible.

PHILLIPS: There a cover for that.

COSSACK: So you're guaranteed the fairest jury possible. And you ask people to be honest, they'll tell you. They will say to you, listen, I think this guy is as guilty as can be.

Or I need -- or I have problems with the testimony of police.

Or I think this scientific evidence is gobbledygook, and I just don't believe it.

People will tell you right up front what they think. And then there's obviously people who don't want to be on that jury, and they'll tell you that, too, and you can eliminate that.

And finally, you get down to the ultimate question: can you put aside everything -- everything that you think about this case, everything that you've heard about this case, and just give me your opinion on just the evidence that you hear in this courtroom, and people will say yes they can.

And the ones that say yes they can, by and large, are pretty open-minded and are prepared to listen.

Look this is a tough case. Everybody knows about this case. A movie, emotional, terrible, horrible set of facts. It's going to be tough. But they'll find a fair jury.

PHILLIPS: All right. Let's start with -- Let's say you are Mark Geragos. What kind of jury do you want?

COSSACK: I want someone -- first of all if someone said to me they'd never heard of this case...

PHILLIPS: They're lying.

COSSACK: ... they would be gone immediately. Or they've been living in a cave in Afghanistan. I wouldn't want them on there, because they're not telling the truth.

I wouldn't mind someone who said they'd heard about the case. I wouldn't mind someone who said that not only have they heard about the case that it made them sick, the thought of what happened to this young woman, this young, pregnant mother. That wouldn't bother me.

What I would want is someone who said, you know what? I can -- I understand the facts in this case, but I also understand the idea that he's presumed innocent until proven guilty, and I'm going to make the prosecution prove him guilty.

Now if they do prove him guilty, don't look for any help from me. That wouldn't bother me.

But if they just said, listen, I'm someone who will make the prosecution prove their case.

And I think, you know, there's different kinds of occupations. Sometimes defense lawyers say they're look for engineers. Why? Because they're precise. They're look for pieces to fit exactly. And if things don't fit exactly -- and very few things do -- in human -- human events, very few things fit exactly and precisely.

So sometimes defense lawyers say they're looking for engineers or scientists.

Oftentimes, prosecutor say, well, they're looking for people who aren't looking for such precision. And this is a case, you know, that's based solely on circumstantial evidence.

PHILLIPS: OK. So now here you are the prosecution. What kind of jury do you want?

COSSACK: I'm looking for -- well, obviously, I probably would be looking for mothers, wives, someone who would identify with the victim in this case.

I think you're going to have a difficult time finding anybody who doesn't identify. But I think perhaps a mother, a wife, a single mother, perhaps a woman who was divorced, had a -- and these are things you'll find out in the questionnaires. Perhaps had a difficult marriage. Maybe got divorced because a husband cheated on them.

Those kinds of things. I think I'd be looking for those kinds of people.

But also people -- this is a case, as I said, of circumstantial evidence. There's not a confession; there's not a murder weapon. It's not going to wrap up very neatly.

PHILLIPS: Honestly, do you think you could find anybody who has sympathy for Scott Peterson right now?

COSSACK: Sympathy I think would be a hard thing to find right now. But I think you can find someone who would say, you know what, I'm going to make the prosecution prove this case beyond a reasonable doubt.

Like the guy? No. In my stomach have bad feelings? Yes. But I am going to make the prosecution prove this case. And if I'm not convinced, then perhaps I'll go with not guilty.

Now remember, reasonable doubt is a subjective standard. You know, your reasonable doubt, mine may be entirely different. So we're asking people to find reasonable doubt. That's why you have 12 people on a jury. One reasonable doubt is here, one reasonable doubt is there.

So it's all about the individual. So sympathy -- I don't think you'll find sympathy, but hopefully you'll find people with an open mind.

PHILLIPS: An open mind. Would you be open to leaving ESPN and coming back to CNN?

COSSACK: Well, I don't know about that, but I sure miss the place.

PHILLIPS: Roger, thanks so much good to see you.

COSSACK: Thank you very much.

PHILLIPS: All right.

Well, straight ahead, living the not so simple life can lead to a costly divorce payout, especially if you're Lionel Richie. You probably want to be representing someone in this case, Roger.

A girl's got to have $15,000 for the right shoes, right?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's wild. I'll take it up.

UNIDENTIFIED FEMALE: So cool.

(END VIDEO CLIP)

PHILLIPS: And the lap of luxury for lighting up. Smokers stretch their limits in this limo.

And an extreme makeover for your pocket change. A penny for your thoughts about the new nickel.

(COMMERCIAL BREAK)

PHILLIPS: News across America now.

In Arizona, police continue to find so-called drop houses crammed with illegal immigrants. Two homes were raided yesterday. Another one today. In the past three weeks, 14 drop houses have been found in the Phoenix area. More than 800 illegal immigrants have been apprehended.

In Lubbock, Texas, a 52-year-old woman gives birth to twin girls, her own granddaughters. Marianne Thoms served as surrogate for her daughter-in-law, who was unable to have children after a miscarriage.

And as long as we're in Texas, could this be the future governor of the Lone Star State? Kinky Friedman, described as singer, humorist, a friend of stray dogs, and a salsa merchant, says he's planning to run in 2006.

Among other campaign issues, Friedman says he wants to fight the "wussification" of Texas.

The nickel's getting a facelift. U.S. mint officials today unveiled a new five-cent piece. The new nickel still has Thomas Jefferson on one side, but on the other, Jefferson's home, Monticello, has been replaced with a design honoring the Louisiana Purchase.

It's the first makeover for the nickel in more than 60 years. The new change should be in circulation in the next few weeks.

Disney's chief hasn't quite given up the keys to the kingdom yet, but you could say he's been dethroned.

Rhonda Schaffler, live from the New York stock exchange with the details.

(STOCK REPORT)

PHILLIPS: Straight ahead, French officials reluctantly find themselves at the bargaining table, but wait until you hear with whom and what's at stake.

And the future of Iraq's doctors in jeopardy. Dr. Gupta back in Iraq, bringing us the grim health care diagnosis, straight ahead, right here on LIVE FROM. (COMMERCIAL BREAK)

PHILLIPS: Welcome back to the CNN center in Atlanta. This is LIVE FROM. I'm Kyra Phillips. All new this half hour.

Steroids in sports making headlines once again. But why all the fuss, you ask? We'll take a closer look at the effect the drugs have on athletes taking them.

The Senate Budget Committee debates Chairman Don Nickles' version of President Bush's fiscal plan today. The plan seeks to cut record federal deficits through tighter spending controls and small tax cuts than the president wanted.

Democrats argue Nickels' proposal would worsen the short falls, because it still includes tax cuts over the next five years.

CIA Director George Tenet preparing to testify before the Senate Select Intelligence Committee. He's going to answer questions on intelligence failures leading up to the war with Iraq.

Last week, former U.N. weapons inspector Scott Ritter called for Tenet's resignation, saying Tenet misled Americans about Iraq.

The first full day of deliberations in the Martha Stewart trial under way after a one-hour delay. Subway problem kept four juror from getting to the courthouse on time. The jury is trying to determine if Stewart and her former broker lied to investigators about her sale of ImClone stock in late 2001.

PHILLIPS: A terrorist group has threaten to blow up France's rail lines unless the French government pays a ransom of $4 million.

Negotiations have been going on for months now. And the French people want to know why they weren't told about it sooner.

Senior international correspondent Sheila MacVicar reports.

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SHEILA MACVICAR, CNN CORRESPONDENT (voice-over): For months, the French government has been secretly negotiating with a previously unknown terrorist group threatening to blow up the nation's rail line. It is a threat the government is taking very seriously.

Last month, the group led them to a bomb placed under rail lines in central France.

"The device was checked," says the French interior minister. "The firing mechanism was tested." And the device proved to be dangerous, because it shattered a train rail.

In messages to the government, the group claims to have planted ten more bombs on rail lines around France. It is demanding a ransom of more than $4 million U.S. dollars. The group called itself AZF, apparently after a French fertilizer factory in southern France which exploded three years ago, killing 31 people. More than 2,000 more where injured.

The official investigation ruled out a criminal attack, but the cause remains unknown.

French officials have acknowledged they know little about the group and had said nothing about the risk to the rail service. That has angered some passengers.

"It's getting worse and worse. People are being taken hostage, and it's really crazy," said this traveler.

There will be more questions about why the government kept quiet when ministers knew there was a real danger to France's rail-traveling public.

Sheila MacVicar, CNN, London.

(END VIDEOTAPE)

PHILLIPS: More news around the world.

A German court overturns a conviction of the only man found guilty in connection with the 9/11 attacks. Mounir El Motassadeq had been found guilty of helping the September 11 hijackers. He was sentenced to 15 years in prison.

But an appeals court says that a lower court failed to properly consider the absence of evidence from a key witness. El Motassadeq will be retried.

A top al Qaeda operative linked to the attack on the USS Cole has surrendered. Yemeni officials say Abdul Raouf Nassib surrendered around a shootout with Yemeni forces.

Another suspect was also taken into custody. His identity is under investigation.

A rocket strike in western Baghdad critically injures three members of an Iraqi family in what police there are calling an act of terrorism.

CNN Baghdad bureau chief Jane Arraf joins me now with more from the Iraq capital -- Jane.

JANE ARRAF, CNN CORRESPONDENT: Kyra, that rocket hit on the street near a telephone exchange, and now it was the second apparent attempted attack on an exchange in two days.

Yesterday, a telephone exchange in Baghdad was struck when an explosion went off, which appeared to be a bomb being carried by someone. It was believed to have detonated prematurely.

The U.S. Army says that it is tracking a pattern of what appear to be increasing rocket attacks of increasing range.

Now, Brigadier General Martin Dempsey, who is in charge of the 1st Armored Division in charge of Baghdad tell us that it appears to be a new phenomenon.

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BRIG. GEN. MARTIN DEMPSEY, U.S. ARMY: One of the pattern we're monitoring and trying to analyze, of rocket attacks that have taken place from as far as 30 kilometers away.

And where that leaves us is that somebody with some skills in indirect fire is shooting at us. And so we're turning this giant intelligence apparatus we control on that challenge.

(END VIDEO CLIP)

ARRAF: Three rockets actually hit the so-called secure zone, the green zone, which houses the headquarters of the U.S. coalition, last night. That was just minutes before the chief civilian administrator and the commander of lab forces here were due to speak.

Now, these rockets can be fired from up to 30 kilometers away, as officials say. And the problem is that they are set off, many of them with timing devices. The timing devices, they say, taken from washing machines -- Kyra.

PHILLIPS: Amazing. Jane Arraf, live from Baghdad, thank you.

Decades of war and neglect have taken a toll on Iraq's health care system, also. Some could argue it's in critical condition.

CNN medical correspondent Dr. Sanjay Gupta goes back to Iraq where he examines the problem and monitors progress toward development.

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DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): This hospital in Baghdad specializes in pediatric care. It's not enough, though, to meet the challenge. According to the Iraqi minister of health, one in ten infants will die before they're a year old.

Antibiotics that save lives and cost just pennies in the United States are in short supply.

These women, for example, are at risk of dying from routine infections. In Iraq about three in 1,000 mothers die after childbirth.

Some hospitals go dark at night. Why? Because there aren't enough light bulbs. Yes, light bulbs.

Doctors have been using textbooks that are decades old and providing patients with the associated obsolete care. Sadly, the Iraqi health system that 30 years ago was the finest in the Middle East needs more than a financial band-aid. It needs to be completely overhauled.

TOMMY THOMPSON, HHS SECRETARY: What we're going to do as a department is to collaborate and to cooperate and to partnership with the people in Iraq to rebuild that medical system back to what it was in the 1970s.

GUPTA (on camera): Without question, Iraq's health system has faltered, some believe because of a cruel dictator who made his people pay for the embargos placed on his country. Others believe three wars in 20 years were more to blame.

THOMPSON: Sure, the war complicated things. But it was -- it was much more the neglect of Saddam Hussein for over 15 years that really ruined the medical infrastructure in Iraq.

GUPTA (voice-over): To be sure, best estimates say Iraq spent around $20 million on health care in 2002. That's bout 68 cents person. This year, the expenditure will be close to $900 million, or about $40 per person, most of that money from oil revenues.

For reference, in the U.S., around $4,000 is spent per person by government.

And the newly appointed minister of health wants even more.

DR. KHUDAIR ABBAS, IRAQ HEALTH MINISTER: It could take as much as, you know, to take $1 billion as a start. It's not bad at all. But I would wish 2004 to have, for example, $2 billion.

GUPTA: Starting from scratch will not be easy. But both Americans and Iraqis agree that is what needs to be done.

For too long, little or no money was spent on the infrastructure needed to provide basic care and prevent disease; $900 million may change that, slowly.

Dr. Sanjay Gupta, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Now the latest health news online, it's just a mouse click away, of course. You can find the latest medical headlines on our web site, along with a health guide from CNN and the Mayo Clinic. The address is CNN.com/health.

Baseball's current home run king, Barry Bonds, denies taking steroids, but a former teammate begs to differ. What about the athletes who surrender to the temptation of taking steroids? Find out what world is like after the cheering stops.

And from the world of entertainment, Lionel Richie's endless love is over. His soon to be ex is hoping to take much of Richie's riches with her. LIVE FROM tries to rock on. ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: Some good news today for major league baseball fans. A little something to take the annual sting out of the April 15 filing deadline for income taxes.

Beginning this year, April 15 will also be Jackie Robinson Day, in honor of the first African-American to play in the major leagues.

Now to spring training, where baseball is taking a back seat to rampant speculation about who has and who hasn't used performance enhancing drugs.

In the case of Barry Bonds, CNN's Josie Burke says the player is staying mum, but a lot of other people are talking.

(BEGIN VIDEOTAPE)

JOSIE BURKE, CNN CORRESPONDENT (voice-over): Barry Bonds is going through the rituals of spring training, without addressing the latest allegations linking him to performance enhancing drugs. It's a topic that's hard to avoid.

JASON SCHMIDT, GIANTS PITCHER: I don't know anything about it, so -- I come to play ball, that's what I do.

BURKE: One former Bonds teammate did not shy away from the subject during a radio interview this week.

UNIDENTIFIED MALE: Are you telling us in your opinion, Andy, it looks like he has taken steroids?

ANDY VAN SLYKE, FORMER BONDS TEAMMATE: Unequivocally he's taken them. Without equivocation he's taken them. And, you know, I can say that -- you know with utmost certainty.

BURKE: Both the Giants and baseball have taken steps to curtail the speculation. Last week, a team attorney addressed San Francisco players and advised them against talking about Bonds and steroids.

Major league baseball commissioner Bud Selig issued a similar directive to the club executives and owners under his direction.

But no one has silenced the fans.

UNIDENTIFIED MALE: There's so much evidence now against it. They're leading to the fact that he used it. It's kind of sad, in my estimation.

UNIDENTIFIED FEMALE: That doesn't necessarily mean that Barry Bonds took the steroids. Maybe he did; maybe he didn't. But we'll have to wait and see what come out. BURKE (on camera): Bonds did speak briefly with reporters on Wednesday. He did not talk about steroids, but did allow, however, that he spent part of Tuesday, quote, "playing with my computer and trying to avoid the TV as much as possible."

Josie Burke, CNN, Scottsdale, Arizona.

(END VIDEOTAPE)

PHILLIPS: The current scandal over steroids has shed new light on an issue that's been hanging over professional athletics for years.

CNN's Martin Savidge with more on the players who get paid to perform who may be sacrificing way too much.

(BEGIN VIDEOTAPE)

MARTIN SAVIDGE, CNN CORRESPONDENT (voice-over): Former baseball star Ken Caminitti (ph) once claimed 50 percent of major leaguers took steroids.

Steve Courson says steroids ended his pro football career. Not because he used them, but because he talked about them.

STEVE COURSON, NFL PLAYER 1977-85: Because of what I said publicly about steroid use in the league. There's no question in mind.

SAVIDGE: Courson was released not long after confessing to using steroids in a 1985 "Sports Illustrated" interview.

LYLE ALZADO, NFL PLAYER 1971-85: If I can save one little kid...

SAVIDGE: Many people associate the death of football player Lyle Alzado at age 43 with steroids, equating the drug to liquid death.

But many experts say steroids had little to do with his fatal disease. Short-term medical studies have shown steroids add to the risk of heart disease, liver and kidney damage and reduced blood circulation.

But the long-term effects are virtually unknown.

DR. CHARLES YESALIS, PROFESSOR, PENN STATE UNIVERSITY: We've done thousands of such studies for tobacco, alcohol, cocaine, marijuana and heroin. We've yet to do one for anabolic steroids.

SAVIDGE: In addition to fame and money, Courson says he believes steroids also helped him get something else, an enlarged heart.

He believes instead of being villains, athletes are victims.

COURSON: The bottom line is, what are we doing? We're performing for the public. And what does public want to see? They want to see better performances.

SAVIDGE: Medical experts agree steroids can make athletes bigger and stronger.

Courson and many health professionals say they are a health concern and the byproduct of a multibillion-dollar sports industry that says one thing to the public while sending another message to the players.

YESALIS: Do whatever you need to do to win, but keep your mouth shut about it.

SAVIDGE: Martin Savidge, CNN, Atlanta.

(END VIDEOTAPE)

PHILLIPS: Well, in New York, there is at least one place you can go to still light up in style. Jeanne Moos take us on a ride to smokers' heaven.

And our Rhonda Schaffler's at the New York stock exchange -- Rhonda.

(STOCK REPORT)

(COMMERCIAL BREAK)

PHILLIPS: Some developing weather news coming out of Texas now. Orelon Sidney with the latest -- Orelon.

(WEATHER REPORT)

PHILLIPS: Time to hop in the way back machine. A blast from the past try to make a comeback. Rhonda Schaffler with the details.

(STOCK REPORT)

PHILLIPS: Rhonda, thank you.

Well, while we're talking money, we've got to mention the divorce case involving Lionel Richie and his soon to be ex-, Diane.

Diane Richie has filed a declaration saying that she needs more than $300,000 a month to cover these expenses: $15,000 a month for clothing, shoes, and accessories; $3,000 for dermatology; $1,000 for laser hair removal. Now, how much hair could one person really need removed? OK.

Other monthly maintenance fees include $600 on hair, $250 on nails, $150 on electrolysis. OK, isn't that hair removal? $450 on facials; $500 for her trainer; $600 each on Pilates, massages, and therapy.

All this and more is laid out in the nine-page document on The Smoking Gun web site if you want to check it out.

Lionel Richie, who sang "All Night Long" better keep working all night long. Bet you when he wrote "Three Times a Lady," he wasn't thinking in mathematical term, really. Speaking of mathematics, here's a pop quiz. How many points is a three-point shot?

Guess what? That's not from the "Idiot's Guide to Basketball." It was an actual question on a college level final exam given by the former assistant basketball coach at the University of Georgia.

Jim Harrick Jr. and his dad were bounced out of the program, and the NCAA and UGA found evidence of academic fraud among other violations.

The exam in the coaching principles class also included these brainteasers: how many goals are on a basketball court? How many players are allowed to play at one time and on any one team in a regulation game? And how many halves are in a college basketball game?

And in your own opinion who is the best Division I assistant coach in the country?

Wonder if you got extra credit if you could correctly guess the length of a six-foot board?

Well, finally this hour, New York City passed one of the most stringent smoking bans in the country last year. Some restaurant owners were ashen faced in fear the ban would snuff out a lot of business.

CNN's Jeanne Moos found one place that figured out a way to get around the law.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Talk about a perfect match: smokers and a limo, a smokers' speakeasy on wheels, though it never goes anyplace.

