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How Will U.S. React to Attacks in Fallujah?; Wisconsin College Student Found; Getting Some Sleep

Aired April 01, 2004 - 12:57   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: Dead Americans dragged through the streets of Fallujah with more attacks today. How will the U.S. react?
(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hunt down the criminals, we will kill them or we will capture them and we will pacify Fallujah.

(END VIDEO CLIP)

ERIC PHILLIPS, CNN CORRESPONDENT: A Wisconsin college student who was once missing mysteriously is now found. Now police continue the hunt for her alleged abdicator. I'm Eric Phillips. The latest in a live report coming up.

PHILLIPS: OK, you've tried the warm milk, counting sheep, maybe even a little pill now and then. To no avail. Find out what really works when it comes to getting your Zs.

And before you reply to your e-mail today, watch our segment on April fool's pranks. This stuff is nuts. And could really trip you up or make your day depending on which side of the joke that you're on.

From the CNN Center in Atlanta, we promise no jokes here today. I'm Kyra Phillips. It is April 1, Thursday. CNN's LIVE FROM starts right now.

More flareups of violence in Iraq, in the wake of yesterday's grisly killings in Fallujah. Roadside bombs hit a convoy near Baghdad, traveling under U.S. military escort. Two drivers are wounded. CNN senior international correspondent Walter Rodgers joins us now live from Baghdad with the latest -- Walt.

WALTER RODGERS, CNN SR. INTERNATIONAL CORRESPONDENT: Hello, Kyra. There was a startling admission and acknowledgement from a top U.S. general here in Iraq today. He seemed to be saying that the Americans temporarily lost control of Fallujah, the town yesterday in which four civilian contractors were brutally murdered and butchered. General Mark Kimmitt said U.S. forces will return to Fallujah. He promised it would be pacified. But again, there was very clear frustration and cold fury on the part of U.S. officials today. They suggested that the problem they're having in Fallujah is they're getting no cooperation from the local Iraqi officials. No one is cooperating with them, helping them to try to capture those responsible for that terrible, terrible murder of the four civilian contractors. U.S. officials are speculating now that those responsible for this crime may indeed have been former Iraqi intelligence officers who once worked for Saddam Hussein.

They are certainly calling them Iraqis, which is very interesting because they are not saying these are foreign fighters or terrorists. They acknowledge that this resistance, this crime was committed by Iraqi nationals.

Again, it's been a very frustrating day for U.S. soldiers here or for U.S. officials here simply because they're not getting any cooperation from the officials in Fallujah in solving this crime. They promise they will.

Also another blip on the radar screen coming up. There's a Shiite holiday called arbiyeen (ph) and it is the tenth of April. U.S. officials are bracing for more violence then. The Shiites have always been victims of the kinds of bombings, the large scale bombings here and U.S. officials are virtually acknowledging that may be inevitable on April 10 -- Kyra.

PHILLIPS: Walter Rodgers live from Baghdad, thank you.

Well, the bodies were dragged through the streets. Now the U.S. military is promising a precise and overwhelming response to the deaths of four American contractors yesterday in the Sunni Triangle.

CNN's Jamie McIntyre is standing by live at the Pentagon with more on this -- Jamie.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, Kyra, the Marines who are in charge of that area are from the 1st Marine Division and coincidentally their division motto is "no better friend, no worst enemy" and that encapsulates the strategy that they're going to try to employ here over the coming days.

They're going to be trying to hit back very hard against the suspected insurgents inside Fallujah, conducting raids they say at their place and time of choosing to hunt down the criminals. Today, General Mark Kimmitt again vowed very angrily that the Marines would step up to the task.

(BEGIN VIDEO CLIP)

BRIG. GEN. MARK KIMMITT, U.S. ARMY SPOKESMAN: Quite simply we will respond. We are not going to do a pell-mell rush into the city. It's going to be deliberate. It will be precise and it will be overwhelming. We will not rush in to make things worse. We will plan our way through this and we will reestablish control of that city and we will pacify that city.