(on camera) This is the most politically incorrect vehicle on the planet.

(voice-over) If you think limos are something stars get out of, imagine one that smokers get into.

UNIDENTIFIED FEMALE: I'm sorry. We're, like, smoking in front of her face.

MOOS (on camera): I don't care.

(voice-over) Every night, the smoking limo sits outside David Burke and Donatella's restaurant, where New York City's anti-smoking laws mean you can't even have a cigarette with that martini.

UNIDENTIFIED FEMALE: Puff your brains out, baby.

MOOS: The restaurant spends over 1,000 bucks a week to have this stretch Ford Excursion parked outside. Seats 24 smokers. UNIDENTIFIED FEMALE: It's nice to do it in style

UNIDENTIFIED FEMALE: And not feel like a smoker.

UNIDENTIFIED FEMALE: I feel like a loser standing outside.

MOOS: No more freezing. Even nonsmokers can't resist.

UNIDENTIFIED MALE: I don't smoke, but this is wild. I'll take it up.

UNIDENTIFIED FEMALE: So cool.

MOOS: Complete with lava lamps and music.

Sometimes what's burning is passion rather than cigarettes. Ask Owen the driver.

UNIDENTIFIED MALE: And she had her dress over her head.

UNIDENTIFIED MALE: I was like, hello! It's a smoking limo.

MOOST: He's David Burke, the chef, she's co-owner Donatella. The two plan to park a smoking horse and buggy outside the restaurant come spring, and maybe even a cigarette boat come August.

UNIDENTIFIED MALE: Have a trail, a little step stool up.

MOOS: The smoking limo even comes supplied with gum and breath mints. Come on, baby, light my limo.

UNIDENTIFIED FEMALE: We're all high on nicotine out here.

MOOS: Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: Well, a little paunch could be a sign of prosperity, but a new study suggests that packing on the pounds could be costly for women in the work place. We'll get the skinny on those findings just ahead in the second hour of LIVE FROM.

(COMMERCIAL BRAEK)

(BEGIN VIDEO CLIP)

KAREN HUGES, ADVISOR TO BUSH CAMPAIGN: September 11 is not just some distant tragedy from the past. It really defined our future.

(END VIDEO CLIP)

PHILLIPS: Campaign controversy. Is President Bush making politics out of the personal tragedies of September 11?

Personal questions in the Scott Peterson murder case. Potential jurors get a major grilling. And paying for the pounds. A new study find a thick waistline equals a thin paycheck for highly educated women.

Is this the ultimate dead end job? We're digging up the dirt on working at the county coroner's gift shop.

From the CNN center in Atlanta, I'm Kyra Phillips. Miles is off. This hour of CNN's LIVE FROM starts right now.

Up first this hour, judicial needles in demographic haystacks. After many months of motions, hearings and rulings, lawyers for and against Scott Peterson are finally look for jurors: 12 people, plus a few alternates, who not only have the time but the backgrounds and attitudes deemed appropriate to judge whether Peterson murdered his wife and unborn son.

So what's that got to do with bumper stickers?

CNN's Rusty Dornin shows and tells.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Nearly 1,500 jurors are expected to file through this courtroom before a jury might be found for the Scott Peterson trial.

Why so many? Because this trial is expected to last five months.

JOE RICE, JURY RESEARCH INSTITUTE: Two-thirds, three-quarters of those jurors are going to try their best to get out of that trial.

Then we have to deal with the issue of familiarity and exposure to Scott Peterson and attitudes and opinions they've already formed. And that's now going to reduce the pool once again.

DORNIN: San Mateo County, south of San Francisco, is mostly residential and tends to be upscale and somewhat conservative, say jury experts. Defense attorney Mark Geragos says he's not sure an impartial jury can be found here and might request another change of venue. Laci Peterson's mother believes otherwise.

SHARON ROCHA, LACI PETERSON'S MOTHER: There has to be enough people someplace that haven't heard about it are aren't involved with it. Not everybody follows this.

DORNIN: Jurors must also be willing to consider the death penalty. Some experts say those jurors tend to support law enforcement.

RICE: I think the advantage is clearly to the prosecution. The whole process kind of stacks the jury in their favor, so I think the defense has a much more difficult task.

DORNIN: Their task, according to experts, is to poke holes in what appears to be the prosecution's largely circumstantial case, finding jurors who may have concerns about law enforcement. RICE: And would buy into the belief that, you know, maybe they didn't do their job. Maybe there's someone out there that still may have done this crime.

DORNIN (on camera): Two hundred jurors will fill out a more than 20-page questionnaire on everything from bumper stickers to whether they've had an extramarital affair and their views on the death penalty in an effort by each side to sort out just the right juror.

Rusty Dornin CNN, Redwood City, California.

(END VIDEOTAPE)

PHILLIPS: The jury deciding Martha Stewart's guilt or innocence got a late start today because of a subway accident. Once everybody arrived, jurors asked to rehear testimony relating to Stewart's co- defendant's interviews with the SEC regarding Stewart's dumping of ImClone stock.

Stewart's own stock, Martha Stewart Living Omni Media, rose today, then dipped again on word that the company made a profit in the fourth quarter of 2003 but a loss for the year. It also forecasts a steeper than expected loss in the first quarter of 2004.

Taking a stand on same-sex marriage, gay couples stood in line hoping to get marriage licenses today in New York City, although local laws ban the unions, CNN's Adaora Udoji live with more now on today's demonstrations -- Adaora.

ADAORA UDOJI, CNN CORRESPNDENT: Hello, Kyra. We're in downtown New York City just outside the Municipal Building where the rally was held this morning. It was organized by a coalition of gay and lesbian organizations.

Really just in the past week they came by the hundreds with a plan really two parts of a plan. First was to rally to show up in big numbers and put some pressure on Mayor Bloomberg, Michael Bloomberg, to take a stand on the issue; but secondly, they came dozens of couples, gays and lesbian couples came to apply for marriage licenses here at the Clerk Building.

They were immediately denied. They were handed letters in which there was an outline of the conclusions given by Attorney General Eliot Spitzer yesterday. He said after reviewing the law in New York he concluded that it was illegal, same-sex marriages were illegal in the state of New York.

Couples were not surprised by the denials today but they say it is a step in the right direction because, as the attorney generation mentioned, there are some issues of equal protection, perhaps constitutional issues in the marriage laws here in New York and armed with those denials, those couples can take some action in court.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We've done all sorts of things over the years to try to give ourselves certain protections and to honor our relationship. We've had a religious ceremony. We have domestic partnership.

We have all sorts of legal papers for powers of attorney and the like, and individually none of those documents cover us as marriage would and selectively they still don't recognize us or give us the protections that marriage does.

(END VIDEO CLIP)

UDOJI: Mayor Bloomberg not necessarily responding as they had hoped saying that he believes the best way for advocates of same-sex marriage to address the issue is to go straight to Albany, organizers saying that they do not expect any changes to come quickly but that today is part of an ongoing start to what they hope will lead to change in the end -- Kyra.

PHILLIPS: Adaora Udoji, thank you.

Other news across America now, Alabama Baptist Pastor Michael Jordan says he put up this sign to protest same-sex marriage but Jordan says it wasn't his idea. Jordan says it was a revelation from God and despite protests, including some from his congregation, he says he won't take it down.

Phoenix Police find more than 200 illegal immigrants crammed inside two area homes known as drop houses. In the past three weeks, 13 drop houses have been raided in a massive crackdown of human trafficking in Arizona.

And here's an early peak at the new nickel, honoring the 1803 Louisiana Purchase. It's the first makeover of the five-cent piece in 66 years. They should show up in your pocket sometime in the next few weeks. Another nickel commemorating the Lewis and Clark Expedition will be out later this year.

It's not exactly revolution but in the world of Disney and Wall Street it comes close. Stockholders stormed the castle at this week's shareholders' meeting in Philadelphia and demanded Michael Eisner's crown.

Financial News Correspondent Jen Rogers picks up the story from there.

(BEGIN VIDEOTAPE)

MICHAEL EISNER, DISNEY CEO: Excuse me voice.

JEN ROGERS, CNNfn CORRESPONDENT (voice-over): Michael Eisner lost his grip on the board he had led for nearly 20 years. The late evening announcement Wednesday came after angry Disney shareholders were heard loud and clear.

EISNER: We decided, the board decided that this movement in America to separate the non-executive chairman and the CEO was something that we have been considering and getting our company into contemporary governance and we did it today. We heard our shareholders who seemed to be interested in that and so we went ahead and did it.

ROGERS: The move came after 43 percent of shareholder votes went against Eisner.

SARAH TESLIK, COUNCIL OF INSTITUTIONAL INVESTORS: Forty-three percent is astronomical in the investor world.

ROGERS: Former Senator George Mitchell will serve as chairman of the board. Michael Eisner remains CEO. While Eisner's power is certainly curbed the move won't be enough for the men leading the campaign against him, former Disney board members Roy Disney and Stanley Gold.

STANLEY GOLD, DISNEY BOARD MEMBER: The real solution is getting rid of Michael Eisner.

ROGERS: For now, Eisner keeps one job and he gave no hint he's planning on leaving the company entirely.

EISNER: I love this company.

ROGERS: Whether that love will be returned by shareholders is an open question.

Jen Rogers, CNN Financial News, New York.

(END VIDEOTAPE)

PHILLIPS: Straight ahead, they're the ultimate corporate shakers, the savvy women of the reality show "The Apprentice," but would they be as successful if they weren't so skinny, the connection between your waistline and your bottom line.

And look at this, a brutal clash caught on tape, this protestor becomes a national symbol of her country's turmoil.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It fits nice over their snouts so we can provide good oxygen flow to the dog.

(END VIDEOTAPE)

PHILLIPS: New tools to save your pet's life. We're rushing to the rescue later on LIVE FROM.

(COMMERCIAL BREAK)

PHILLIPS: All right. Professional women listen up. You want to make more money well you've got the degrees but maybe you're overweight. Well, a new study finds that these women often earn about 30 percent less than normal weight or even plump women but the study says weight is not an income barrier for men. Gail Evens knows all about the double standards. She is author of the book "She Wins, you Win, the Most Important Rule Every Businesswoman Needs to Know." She's also a former executive vice president here at CNN, must say she was involved when I got hired, so I know this woman very well. That's for sure.

GAIL EVANS, FORMER EXEC. VP, CNN: Good to see you, Kyra.

PHILLIPS: Good to see you too. What's a woman to do? You see a study like this and it's a stab to the heart.

EVANS: It is but it's another one of those things that's a double standard and obesity is much more complex than the rest of us, none of us understand obesity. Even people who think they understand it and want to be compassionate say, well you know what, I mean I'd love to eat all the time too but I discipline myself.

So, a lot of it is connected to people really think people who are overweight, women who are overweight are sloppy. They don't care about themselves. So, it's very, very difficult and the guys get to hide it. A guy can be 40 or 50 pounds overweight and he's wearing a business suit and you don't see it.

PHILLIPS: Is that really what it comes down to is that men can hide it or, you know, is it so many men in the business world, you know, they want an attractive woman representing the company?

EVANS: Number one they want an attractive woman representing the company but, number two, corpulence, you know being fat is sort of, you know, a sign, used to be a sign for guys that you were rich and prosperous.

So, one of the things is that women have never except sort of Renoir in the middle of the Renaissance, women who were always supposed to be these pretty little trophies.

And also if you're 5'3" and you're 50 pounds overweight, it's a lot worse than if you're 5'11" and you're 50 pounds overweight. So, it's a big difference but it's a very, very difficult point for women and it really is true. I hear from women all the time.

PHILLIPS: Well, do health issues come into play? I've talked to a few male business owners and they say, Kyra, I'm not going to tell you this on camera but look, you know, I worry about benefits. I wonder if they're going to get sick or fall or I'm going to want to help them, you know cater to them.

EVANS: I don't really believe that, Kyra. You know it's interesting. I mean I speak all over the country on women's issues now and I'll stand up in front of a corporation. There's 750 women in the audience and I'm looking out there and I go, ah I could be at a Mrs. America contest.

I mean it's like there's this sort of norm. You don't have to be gorgeous. In fact, gorgeous has got its problems too but you have to fit into that sort of box or it's twice as hard to get ahead. PHILLIPS: Well, gorgeous isn't easy either because then you're wondering, okay, did he hire me or did they hire me because of my looks? Am I just a fantasy to someone who wants, you know, I'm going to be blunt here.

EVANS: Well, there's that part plus the fact that I've heard from a lot of tall, very smart, beautiful women and old Martha Stewart could fit in that category that, you know, men find them threatening. Men don't want -- men don't want a woman to work with who's taller than they are.

PHILLIPS: Interesting.

EVANS: Right. So, it's like they don't want to look up to anybody physically, so it's very difficult. I mean there is a real norm and you don't have to be beautiful. It's just sort of fitting in that box that, you know, you wear between a four and a 14 and, you know, you dress reasonably conventionally and the company wants you out there representing them. If you're not that, the company thinks it reflects on them.

PHILLPS: What about someone like Oprah? OK, here's someone that has struggled with her weight, I mean all over the map but it's her attitude. It's the way she carries herself and her confidence. Doesn't that override studies like this that say obese women just aren't going to go far?

EVANS: Well, I think it overrides it in part but the reality is Oprah was never obese. I mean it's like I have always struggled with my weight but there's a difference between struggling with your weight and being 15 or 20 pounds overweight and being obese and these kind of studies talk about people who are 50 and 60 pounds overweight where you really can see it. You know Oprah has never been that kind of big.

PHILLIPS: All right and my producer and I we ran the fortune, well you and I were talking about this.

EVANS: Right.

PHILLIPS: Fortune 500, OK, six companies run by women. Fortune 1000, 16 companies run by women, so we pulled, you know, the top three here, Hewlett Packard, Xerox, and Lucent, all run, you know, by women. OK, I think they're attractive women.

EVANS: Sure. I mean and they fit in that norm. It's like nobody is gorgeous but everybody sort of fits in that category I talked about and that's what companies want and businesses want. And I hear from women all the time who are overweight who talk about I don't know what to do because it affects my career.

PHILLIPS: So, what should they do? So, what do you tell them?

EVANS: Well, it's very interesting. Number one, I think you have to be very careful about how you dress, so you need to dress immaculately. I've had executives say to me, you know, that woman is very smart and I like her very much but she's a little sloppy.

Well, sloppy is another code word for she's overweight. So you need to very careful about the colors you wear about the kind of jewelry you wear and how well-groomed you look because that's going to detract, you know. If you look really well-groomed you're not going to look as overweight.

And you need to start, you know, sort of trying to fight the battle together that people have to understand that, you know, obesity is a problem just like any other medical problem and that you don't do it because you don't care. You do it because that is your, you know, particular issue.

It's interesting. We understand smoking. We understand alcoholism. The one really huge problem we have in this country that most of us do not understand is obesity. We still all make value judgments about people who are fat.

PHILLIPS: 2004, yes or no, are we still living in a man's world?

EVANS: We're still living in a man's world but we're working hard at it. We're working hard at it.

PHILLIPS: Behind every great man is an even better woman.

EVANS: Right.

PHILLIPS: Isn't that our motto?

EVANS: Absolutely. And the other motto is we need to start playing on the girl's team.

PHILLPS: There you go.

EVANS: We need to start helping each other and being there to support each other. That's when it's going to change.

PHILLIPS: Please stay on my side, Gail.

EVANS: I'm on your side always, Kyra.

PHILLIPS: Gail Evans thank you very much, appreciate it.

EVANS: Thank you.

PHILLIPS: All right, well straight ahead we're not sure how much she gets paid but the woman who runs the Los Angeles County Coroner's gift shop says business certainly isn't dead. We're going to go shopping later on LIVE FROM.

(COMMERCIAL BREAK)

PHILLIPS: U.S. military officials questioning the plans to play a more secondary role in the nation's security come June 30th, specifically if this week's series of attacks show that Iraq's own security forces aren't ready to handle it. Our Pentagon Correspondent Barbara Starr has more.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): The horrific bombings Tuesday in Baghdad and Karbala are raising questions again about the ability of Iraqi forces to take control as the June 30th date for sovereignty approaches.

GEN. JOHN ABIZAID, CMDR., U.S. CENTRAL COMMAND: One of the weak spots is the still building capacity of Iraqi security institutions.

STARR: A weak spot exploited by terrorists. Suicide bombers and carts of explosives apparently made it past Iraqi security near the mosques. U.S. forces had stayed out of sight in deference to worshippers.

It was the same scenario at a recent attack on Iraqi security forces in Fallujah. U.S. forces responded after the attack began trying to give the Iraqis the opportunity to handle things themselves.

That strategy is not being changed. In Baghdad the plan is to reduce the profile of U.S. troops from last year's high of 36,000 in 46 locations to 24,000 in eight locations. A smaller urban profile certainly will mean less attacks on American troops but Abizaid still worries Iraqis need more training and experience.

ABIZAID: We do not intend in any way, shape, or form to abandon these immature security formations to their fate and if they get in trouble and they don't ask for our help we'll still come to their aid.

STARR (on camera): General Abizaid believes more attacks will happens. He believes Iraqi security forces will get better in the months ahead and eventually be able to take care of the threat but not just yet.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

PHILLIPS: Other news around the world now. While Osama bin Laden's top aide Ayman al-Zawahiri remains on the most wanted terrorist list, a senior Egyptian official confirms his brother, Mohammad, has apparently been in custody for several years. Mohammed al-Zawahiri is believed to have been active in the Islamic underground.

A German Appeals Court throws out the only conviction in the 9/11 attacks. The court ordered (unintelligible) back to Hamburg for a retrial. The judges said that a lower court should have considered the lack of evidence from a terror suspect in U.S. custody that the U.S. did not allow to testify.

And the French government has been negotiating with a terrorist group threatening to blow up rail lines. A group calling itself AZF is demanding nearly $5 million. Last month, the group directed officials to a bomb placed under rail lines in central France.

Venezuela's ambassador to the United Nations has resigned saying that he could no longer represent a country that denies human rights, reduces democracy and harms dialog. Milos Alcalay's resignation comes after violent protests over attempts to recall President Hugo Chavez.

CNN's Harris Whitbeck has more on the civil unrest plaguing Caracas.

(BEGIN VIDEOTAPE)

HARRIS WHITBECK, CNN CORRESPONDENT (voice-over): An opposition demonstrator walks up to a contingent of Venezuela's National Guard, speaks briefly. One guard grabs her by the hair and throws her to the ground twice. The guards surround her and beat her as she disappears in the sea of olive green. The woman's name is Eleanor Montes (ph).

"We were not committing any crimes" she says. "There were old people, young people. We were all demonstrating hoping to build a better nation, demanding that our rights be respected. That is not a sin. We did not deserve that treatment."

The government says Montes provoked the attack. Vice Minister of Security Carlos Betanol (ph) says he laments the provocative attitude she showed.

The attack on Montes shown repeatedly on private television networks has become a symbol of the new reality on the Venezuelan streets, the latest stage in the battle between the opposition and the government of President Hugo Chavez.

The number dead, wounded and detained has increased dramatically since the latest wave of protests. The opposition says at least 350 people have been illegally detained during public demonstrations. The government says it is not to blame.

"It is lamentable because the imprisoned, dead and wounded are Venezuelan" says the country's vice president, "but they are the only ones responsible for the violence on the street."

Some fear the demonstrations will become even more dangerous.

(on camera): But with tensions running so high, the street will continue to play a predominant role.

(voice-over): Eleanor Montes says she'll be there. "Nothing nor anybody will stop me from marching again" she says.

Harris Whitbeck, CNN, Caracas.

(END VIDEOTAPE)

(MARKET UPDATE)

(COMMERCIAL BREAK)

PHILLIPS: Welcome back from the CNN Center in Atlanta. This is LIVE FROM. I'm Kyra Phillips. Here's what's all new this half hour.

Image problem, some September 11th families are upset about this new campaign ad.

And a new political push to stop the flow of America's jobs overseas, will it succeed?

And to the rescue, pets breathing easier with a new lifesaving device but first the stories we're following for you.

In judgment of Scott Peterson, jury selection in his murder trial gets underway today. Some 200 perspective jurors will answer questionnaires. Those questions include whether they've ever had an affair, lost a child or read "Field and Stream."

Back on track for Martha Stewart jurors. The panel resumed deliberations after an hour delay due to subway problems. The jury plans to use a laptop computer to replay some testimony today. Stewart and her former stockbroker, Peter Bacanovic, face charges, including obstruction of justice.

The ousted president of Haiti, Jean-Bertrand Aristide, is in the Central African Republic. That nation says it will offer him permanent asylum if he asks for it. South Africa has also been mentioned as a nation for permanent asylum.

The Associated Press reporting that millions of Mexicans entering the U.S. may skip a security check wanted by the Bush administration. The plan was to require visa carrying Mexicans staying near the border on short visits to be fingerprinted and photographed. The Bush administration will reportedly announce a policy change today ahead of a visit by Mexico's President Vincente Fox.

Some families of victims of the 9/11 attacks say they're angry over President Bush's new campaign ads. Two of the TV spots show the destruction at the World Trade Center and include an American flag flying in the debris. Take a look.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I George Walker Bush, do solemnly swear...

(MUSIC)

(END VIDEO CLIP)

PHILLIPS: One victim's widow calls the ads a slap in the face of the murders of 3,00 people. The president's backers beg to differ.

(BEGIN VIDEO CLIP)

KAREN HUGHES, ADVISER TO PRES. BUSH: I just respectfully, completely disagree. Your viewers just saw the ad. I think it's very tasteful. It's a reminder of our shared experience as a nation. I mean September 11 is not just some distant tragedy from the past. It really defined our future. I was at the White House when it happened and it changed forever our national public policy.

And it's important that the next president knows that and realizes we're still at war today because of that day. We're at war against terror.

You know it impacted our nation in so many ways...

(END VIDEO CLIP)

PHILLIPS: Obviously two sides to this. To talk about it a little bit more, we're joined by Washington by radio host and syndicated columnist Armstrong Williams. And with us from Chicago, co-host of radio show "Good Day, USA," Nancy Skinner. Great to see you both.

NANCY SKINNER, RADIO TALK SHOW HOST: Hi, Kyra.

ARMSTRONG WILLIAMS, SYNDICATED COLUMNIST: Hello.

PHILLIPS: Hello, hello.

Nancy, what do you think? Is this exploitive?

SKINNER: I think it's terribly exploitive. But I don't know what other choice he has, Kyra. He certainly can't run on his record. You can't go back and say were you better four years ago than you are today?

But if he wants to make leadership the issue, then let's make it an issue. What did we as a result of 9/11? We went into Afghanistan sometime later. That's a mess right now. We have no government. It's not working. Only Kabul is under control.

He went into the wrong country, Iraq. It's cost us dearly in lives and money. We've lost our international credibility.

So if he wants to make leadership the issue, fine. Think that will be great for the Democrats. I think he will lose on the leadership issue.

PHILLIPS: Armstrong?

WILLIAMS: You know, many people that we talk to, particularly our listeners, even those who don't necessarily support the president, thought it was very heart warming. They thought it was a reminder of where we have come from as a country.

And Karen Hughes said that it's changed us forever. Nothing like that has ever happened on American soil where civilians were attacked. It is what has given President Bush his credibility and incredible standing in this country when American people begin to trust and respect. It did define his leadership. In fact, many people saw it as a greater calling for the man because before that, no one ever thought this man could get any -- anything legislative through Congress. They thought he was going to be a president select. But Mr. Bush showed through that moment he was prepared for leadership.

(CROSSTALK)

SKINNER: ... or what did he do has a result of that? Because the result of what he did has not helped the United States.

PHILLIPS: Nancy, there hasn't been attacked since then in the United States.

SKINNER: Yes. But to suggest that somehow we've thwarted all attacks because of Homeland Security, he's done very little for Homeland Security.

WILLIAMS: To suggest? Let me remind you of this, Nancy, to remind you of this.

For you to say that the security measures that we put in place, the fact that we put a lot of people in prison who we suspected was a part what have took place on 9/11, the fact that we interrupted their financial network around the world, the fact that we rounded a lot of these people up in foreign countries.

Let me just tell you something. Whether you like it or not, America is a safer, a better place. And as long as there is not another attack on American soil, many people, including this one, will credit this president and his administration.

No, he has not been perfect. But I got to tell you something, we learned a great lesson, and he did rise to the occasion.

SKINNER: But, Armstrong, the CIA has said that al Qaeda recruited more terrorists as a result of the war in Iraq. We know that Pakistan was like a nuclear Wal-Mart. The whole time that we were all friendly with them in this war on terror, they were proliferating to North Korea and Iran and Libya and we weren't doing anything about it.

I would have to dispute with you that we're a safer country because of the actions of in this president.

(CROSSTALK)

SKINNER: ... let's say 9/11 wasn't even mentioned in the ad. Could President Bush take an ad and talk about anything else with regard to leadership? Could he have done an entire ad on the economy? Could he have done an entire ad on corporate corruption? Could there have been something else he could have based his leadership success on?

WILLIAMS: He has turned the economy around as a result of his tax cut. Certainly we can never forget that historic Medicare bill where AARP joined forces with this president.

But listen. President Bush is remembered by more than anything else as what happened on 9/11. And the great courage and the strength that he continues to show.

Look. Nancy and I can disagree with the president all we want. But at least you should give the man credit that he has moved us forward, that he was able to withstand the pressure, the turmoil. He's still with his principles, he's still with his convictions.

(CROSSTALK)

WILLIAMS: Is there a difference?

PHILLIPS: Nancy? Go ahead.

SKINNER: What I'm saying is that day he brought us all together in that tragedy. He what he should have done as a leader, help us heal.

But then the moves he made from there on out did not help our country. He invaded the wrong country. He ignored the information that we had. We now know they cherry-picked intelligence, went into Iraq.

(CROSSTALK)

PHILLIPS: Is there a difference between what John Kerry is doing with video of him and Vietnam, pictures of him in Vietnam, using that in his ads, and President Bush using 9/11?

WILLIAMS: Absolutely not.

SKINNER: Yes, there's a big difference.

PHILLIPS: OK, tell me the difference, Nancy. And them Armstrong...

SKINNER: The difference is John Kerry volunteered to go to Vietnam and against enemy fire, he rescued somebody he did not know. He's gotten many medals. He was part of that effort.

President Bush -- this was a tragedy that happened to us. President Bush is going to the scene of the crime, as well as the Republican Convention, taking advantage of all that loss and sorrow and placing himself in the middle of something that happened to us. He wasn't part of that effort.

PHILLIPS: Armstrong?

WILLIAMS: Oh, wow. Wow. That's an amazing statement from you. Listen. No different than John Kerry. He was a war hero. He fought in Vietnam. He wants to remind the American people of his strength and his courage, not only on foreign issues, but he's willing to die for this country. The president was elected as president of the United States. The people trusted him. He has done well with that trust that the American people has given him and he continues to show strength.

At least they're not saying he is insignificant, inarticulate president. And more, they see him as a formidable force that has to be reckoned with in these November elections.

And I've got to tell you, unless John Kerry comes up with something else to talk about, we may see another landslide in November 2004.

(CROSSTALK)

PHILLIPS: All right, real quickly, Nancy, one final thought because I want Armstrong to get a chance to plug an interview for tomorrow.

When you look at what's happening now, this controversy, are you saying it's OK if he's polarizing 9/11 victims' families and certain firefighters by doing this?

SKINNER: President Bush understands that he's got to get his base activated. He knows he's a polarizing president. That's why he's going for the gay marriage ban, just to get the right-wing activated. That's who he's going to need to win this vote because he's lost the people who care about their jobs, the economy. He's rolled back environmental protections. He's blown the deficit, the surplus. Now we have a deficit.

The only hope he has is to really energize his right-wing base, wrap himself in the flag, prey on our dark moments. That's the only chance President Bush has of winning.

PHILLIPS: OK. Armstrong, quickly, tomorrow you're coming back because you sat down with Condoleezza Rice and we're going to talk about 9/11.

WILLIAMS: Yes. We sat down with the national security adviser for one hour. It's a TV One special that's airing this Sunday on prime time at 7 and 10 p.m.

She not only talked about that, but about the fact that we're much safer than we've ever been in our lives. She also talked about those 11 words which she finally took full responsibility for. I just saw it as the most open and the warmest I've ever seen her in any setting.

PHILLIPS: All right, that's tomorrow, Armstrong Williams...

SKINNER: What?

PHILLIPS: with us here on LIVE FROM...

Nancy, I'm sure you'll want to watch because you'll want to respond. SKINNER: You bet. I love Armstrong. I always watch.

WILLIAMS: And criticize.

PHILLIPS: As long as we leave happy. Thanks, you guys.

When voters go to the polls in November, many people will be voting electronically. This new system is supposed to make the hanging chad a think of the past, but as our Kitty Pilgrim reports, it's also creating a lot of problems.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): The classic excuse, a computer glitch. In California, the electronic voting was delayed as technicians tinkered with the machines. about

In Georgia, everyone voted electronically with some problems in programming and voter cards for certain districts. Officials blame human error in programming, saying it was a -- quote -- "learning curve problem with election workers." In Maryland, there were voter card problems.

UNIDENTIFIED FEMALE: My key card would not work.

UNIDENTIFIED MALE: We found that, by wiping them off, it was apparently a film or something.

PILGRIM: One of the biggest problems, not all election workers are computer literate. And computers don't run themselves.

KIMBALL BRACE, ELECTION DATA SERVICES: Training is one of the biggest issues that election administrators face. And, inevitably, somebody was asleep somewhere in some class and didn't hear all the instructions.

PILGRIM: Fifty million people are expected to vote electronically in the upcoming presidential election. After the hanging chad debacle in the 2000 elections, the Help America Vote Act of 2002 was supposed to distribute $3.6 billion to help local districts switch to electronic voting. But the funding has lagged.

DEFOREST SOARIES, U.S. ELECTION ASSISTANCE COMMISSION: The funding has been slow in getting out. But the good news is, by the middle of May, we will distribute $2.3 billion.

PILGRIM: Some legislators have enough doubts about e-voting to worry about using it in the presidential election.

REP. RUSH HOLT (D), NEW JERSEY: Unless Congress deals with this nationally by requiring a voter-verified paper record of each vote each time a voter votes, we will have questions every time there's an election, including this November.

PILGRIM: Holt has written legislation that requires a paper trail and other ways to verify that systems have not been hacked, tampered with or otherwise malfunctioned.

Kitty Pilgrim, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: You remember the little California sea lion that got a little lost? Well there is good news.

And does your town have these? Life saving equipment for the family cat or dog?

And later -- bummer. Hummer dealers having a problem.

(COMMERCIAL BREAK)

PHILLIPS: You remember Chippy the sea lion? He was found more than 60 miles from the Pacific Ocean in California's San Joaquin Valley just last month. Somebody shot him in the head.

Well Chippy's wound has been treated. And he's now been released back into the ocean.

Some Florida pets caught in fires can now breathe easier. Firefighters are using new animal oxygen masks that actually fit the snout. Reporter Nancy Alvarez of affiliate WKMG has details from Seminole Country, Florida.

(BEGIN VIDEOTAPE)

HANK HUTTER, LOST PET IN FIRE: He was as much part of family as anybody else.

NANCY ALVAREZ, WKMG CORRESPONDENT (voice-over): It's been six months since Hank Hutter lost his beloved Meatloaf.

HUTTER: He went with us places, rode in the car, took him camping with us.

ALVAREZ: The 12-year-old lab mix was home alone when a fire swept through Hank's trailer. The dog was overcome by smoke, despite a valiant effort to save him.

UNIDENTIFIED MALE: There was two of us that really, really struggled to provide oxygen to the dog and just we weren't able to because the mask just didn't fit.

ALVAREZ: Now new masks made especially for pets are expected to make all the difference.

UNIDENTIFIED MALE: It fits nice over their snout so we can provide good oxygen flow to the dog.

ALVAREZ: Or the cat. And, yes, even the hamster.

(on camera): Conventional masks made for humans are designed to fit tight for a 100 percent flow of oxygen. But on animals, take a look. Too much space around the edges means not enough oxygen.

(voice-over): Pet masks in three sizes are a perfect fit and they're a new addition for fire crews in Seminole County.

UNIDENTIFIED MALE: It's OK. Ow! Yow! We got claws.

Every house fire that we go to will have at least one of the kits there at the scene.

ALVAREZ: Five kits cost the county more than $300. But purchased in Meatloaf's memory, some say it's a small price to pay.

In Seminole County, Nancy Alvarez, Local 6.

(END VIDEOTAPE)

PHILLIPS: Still ahead, and you thought bigger was better. So why is Hummer singing the blues?

And later, we'll stop by the gift shop. Yes, this is the right tape. Skeletons in the closet. Skeletons for sale. This is the coroner's gift shop. Deadly gifts.

(COMMERCIAL BREAK)

PHILLIPS: So, are you fed up with high taxes? Residents of a small Vermont town want out of state. This week, Killington voters choose to secede. CNN's Dan Lothian takes a look at the exercise in democracy.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN CORRESPONDENT (voice-over): It's a picture perfect winter paradise, the ski resort town of Killington, Vermont. But behind this beauty, there's growing unrest over property taxes.

UNIDENTIFIED MALE: It really comes down to no taxation without representation.

LOTHIAN: Taking extreme measures, a majority of this town has now voted to secede from Vermont. They want to be part of neighboring New Hampshire, 25 miles away, hoping for lower taxes and more say in how their money is spent.

But not everyone wants a change of address.

UNIDENTIFIED FEMALE: I was born and raised a Vermonter and I hope to always be.

LOTHIAN: The battle began seven years ago when the town, along with other communities considered wealthy properties, were tapped for taxes to help finance education across the state.

UNIDENTIFIED MALE: Stand up and do what is right.

LOTHIAN: Frustration and $20,000 spent on studying options put residents on the road to New Hampshire.

But some say not so fast.

UNIDENTIFIED MALE: Well, I think we should just drop this, adopt a modern charter and look inward.

LOTHIAN: In the 1700s, Killington was chartered in New Hampshire. Now it's up to law makers in both states to decide whether to give the green light.

Dan Lothian, CNN, Boston.

(END VIDEOTAPE)

(MARKET UPDATE)

PHILLIPS: Does it seem like there is a no-smoking sign everywhere you turn? Now you can smoke and ride in style. We'll show you where.

And our California drivers being taken for a ride when it comes to gas prices?

Plus, CNN's Dr. Sanjay Gupta goes back to Iraq for a look at medical conditions as the fall of Saddam Hussein. The diagnosis still ahead on LIVE FROM...

(COMMERCIAL BREAK)

PHILLIPS: Well, Los Angeles County morgue may be the last place you'd want to wind up unless you're after goulish souvenirs for a good cause. Our Bruce Burkhardt takes us to a little shop around "the coroner."

(BEGIN VIDEOTAPE)

SALENE LIMON, L.A. CORONER'S OFFICE: This is the gift shop here at coroner's office.

BRUCE BURKHARDT, CNN CORRESPONDENT (voice-over): All right, in case you missed it, let me repeat that for you, "This is the gift shop here at the coroner's office."

LIMON: Something else that you have to have in L.A. is a beach towel. This is our famous beach towel with the chalk outline.

BURKHARDT (on camera): Oh, yes. That's a must-have.

(voice-over): No advertising, just word of mouth leads shoppers here to what was once a little office, an office in the Los Angeles County coroner's building. They call it "Skeletons in the Closet."

(on camera): Gosh. This is like a garment bag?

LIMON: Yes. We call it our body bag for traveling. It's a suit carrier. BURKHARDT (voice-over): Only about 10 or 15 people a day make it to the shop. A lot more at Christmastime. That, plus Internet sales at LACoroner.com brought in almost $200,000 last year, money that's well spent.

LIMON: We're going to open up their skull to examine their brain.

BURKHARDT: It's kind of shock therapy for people who are at risk of arriving here in another fashion.

LIMON: See in the back?

BURKHARDT: Drunk drivers get a graphic lecture on autopsies and then a tour of the business of the coroner's office, a far cry from the giggles of the gift shop. But that's exactly what pays for this program.

DAVID CAMPBELL, L.A. CORONER's OFFICE: The focus is not on the gore, if you will. The focus is that these were people who have died and have come under the coroner's jurisdiction. And some of them are here because they made bad choices.

BURKHARDT: There is a certain film noir mystique to the L.A. coroner's office. In a town obsessed with celebrity, so many have passed through here. Marilyn Monroe, Robert Kennedy, John Belushi and Janice Joplin. And of course, Nicole Simpson and Ronald Goldman. It's no wonder people want something that says "L.A. Coroner" on it.

LIMON: We get a lot of tourists. People come in and just want a souvenir. It's a gift you can't get anywhere else.

BURKHARDT: Using humor to deflect the grimness of death is not new to this place. It's just here it has a larger purpose. Take these toe-tag keychains with a message.

LIMON: Reminding everybody not to drink and drive.

BURKHARDT: An odd juxtaposition this gift shop and what goes on a couple of floors below. Is that once set here in an early catalog, part of you thinks it's in bad taste. Part of you wants an extra large. It's also a reminder that we all want to leave something behind, just not our outline.

Bruce Burkhardt, CNN, Los Angeles.

(END VIDEOTAPE)

PHILLIPS: Welcome back to "Alive From." I'm Kyra Phillips. Here's what's happening at the top of the hour.

Picking a jury for Scott Peterson. As many as 1,00 perspective jurors could be questioned before it's all over. Attorneys are trying to find panelist who haven't made up their minds about the case and jurors who might have to serve as long as five months. What went wrong with America's intelligence and what happened to all those WMDs? Some people have pointed questions for the head of the CIA. George Tenet is being grilled by members of the Senate Intelligence Committee who are reviewing information they were given prior to the Iraqi War.

A policy change at the border. If you're Mexican, have a so- called laser visa, and don't plan to stay in the U.S. very long, you may enter this country without being photographed or fingerprinted, that concession announced today before Mexico's president pays a visit to President Bush.

And resigning in protest. Milos Alcalay, Venezuela's ambassador to the United Nations, says he can no longer in good conscience represent the policies of his country. The career diplomat says Venezuela's current government is threatening, not protecting, the political and civil rights of the people.

So how many San Mateo counties does it take to seat a jury in the Peterson case? Well, that's the question attorneys are asking themselves today while they ask scores of potential jurors such questions as whether they've ever had affairs or whether they ever read "Field & Stream."

The well-read Rusty Dornin joins us from Redwood City courthouse with the highlights of the morning interviews.

Rusty, I'll keep the questions to a minimum.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Kyra, you could have heard a pin drop in that courtroom as the first 100 prospective jurors were introduced to the defendant.

Scott Peterson stood up, turned to the audience and said, hello, good morning to you, and smiled before sitting down again. Of course, the attorneys, as well introduced themselves. Really a cross-section of people. They were young and old, men and women. There were Asians Hispanics, whites, an African-American woman, a cross-section of America, really. The judge spent most of the morning briefing them about warnings, warnings how long this trial would take, that it was expected to be a five-month trial and if Peterson is convicted another month for the penalty phase.