(END VIDEO CLIP)

MCINTYRE: Tough words from General Kimmitt there in Baghdad but, again, the United States now stepping up its response, reassessing its strategy, which was to allow Iraqi police to try to take the lead role in providing security with U.S. forces in the background.

They're now going to be stepping up some of those Marine patrols, specifically trying to hunt down the insurgents while, at the same time, increasing the aid to build schools, clinics, provide aid to the people of Fallujah to try to win their hearts and minds as well.

Now, as I said, they haven't rushed back in. In fact, one of the journalists at the briefing today asked General Kimmitt didn't it send a message of weakness that the -- that no American forces went in to retrieve those bodies that were mutilated yesterday until very, very late in the day?

He said doesn't that send a bad message that the U.S. is tolerating the violence? And, General Kimmitt simply answered very curtly ask them after the Americans have come back in -- Kyra.

PHILLIPS: Jamie, you mention hitting back hard. Does this mean the rules of engagement will change and there will be a no tolerance policy?

MCINTYRE: Well, no the rules of engagement will stay the same. It's really sort of how you apply those rules of engagement. Up until now the U.S. has been trying very hard to get the Iraqis to provide for their own security in Fallujah.

I mean they recognize there's a lot of anti-U.S. sentiment in that area and they don't believe they're going to solve the problem until Iraqis are in control but they're sort of going back to their previous strategy of having a greater U.S. involvement in the security, particularly in trying to hunt down the perpetrators of these kinds of acts of terror, while at the same time, again, increasing aid, trying to have a carrot and stick approach where they try to win over the population, get more intelligence but not send the sign of weakness that the U.S. is going to hunker down or step back because they've been the victim of these attacks.

PHILLIPS: Jamie McIntyre, live from the Pentagon, thank you.

The four contractors who were killed in Fallujah worked U.S.- based Blackwater Security Consulting. That company is one of many that supplies security in the United States and overseas.

Discussing this, Mike Brooks for a closer look at Blackwater and companies like this. Mike, you actually went through training with Blackwater, didn't you?

MIKE BROOKS, CNN CORRESPONDENT: Yes, Kyra, I have trained there. In fact, I even did a story there on the federal flight deck officer program and I can tell you there's a lot of companies that since 9/11 have sprung up, security companies that are using contractors in Iraq.

Some of these it's become almost a cottage industry and some of these folks over there, security consultants over there and have been back have told me there's a lot of cowboys but Blackwater is one of the professional companies that's working in Iraq. It started in 1996. They're based in Moyock, North Carolina, just a short distance from Little Creek, Virginia, which is the home to the East Coast Navy SEALS.

Now it's a 6,000-acre facility that has trained over 50,000 people since they've opened up. Now they train all kinds of different clients. Their training includes, among other things, firearms, tactical training, canine training and security training.

Some of their clients include local, state and federal law enforcement, Department of State, Department of Transportation, multinational corporations that come there for training and the Department of Defense.

Now those four contractors, those four Blackwater employees that were killed in Fallujah they were there as subcontractors for the Department of Defense and they were escorting a food supply for the Iraqi people.

Now, Blackwater, you might say what kind of people would want to do this? What kind of people work there? Well, Blackwater recruits former Special Operations personnel, former law enforcement that have a military background.

Again, these are professionals, Kyra. These are not cowboys that are out there as soldiers of fortune. These are people who get out of the military, are looking for a profession and they provide a profession as well as law enforcement.

I know some people that are working for Blackwater and over there right now. I heard from one of those people, told me that he was OK but, again, I want to stress that these are professionals not cowboys.

PHILLIPS: And you're talking about basic -- I asked you this question why wouldn't these guys or these contractors have had security with them? Well, they are the security so the question now is will the security consultants need added security?

BROOKS: Well, that's a good question and that will go back to the Department of Defense on whether or not they do have the manpower to provide additional training.