Also, telling them they must be willing in this case to consider the death penalty, also, not to talk to anyone, of course, as they get further down the line about this case, not to talk about to anyone or to watch it on TV or read about it in the newspaper. But he did tell them that they must think about the fact of whether they would consider executing someone if they were convicted. That was something big. He told them to go home and think about that.

What's really going to be happening most of today is they filled out those questionnaires asking about everything from their education and marital status. He also did, as an addendum, said that the question is not going to ask them if they've ever had an extramarital affair, but opinions about an extramarital affair, also, about whether they have any knowledge of boats and that sort of thing.

So it takes about a half hour for the jurors to fill out that questionnaire. Then they hand them in and that's when they tell them about their hardship. If they have child care issues, they're to tell the court today, and they could be excused. Otherwise, they're to come back on Monday, because in a five-month trial most employers can't afford to pay a juror for that long. So they must come back with a note from their employer or if they're going on a cruise, that kind of excuse, or if they have a medical excuse.

They also say, initially, there were supposed to be 1,500 jurors brought in. They're now saying it's going to be 200 a day for the next five days. So it will be today and then it will start again next week Monday through Thursday. They believe by that time they'll get enough people that they can bring them back in court and start what they call the voir dire, which is questioning those jurors about their questionnaires and about their opinions -- Kyra.

PHILLIPS: All right, Rusty, two quick questions. I'm just curious. Were you allowed to talk with any of these potential jurors?

DORNIN: You're not supposed to talk with them, no. It was a very somber group, as well. They didn't talk to one another. There wasn't much reaction from them. When they were told how long the trial was going to be, although I think they'd already heard it.

(CROSSTALK)

PHILLIPS: How long is the trial going to be and the jury selection? I'm assuming quite a while.

DORNIN: Well, the jury selection is expected to take from four to eight weeks. I think the questioning is going to be exhaustive, and you know, and 1,000 people they're going through. And so it's expected to take from a month to two months.

PHILLIPS: Well, Rusty Dornin, thanks.

For President Bush, it's day two in the electoral mother lode known as California. In Bakersfield, Mr. Bush took part in a roundtable meeting with workers this morning. And later this hour, he's scheduled to attend a fund-raising luncheon. Mr. Bush insists that he can compete in California which has voted Democratic in the last three presidential contests.

Today marks the start of the presidential battle of the airwaves. The Bush campaign is airing its first ad and so is a group that wants Mr. Bush defeated.

CNN's Brian Todd has a look at the spots from Washington.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): The first clear sign of a one-on-one battle between two political heavyweights. The ad wars are under way. AD ANNOUNCER: President Bush, steady leadership in times of change.

AD ANNOUNCER: You'll find out George Bush wants to eliminate overtime pay for evening workers.

TODD: An acknowledgment of an all but confirmed and worthy opponent. The Bush/Cheney campaign roll out its first reelection ads.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I know exactly where I want to lead this country.

TODD: Three spot, one in both English and Spanish, debuting Thursday in 15 to 17 states. Bush campaign sources say they'll target areas decided by relatively narrow margins in 2000, likely including Florida, Arizona, Michigan.

A striking feature in two of the ads, images of September 11.

AD ANNOUNCER: Some challenges we've seen before. And some were like no others. But America rose to the challenge.

TODD: On the one hand, it plays to the strength of leadership in crisis. On the other...

HOWARD KURTZ, HOST, "RELIABLE SOURCES ": There are numerous images of the World Trade Center attacks in the ads. And that is already drawing questions about exploitation of 9/11.

TODD: The themes of leadership and faith are obvious. The unspoken message, the president is taking the high road for now.

BUSH: I'm optimistic about America because I believe in the people of America.

TODD: These first spots are all positive. Bush campaign sources don't rule out negative ads about John Kerry in the future. But a new disclaimer required when a candidate is doing his own ads may prevent them from getting too nasty.

BUSH: I'm President Bush, and I approve of this message.

TODD (on camera): From a war chest of more than $100 million, the Bush/Cheney campaign spends $4. 5 million on this first ad blitz. Battle lines clearly drawn on liquidity and ideology. But experts say don't paint the Democratic challenger as the poor kid down the block.

STUART ROTHENBERG, CNN POLITICAL ANALYST: You have a number of liberal left groups that are raising money and starting to run ads. I actually don't believe that Kerry will be so overwhelm over the spring and the summer that he won't be able to fight George Bush in this way. I think they're going to have enough resources.

TODD (voice-over): Almost on cue, the left leaning online group MoveOn. org rolls out two ads in 17 states. Cost, $1. 9 million. Target, your president, your wallet. AD ANNOUNCER: Two million jobs lost. Jobs going overseas. And now no overtime pay. When it comes to choosing between corporate values and family values, face it, George Bush is not on our side.

TODD: The Kerry campaign has no connection to MoveOn.org or these ads. A Kerry spokeswoman said they just finished one ad campaign and haven't made a final decision when to gear up again.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: Well, also today the Bush campaign is defending its ads that reference September 11. Some survivors groups are complaining that the Bush campaign is using 9/11 as a springboard for the president's reelection. A Bush spokesperson responds that the ads are tastefully done.

Other news across America now.

Taking it to city hall. Dozens of gay couples march into New York City Hall demanding marriage licenses. They got letters from the city clerk, instead, saying that would be illegal. New York's attorney general, Eliot Spitzer, issued the same opinion yesterday, but says ultimately the courts will settle the issue.

Inside the Supreme Court, the personal papers of Justice Harry Blackmun have been opened to the public eye five years after his death. They reveal that the court came very close to effectively overturning Roe v. Wade in 1992. But Justice Anthony Kennedy changed his mind. Blackmun was the author of the landmark ruling which legalized abortion.

And after 66 years, the nickel is getting a new look. Thomas Jefferson's profile will still adorn the front, but on the back, the new coins honor the 1803 Louisiana Purchase.

As if you haven't noticed, you're paying more at the pump, a lot more. Gas prices are at record highs in California's Los Angeles county and the rest of the country is also feeling the pinch.

Our J.J. Ramberg joins me from a gas station in Los Angeles.

J.J., what's the deal?

J.J. RAMBERG, CNN CORRESPONDENT: Hi, Kyra.

Well, I'm here at Costco in the Marina Del Rey in Los Angeles and the prices are $2.11 and this is the cheapest gas that you can get in the entire neighborhood. I spoke to some economists earlier and they said, when you get to about $1.60, $1.70, that's when people start raising their eyebrows, start taking a look at their household budget and we are clearly well above that over here. And it's not just California, as you said. It's across the country.

Gas prices across the country are on an average $1.71. That's only three cents away from the record that was set last August when it was $1.74. And taking a look at some cities across the country, Los Angeles, as we said, it's high, about $2.20, Las Vegas, nearly $2.10, New York, almost $1.90, Chicago, about $1.80, and Washington, D.C., $1.70.

Now, earlier today, I talked to some customers here to see if they were experiencing any sticker shock.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It just seems to be going up and up. It's surprising how fast gasoline prices are going up these days.

UNIDENTIFIED FEMALE: I feel as though these gas prices are going up by the minute. It's really, really ridiculous.

(END VIDEO CLIP)

RAMBERG: Now, unfortunately, for these customers and also drivers across the country, analysts are saying we shouldn't expect to see relief too soon, they say. We may see some more records set near the end of this week and next week. And then prices should go down and then they'll probably go up again in the summer because they always do -- Kyra.

PHILLIPS: All right, J.J., start whipping out the bicycles. Thank you.

Is the quality of life in Iraq better now that Saddam Hussein is gone?

Well, CNN's Dr. Sanjay Gupta goes back to Iraq to help answer that question with a look at medical care.

And in today's reality TV watch, Missy Elliott gets in the game, another chance for average Americans to break into show business.

(COMMERCIAL BREAK)

PHILLIPS: The top U.S. commander in the Persian Gulf region appears before the Senate Armed Services Committee for a second day. General John Abizaid told committee members Americans in Iraq are still working to define the security threat there.

(BEGIN VIDEO CLIP)

GEN. JOHN ABIZAID, CMDR., U.S. CENTRAL COMMAND: In November, I was fairly clear that the main threat in Iraq came from former regime elements, ex-members of the Iraqi intelligence services, the Republican Guard units, special security organizations, etcetera. And after the capture of Saddam Hussein, to a certain extent, we saw a diminishment of their activity. But they continue to play an important role in the insurgency that is being conducted in the area of Baghdad, Ramadi, up into Tikrit.

(END VIDEO CLIP) PHILLIPS: General Abizaid also says that the nature of the terrorist tactics are changing, focusing more and more on emerging Iraqi security forces.

A grim diagnosis for Iraq's health care system. What will it take to save it?

Well, CNN medical correspondent Dr. Sanjay Gupta goes back to Baghdad to examine the problem more closely.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): This hospital in Baghdad specializes in pediatric care. It's not enough, though, to meet the challenges. And according to the Iraqi minister of health, 1 in 10 infants will die before they are a year old.

Antibiotics that save lives and costs just pennies in the United States are in short supply. These women, for example, are at risk of dying from routine infections. Sadly, the Iraqi health system that 30 years ago was the finest in the Middle East needs more than a financial band-aid. It needs to be completely overhauled.

TOMMY THOMPSON, HHS SECRETARY: What we're going to do as a department is to collaborate and to cooperate and to partnership with the people in Iraq to rebuild that medical system back to what it was in the 1970s.

GUPTA (on camera): Without question, Iraq's health system has faltered. Some believe because of a cruel dictator who made his people pay for the embargoes placed on his country. Others believe three wars and 20 years were more to blame.

(voice-over): To be sure, best estimates say Iraq spent around $20 million on health care in 2002. That's about 68 cents per person. This year, the expenditure will be close to 900 million, or about $40 per person -- most of that money from oil revenues. For reference, in the U. S. , around $4,000 is spent per person by the government.

Starting from scratch will not be easy, but both Americans and Iraqis agree that is what needs to be done. For too long, little or no money was spent on the infrastructure needed to provide basic care and prevent disease; $900 million may change that slowly.

Dr. Sanjay Gupta, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Well, the doctor probably won't approve of this, but there's a new perk for smokers, light up limo style.

And get ready, Cincinnati. Jerry Springer, he's coming back and he's on a mission.

(COMMERCIAL BREAK)

(MARKET UPDATE)

PHILLIPS: We'll check entertainment headlines this March 4. Would you want the political endorsement of this man? Talk show host Jerry Springer says he'll move back to Cincinnati, Ohio, in April or May to help campaign for Democrats in the state. Do they really want his help? Well, a study last year found that 71 percent of those surveyed had an unfavorable opinion of Jerry Springer.

In music news, Missy Elliott is ready to hip-hop aboard the reality bandwagon. She'll take along a posse of wanna-be performers on her upcoming tour. They'll compete for a chance to perform themselves. They'll also try not to be voted off the tour bus in each episode.

And why do we love a good showbiz divorce? Because we get to find out what it's like to be rich, Lionel Richie rich. His soon-to- be ex, Diane Richie, has filed a spousal support document saying she needs at least 300k a month to spend on, you know, clothes, cosmetics, an astonishing amount on hair removal procedures. You can check out the whole laundry list on the TheSmokingGun.com.

One of the country's most stringent smoking bans has been on the books since last year. Club and restaurant owners in the big apple feared a lot of businesses would go up in smoke.

CNN's Jeanne Moos found at least one place that figured out a way to get around the law.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Talk about a perfect match. Smokers in a limo, a smoker's speak easy on wheels, though it never goes anyplace.

(on camera): This is the most politically incorrect vehicle on the planet.

(voice-over): If you think limos are something stars get out of, imagine one that smokers get into.

UNIDENTIFIED FEMALE: I'm sorry. We're like smoking in front of your face.

MOOS (on camera): I don't care.

(voice-over): Every night the smoking limo sits outside DavidBurke and Donatella's restaurant where New York City's anti- smoking laws mean you can't even have a cigarette with that martini.

UNIDENTIFIED FEMALE: Puff your brains out, baby. Hi.

MOOS: The restaurant spends over 1,000 bucks a week to have this stretch Ford Excursion parked outside. Seats 24 smokers.

UNIDENTIFIED FEMALE: It's nice to do it in style.

UNIDENTIFIED FEMALE: Not feel like a smoker.

UNIDENTIFIED FEMALE: I feel like a loser standing outside.

MOOS: No more freezing. Even non-smokers can't resist.

UNIDENTIFIED MALE: I don't smoke. But this is wild. I'll take it up.

MOOS: Complete with lava lamps and music. Sometimes what's burning is passion rather than cigarettes. Ask Owen the driver.

OWEN CHAMBERS, LIMOUSINE DRIVER: And she had her dress over her head.

DAVID BURKE, CO-OWNER, DAVIDBURKE DONATELLA: I was, like, hello. It's a smoking limo.

MOOS: He's David Burke the chef. She's co-owner, Donatella. The two plan to park a smoking horse and buggy outside the restaurant come spring, and maybe even a cigarette boat come August.

BURKE: Leave it on a trailer, little step stool up.

MOOS: The smoking limo even comes supplied with gum and breath mints. Come on, baby, light my limo.

UNIDENTIFIED FEMALE: We're all fine on nicotine out here.

MOOS: Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: Well, that does it for LIVE FROM. We're going to light up another hour, take you through political headlines, "JUDY WOODRUFF'S INSIDE POLITICS" -- hi, Judy.

JUDY WOODRUFF, CNN ANCHOR: Hi, Kyra.

Well, he's not out on the trail today, but there's no letup for John Kerry. Coming up, we'll take a look at Kerry's very large to-do list. Plus, will the controversy over gay marriage help or hurt President Bush in his bid for reelection?

These stories and much more when I go "INSIDE POLITICS" in three minutes.

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





Demand Same-Sex Marriages in New York City>


Aired March 4, 2004 - 13:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Tough questions in the Scott Peterson murder case. They're not for the accused; they're for the jury.
(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Are you telling us that in your opinion, Andy, it looks like he has taken steroids?

UNIDENTIFIED MALE: Oh, unequivocally, he's taken them. Without equivocation he's taken them. And, you know, I can say that with, you know, with utmost certainty.

(END VIDEO CLIP)

PHILLIPS: Steroids scandal shocker. Barry Bonds' former teammate speaks out.

And you know not to taken any wooden nickels. But you better learn to like this one. Big change for your pocket change.

From the CNN Center in Atlanta, I'm Kyra Phillips. Miles O'Brien is searching for Mars. CNN's LIVE FROM starts right now.

So have you ever cheated on your wife? Do you read "Field & Stream"? What are your feelings on bumper stickers?

Does any of this have anything to do with Scott Peterson's capital murder trial? Apparently yes. The answers to those questions and many others will decide the composition of the jury that will judge whether Peterson murdered his pregnant wife and unborn son and whether he lives or dies if convicted.

After many months of hearings, arguments and pretrial rulings, the real thing starts today.

CNN's Rusty Dornin sets the scene.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Nearly 1,500 jurors are expected to file through this courtroom before a jury might be found for the Scott Peterson trial. Why so many? Because this trial is expected to last five months.

JOE RICE, JURY RESEARCH INSTITUTE: Two-thirds, three-quarters of those jurors are going to try their best to get out of that trial. Then we have to deal with the issue of familiarity and exposure to Scott Peterson and the attitudes and opinions they've already formed. And that's now going to reduce that pool once again.

DORNIN: San Mateo County, south of San Francisco, is mostly residential and tend to be upscale and somewhat conservative, say jury experts.

Defense attorney Mark Geragos says he's not sure an impartial jury can be found here and might request another change of venue.

Laci Peterson's mother believes otherwise.

SHARON ROCHA, LACI PETERSON'S MOTHER: There has to be enough people some place that haven't heard about it or aren't involved with it. Not everybody follows this.

DORNIN: Jurors must also be willing to consider the death penalty. Some experts say those jurors tend to support law enforcement.

RICE: I think the advantage is clearly to the prosecution. The whole process kind of stacks the jury in their favor. So I think the defense has a more difficult task.

DORNIN: Their task, according to experts, is to poke holes in what appears to be the prosecution's largely circumstantial case. Find jurors who maybe have concerns about law enforcement.

RICE: And would buy into the belief that, you know, maybe they didn't do their job. Maybe there's someone out there that still may have done this crime.

DORNIN: Jurors will fill out a more than 20-page questionnaire on everything from bumper stickers to whether they've had an extramarital affair and their views on the death penalty, in an effort by each side to sort out just the right juror.

Rusty Dornin, CNN, Redwood City, California.

(END VIDEOTAPE)

PHILLIPS: And in just a few minutes, we'll talk more about the Peterson case and several others with legal analyst Roger Cossack.

The gay wedding march, playing on in Portland, Oregon, unless state officials change their tune.

The day after Multnomah County started giving marriage license to same-sex couples, the governor is holding his piece, pending an opinion from the state attorney general.

New York state's attorney general says same-sex weddings raise serious constitutional concerns, while the mayor of tiny New Paltz pleaded not guilty last night to misdemeanor charges of solemnizing marriage licenses without a license. Meanwhile, New York City's gay marriage applicants are receiving a letter saying, "Thank you for visiting, but we're unable to grant your request."

Not everyone is taking rejection lightly.

CNN's Adaora Udoji tells us what they propose to do about it -- Adaora.

ADAORA UDOJI, CNN CORRESPONDENT: Kyra, today there was a big rally in downtown New York city, gathering at the municipal building. The rally really a symbol of the growing and rapid mobilization of gay and lesbian organizations around the issue of same-sex marriage here in New York.

The coalition, called New York Marriage Now, brought out several hundred people. And they really had a two-part strategy.

First was to bring out lots of numbers to put pressure on Mayor Bloomberg to take a stand on the issue, to show that the issue is not going to go away, despite a decision by the attorney general yesterday after reviewing New York law.

He concluded that it prohibits same-sex unions, which bring us to the second part of the strategy today, by those who came to rally, which was several dozen couples, gays and lesbian couples, came to the municipal building down here to apply for a marriage license.

They were swiftly denied, based on the assessment made by the attorney general yesterday that the law in New York prohibits same-sex marriages. But many of them, of course, were not surprised, but they say it's a step in the right direction because now, with that denial, they can take the issue to court.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We want to have marriage, something that everybody recognizes, understands, and protects, throughout the country if we live this city, if we live the state.

UNIDENTIFIED MALE: This is the man that I love. This is the person I'm going to spend the rest of my life with, and why should I be denied a basic right?

(END VIDEO CLIP)

UDOJI: Now, the attorney general also said yesterday, though he was personally in support of same-sex marriages, that New York law did not -- did prohibit them.

Also, though, he added that he thought the marriage laws in New York did trigger some questions about equal protection concerns, which is why those couples who have now gone to the state, asked for that license, been rejected, can try to turn to the court to help resolve once and for all what should or can happen here in the state of New York -- Kyra. PHILLIPS: Adaora Udoji, thank you.

And polls show that most Americans oppose gay marriage, some Americans more than others. A Baptist church outside Birmingham, Alabama, proclaims a biblical prohibition to same-sex unions and a plague to those who violate it.

A pastor says it's a no-brainer, but a fellow pastor believes it's heartless.

(BEGIN VIDEO CLIP)

REV. CHRIS HAMLIN, PASTOR: I don't think God is going around zapping, cursing people.

It sends the wrong message that it's just -- that AIDS is still considered or seen as being a gay disease, and that just is not the case today.

(END VIDEO CLIP)

PHILLIPS: And that poll that I mentioned was conducted last month by CNN/"US Today"/Gallup poll, which shows that gay marriage opponents outnumber supporters by roughly 2-1 nationwide.

Two days post Super Tuesday, it debuts. Thursday, the first of re-election TV spots is on the air and making waves already.

Some relatives of 9/11 terror victims and the International Association of Firefighters are highly offended by a Bush ad containing fleeting images from Ground Zero.

The Bush team insists it's fitting and proper.

(BEGIN VIDEO CLIP)

KAREN HUGHES, ADVISER TO BUSH CAMPAIGN: I just respectfully, completely disagree. Your viewers just saw the ad. I think it's very tasteful. It's a reminder of our shared experience as a nation.

I mean, September 11 is not just some distant tragedy from the past. It really defined our future. I was at the White House when it happened. And it changed, forever, our national public policy.

And it's important the next president knows that and realizes we are still at war today because of that day. We're at war against terror. So it impacted our nation in so many ways, not...

(END VIDEO CLIP)

PHILLIPS: The TV buy amounts to some $10 million from a war chest bulging with more than $140 million and counting.

Now besides money, of course, the president is all but certain the Democratic opponent needs to find a running mate. To that end, John Kerry has tapped D.C. banker Jim Johnson to lead the search for a V.P. candidate.

That leaves Kerry own days free to try to narrow a nine-figure gap in fund-raising. Aides say Kerry took in $1.2 million just over the Internet in the 24 hours after Super Tuesday.

Kerry/Clinton 2004? Well, not so fast says one of the Clintons whose name is being mentioned, by Democrats. The junior senator from New York took it all in stride in a sit-down interview yesterday with CNN's Lou Dobbs.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D), NEW YORK: No. I'm having a great time being senator and talking to you about an issue that I care deeply about.

LOU DOBBS, "LOU DOBBS TONIGHT" HOST: Let me put it another way. Are you open to the idea?

CLINTON: You know, that is totally up to the nominee. And I don't think I would ever be offered. I don't think I would accept. Obviously, I want to do everything I can to see John Kerry elected president.

DOBBS: Do you think you would be helpful in that role as vice presidential candidate?

CLINTON: I think I can be helpful in my role as senator. I think I can do a lot to help people focus on the strengths of our candidate and the weaknesses frankly, of the opposition.

(END VIDEO CLIP)

PHILLIPS: Well two of Clinton's Senate colleagues say they might be interested if asked. They are Bill Nelson and Bob Graham, both of Florida. The latter, briefly a presidential contender, as you may remember.

Terror threats kept secret. Should the French government have warned train passengers about bomb threats?

(BEGIN VIDEO CLIP)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Without question, Iraq's health system has faltered. Some believe because of a cruel dictator who made his people pay for the embargoes placed on his country.

Others believe three wars in 20 years were more to blame.

(END VIDEO CLIP)

PHILLIPS: Our Dr. Sanjay Gupta, behind the scenes of the medical system in post-war Iraq.

And we'll take you inside the strategy of the Scott Peterson trial. Who will be picked for the jury?

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

PHILLIPS: So, what type of bumper stickers do you have on your car? Well, just one of a number of questions that potential jurors in the double trial of Scott Peterson will be asked.

Former CNN legal analyst turned ESPN legal star Roger Cossack here to talk about the highly publicized jury selection process.

How nice. Good to see you.

ROGER COSSACK, LEGAL ANALYST: Nice to see you. This is fun to be back here. This is like old times.

PHILLIPS: It's great to have you back.

Now we'll get down to the matter at hand. Let's talk about this 30-page questionnaire that potential jurors are going to have to fill out. What kind of questions are we talking about and why?

COSSACK: Well, you know, there's a real theory about all of this stuff. There's two theories. There's two competing theories.

One theory is you ask all these questions because you really do find things out that makes you better in selecting the jury or the jury person you want for your side. And then there's the other theory that says, you know what? Just shut your eyes and pick 12 names out of a hat, because it's going to be as good as anything you work on anyway.

So I guess they believe in the former theory, which is they can try and find out.

And bumper stickers is the one that you alluded to, is really one of the questions. And the theory behind that one is that when you're in your car, you're in a cocoon. You know, you're in there. You're listening to music. No one knows who you are. You're driving along.

So that if you want to identify yourself by putting some kind of a bumper sticker on, you know, "My kid's..."

PHILLIPS: "Death penalty."

COSSACK: "I'm against the death penalty." "I vote and I'm a Democrat." Or a Republican. Or "I'm pro choice," or I'm -- whatever it may be, you're making a statement to the world that says that you're aggressive, that you're not afraid to say who you are, that you're not afraid to speak up.

And so it's not so much what you have on your bumper sticker, although I'm sure if you said, "I think Peterson is guilty," they probably wouldn't want you. The defense wouldn't want you; the prosecution would.

But it's the idea that you'll put one on there.

So they ask you all kinds of these questions. Questions they might ask would be are you happy with your job?

PHILLIPS: Would you cheat on your wife?

COSSACK: Would you cheat on your wife? Although I don't think they'd get too many honest answers on that one.

Do you want to be on this jury?

There's many, many questions. And then they have sociologists who go over all these things, try and interpret the kinds of follow- ups and the kinds of responses, narrow it down.

And there are people -- People are pretty honest about this stuff. They'll tell you flat out. They'll say, "Listen, I think this guy's guilty." Or "I can't convict anyone." Or "I'm absolutely against the death penalty, and I'd never do it."

People are very honest in this. And you find these kind of things out, and they shut their eyes and try and make a decision.

PHILLIPS: Yes. And then they pick the names out of the hat.

COSSACK: Then they pick the names out of a hat.

PHILLIPS: All right. So a TV movie was made, of course it's on every network, every station talking about this case. Can you find a fair jury?

COSSACK: You know, you can find a fair jury. The ones that -- well, first of all, let me just say this.

The Constitution says you're not guaranteed the absolute fair jury, because that's impossible.

PHILLIPS: There a cover for that.

COSSACK: So you're guaranteed the fairest jury possible. And you ask people to be honest, they'll tell you. They will say to you, listen, I think this guy is as guilty as can be.

Or I need -- or I have problems with the testimony of police.

Or I think this scientific evidence is gobbledygook, and I just don't believe it.

People will tell you right up front what they think. And then there's obviously people who don't want to be on that jury, and they'll tell you that, too, and you can eliminate that.

And finally, you get down to the ultimate question: can you put aside everything -- everything that you think about this case, everything that you've heard about this case, and just give me your opinion on just the evidence that you hear in this courtroom, and people will say yes they can.

And the ones that say yes they can, by and large, are pretty open-minded and are prepared to listen.

Look this is a tough case. Everybody knows about this case. A movie, emotional, terrible, horrible set of facts. It's going to be tough. But they'll find a fair jury.

PHILLIPS: All right. Let's start with -- Let's say you are Mark Geragos. What kind of jury do you want?

COSSACK: I want someone -- first of all if someone said to me they'd never heard of this case...

PHILLIPS: They're lying.

COSSACK: ... they would be gone immediately. Or they've been living in a cave in Afghanistan. I wouldn't want them on there, because they're not telling the truth.

I wouldn't mind someone who said they'd heard about the case. I wouldn't mind someone who said that not only have they heard about the case that it made them sick, the thought of what happened to this young woman, this young, pregnant mother. That wouldn't bother me.

What I would want is someone who said, you know what? I can -- I understand the facts in this case, but I also understand the idea that he's presumed innocent until proven guilty, and I'm going to make the prosecution prove him guilty.

Now if they do prove him guilty, don't look for any help from me. That wouldn't bother me.

But if they just said, listen, I'm someone who will make the prosecution prove their case.

And I think, you know, there's different kinds of occupations. Sometimes defense lawyers say they're look for engineers. Why? Because they're precise. They're look for pieces to fit exactly. And if things don't fit exactly -- and very few things do -- in human -- human events, very few things fit exactly and precisely.

So sometimes defense lawyers say they're looking for engineers or scientists.

Oftentimes, prosecutor say, well, they're looking for people who aren't looking for such precision. And this is a case, you know, that's based solely on circumstantial evidence.

PHILLIPS: OK. So now here you are the prosecution. What kind of jury do you want?

COSSACK: I'm looking for -- well, obviously, I probably would be looking for mothers, wives, someone who would identify with the victim in this case.

I think you're going to have a difficult time finding anybody who doesn't identify. But I think perhaps a mother, a wife, a single mother, perhaps a woman who was divorced, had a -- and these are things you'll find out in the questionnaires. Perhaps had a difficult marriage. Maybe got divorced because a husband cheated on them.

Those kinds of things. I think I'd be looking for those kinds of people.

But also people -- this is a case, as I said, of circumstantial evidence. There's not a confession; there's not a murder weapon. It's not going to wrap up very neatly.

PHILLIPS: Honestly, do you think you could find anybody who has sympathy for Scott Peterson right now?

COSSACK: Sympathy I think would be a hard thing to find right now. But I think you can find someone who would say, you know what, I'm going to make the prosecution prove this case beyond a reasonable doubt.

Like the guy? No. In my stomach have bad feelings? Yes. But I am going to make the prosecution prove this case. And if I'm not convinced, then perhaps I'll go with not guilty.

Now remember, reasonable doubt is a subjective standard. You know, your reasonable doubt, mine may be entirely different. So we're asking people to find reasonable doubt. That's why you have 12 people on a jury. One reasonable doubt is here, one reasonable doubt is there.

So it's all about the individual. So sympathy -- I don't think you'll find sympathy, but hopefully you'll find people with an open mind.

PHILLIPS: An open mind. Would you be open to leaving ESPN and coming back to CNN?

COSSACK: Well, I don't know about that, but I sure miss the place.

PHILLIPS: Roger, thanks so much good to see you.

COSSACK: Thank you very much.

PHILLIPS: All right.

Well, straight ahead, living the not so simple life can lead to a costly divorce payout, especially if you're Lionel Richie. You probably want to be representing someone in this case, Roger.

A girl's got to have $15,000 for the right shoes, right?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's wild. I'll take it up.

UNIDENTIFIED FEMALE: So cool.

(END VIDEO CLIP)

PHILLIPS: And the lap of luxury for lighting up. Smokers stretch their limits in this limo.

And an extreme makeover for your pocket change. A penny for your thoughts about the new nickel.

(COMMERCIAL BREAK)

PHILLIPS: News across America now.

In Arizona, police continue to find so-called drop houses crammed with illegal immigrants. Two homes were raided yesterday. Another one today. In the past three weeks, 14 drop houses have been found in the Phoenix area. More than 800 illegal immigrants have been apprehended.

In Lubbock, Texas, a 52-year-old woman gives birth to twin girls, her own granddaughters. Marianne Thoms served as surrogate for her daughter-in-law, who was unable to have children after a miscarriage.

And as long as we're in Texas, could this be the future governor of the Lone Star State? Kinky Friedman, described as singer, humorist, a friend of stray dogs, and a salsa merchant, says he's planning to run in 2006.

Among other campaign issues, Friedman says he wants to fight the "wussification" of Texas.

The nickel's getting a facelift. U.S. mint officials today unveiled a new five-cent piece. The new nickel still has Thomas Jefferson on one side, but on the other, Jefferson's home, Monticello, has been replaced with a design honoring the Louisiana Purchase.

It's the first makeover for the nickel in more than 60 years. The new change should be in circulation in the next few weeks.

Disney's chief hasn't quite given up the keys to the kingdom yet, but you could say he's been dethroned.

Rhonda Schaffler, live from the New York stock exchange with the details.

(STOCK REPORT)

PHILLIPS: Straight ahead, French officials reluctantly find themselves at the bargaining table, but wait until you hear with whom and what's at stake.

And the future of Iraq's doctors in jeopardy. Dr. Gupta back in Iraq, bringing us the grim health care diagnosis, straight ahead, right here on LIVE FROM. (COMMERCIAL BREAK)

PHILLIPS: Welcome back to the CNN center in Atlanta. This is LIVE FROM. I'm Kyra Phillips. All new this half hour.

Steroids in sports making headlines once again. But why all the fuss, you ask? We'll take a closer look at the effect the drugs have on athletes taking them.

The Senate Budget Committee debates Chairman Don Nickles' version of President Bush's fiscal plan today. The plan seeks to cut record federal deficits through tighter spending controls and small tax cuts than the president wanted.

Democrats argue Nickels' proposal would worsen the short falls, because it still includes tax cuts over the next five years.

CIA Director George Tenet preparing to testify before the Senate Select Intelligence Committee. He's going to answer questions on intelligence failures leading up to the war with Iraq.

Last week, former U.N. weapons inspector Scott Ritter called for Tenet's resignation, saying Tenet misled Americans about Iraq.

The first full day of deliberations in the Martha Stewart trial under way after a one-hour delay. Subway problem kept four juror from getting to the courthouse on time. The jury is trying to determine if Stewart and her former broker lied to investigators about her sale of ImClone stock in late 2001.

PHILLIPS: A terrorist group has threaten to blow up France's rail lines unless the French government pays a ransom of $4 million.

Negotiations have been going on for months now. And the French people want to know why they weren't told about it sooner.

Senior international correspondent Sheila MacVicar reports.

(BEGIN VIDEOTAPE)

SHEILA MACVICAR, CNN CORRESPONDENT (voice-over): For months, the French government has been secretly negotiating with a previously unknown terrorist group threatening to blow up the nation's rail line. It is a threat the government is taking very seriously.

Last month, the group led them to a bomb placed under rail lines in central France.

"The device was checked," says the French interior minister. "The firing mechanism was tested." And the device proved to be dangerous, because it shattered a train rail.

In messages to the government, the group claims to have planted ten more bombs on rail lines around France. It is demanding a ransom of more than $4 million U.S. dollars. The group called itself AZF, apparently after a French fertilizer factory in southern France which exploded three years ago, killing 31 people. More than 2,000 more where injured.

The official investigation ruled out a criminal attack, but the cause remains unknown.

French officials have acknowledged they know little about the group and had said nothing about the risk to the rail service. That has angered some passengers.

"It's getting worse and worse. People are being taken hostage, and it's really crazy," said this traveler.

There will be more questions about why the government kept quiet when ministers knew there was a real danger to France's rail-traveling public.

Sheila MacVicar, CNN, London.

(END VIDEOTAPE)

PHILLIPS: More news around the world.

A German court overturns a conviction of the only man found guilty in connection with the 9/11 attacks. Mounir El Motassadeq had been found guilty of helping the September 11 hijackers. He was sentenced to 15 years in prison.

But an appeals court says that a lower court failed to properly consider the absence of evidence from a key witness. El Motassadeq will be retried.

A top al Qaeda operative linked to the attack on the USS Cole has surrendered. Yemeni officials say Abdul Raouf Nassib surrendered around a shootout with Yemeni forces.

Another suspect was also taken into custody. His identity is under investigation.

A rocket strike in western Baghdad critically injures three members of an Iraqi family in what police there are calling an act of terrorism.

CNN Baghdad bureau chief Jane Arraf joins me now with more from the Iraq capital -- Jane.

JANE ARRAF, CNN CORRESPONDENT: Kyra, that rocket hit on the street near a telephone exchange, and now it was the second apparent attempted attack on an exchange in two days.

Yesterday, a telephone exchange in Baghdad was struck when an explosion went off, which appeared to be a bomb being carried by someone. It was believed to have detonated prematurely.

The U.S. Army says that it is tracking a pattern of what appear to be increasing rocket attacks of increasing range.

Now, Brigadier General Martin Dempsey, who is in charge of the 1st Armored Division in charge of Baghdad tell us that it appears to be a new phenomenon.

(BEGIN VIDEO CLIP)

BRIG. GEN. MARTIN DEMPSEY, U.S. ARMY: One of the pattern we're monitoring and trying to analyze, of rocket attacks that have taken place from as far as 30 kilometers away.

And where that leaves us is that somebody with some skills in indirect fire is shooting at us. And so we're turning this giant intelligence apparatus we control on that challenge.

(END VIDEO CLIP)

ARRAF: Three rockets actually hit the so-called secure zone, the green zone, which houses the headquarters of the U.S. coalition, last night. That was just minutes before the chief civilian administrator and the commander of lab forces here were due to speak.

Now, these rockets can be fired from up to 30 kilometers away, as officials say. And the problem is that they are set off, many of them with timing devices. The timing devices, they say, taken from washing machines -- Kyra.

PHILLIPS: Amazing. Jane Arraf, live from Baghdad, thank you.

Decades of war and neglect have taken a toll on Iraq's health care system, also. Some could argue it's in critical condition.

CNN medical correspondent Dr. Sanjay Gupta goes back to Iraq where he examines the problem and monitors progress toward development.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): This hospital in Baghdad specializes in pediatric care. It's not enough, though, to meet the challenge. According to the Iraqi minister of health, one in ten infants will die before they're a year old.

Antibiotics that save lives and cost just pennies in the United States are in short supply.

These women, for example, are at risk of dying from routine infections. In Iraq about three in 1,000 mothers die after childbirth.

Some hospitals go dark at night. Why? Because there aren't enough light bulbs. Yes, light bulbs.

Doctors have been using textbooks that are decades old and providing patients with the associated obsolete care. Sadly, the Iraqi health system that 30 years ago was the finest in the Middle East needs more than a financial band-aid. It needs to be completely overhauled.

TOMMY THOMPSON, HHS SECRETARY: What we're going to do as a department is to collaborate and to cooperate and to partnership with the people in Iraq to rebuild that medical system back to what it was in the 1970s.

GUPTA (on camera): Without question, Iraq's health system has faltered, some believe because of a cruel dictator who made his people pay for the embargos placed on his country. Others believe three wars in 20 years were more to blame.

THOMPSON: Sure, the war complicated things. But it was -- it was much more the neglect of Saddam Hussein for over 15 years that really ruined the medical infrastructure in Iraq.

GUPTA (voice-over): To be sure, best estimates say Iraq spent around $20 million on health care in 2002. That's bout 68 cents person. This year, the expenditure will be close to $900 million, or about $40 per person, most of that money from oil revenues.

For reference, in the U.S., around $4,000 is spent per person by government.

And the newly appointed minister of health wants even more.

DR. KHUDAIR ABBAS, IRAQ HEALTH MINISTER: It could take as much as, you know, to take $1 billion as a start. It's not bad at all. But I would wish 2004 to have, for example, $2 billion.

GUPTA: Starting from scratch will not be easy. But both Americans and Iraqis agree that is what needs to be done.

For too long, little or no money was spent on the infrastructure needed to provide basic care and prevent disease; $900 million may change that, slowly.

Dr. Sanjay Gupta, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Now the latest health news online, it's just a mouse click away, of course. You can find the latest medical headlines on our web site, along with a health guide from CNN and the Mayo Clinic. The address is CNN.com/health.

Baseball's current home run king, Barry Bonds, denies taking steroids, but a former teammate begs to differ. What about the athletes who surrender to the temptation of taking steroids? Find out what world is like after the cheering stops.

And from the world of entertainment, Lionel Richie's endless love is over. His soon to be ex is hoping to take much of Richie's riches with her. LIVE FROM tries to rock on. ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: Some good news today for major league baseball fans. A little something to take the annual sting out of the April 15 filing deadline for income taxes.

Beginning this year, April 15 will also be Jackie Robinson Day, in honor of the first African-American to play in the major leagues.

Now to spring training, where baseball is taking a back seat to rampant speculation about who has and who hasn't used performance enhancing drugs.

In the case of Barry Bonds, CNN's Josie Burke says the player is staying mum, but a lot of other people are talking.