But again, Kyra, there were four of these people escorting a food convoy and these four people were professionals. As I said, they recruit from the Navy SEALS, from other Special Operations groups and they're professionals. They're there to do a job but it remains to be seen whether or not they'll need extra protection. This is a dangerous, dangerous place.

PHILLIPS: Well, Mike, I wonder too if this training might change at Blackwater, specifically courses on ambush, booby traps.

BROOKS: Well, they go through that. The people who are sent overseas they go through some additional training there at Blackwater before they're sent overseas and some of that is in medicine, emergency medicine, booby traps, bombs and explosives, recognition of bombs and explosives, extensive weapons training.

There at Blackwater you have live firehouses so they can actually put in conditions that they may run into in Iraq. They can train for that before they go over there.

PHILLIPS: Our Mike Brooks thanks.

Police fanned out across Europe today and arrested 54 suspected members of the Turkish militant group. Most were arrested in Turkey but raids were also carried out in Germany, Italy, Belgium and the Netherlands. Police say the suspects belong to a Turkish Marxist organization responsible for a number of attacks in Turkey and elsewhere.

In Spain, authorities think they've identified a key figure in the Madrid train bombings. Arrest warrants, viewed by CNN, accuse a Tunisian man of coordinating the attacks and indoctrinating others in jihad. The warrants say that he is one of six suspected Islamic militants being sought in last month's bombings, which killed at least 190 people. The other five are from Morocco.

Well, we want to look back now at one of the (unintelligible) images from the Iraq War. One year ago today, U.S. forces rescued Private First Class Jessica Lynch from a hospital in Nasiriyah. Lynch had been captured during an ambush instantly dubbed a hero.

Well, she has returned to West Virginia and the Associated Press reports that she still spends hours a day in physical therapy. She's created a foundation to educate the children of veterans.

On now to the baffling disappearance and reappearance of a University of Wisconsin student in Madison. Twenty-year-old Audrey Seiler was found alive and healthy yesterday not more than two miles from where she was last seen four days earlier. Now police have some questions for her.

Eric Phillips live from Madison, Wisconsin now with the latest -- Eric.

E. PHILLIPS: Kyra, good afternoon to you.

We're here at the Madison Police Department and, as you say, they have many questions for her. They plan on questioning her today during an interview session that will last for hours they say.

Of course they're continuing their search for the alleged abductor of Audrey Seiler. Meanwhile, as you mentioned, she was found yesterday cold and dehydrated but most of all alive.

(BEGIN VIDEOTAPE)

E. PHILLIPS (voice-over): Friends and family say they never gave up hope of finding 20-year-old Audrey Seiler alive.

STEPHANIE SEILER, AUDREY'S MOTHER: Right now we're just focusing on being together and holding each other and hugging each other. E. PHILLIPS: A passerby spotted Seiler Wednesday afternoon in a marshy area two miles east of the University of Wisconsin in Madison where she is an honor student.

She had been missing since Saturday after a surveillance camera caught her leaving her apartment with no coat or purse. Hundreds took part in all-out search for Seiler, including many from her home town of Rockford, Minnesota. The ordeal was a wake-up call for others.

UNIDENTIFIED FEMALE: It was really scary just like hearing about it and I definitely felt a little bit less safe, just like walking around the campus knowing that one of the students was missing.

E. PHILLIPS: Police are now hunting for a suspect who Seiler says kidnapped her at knifepoint. They're using dogs, helicopters and infrared thermal imaging. Authorities are equally as interested in getting more details from Seiler. They plan to interview her about this incident and an assault she reported in February.

UNIDENTIFIED MALE: I anticipate the interview with Audrey is going to last several hours. It's just something that we're going to have to take our time with and make sure that we have the correct and accurate information from Audrey.

(END VIDEOTAPE)

E. PHILLIPS: In that February incident, Audrey Seiler reported that she had been attacked from behind and that she had been knocked unconscious as she was walking one night after midnight. She says she woke up behind a nearby building but that she had not been robbed nor seriously injured -- Kyra.

PHILLIPS: Eric, has the question been raised, is it being discussed that possibly this could be a hoax?