(BEGIN VIDEOTAPE)

JOSIE BURKE, CNN CORRESPONDENT (voice-over): Barry Bonds is going through the rituals of spring training, without addressing the latest allegations linking him to performance enhancing drugs. It's a topic that's hard to avoid.

JASON SCHMIDT, GIANTS PITCHER: I don't know anything about it, so -- I come to play ball, that's what I do.

BURKE: One former Bonds teammate did not shy away from the subject during a radio interview this week.

UNIDENTIFIED MALE: Are you telling us in your opinion, Andy, it looks like he has taken steroids?

ANDY VAN SLYKE, FORMER BONDS TEAMMATE: Unequivocally he's taken them. Without equivocation he's taken them. And, you know, I can say that -- you know with utmost certainty.

BURKE: Both the Giants and baseball have taken steps to curtail the speculation. Last week, a team attorney addressed San Francisco players and advised them against talking about Bonds and steroids.

Major league baseball commissioner Bud Selig issued a similar directive to the club executives and owners under his direction.

But no one has silenced the fans.

UNIDENTIFIED MALE: There's so much evidence now against it. They're leading to the fact that he used it. It's kind of sad, in my estimation.

UNIDENTIFIED FEMALE: That doesn't necessarily mean that Barry Bonds took the steroids. Maybe he did; maybe he didn't. But we'll have to wait and see what come out. BURKE (on camera): Bonds did speak briefly with reporters on Wednesday. He did not talk about steroids, but did allow, however, that he spent part of Tuesday, quote, "playing with my computer and trying to avoid the TV as much as possible."

Josie Burke, CNN, Scottsdale, Arizona.

(END VIDEOTAPE)

PHILLIPS: The current scandal over steroids has shed new light on an issue that's been hanging over professional athletics for years.

CNN's Martin Savidge with more on the players who get paid to perform who may be sacrificing way too much.

(BEGIN VIDEOTAPE)

MARTIN SAVIDGE, CNN CORRESPONDENT (voice-over): Former baseball star Ken Caminitti (ph) once claimed 50 percent of major leaguers took steroids.

Steve Courson says steroids ended his pro football career. Not because he used them, but because he talked about them.

STEVE COURSON, NFL PLAYER 1977-85: Because of what I said publicly about steroid use in the league. There's no question in mind.

SAVIDGE: Courson was released not long after confessing to using steroids in a 1985 "Sports Illustrated" interview.

LYLE ALZADO, NFL PLAYER 1971-85: If I can save one little kid...

SAVIDGE: Many people associate the death of football player Lyle Alzado at age 43 with steroids, equating the drug to liquid death.

But many experts say steroids had little to do with his fatal disease. Short-term medical studies have shown steroids add to the risk of heart disease, liver and kidney damage and reduced blood circulation.

But the long-term effects are virtually unknown.

DR. CHARLES YESALIS, PROFESSOR, PENN STATE UNIVERSITY: We've done thousands of such studies for tobacco, alcohol, cocaine, marijuana and heroin. We've yet to do one for anabolic steroids.

SAVIDGE: In addition to fame and money, Courson says he believes steroids also helped him get something else, an enlarged heart.

He believes instead of being villains, athletes are victims.

COURSON: The bottom line is, what are we doing? We're performing for the public. And what does public want to see? They want to see better performances.

SAVIDGE: Medical experts agree steroids can make athletes bigger and stronger.

Courson and many health professionals say they are a health concern and the byproduct of a multibillion-dollar sports industry that says one thing to the public while sending another message to the players.

YESALIS: Do whatever you need to do to win, but keep your mouth shut about it.

SAVIDGE: Martin Savidge, CNN, Atlanta.

(END VIDEOTAPE)

PHILLIPS: Well, in New York, there is at least one place you can go to still light up in style. Jeanne Moos take us on a ride to smokers' heaven.

And our Rhonda Schaffler's at the New York stock exchange -- Rhonda.

(STOCK REPORT)

(COMMERCIAL BREAK)

PHILLIPS: Some developing weather news coming out of Texas now. Orelon Sidney with the latest -- Orelon.

(WEATHER REPORT)

PHILLIPS: Time to hop in the way back machine. A blast from the past try to make a comeback. Rhonda Schaffler with the details.

(STOCK REPORT)

PHILLIPS: Rhonda, thank you.

Well, while we're talking money, we've got to mention the divorce case involving Lionel Richie and his soon to be ex-, Diane.

Diane Richie has filed a declaration saying that she needs more than $300,000 a month to cover these expenses: $15,000 a month for clothing, shoes, and accessories; $3,000 for dermatology; $1,000 for laser hair removal. Now, how much hair could one person really need removed? OK.

Other monthly maintenance fees include $600 on hair, $250 on nails, $150 on electrolysis. OK, isn't that hair removal? $450 on facials; $500 for her trainer; $600 each on Pilates, massages, and therapy.

All this and more is laid out in the nine-page document on The Smoking Gun web site if you want to check it out.

Lionel Richie, who sang "All Night Long" better keep working all night long. Bet you when he wrote "Three Times a Lady," he wasn't thinking in mathematical term, really. Speaking of mathematics, here's a pop quiz. How many points is a three-point shot?

Guess what? That's not from the "Idiot's Guide to Basketball." It was an actual question on a college level final exam given by the former assistant basketball coach at the University of Georgia.

Jim Harrick Jr. and his dad were bounced out of the program, and the NCAA and UGA found evidence of academic fraud among other violations.

The exam in the coaching principles class also included these brainteasers: how many goals are on a basketball court? How many players are allowed to play at one time and on any one team in a regulation game? And how many halves are in a college basketball game?

And in your own opinion who is the best Division I assistant coach in the country?

Wonder if you got extra credit if you could correctly guess the length of a six-foot board?

Well, finally this hour, New York City passed one of the most stringent smoking bans in the country last year. Some restaurant owners were ashen faced in fear the ban would snuff out a lot of business.

CNN's Jeanne Moos found one place that figured out a way to get around the law.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Talk about a perfect match: smokers and a limo, a smokers' speakeasy on wheels, though it never goes anyplace.

(on camera) This is the most politically incorrect vehicle on the planet.

(voice-over) If you think limos are something stars get out of, imagine one that smokers get into.

UNIDENTIFIED FEMALE: I'm sorry. We're, like, smoking in front of her face.

MOOS (on camera): I don't care.

(voice-over) Every night, the smoking limo sits outside David Burke and Donatella's restaurant, where New York City's anti-smoking laws mean you can't even have a cigarette with that martini.

UNIDENTIFIED FEMALE: Puff your brains out, baby.

MOOS: The restaurant spends over 1,000 bucks a week to have this stretch Ford Excursion parked outside. Seats 24 smokers. UNIDENTIFIED FEMALE: It's nice to do it in style

UNIDENTIFIED FEMALE: And not feel like a smoker.

UNIDENTIFIED FEMALE: I feel like a loser standing outside.

MOOS: No more freezing. Even nonsmokers can't resist.

UNIDENTIFIED MALE: I don't smoke, but this is wild. I'll take it up.

UNIDENTIFIED FEMALE: So cool.

MOOS: Complete with lava lamps and music.

Sometimes what's burning is passion rather than cigarettes. Ask Owen the driver.

UNIDENTIFIED MALE: And she had her dress over her head.

UNIDENTIFIED MALE: I was like, hello! It's a smoking limo.

MOOST: He's David Burke, the chef, she's co-owner Donatella. The two plan to park a smoking horse and buggy outside the restaurant come spring, and maybe even a cigarette boat come August.

UNIDENTIFIED MALE: Have a trail, a little step stool up.

MOOS: The smoking limo even comes supplied with gum and breath mints. Come on, baby, light my limo.

UNIDENTIFIED FEMALE: We're all high on nicotine out here.

MOOS: Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: Well, a little paunch could be a sign of prosperity, but a new study suggests that packing on the pounds could be costly for women in the work place. We'll get the skinny on those findings just ahead in the second hour of LIVE FROM.

(COMMERCIAL BRAEK)

(BEGIN VIDEO CLIP)

KAREN HUGES, ADVISOR TO BUSH CAMPAIGN: September 11 is not just some distant tragedy from the past. It really defined our future.

(END VIDEO CLIP)

PHILLIPS: Campaign controversy. Is President Bush making politics out of the personal tragedies of September 11?

Personal questions in the Scott Peterson murder case. Potential jurors get a major grilling. And paying for the pounds. A new study find a thick waistline equals a thin paycheck for highly educated women.

Is this the ultimate dead end job? We're digging up the dirt on working at the county coroner's gift shop.

From the CNN center in Atlanta, I'm Kyra Phillips. Miles is off. This hour of CNN's LIVE FROM starts right now.

Up first this hour, judicial needles in demographic haystacks. After many months of motions, hearings and rulings, lawyers for and against Scott Peterson are finally look for jurors: 12 people, plus a few alternates, who not only have the time but the backgrounds and attitudes deemed appropriate to judge whether Peterson murdered his wife and unborn son.

So what's that got to do with bumper stickers?

CNN's Rusty Dornin shows and tells.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Nearly 1,500 jurors are expected to file through this courtroom before a jury might be found for the Scott Peterson trial.

Why so many? Because this trial is expected to last five months.

JOE RICE, JURY RESEARCH INSTITUTE: Two-thirds, three-quarters of those jurors are going to try their best to get out of that trial.

Then we have to deal with the issue of familiarity and exposure to Scott Peterson and attitudes and opinions they've already formed. And that's now going to reduce the pool once again.

DORNIN: San Mateo County, south of San Francisco, is mostly residential and tends to be upscale and somewhat conservative, say jury experts. Defense attorney Mark Geragos says he's not sure an impartial jury can be found here and might request another change of venue. Laci Peterson's mother believes otherwise.

SHARON ROCHA, LACI PETERSON'S MOTHER: There has to be enough people someplace that haven't heard about it are aren't involved with it. Not everybody follows this.

DORNIN: Jurors must also be willing to consider the death penalty. Some experts say those jurors tend to support law enforcement.

RICE: I think the advantage is clearly to the prosecution. The whole process kind of stacks the jury in their favor, so I think the defense has a much more difficult task.

DORNIN: Their task, according to experts, is to poke holes in what appears to be the prosecution's largely circumstantial case, finding jurors who may have concerns about law enforcement. RICE: And would buy into the belief that, you know, maybe they didn't do their job. Maybe there's someone out there that still may have done this crime.

DORNIN (on camera): Two hundred jurors will fill out a more than 20-page questionnaire on everything from bumper stickers to whether they've had an extramarital affair and their views on the death penalty in an effort by each side to sort out just the right juror.

Rusty Dornin CNN, Redwood City, California.

(END VIDEOTAPE)

PHILLIPS: The jury deciding Martha Stewart's guilt or innocence got a late start today because of a subway accident. Once everybody arrived, jurors asked to rehear testimony relating to Stewart's co- defendant's interviews with the SEC regarding Stewart's dumping of ImClone stock.

Stewart's own stock, Martha Stewart Living Omni Media, rose today, then dipped again on word that the company made a profit in the fourth quarter of 2003 but a loss for the year. It also forecasts a steeper than expected loss in the first quarter of 2004.

Taking a stand on same-sex marriage, gay couples stood in line hoping to get marriage licenses today in New York City, although local laws ban the unions, CNN's Adaora Udoji live with more now on today's demonstrations -- Adaora.

ADAORA UDOJI, CNN CORRESPNDENT: Hello, Kyra. We're in downtown New York City just outside the Municipal Building where the rally was held this morning. It was organized by a coalition of gay and lesbian organizations.

Really just in the past week they came by the hundreds with a plan really two parts of a plan. First was to rally to show up in big numbers and put some pressure on Mayor Bloomberg, Michael Bloomberg, to take a stand on the issue; but secondly, they came dozens of couples, gays and lesbian couples came to apply for marriage licenses here at the Clerk Building.

They were immediately denied. They were handed letters in which there was an outline of the conclusions given by Attorney General Eliot Spitzer yesterday. He said after reviewing the law in New York he concluded that it was illegal, same-sex marriages were illegal in the state of New York.

Couples were not surprised by the denials today but they say it is a step in the right direction because, as the attorney generation mentioned, there are some issues of equal protection, perhaps constitutional issues in the marriage laws here in New York and armed with those denials, those couples can take some action in court.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We've done all sorts of things over the years to try to give ourselves certain protections and to honor our relationship. We've had a religious ceremony. We have domestic partnership.

We have all sorts of legal papers for powers of attorney and the like, and individually none of those documents cover us as marriage would and selectively they still don't recognize us or give us the protections that marriage does.

(END VIDEO CLIP)

UDOJI: Mayor Bloomberg not necessarily responding as they had hoped saying that he believes the best way for advocates of same-sex marriage to address the issue is to go straight to Albany, organizers saying that they do not expect any changes to come quickly but that today is part of an ongoing start to what they hope will lead to change in the end -- Kyra.

PHILLIPS: Adaora Udoji, thank you.

Other news across America now, Alabama Baptist Pastor Michael Jordan says he put up this sign to protest same-sex marriage but Jordan says it wasn't his idea. Jordan says it was a revelation from God and despite protests, including some from his congregation, he says he won't take it down.

Phoenix Police find more than 200 illegal immigrants crammed inside two area homes known as drop houses. In the past three weeks, 13 drop houses have been raided in a massive crackdown of human trafficking in Arizona.

And here's an early peak at the new nickel, honoring the 1803 Louisiana Purchase. It's the first makeover of the five-cent piece in 66 years. They should show up in your pocket sometime in the next few weeks. Another nickel commemorating the Lewis and Clark Expedition will be out later this year.

It's not exactly revolution but in the world of Disney and Wall Street it comes close. Stockholders stormed the castle at this week's shareholders' meeting in Philadelphia and demanded Michael Eisner's crown.

Financial News Correspondent Jen Rogers picks up the story from there.

(BEGIN VIDEOTAPE)

MICHAEL EISNER, DISNEY CEO: Excuse me voice.

JEN ROGERS, CNNfn CORRESPONDENT (voice-over): Michael Eisner lost his grip on the board he had led for nearly 20 years. The late evening announcement Wednesday came after angry Disney shareholders were heard loud and clear.

EISNER: We decided, the board decided that this movement in America to separate the non-executive chairman and the CEO was something that we have been considering and getting our company into contemporary governance and we did it today. We heard our shareholders who seemed to be interested in that and so we went ahead and did it.

ROGERS: The move came after 43 percent of shareholder votes went against Eisner.

SARAH TESLIK, COUNCIL OF INSTITUTIONAL INVESTORS: Forty-three percent is astronomical in the investor world.

ROGERS: Former Senator George Mitchell will serve as chairman of the board. Michael Eisner remains CEO. While Eisner's power is certainly curbed the move won't be enough for the men leading the campaign against him, former Disney board members Roy Disney and Stanley Gold.

STANLEY GOLD, DISNEY BOARD MEMBER: The real solution is getting rid of Michael Eisner.

ROGERS: For now, Eisner keeps one job and he gave no hint he's planning on leaving the company entirely.

EISNER: I love this company.

ROGERS: Whether that love will be returned by shareholders is an open question.

Jen Rogers, CNN Financial News, New York.

(END VIDEOTAPE)

PHILLIPS: Straight ahead, they're the ultimate corporate shakers, the savvy women of the reality show "The Apprentice," but would they be as successful if they weren't so skinny, the connection between your waistline and your bottom line.

And look at this, a brutal clash caught on tape, this protestor becomes a national symbol of her country's turmoil.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It fits nice over their snouts so we can provide good oxygen flow to the dog.

(END VIDEOTAPE)

PHILLIPS: New tools to save your pet's life. We're rushing to the rescue later on LIVE FROM.

(COMMERCIAL BREAK)

PHILLIPS: All right. Professional women listen up. You want to make more money well you've got the degrees but maybe you're overweight. Well, a new study finds that these women often earn about 30 percent less than normal weight or even plump women but the study says weight is not an income barrier for men. Gail Evens knows all about the double standards. She is author of the book "She Wins, you Win, the Most Important Rule Every Businesswoman Needs to Know." She's also a former executive vice president here at CNN, must say she was involved when I got hired, so I know this woman very well. That's for sure.

GAIL EVANS, FORMER EXEC. VP, CNN: Good to see you, Kyra.

PHILLIPS: Good to see you too. What's a woman to do? You see a study like this and it's a stab to the heart.

EVANS: It is but it's another one of those things that's a double standard and obesity is much more complex than the rest of us, none of us understand obesity. Even people who think they understand it and want to be compassionate say, well you know what, I mean I'd love to eat all the time too but I discipline myself.

So, a lot of it is connected to people really think people who are overweight, women who are overweight are sloppy. They don't care about themselves. So, it's very, very difficult and the guys get to hide it. A guy can be 40 or 50 pounds overweight and he's wearing a business suit and you don't see it.

PHILLIPS: Is that really what it comes down to is that men can hide it or, you know, is it so many men in the business world, you know, they want an attractive woman representing the company?

EVANS: Number one they want an attractive woman representing the company but, number two, corpulence, you know being fat is sort of, you know, a sign, used to be a sign for guys that you were rich and prosperous.

So, one of the things is that women have never except sort of Renoir in the middle of the Renaissance, women who were always supposed to be these pretty little trophies.

And also if you're 5'3" and you're 50 pounds overweight, it's a lot worse than if you're 5'11" and you're 50 pounds overweight. So, it's a big difference but it's a very, very difficult point for women and it really is true. I hear from women all the time.

PHILLIPS: Well, do health issues come into play? I've talked to a few male business owners and they say, Kyra, I'm not going to tell you this on camera but look, you know, I worry about benefits. I wonder if they're going to get sick or fall or I'm going to want to help them, you know cater to them.

EVANS: I don't really believe that, Kyra. You know it's interesting. I mean I speak all over the country on women's issues now and I'll stand up in front of a corporation. There's 750 women in the audience and I'm looking out there and I go, ah I could be at a Mrs. America contest.

I mean it's like there's this sort of norm. You don't have to be gorgeous. In fact, gorgeous has got its problems too but you have to fit into that sort of box or it's twice as hard to get ahead. PHILLIPS: Well, gorgeous isn't easy either because then you're wondering, okay, did he hire me or did they hire me because of my looks? Am I just a fantasy to someone who wants, you know, I'm going to be blunt here.

EVANS: Well, there's that part plus the fact that I've heard from a lot of tall, very smart, beautiful women and old Martha Stewart could fit in that category that, you know, men find them threatening. Men don't want -- men don't want a woman to work with who's taller than they are.

PHILLIPS: Interesting.

EVANS: Right. So, it's like they don't want to look up to anybody physically, so it's very difficult. I mean there is a real norm and you don't have to be beautiful. It's just sort of fitting in that box that, you know, you wear between a four and a 14 and, you know, you dress reasonably conventionally and the company wants you out there representing them. If you're not that, the company thinks it reflects on them.

PHILLPS: What about someone like Oprah? OK, here's someone that has struggled with her weight, I mean all over the map but it's her attitude. It's the way she carries herself and her confidence. Doesn't that override studies like this that say obese women just aren't going to go far?

EVANS: Well, I think it overrides it in part but the reality is Oprah was never obese. I mean it's like I have always struggled with my weight but there's a difference between struggling with your weight and being 15 or 20 pounds overweight and being obese and these kind of studies talk about people who are 50 and 60 pounds overweight where you really can see it. You know Oprah has never been that kind of big.

PHILLIPS: All right and my producer and I we ran the fortune, well you and I were talking about this.

EVANS: Right.

PHILLIPS: Fortune 500, OK, six companies run by women. Fortune 1000, 16 companies run by women, so we pulled, you know, the top three here, Hewlett Packard, Xerox, and Lucent, all run, you know, by women. OK, I think they're attractive women.

EVANS: Sure. I mean and they fit in that norm. It's like nobody is gorgeous but everybody sort of fits in that category I talked about and that's what companies want and businesses want. And I hear from women all the time who are overweight who talk about I don't know what to do because it affects my career.

PHILLIPS: So, what should they do? So, what do you tell them?

EVANS: Well, it's very interesting. Number one, I think you have to be very careful about how you dress, so you need to dress immaculately. I've had executives say to me, you know, that woman is very smart and I like her very much but she's a little sloppy.

Well, sloppy is another code word for she's overweight. So you need to very careful about the colors you wear about the kind of jewelry you wear and how well-groomed you look because that's going to detract, you know. If you look really well-groomed you're not going to look as overweight.

And you need to start, you know, sort of trying to fight the battle together that people have to understand that, you know, obesity is a problem just like any other medical problem and that you don't do it because you don't care. You do it because that is your, you know, particular issue.

It's interesting. We understand smoking. We understand alcoholism. The one really huge problem we have in this country that most of us do not understand is obesity. We still all make value judgments about people who are fat.

PHILLIPS: 2004, yes or no, are we still living in a man's world?

EVANS: We're still living in a man's world but we're working hard at it. We're working hard at it.

PHILLIPS: Behind every great man is an even better woman.

EVANS: Right.

PHILLIPS: Isn't that our motto?

EVANS: Absolutely. And the other motto is we need to start playing on the girl's team.

PHILLPS: There you go.

EVANS: We need to start helping each other and being there to support each other. That's when it's going to change.

PHILLIPS: Please stay on my side, Gail.

EVANS: I'm on your side always, Kyra.

PHILLIPS: Gail Evans thank you very much, appreciate it.

EVANS: Thank you.

PHILLIPS: All right, well straight ahead we're not sure how much she gets paid but the woman who runs the Los Angeles County Coroner's gift shop says business certainly isn't dead. We're going to go shopping later on LIVE FROM.

(COMMERCIAL BREAK)

PHILLIPS: U.S. military officials questioning the plans to play a more secondary role in the nation's security come June 30th, specifically if this week's series of attacks show that Iraq's own security forces aren't ready to handle it. Our Pentagon Correspondent Barbara Starr has more.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): The horrific bombings Tuesday in Baghdad and Karbala are raising questions again about the ability of Iraqi forces to take control as the June 30th date for sovereignty approaches.

GEN. JOHN ABIZAID, CMDR., U.S. CENTRAL COMMAND: One of the weak spots is the still building capacity of Iraqi security institutions.

STARR: A weak spot exploited by terrorists. Suicide bombers and carts of explosives apparently made it past Iraqi security near the mosques. U.S. forces had stayed out of sight in deference to worshippers.

It was the same scenario at a recent attack on Iraqi security forces in Fallujah. U.S. forces responded after the attack began trying to give the Iraqis the opportunity to handle things themselves.

That strategy is not being changed. In Baghdad the plan is to reduce the profile of U.S. troops from last year's high of 36,000 in 46 locations to 24,000 in eight locations. A smaller urban profile certainly will mean less attacks on American troops but Abizaid still worries Iraqis need more training and experience.

ABIZAID: We do not intend in any way, shape, or form to abandon these immature security formations to their fate and if they get in trouble and they don't ask for our help we'll still come to their aid.

STARR (on camera): General Abizaid believes more attacks will happens. He believes Iraqi security forces will get better in the months ahead and eventually be able to take care of the threat but not just yet.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

PHILLIPS: Other news around the world now. While Osama bin Laden's top aide Ayman al-Zawahiri remains on the most wanted terrorist list, a senior Egyptian official confirms his brother, Mohammad, has apparently been in custody for several years. Mohammed al-Zawahiri is believed to have been active in the Islamic underground.

A German Appeals Court throws out the only conviction in the 9/11 attacks. The court ordered (unintelligible) back to Hamburg for a retrial. The judges said that a lower court should have considered the lack of evidence from a terror suspect in U.S. custody that the U.S. did not allow to testify.

And the French government has been negotiating with a terrorist group threatening to blow up rail lines. A group calling itself AZF is demanding nearly $5 million. Last month, the group directed officials to a bomb placed under rail lines in central France.

Venezuela's ambassador to the United Nations has resigned saying that he could no longer represent a country that denies human rights, reduces democracy and harms dialog. Milos Alcalay's resignation comes after violent protests over attempts to recall President Hugo Chavez.

CNN's Harris Whitbeck has more on the civil unrest plaguing Caracas.

(BEGIN VIDEOTAPE)

HARRIS WHITBECK, CNN CORRESPONDENT (voice-over): An opposition demonstrator walks up to a contingent of Venezuela's National Guard, speaks briefly. One guard grabs her by the hair and throws her to the ground twice. The guards surround her and beat her as she disappears in the sea of olive green. The woman's name is Eleanor Montes (ph).

"We were not committing any crimes" she says. "There were old people, young people. We were all demonstrating hoping to build a better nation, demanding that our rights be respected. That is not a sin. We did not deserve that treatment."

The government says Montes provoked the attack. Vice Minister of Security Carlos Betanol (ph) says he laments the provocative attitude she showed.

The attack on Montes shown repeatedly on private television networks has become a symbol of the new reality on the Venezuelan streets, the latest stage in the battle between the opposition and the government of President Hugo Chavez.

The number dead, wounded and detained has increased dramatically since the latest wave of protests. The opposition says at least 350 people have been illegally detained during public demonstrations. The government says it is not to blame.

"It is lamentable because the imprisoned, dead and wounded are Venezuelan" says the country's vice president, "but they are the only ones responsible for the violence on the street."

Some fear the demonstrations will become even more dangerous.

(on camera): But with tensions running so high, the street will continue to play a predominant role.

(voice-over): Eleanor Montes says she'll be there. "Nothing nor anybody will stop me from marching again" she says.

Harris Whitbeck, CNN, Caracas.

(END VIDEOTAPE)

(MARKET UPDATE)

(COMMERCIAL BREAK)

PHILLIPS: Welcome back from the CNN Center in Atlanta. This is LIVE FROM. I'm Kyra Phillips. Here's what's all new this half hour.

Image problem, some September 11th families are upset about this new campaign ad.

And a new political push to stop the flow of America's jobs overseas, will it succeed?

And to the rescue, pets breathing easier with a new lifesaving device but first the stories we're following for you.

In judgment of Scott Peterson, jury selection in his murder trial gets underway today. Some 200 perspective jurors will answer questionnaires. Those questions include whether they've ever had an affair, lost a child or read "Field and Stream."

Back on track for Martha Stewart jurors. The panel resumed deliberations after an hour delay due to subway problems. The jury plans to use a laptop computer to replay some testimony today. Stewart and her former stockbroker, Peter Bacanovic, face charges, including obstruction of justice.

The ousted president of Haiti, Jean-Bertrand Aristide, is in the Central African Republic. That nation says it will offer him permanent asylum if he asks for it. South Africa has also been mentioned as a nation for permanent asylum.

The Associated Press reporting that millions of Mexicans entering the U.S. may skip a security check wanted by the Bush administration. The plan was to require visa carrying Mexicans staying near the border on short visits to be fingerprinted and photographed. The Bush administration will reportedly announce a policy change today ahead of a visit by Mexico's President Vincente Fox.

Some families of victims of the 9/11 attacks say they're angry over President Bush's new campaign ads. Two of the TV spots show the destruction at the World Trade Center and include an American flag flying in the debris. Take a look.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I George Walker Bush, do solemnly swear...

(MUSIC)

(END VIDEO CLIP)

PHILLIPS: One victim's widow calls the ads a slap in the face of the murders of 3,00 people. The president's backers beg to differ.

(BEGIN VIDEO CLIP)

KAREN HUGHES, ADVISER TO PRES. BUSH: I just respectfully, completely disagree. Your viewers just saw the ad. I think it's very tasteful. It's a reminder of our shared experience as a nation. I mean September 11 is not just some distant tragedy from the past. It really defined our future. I was at the White House when it happened and it changed forever our national public policy.

And it's important that the next president knows that and realizes we're still at war today because of that day. We're at war against terror.

You know it impacted our nation in so many ways...

(END VIDEO CLIP)

PHILLIPS: Obviously two sides to this. To talk about it a little bit more, we're joined by Washington by radio host and syndicated columnist Armstrong Williams. And with us from Chicago, co-host of radio show "Good Day, USA," Nancy Skinner. Great to see you both.

NANCY SKINNER, RADIO TALK SHOW HOST: Hi, Kyra.

ARMSTRONG WILLIAMS, SYNDICATED COLUMNIST: Hello.

PHILLIPS: Hello, hello.

Nancy, what do you think? Is this exploitive?

SKINNER: I think it's terribly exploitive. But I don't know what other choice he has, Kyra. He certainly can't run on his record. You can't go back and say were you better four years ago than you are today?

But if he wants to make leadership the issue, then let's make it an issue. What did we as a result of 9/11? We went into Afghanistan sometime later. That's a mess right now. We have no government. It's not working. Only Kabul is under control.

He went into the wrong country, Iraq. It's cost us dearly in lives and money. We've lost our international credibility.

So if he wants to make leadership the issue, fine. Think that will be great for the Democrats. I think he will lose on the leadership issue.

PHILLIPS: Armstrong?

WILLIAMS: You know, many people that we talk to, particularly our listeners, even those who don't necessarily support the president, thought it was very heart warming. They thought it was a reminder of where we have come from as a country.

And Karen Hughes said that it's changed us forever. Nothing like that has ever happened on American soil where civilians were attacked. It is what has given President Bush his credibility and incredible standing in this country when American people begin to trust and respect. It did define his leadership. In fact, many people saw it as a greater calling for the man because before that, no one ever thought this man could get any -- anything legislative through Congress. They thought he was going to be a president select. But Mr. Bush showed through that moment he was prepared for leadership.

(CROSSTALK)

SKINNER: ... or what did he do has a result of that? Because the result of what he did has not helped the United States.

PHILLIPS: Nancy, there hasn't been attacked since then in the United States.

SKINNER: Yes. But to suggest that somehow we've thwarted all attacks because of Homeland Security, he's done very little for Homeland Security.

WILLIAMS: To suggest? Let me remind you of this, Nancy, to remind you of this.

For you to say that the security measures that we put in place, the fact that we put a lot of people in prison who we suspected was a part what have took place on 9/11, the fact that we interrupted their financial network around the world, the fact that we rounded a lot of these people up in foreign countries.

Let me just tell you something. Whether you like it or not, America is a safer, a better place. And as long as there is not another attack on American soil, many people, including this one, will credit this president and his administration.

No, he has not been perfect. But I got to tell you something, we learned a great lesson, and he did rise to the occasion.

SKINNER: But, Armstrong, the CIA has said that al Qaeda recruited more terrorists as a result of the war in Iraq. We know that Pakistan was like a nuclear Wal-Mart. The whole time that we were all friendly with them in this war on terror, they were proliferating to North Korea and Iran and Libya and we weren't doing anything about it.

I would have to dispute with you that we're a safer country because of the actions of in this president.

(CROSSTALK)

SKINNER: ... let's say 9/11 wasn't even mentioned in the ad. Could President Bush take an ad and talk about anything else with regard to leadership? Could he have done an entire ad on the economy? Could he have done an entire ad on corporate corruption? Could there have been something else he could have based his leadership success on?

WILLIAMS: He has turned the economy around as a result of his tax cut. Certainly we can never forget that historic Medicare bill where AARP joined forces with this president.

But listen. President Bush is remembered by more than anything else as what happened on 9/11. And the great courage and the strength that he continues to show.

Look. Nancy and I can disagree with the president all we want. But at least you should give the man credit that he has moved us forward, that he was able to withstand the pressure, the turmoil. He's still with his principles, he's still with his convictions.

(CROSSTALK)

WILLIAMS: Is there a difference?

PHILLIPS: Nancy? Go ahead.

SKINNER: What I'm saying is that day he brought us all together in that tragedy. He what he should have done as a leader, help us heal.

But then the moves he made from there on out did not help our country. He invaded the wrong country. He ignored the information that we had. We now know they cherry-picked intelligence, went into Iraq.

(CROSSTALK)

PHILLIPS: Is there a difference between what John Kerry is doing with video of him and Vietnam, pictures of him in Vietnam, using that in his ads, and President Bush using 9/11?

WILLIAMS: Absolutely not.

SKINNER: Yes, there's a big difference.

PHILLIPS: OK, tell me the difference, Nancy. And them Armstrong...

SKINNER: The difference is John Kerry volunteered to go to Vietnam and against enemy fire, he rescued somebody he did not know. He's gotten many medals. He was part of that effort.

President Bush -- this was a tragedy that happened to us. President Bush is going to the scene of the crime, as well as the Republican Convention, taking advantage of all that loss and sorrow and placing himself in the middle of something that happened to us. He wasn't part of that effort.

PHILLIPS: Armstrong?

WILLIAMS: Oh, wow. Wow. That's an amazing statement from you. Listen. No different than John Kerry. He was a war hero. He fought in Vietnam. He wants to remind the American people of his strength and his courage, not only on foreign issues, but he's willing to die for this country. The president was elected as president of the United States. The people trusted him. He has done well with that trust that the American people has given him and he continues to show strength.

At least they're not saying he is insignificant, inarticulate president. And more, they see him as a formidable force that has to be reckoned with in these November elections.

And I've got to tell you, unless John Kerry comes up with something else to talk about, we may see another landslide in November 2004.

(CROSSTALK)

PHILLIPS: All right, real quickly, Nancy, one final thought because I want Armstrong to get a chance to plug an interview for tomorrow.

When you look at what's happening now, this controversy, are you saying it's OK if he's polarizing 9/11 victims' families and certain firefighters by doing this?

SKINNER: President Bush understands that he's got to get his base activated. He knows he's a polarizing president. That's why he's going for the gay marriage ban, just to get the right-wing activated. That's who he's going to need to win this vote because he's lost the people who care about their jobs, the economy. He's rolled back environmental protections. He's blown the deficit, the surplus. Now we have a deficit.

The only hope he has is to really energize his right-wing base, wrap himself in the flag, prey on our dark moments. That's the only chance President Bush has of winning.

PHILLIPS: OK. Armstrong, quickly, tomorrow you're coming back because you sat down with Condoleezza Rice and we're going to talk about 9/11.

WILLIAMS: Yes. We sat down with the national security adviser for one hour. It's a TV One special that's airing this Sunday on prime time at 7 and 10 p.m.

She not only talked about that, but about the fact that we're much safer than we've ever been in our lives. She also talked about those 11 words which she finally took full responsibility for. I just saw it as the most open and the warmest I've ever seen her in any setting.

PHILLIPS: All right, that's tomorrow, Armstrong Williams...

SKINNER: What?

PHILLIPS: with us here on LIVE FROM...

Nancy, I'm sure you'll want to watch because you'll want to respond. SKINNER: You bet. I love Armstrong. I always watch.

WILLIAMS: And criticize.

PHILLIPS: As long as we leave happy. Thanks, you guys.

When voters go to the polls in November, many people will be voting electronically. This new system is supposed to make the hanging chad a think of the past, but as our Kitty Pilgrim reports, it's also creating a lot of problems.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): The classic excuse, a computer glitch. In California, the electronic voting was delayed as technicians tinkered with the machines. about

In Georgia, everyone voted electronically with some problems in programming and voter cards for certain districts. Officials blame human error in programming, saying it was a -- quote -- "learning curve problem with election workers." In Maryland, there were voter card problems.

UNIDENTIFIED FEMALE: My key card would not work.

UNIDENTIFIED MALE: We found that, by wiping them off, it was apparently a film or something.

PILGRIM: One of the biggest problems, not all election workers are computer literate. And computers don't run themselves.

KIMBALL BRACE, ELECTION DATA SERVICES: Training is one of the biggest issues that election administrators face. And, inevitably, somebody was asleep somewhere in some class and didn't hear all the instructions.

PILGRIM: Fifty million people are expected to vote electronically in the upcoming presidential election. After the hanging chad debacle in the 2000 elections, the Help America Vote Act of 2002 was supposed to distribute $3.6 billion to help local districts switch to electronic voting. But the funding has lagged.

DEFOREST SOARIES, U.S. ELECTION ASSISTANCE COMMISSION: The funding has been slow in getting out. But the good news is, by the middle of May, we will distribute $2.3 billion.

PILGRIM: Some legislators have enough doubts about e-voting to worry about using it in the presidential election.

REP. RUSH HOLT (D), NEW JERSEY: Unless Congress deals with this nationally by requiring a voter-verified paper record of each vote each time a voter votes, we will have questions every time there's an election, including this November.

PILGRIM: Holt has written legislation that requires a paper trail and other ways to verify that systems have not been hacked, tampered with or otherwise malfunctioned.

Kitty Pilgrim, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: You remember the little California sea lion that got a little lost? Well there is good news.

And does your town have these? Life saving equipment for the family cat or dog?

And later -- bummer. Hummer dealers having a problem.

(COMMERCIAL BREAK)

PHILLIPS: You remember Chippy the sea lion? He was found more than 60 miles from the Pacific Ocean in California's San Joaquin Valley just last month. Somebody shot him in the head.

Well Chippy's wound has been treated. And he's now been released back into the ocean.

Some Florida pets caught in fires can now breathe easier. Firefighters are using new animal oxygen masks that actually fit the snout. Reporter Nancy Alvarez of affiliate WKMG has details from Seminole Country, Florida.

(BEGIN VIDEOTAPE)

HANK HUTTER, LOST PET IN FIRE: He was as much part of family as anybody else.

NANCY ALVAREZ, WKMG CORRESPONDENT (voice-over): It's been six months since Hank Hutter lost his beloved Meatloaf.

HUTTER: He went with us places, rode in the car, took him camping with us.

ALVAREZ: The 12-year-old lab mix was home alone when a fire swept through Hank's trailer. The dog was overcome by smoke, despite a valiant effort to save him.

UNIDENTIFIED MALE: There was two of us that really, really struggled to provide oxygen to the dog and just we weren't able to because the mask just didn't fit.

ALVAREZ: Now new masks made especially for pets are expected to make all the difference.

UNIDENTIFIED MALE: It fits nice over their snout so we can provide good oxygen flow to the dog.

ALVAREZ: Or the cat. And, yes, even the hamster.

(on camera): Conventional masks made for humans are designed to fit tight for a 100 percent flow of oxygen. But on animals, take a look. Too much space around the edges means not enough oxygen.

(voice-over): Pet masks in three sizes are a perfect fit and they're a new addition for fire crews in Seminole County.

UNIDENTIFIED MALE: It's OK. Ow! Yow! We got claws.

Every house fire that we go to will have at least one of the kits there at the scene.

ALVAREZ: Five kits cost the county more than $300. But purchased in Meatloaf's memory, some say it's a small price to pay.

In Seminole County, Nancy Alvarez, Local 6.

(END VIDEOTAPE)

PHILLIPS: Still ahead, and you thought bigger was better. So why is Hummer singing the blues?

And later, we'll stop by the gift shop. Yes, this is the right tape. Skeletons in the closet. Skeletons for sale. This is the coroner's gift shop. Deadly gifts.

(COMMERCIAL BREAK)

PHILLIPS: So, are you fed up with high taxes? Residents of a small Vermont town want out of state. This week, Killington voters choose to secede. CNN's Dan Lothian takes a look at the exercise in democracy.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN CORRESPONDENT (voice-over): It's a picture perfect winter paradise, the ski resort town of Killington, Vermont. But behind this beauty, there's growing unrest over property taxes.