E. PHILLIPS: The question has definitely been raised. Police have not raised it officially but certainly citizens around here have been asking that question because there are so many unanswered questions. It's forcing people to come up with their own theories and, of course, that's one of them.

Police, however, are only officially saying that the circumstances surrounding this abduction or this alleged abduction are very interesting and they're saying that they want to question her and find out more information about the "unique circumstances."

PHILLIPS: Eric Phillips live from Madison thanks Eric.

Last year one of the big stories was the Elizabeth Smart case. She was found safe and sound months after she was abducted. Today in Utah there's a hearing over reporters in the courtroom for Brian David Mitchell's competency hearing. Mitchell is accused of kidnapping Smart. His attorneys have asked that his competency hearings be closed to the media and public.

Think she'll send a thank you note? Maybe so if an outspoken juror's past keeps Martha Stewart out of the slammer.

What hot commodity does John Kerry have more than any other Democrat in campaign history? Here's a hint. Even Bill Clinton couldn't raise this much.

And location, location, location, ladies apparently being there is half the game when it comes to winning Prince William's heart.

LIVE FROM's spring fever continues right after this.

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(WEATHER FORECAST)

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CHAPPELL HARTRIDGE, MARTHA STEWART JUROR: The one thing we wanted to get clear was we had very important decisions to make. We had people's lives in our hands. Well, she committed a crime and she got convicted.

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PHILLIPS: Juror Chappell Hartridge speaking out last month after finding Martha Stewart guilty of stock fraud. Now he's at the center of a legal motion seeking to have Stewart's conviction overturned.

Hartridge allegedly lied on a pretrial questionnaire when he did not mention he'd been arrested in the past and charged with domestic violence. Stewart's lawyers say if they'd known about his run-in with the law, they'd have kept Hartridge off the jury.

And it's day eleven of the deliberations in the trial of two former Tyco executives accused of ripping the company off for $600 million. Last week a dispute among jurors threatened to derail the trial.

CNN Financial Correspondent Allan Chernoff joins us now with the latest on where things stand -- Allan.

ALLAN CHERNOFF, CNN FINANCIAL CORRESPONDENT: Kyra, the jurors walked into the courtroom for about 40 minutes this morning. They heard a re-reading of their instructions for the conspiracy charge and the securities fraud charge against Dennis Kozlowski and Mark Swartz, the former top two executives of Tyco.

And since then the jury has been deliberating now in day number eleven. That perhaps is a reflection of how complicated this case is. It's been going on for more than half a year now. There were 49 witnesses to take the stand, about 700 exhibits and it's even gotten very confusing for the jury.

Late yesterday, the jury asked for some exhibits that don't even exist and for other exhibits for which they've already received information in the jury room. So, Kyra, the deliberations going on and lots of people are hoping to have some resolution before very long -- Kyra.

PHILLIPS: Well, what's the talk, Allan? What are lawyers saying? Do they think they'll get a verdict soon?

CHERNOFF: Well, just a few moments ago, Charles Stillman, the lead attorney for Mark Swartz told me hey, it's April Fool's Day, anything could happen today so at least he's keeping a good sense of humor about it.

PHILLIPS: All right well I'm going to make sure you're not joking if indeed there is a verdict. Allan Chernoff live from New York thank you.

Well don't ever say LIVE FROM never does anything for you. It's going to be a touch weekend ahead for those who savor their sleep so we've go tips to help get you through to switch to the Daylight Savings Time.

DANIEL SIEBERG, CNN CORRESPONDENT: I'm Daniel Sieberg. Coming up on LIVE FROM, you might receive a few pranks in your in-box and on your cell phone today. I'll play the role of the spoiler coming up later this hour.

PHILLIPS: Well, they might look happy on TV but America's favorite cartoon family reportedly is bonding together over cold hard cash. LIVE FROM's got the details coming up.

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

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PHILLIPS: Daylight Savings Time starts this weekend. That means you'll have to spring forward and lose an hour of sleep. It's kind of a bummer but there are ways to make sure you always get a good night's sleep and keep yourself in good health too.

Medical Correspondent Holly Firfer explains.

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HOLLY FIRFER, CNN MEDICAL CORRESPONDENT (voice-over): Want to know how you can help prevent diabetes, hypertension and obesity? Get a good night's sleep. Impossible you say, especially since we'll be setting the clocks forward losing a precious hour of sleep no one can afford.

Well listen up. There are some simple solutions from the National Sleep Foundation to be sure you get the seven to nine hours of sleep recommended for adults and ten to eleven hours school-age children need to stay healthy.

First off, forget it's Saturday. We all look to the weekend as a time to catch up on sleep but sleep experts say it's important to keep your body clock on the same time, no more lazy weekend mornings. You should get up at the same time every day.

If you need a few extra hours of shuteye you can take a nap but only if it's for an hour or less and before 3:00 p.m. Otherwise, you run the risk of having trouble falling asleep at night.

While you're awake expose yourself to as much daylight as possible. A 45-minute daily walk outdoors is recommended. No caffeine between four and six hours before you go to bed and no more than two alcoholic drinks per day. Some suggest no drinks up to four hours before bedtime.

Exercising after a long day can relieve stress but it revs you up, so sleep docs say doing so too close to bedtime can keep you awake as can the stimulant effects of nicotine, so no smoking either.

Use your bedroom for sleep and sex. Do not use it as an office, a place to read, or watch TV. And, if you have trouble sleeping or wake up in the middle of the night, leave the bedroom and go read or listen to relaxing music. Go back to bed when you're sleepy and, whatever you do, don't look at the clock. This will just stress you out and keep you up.

And, as we lose an hour of sleep Saturday night, sleep experts say don't sleep in on Sunday to make up for that lost sleep. Start the transition today. Go to bed 15 minutes earlier each night so you body clock won't be telling you the wrong time.

Holly Firfer, CNN, Atlanta.

(END VIDEOTAPE)

PHILLIPS: Well, for more health news, remember you can always click on to cnn.com/health.

And if funky dreams are keeping you up at night, well let radio's dream doctor tell you what it's all about. Friday on LIVE FROM, he'll interpret your most twisted dreams.

OK, I'm just now looking at the cute little graphic. I promise we don't wear hats like that when we got to sleep or caps or whatever you want to call them. Just e-mail the dreamy details to livefrom@cnn.com, the sooner the better of course and just maybe we can help you get a more peaceful eight hours, nice robe. Thanks, Scott.

All right, U.S. and Canadian officials say that they've made a huge drug bust. Yesterday, law enforcement agents from both countries broke up what they call a major Asian criminal organization. That group allegedly made an estimated $100 million making and distributing ecstasy throughout North America.

In all there were busts in 16 U.S. and three Canadian cities. The raids ended a two year investigation of a syndicate thought to be responsible for as much as 50 (ph) percent of all ecstasy smuggled into the U.S. Energy Secretary Spencer Abraham testified before a House committee this morning as gas prices have reached record highs but prices at U.S. pumps are actually much lower than in many countries.

Rhonda Schaffler dares to compare, hi Rhonda.

RHONDA SCHAFFLER, CNN FINANCIAL CORRESPONDENT: Hi there, Kyra.

It may feel like the price we're paying for a gallon of gas in the U.S. is a lot. It's $1.80 on average but drivers elsewhere around the world might consider that a bargain.

Motorists in Hong Kong shell out nearly $5.50 per gallon. In London and Paris around $5.00. On the flipside you'll find the cheapest gas in Venezuela. That's because it's a major oil producer. The oil is government owned and local prices are kept low as a benefit to citizens there.

The main reason for soaring prices elsewhere government policies. Taxes make up as much as 75 percent of gas costs in some European nations -- Kyra.

PHILLIPS: Rhonda, there's big changes afoot at the stock exchange I'm told.