UNIDENTIFIED MALE: It really comes down to no taxation without representation.

LOTHIAN: Taking extreme measures, a majority of this town has now voted to secede from Vermont. They want to be part of neighboring New Hampshire, 25 miles away, hoping for lower taxes and more say in how their money is spent.

But not everyone wants a change of address.

UNIDENTIFIED FEMALE: I was born and raised a Vermonter and I hope to always be.

LOTHIAN: The battle began seven years ago when the town, along with other communities considered wealthy properties, were tapped for taxes to help finance education across the state.

UNIDENTIFIED MALE: Stand up and do what is right.

LOTHIAN: Frustration and $20,000 spent on studying options put residents on the road to New Hampshire.

But some say not so fast.

UNIDENTIFIED MALE: Well, I think we should just drop this, adopt a modern charter and look inward.

LOTHIAN: In the 1700s, Killington was chartered in New Hampshire. Now it's up to law makers in both states to decide whether to give the green light.

Dan Lothian, CNN, Boston.

(END VIDEOTAPE)

(MARKET UPDATE)

PHILLIPS: Does it seem like there is a no-smoking sign everywhere you turn? Now you can smoke and ride in style. We'll show you where.

And our California drivers being taken for a ride when it comes to gas prices?

Plus, CNN's Dr. Sanjay Gupta goes back to Iraq for a look at medical conditions as the fall of Saddam Hussein. The diagnosis still ahead on LIVE FROM...

(COMMERCIAL BREAK)

PHILLIPS: Well, Los Angeles County morgue may be the last place you'd want to wind up unless you're after goulish souvenirs for a good cause. Our Bruce Burkhardt takes us to a little shop around "the coroner."

(BEGIN VIDEOTAPE)

SALENE LIMON, L.A. CORONER'S OFFICE: This is the gift shop here at coroner's office.

BRUCE BURKHARDT, CNN CORRESPONDENT (voice-over): All right, in case you missed it, let me repeat that for you, "This is the gift shop here at the coroner's office."

LIMON: Something else that you have to have in L.A. is a beach towel. This is our famous beach towel with the chalk outline.

BURKHARDT (on camera): Oh, yes. That's a must-have.

(voice-over): No advertising, just word of mouth leads shoppers here to what was once a little office, an office in the Los Angeles County coroner's building. They call it "Skeletons in the Closet."

(on camera): Gosh. This is like a garment bag?

LIMON: Yes. We call it our body bag for traveling. It's a suit carrier. BURKHARDT (voice-over): Only about 10 or 15 people a day make it to the shop. A lot more at Christmastime. That, plus Internet sales at LACoroner.com brought in almost $200,000 last year, money that's well spent.

LIMON: We're going to open up their skull to examine their brain.

BURKHARDT: It's kind of shock therapy for people who are at risk of arriving here in another fashion.

LIMON: See in the back?

BURKHARDT: Drunk drivers get a graphic lecture on autopsies and then a tour of the business of the coroner's office, a far cry from the giggles of the gift shop. But that's exactly what pays for this program.

DAVID CAMPBELL, L.A. CORONER's OFFICE: The focus is not on the gore, if you will. The focus is that these were people who have died and have come under the coroner's jurisdiction. And some of them are here because they made bad choices.

BURKHARDT: There is a certain film noir mystique to the L.A. coroner's office. In a town obsessed with celebrity, so many have passed through here. Marilyn Monroe, Robert Kennedy, John Belushi and Janice Joplin. And of course, Nicole Simpson and Ronald Goldman. It's no wonder people want something that says "L.A. Coroner" on it.

LIMON: We get a lot of tourists. People come in and just want a souvenir. It's a gift you can't get anywhere else.

BURKHARDT: Using humor to deflect the grimness of death is not new to this place. It's just here it has a larger purpose. Take these toe-tag keychains with a message.

LIMON: Reminding everybody not to drink and drive.

BURKHARDT: An odd juxtaposition this gift shop and what goes on a couple of floors below. Is that once set here in an early catalog, part of you thinks it's in bad taste. Part of you wants an extra large. It's also a reminder that we all want to leave something behind, just not our outline.

Bruce Burkhardt, CNN, Los Angeles.

(END VIDEOTAPE)

PHILLIPS: Welcome back to "Alive From." I'm Kyra Phillips. Here's what's happening at the top of the hour.

Picking a jury for Scott Peterson. As many as 1,00 perspective jurors could be questioned before it's all over. Attorneys are trying to find panelist who haven't made up their minds about the case and jurors who might have to serve as long as five months. What went wrong with America's intelligence and what happened to all those WMDs? Some people have pointed questions for the head of the CIA. George Tenet is being grilled by members of the Senate Intelligence Committee who are reviewing information they were given prior to the Iraqi War.

A policy change at the border. If you're Mexican, have a so- called laser visa, and don't plan to stay in the U.S. very long, you may enter this country without being photographed or fingerprinted, that concession announced today before Mexico's president pays a visit to President Bush.

And resigning in protest. Milos Alcalay, Venezuela's ambassador to the United Nations, says he can no longer in good conscience represent the policies of his country. The career diplomat says Venezuela's current government is threatening, not protecting, the political and civil rights of the people.

So how many San Mateo counties does it take to seat a jury in the Peterson case? Well, that's the question attorneys are asking themselves today while they ask scores of potential jurors such questions as whether they've ever had affairs or whether they ever read "Field & Stream."

The well-read Rusty Dornin joins us from Redwood City courthouse with the highlights of the morning interviews.

Rusty, I'll keep the questions to a minimum.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Kyra, you could have heard a pin drop in that courtroom as the first 100 prospective jurors were introduced to the defendant.

Scott Peterson stood up, turned to the audience and said, hello, good morning to you, and smiled before sitting down again. Of course, the attorneys, as well introduced themselves. Really a cross-section of people. They were young and old, men and women. There were Asians Hispanics, whites, an African-American woman, a cross-section of America, really. The judge spent most of the morning briefing them about warnings, warnings how long this trial would take, that it was expected to be a five-month trial and if Peterson is convicted another month for the penalty phase.

Also, telling them they must be willing in this case to consider the death penalty, also, not to talk to anyone, of course, as they get further down the line about this case, not to talk about to anyone or to watch it on TV or read about it in the newspaper. But he did tell them that they must think about the fact of whether they would consider executing someone if they were convicted. That was something big. He told them to go home and think about that.

What's really going to be happening most of today is they filled out those questionnaires asking about everything from their education and marital status. He also did, as an addendum, said that the question is not going to ask them if they've ever had an extramarital affair, but opinions about an extramarital affair, also, about whether they have any knowledge of boats and that sort of thing.

So it takes about a half hour for the jurors to fill out that questionnaire. Then they hand them in and that's when they tell them about their hardship. If they have child care issues, they're to tell the court today, and they could be excused. Otherwise, they're to come back on Monday, because in a five-month trial most employers can't afford to pay a juror for that long. So they must come back with a note from their employer or if they're going on a cruise, that kind of excuse, or if they have a medical excuse.

They also say, initially, there were supposed to be 1,500 jurors brought in. They're now saying it's going to be 200 a day for the next five days. So it will be today and then it will start again next week Monday through Thursday. They believe by that time they'll get enough people that they can bring them back in court and start what they call the voir dire, which is questioning those jurors about their questionnaires and about their opinions -- Kyra.

PHILLIPS: All right, Rusty, two quick questions. I'm just curious. Were you allowed to talk with any of these potential jurors?

DORNIN: You're not supposed to talk with them, no. It was a very somber group, as well. They didn't talk to one another. There wasn't much reaction from them. When they were told how long the trial was going to be, although I think they'd already heard it.

(CROSSTALK)

PHILLIPS: How long is the trial going to be and the jury selection? I'm assuming quite a while.

DORNIN: Well, the jury selection is expected to take from four to eight weeks. I think the questioning is going to be exhaustive, and you know, and 1,000 people they're going through. And so it's expected to take from a month to two months.

PHILLIPS: Well, Rusty Dornin, thanks.

For President Bush, it's day two in the electoral mother lode known as California. In Bakersfield, Mr. Bush took part in a roundtable meeting with workers this morning. And later this hour, he's scheduled to attend a fund-raising luncheon. Mr. Bush insists that he can compete in California which has voted Democratic in the last three presidential contests.

Today marks the start of the presidential battle of the airwaves. The Bush campaign is airing its first ad and so is a group that wants Mr. Bush defeated.

CNN's Brian Todd has a look at the spots from Washington.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): The first clear sign of a one-on-one battle between two political heavyweights. The ad wars are under way. AD ANNOUNCER: President Bush, steady leadership in times of change.

AD ANNOUNCER: You'll find out George Bush wants to eliminate overtime pay for evening workers.

TODD: An acknowledgment of an all but confirmed and worthy opponent. The Bush/Cheney campaign roll out its first reelection ads.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I know exactly where I want to lead this country.

TODD: Three spot, one in both English and Spanish, debuting Thursday in 15 to 17 states. Bush campaign sources say they'll target areas decided by relatively narrow margins in 2000, likely including Florida, Arizona, Michigan.

A striking feature in two of the ads, images of September 11.

AD ANNOUNCER: Some challenges we've seen before. And some were like no others. But America rose to the challenge.

TODD: On the one hand, it plays to the strength of leadership in crisis. On the other...

HOWARD KURTZ, HOST, "RELIABLE SOURCES ": There are numerous images of the World Trade Center attacks in the ads. And that is already drawing questions about exploitation of 9/11.

TODD: The themes of leadership and faith are obvious. The unspoken message, the president is taking the high road for now.

BUSH: I'm optimistic about America because I believe in the people of America.

TODD: These first spots are all positive. Bush campaign sources don't rule out negative ads about John Kerry in the future. But a new disclaimer required when a candidate is doing his own ads may prevent them from getting too nasty.

BUSH: I'm President Bush, and I approve of this message.

TODD (on camera): From a war chest of more than $100 million, the Bush/Cheney campaign spends $4. 5 million on this first ad blitz. Battle lines clearly drawn on liquidity and ideology. But experts say don't paint the Democratic challenger as the poor kid down the block.

STUART ROTHENBERG, CNN POLITICAL ANALYST: You have a number of liberal left groups that are raising money and starting to run ads. I actually don't believe that Kerry will be so overwhelm over the spring and the summer that he won't be able to fight George Bush in this way. I think they're going to have enough resources.

TODD (voice-over): Almost on cue, the left leaning online group MoveOn. org rolls out two ads in 17 states. Cost, $1. 9 million. Target, your president, your wallet. AD ANNOUNCER: Two million jobs lost. Jobs going overseas. And now no overtime pay. When it comes to choosing between corporate values and family values, face it, George Bush is not on our side.

TODD: The Kerry campaign has no connection to MoveOn.org or these ads. A Kerry spokeswoman said they just finished one ad campaign and haven't made a final decision when to gear up again.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: Well, also today the Bush campaign is defending its ads that reference September 11. Some survivors groups are complaining that the Bush campaign is using 9/11 as a springboard for the president's reelection. A Bush spokesperson responds that the ads are tastefully done.

Other news across America now.

Taking it to city hall. Dozens of gay couples march into New York City Hall demanding marriage licenses. They got letters from the city clerk, instead, saying that would be illegal. New York's attorney general, Eliot Spitzer, issued the same opinion yesterday, but says ultimately the courts will settle the issue.

Inside the Supreme Court, the personal papers of Justice Harry Blackmun have been opened to the public eye five years after his death. They reveal that the court came very close to effectively overturning Roe v. Wade in 1992. But Justice Anthony Kennedy changed his mind. Blackmun was the author of the landmark ruling which legalized abortion.

And after 66 years, the nickel is getting a new look. Thomas Jefferson's profile will still adorn the front, but on the back, the new coins honor the 1803 Louisiana Purchase.

As if you haven't noticed, you're paying more at the pump, a lot more. Gas prices are at record highs in California's Los Angeles county and the rest of the country is also feeling the pinch.

Our J.J. Ramberg joins me from a gas station in Los Angeles.

J.J., what's the deal?

J.J. RAMBERG, CNN CORRESPONDENT: Hi, Kyra.

Well, I'm here at Costco in the Marina Del Rey in Los Angeles and the prices are $2.11 and this is the cheapest gas that you can get in the entire neighborhood. I spoke to some economists earlier and they said, when you get to about $1.60, $1.70, that's when people start raising their eyebrows, start taking a look at their household budget and we are clearly well above that over here. And it's not just California, as you said. It's across the country.

Gas prices across the country are on an average $1.71. That's only three cents away from the record that was set last August when it was $1.74. And taking a look at some cities across the country, Los Angeles, as we said, it's high, about $2.20, Las Vegas, nearly $2.10, New York, almost $1.90, Chicago, about $1.80, and Washington, D.C., $1.70.

Now, earlier today, I talked to some customers here to see if they were experiencing any sticker shock.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It just seems to be going up and up. It's surprising how fast gasoline prices are going up these days.

UNIDENTIFIED FEMALE: I feel as though these gas prices are going up by the minute. It's really, really ridiculous.

(END VIDEO CLIP)

RAMBERG: Now, unfortunately, for these customers and also drivers across the country, analysts are saying we shouldn't expect to see relief too soon, they say. We may see some more records set near the end of this week and next week. And then prices should go down and then they'll probably go up again in the summer because they always do -- Kyra.

PHILLIPS: All right, J.J., start whipping out the bicycles. Thank you.

Is the quality of life in Iraq better now that Saddam Hussein is gone?

Well, CNN's Dr. Sanjay Gupta goes back to Iraq to help answer that question with a look at medical care.

And in today's reality TV watch, Missy Elliott gets in the game, another chance for average Americans to break into show business.

(COMMERCIAL BREAK)

PHILLIPS: The top U.S. commander in the Persian Gulf region appears before the Senate Armed Services Committee for a second day. General John Abizaid told committee members Americans in Iraq are still working to define the security threat there.

(BEGIN VIDEO CLIP)

GEN. JOHN ABIZAID, CMDR., U.S. CENTRAL COMMAND: In November, I was fairly clear that the main threat in Iraq came from former regime elements, ex-members of the Iraqi intelligence services, the Republican Guard units, special security organizations, etcetera. And after the capture of Saddam Hussein, to a certain extent, we saw a diminishment of their activity. But they continue to play an important role in the insurgency that is being conducted in the area of Baghdad, Ramadi, up into Tikrit.

(END VIDEO CLIP) PHILLIPS: General Abizaid also says that the nature of the terrorist tactics are changing, focusing more and more on emerging Iraqi security forces.

A grim diagnosis for Iraq's health care system. What will it take to save it?

Well, CNN medical correspondent Dr. Sanjay Gupta goes back to Baghdad to examine the problem more closely.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): This hospital in Baghdad specializes in pediatric care. It's not enough, though, to meet the challenges. And according to the Iraqi minister of health, 1 in 10 infants will die before they are a year old.

Antibiotics that save lives and costs just pennies in the United States are in short supply. These women, for example, are at risk of dying from routine infections. Sadly, the Iraqi health system that 30 years ago was the finest in the Middle East needs more than a financial band-aid. It needs to be completely overhauled.

TOMMY THOMPSON, HHS SECRETARY: What we're going to do as a department is to collaborate and to cooperate and to partnership with the people in Iraq to rebuild that medical system back to what it was in the 1970s.

GUPTA (on camera): Without question, Iraq's health system has faltered. Some believe because of a cruel dictator who made his people pay for the embargoes placed on his country. Others believe three wars and 20 years were more to blame.

(voice-over): To be sure, best estimates say Iraq spent around $20 million on health care in 2002. That's about 68 cents per person. This year, the expenditure will be close to 900 million, or about $40 per person -- most of that money from oil revenues. For reference, in the U. S. , around $4,000 is spent per person by the government.

Starting from scratch will not be easy, but both Americans and Iraqis agree that is what needs to be done. For too long, little or no money was spent on the infrastructure needed to provide basic care and prevent disease; $900 million may change that slowly.

Dr. Sanjay Gupta, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Well, the doctor probably won't approve of this, but there's a new perk for smokers, light up limo style.

And get ready, Cincinnati. Jerry Springer, he's coming back and he's on a mission.

(COMMERCIAL BREAK)

(MARKET UPDATE)

PHILLIPS: We'll check entertainment headlines this March 4. Would you want the political endorsement of this man? Talk show host Jerry Springer says he'll move back to Cincinnati, Ohio, in April or May to help campaign for Democrats in the state. Do they really want his help? Well, a study last year found that 71 percent of those surveyed had an unfavorable opinion of Jerry Springer.

In music news, Missy Elliott is ready to hip-hop aboard the reality bandwagon. She'll take along a posse of wanna-be performers on her upcoming tour. They'll compete for a chance to perform themselves. They'll also try not to be voted off the tour bus in each episode.

And why do we love a good showbiz divorce? Because we get to find out what it's like to be rich, Lionel Richie rich. His soon-to- be ex, Diane Richie, has filed a spousal support document saying she needs at least 300k a month to spend on, you know, clothes, cosmetics, an astonishing amount on hair removal procedures. You can check out the whole laundry list on the TheSmokingGun.com.

One of the country's most stringent smoking bans has been on the books since last year. Club and restaurant owners in the big apple feared a lot of businesses would go up in smoke.

CNN's Jeanne Moos found at least one place that figured out a way to get around the law.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Talk about a perfect match. Smokers in a limo, a smoker's speak easy on wheels, though it never goes anyplace.

(on camera): This is the most politically incorrect vehicle on the planet.

(voice-over): If you think limos are something stars get out of, imagine one that smokers get into.

UNIDENTIFIED FEMALE: I'm sorry. We're like smoking in front of your face.

MOOS (on camera): I don't care.

(voice-over): Every night the smoking limo sits outside DavidBurke and Donatella's restaurant where New York City's anti- smoking laws mean you can't even have a cigarette with that martini.

UNIDENTIFIED FEMALE: Puff your brains out, baby. Hi.

MOOS: The restaurant spends over 1,000 bucks a week to have this stretch Ford Excursion parked outside. Seats 24 smokers.

UNIDENTIFIED FEMALE: It's nice to do it in style.

UNIDENTIFIED FEMALE: Not feel like a smoker.

UNIDENTIFIED FEMALE: I feel like a loser standing outside.

MOOS: No more freezing. Even non-smokers can't resist.

UNIDENTIFIED MALE: I don't smoke. But this is wild. I'll take it up.

MOOS: Complete with lava lamps and music. Sometimes what's burning is passion rather than cigarettes. Ask Owen the driver.

OWEN CHAMBERS, LIMOUSINE DRIVER: And she had her dress over her head.

DAVID BURKE, CO-OWNER, DAVIDBURKE DONATELLA: I was, like, hello. It's a smoking limo.

MOOS: He's David Burke the chef. She's co-owner, Donatella. The two plan to park a smoking horse and buggy outside the restaurant come spring, and maybe even a cigarette boat come August.

BURKE: Leave it on a trailer, little step stool up.

MOOS: The smoking limo even comes supplied with gum and breath mints. Come on, baby, light my limo.

UNIDENTIFIED FEMALE: We're all fine on nicotine out here.

MOOS: Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: Well, that does it for LIVE FROM. We're going to light up another hour, take you through political headlines, "JUDY WOODRUFF'S INSIDE POLITICS" -- hi, Judy.

JUDY WOODRUFF, CNN ANCHOR: Hi, Kyra.

Well, he's not out on the trail today, but there's no letup for John Kerry. Coming up, we'll take a look at Kerry's very large to-do list. Plus, will the controversy over gay marriage help or hurt President Bush in his bid for reelection?

These stories and much more when I go "INSIDE POLITICS" in three minutes.

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