SCHAFFLER: That's right, a little bit of spring cleaning here, out with the old, in with the new. Three big name companies are getting kicked off the Dow Jones Industrial Average, AT&T, Eastman Kodak and International Paper. Taking their place Pfizer, Verizon and the insurance giant AIG. The news was taking a toll on shares of the booted companies.

Overall, though, the market trend is positive today. The Dow Industrial Average up 17 points, the NASDAQ half of one percent higher. That is the latest from Wall Street.

Coming up, consumers may scream over the price of ice cream this summer. Details later this hour.

And there's a lot more LIVE FROM coming up after the break.

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PHILLIPS: Poised to sign new legislation protecting the unborn. During a ceremony this afternoon, President Bush is scheduled to sign the Unborn Victims of Violence Act. That new legislation will make it a crime to harm a fetus while committing a federal crime. A number of states already have similar laws.

Final highway construction plan or simply a budget buster? The House today takes up a $275 million highway bill. Supporters say it will improve the nation's roads, create new jobs and the White House is not sold on it. If the bill reaches the president's desk, senior advisers say they'll recommend that he veto it because it's just too expensive. A political milestone for Senator Robert Byrd of West Virginia. Today he cast his 17,000th vote. Byrd was elected to the Senate in 1958.

Other news across America, a murderous mother or a textbook case of insanity? The defense begins laying out its case in the capital murder trial of Deanne Laney (ph) in Tyler, Texas. A psychiatrist testified today Laney did not know right from wrong when she stoned her three sons, killing two of them. She has pleaded not guilty by reason of insanity.

An explosion at the pump followed by an arrest at home, a New Hampshire man is charged in the blast at a Maine convenience store. Police say he was driving drunk when he smashed his truck into a gas pump then drove away. Another motorist followed him home.

And you could call him President Bush's youngest fan. Now he's in trouble with the law. A New Hampshire teen faces criminal charges after police say he voted in the primary under his father's name. At 17, the boy is too young to vote.

So, do you want to be the president? Better know how to load up that war chest because campaigns these days don't come cheaply.

CNN political guru Carlos Watson checks in from San Francisco to run the numbers for us including a new record for the Kerry campaign. All right, let's talk numbers. First of all have you started saving money, Carlos, for your campaign?

CARLOS WATSON, CNN POLITICAL ANALYST: Kyra, you take way too good care of me but that's why I love coming back to join you every time.

PHILLIPS: There you go. I've been talking to your mother again. OK. Let's talk about John Kerry and give us the numbers.

WATSON: So, John Kerry is going to announce tomorrow that he's raised more money in one quarter than any Democrat ever and when I say more money, I don't mean just a little bit more, Kyra. I mean he's going to smash Howard Dean's former record of $14.8 million.

You remember six months ago, Howard Dean raised $14 million, almost $15 million. At the time, it was more than any Democratic presidential candidate ever raised in a quarter. Everyone talked about how he transformed fund-raising for Democrats with the Internet.

And now, John Kerry is coming along tomorrow and is going to tell you, Kyra, that he raised not twice as much but almost three times as much and is now ready to fight with President Bush in a very serious way.

PHILLIPS: Well, let's talk about what that says about John Kerry and what's the last record financially?

WATSON: So the last record, again, was $14.8 million for Howard Dean and now John Kerry's gong to raise north of $40 million tomorrow but I think it says...

PHILLIPS: I thought Clinton was in there. Wasn't Bill Clinton?

WATSON: Back in '96, as an incumbent, President Clinton had the record with about $10 million in a quarter.

PHILLIPS: OK.

WATSON: So, when Howard Dean came along last year and raised $14.8 million they said, wow, small town governor who is raising more than a sitting president.

PHILLIPS: So, do you think Dean and Kerry should team up here? They seem to make the most money.

WATSON: Well, in some ways they already have. I mean if you think about the $40 million that John Kerry is raising, a substantial portion of that, probably north of $10 million will come from the Internet and so while he didn't pioneer the use of the Internet for fund-raising, certainly he's piggybacked off of what Howard Dean has done.

And the fact that Howard Dean said a couple weeks ago that he's going to start to help John Kerry means that the next quarter may even be better than this quarter, so those people who live in battleground states get ready for a lot of ads this time from the Democratic side.

PHILLIPS: All right. Let's talk about what this means, the fact that John Kerry's been able to raise so much money. Is it because he is so popular? Is it because more people are involved in politics? Is it because of 9/11 and people see the presidency in a different way now and what should happen when it comes to running this country?

WATSON: I think all those things, Kyra. In fact, I'd probably point to four things, one the fact that he wrapped up the nomination earlier than any Democrat ever has, has allowed him really to kind of unify the party and put money together.

Two, I think the fact that the last election was so close and so bitterly divided, obviously with the Florida recount, I think has a lot of Democrats saying we can't take this for granted. We really need to pony up if we're serious about it.

Three, I think the issues are very different this time. Remember in 2000, we had a relatively healthy economy. We weren't talking about war and an attack on our soil and so I think people are much more serious about this and the issues, the issue difference between the candidates is so stark that I think you see Democrats obviously ponying up, by the way not just to Kerry but to these other groups.

And last but not least, I think that you're seeing a real interest on the part of Americans. You know the latest poll shows that close to two-thirds of Americans think that this election is important and are paying attention, whereas last time at this time it was about 45 percent. So, all those I think are reasons that John Kerry is able to raise a lot more money and why obviously President Bush also has been even more successful having raised close to $200 million at this point for his entire campaign.

PHILLIPS: And as you look at that money that's been raised, just real quickly I'm curious to see what you think about sort of the younger generation and its involvement. You know the story we ran just before you, this 17-year-old voting under his father's name, are you seeing more the youth getting involved this time around? Is that making an impact or not?

WATSON: Not yet. I mean in recent times still the best turnout we had among young voters and, by the way since 18-year-olds got the right to vote in '72 it's kind of steadily declined, was '92 where more young voters showed up at the polls. But, again, the numbers have gone south.

So far not yet but, again, John Kerry was on MTV earlier this week and Reggie the Registration Bus, the Republicans registration vehicle was there and kind of profiled. So, you know, we'll stay tuned.

One of the other last things I'll add is that rap impresario Russell Simmons is actually leading a major effort to get two million young people, additional young people to turn out to vote, so maybe he'll be successful.

PHILLIPS: Carlos Watson, thank you.

WATSON: Good to see you.

PHILLIPS: Good to see you too.

Other news around the world now, U.S. Secretary of State Colin Powell arrived in Brussels today where he'll meet with NATO leaders to talk on improving peacekeeping measures in Iraq. Earlier, Powell was interviewed on German television. He says the U.S. will not be run out of Iraq despite yesterday's brutal attacks in Fallujah.

Leaving no stone unturned in Bosnia/Herzegovina, more than three dozen NATO troops stormed a residential building in search of wanted war crimes suspect Radovan Karadzic today. Efforts to capture the former Bosnian/Serb leader have been ratcheted up since January.

And more bloodshed in Uzbekistan, an alleged suicide bomber blew herself up earlier today killing one man and critically injuring herself. This was the latest bloodshed in a violent week that began last Sunday when an explosion killed ten people.

One official is blaming al Qaeda for the string of attacks which have killed at least 44 people, most of them alleged terrorists. Uzbekistan is a key U.S. ally, as you know, in the central Asia region.

It sounds like stuff of science fiction, a remote-controlled plane that can be sent to drop a bomb without risking the life of a pilot.

CNN Pentagon Correspondent Barbara Starr says attack drones are already being tested and debated.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): A perfect day for flying earlier this month in the California desert. The experimental X-45A drops a 250-pound bomb.

Just one thing, there is no cockpit. There is no pilot onboard. Ground station operators are miles away. This is the first time an unmanned warplane has dropped a weapon. This is the future of warfare. The Pentagon is testing unmanned warplanes hoping to make them part of the U.S. arsenal.

For the first night of the war in Iraq, it would have been the ultimate stealthy weapon flying towards Iraqi radars and missiles without risking a U.S. air crew.

MICHAEL FRANCIS, PROGRAM DIRECTOR, DEFENSE ADVANCED PROJECTS: We can spot that threat before he spots us.

STARR: These unmanned aircraft will be able to fly at 40,000 feet and at the speed of commercial airplanes, more capable than current drones. Fleets of unmanned airplanes will move across enemy airspace, some conducting surveillance through onboard cameras, some dropping bombs.

But question of ethics, even with a human operator able to see the target through onboard sensors, should what is essentially a flying computer be used to attack?

MICHAEL O'HANLON, BROOKINGS INSTITUTION: You could imagine an unmanned vehicle correctly finding a target but then maybe a train passes by that target at just that minute with a lot of women and children onboard.

STARR: The Pentagon says there are limitations.

FRANCIS: We still haven't replaced the human computer. The digital computer as good as it is can't do some things that we do very well.

STARR (on camera): The Pentagon says humans will always be involved in the decision to fire but if a plane can be ordered to drop a weapon by someone a continent away that will give the Pentagon a 21st Century battlefield advantage.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

PHILLIPS: We're going to take you live to the White House now with Scott McClellan addressing reporters, talking about Fallujah at this time. UNIDENTIFIED FEMALE: ...al Qaeda attacked America away from American soil but why not (unintelligible).

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: We're talking about one speech here and look at the actions and steps that we were taking prior to September 11. I think that's what you need to look at to measure our commitment to addressing this high priority.

There obviously -- she's the national security adviser, April. She's responsible for overseeing our efforts to implement the important priorities of this administration when it comes to foreign policy.

And certainly there are a number of important priorities on our foreign policy agenda, whether it's terrorism, whether it's going after rogue states or confronting rogue states that seek weapons of mass destruction or have weapons of mass destruction, whether it's addressing the proliferation of weapons of mass destruction or missile defense or other priorities.

You need to keep in mind -- you need to keep in mind that it's not necessarily an either/or proposition here. These aren't mutually exclusive. Confronting one can help us address the other.

UNIDENTIFIED FEMALE: OK. On an other subject on OPEC, Reverend Jesse Jackson is asking that this administration look at other resources in the wake of OPEC cutting its production.

He's saying since America, since the White House is dealing with having a partnership with Africa with all these democracies there and it's a oil rich, mineral rich nation or continent, why not go to Africa and try to work out something in the long term, maybe build infrastructures in some countries to help with our problem here?

MCCLELLAN: Well, that's assuming we're not looking at some of those ideas but obviously there are producers beyond OPEC that we stay in close contact with. I think what he ought to do is urge Congress to pass the president's comprehensive national energy policy so that we can reduce our dependence on foreign sources of energy so we don't continue to go through this issue year after year. That's what he ought to do.

PHILLIPS: We're going to follow the White House briefing there with Scott McClellan.

Meanwhile, straight ahead making sure the joke's not on you. Everybody's favorite day for fooling around is going high tech. We'll show you how to uncover those tricky e-mail and cell phone pranks.

And this is no joke, the voices of one of TV's most popular shows reportedly goes silent. We'll tell you why.

(COMMERCIAL BREAK)

PHILLIPS: Well, back in the good old days, April fools might rely on standards like goofy glasses or goofy whoopee cushions to get a few laughs.

SIEBERG: All journalistic credibility is going away as we speak.

PHILLIPS: Oh, we are so classy here on CNN. Well there's more elaborate pranks like this one that we call "Foiled Again," but they're still pretty low tech. But, of course, Daniel Sieberg has high tech alternatives, including normal glasses guaranteed to get a response if not a lawsuit.

Remember, we're not sanctioning any of this. We just want you to think about, you know, what's going on and you have a right to know.

SIEBERG: Being aware, being alert, exactly. We're going to be a bit of a spoiler here, Kyra.

PHILLIPS: Oh, no.

SIEBERG: But we're still going to have a little bit of fun.

PHILLIPS: OK.

SIEBERG: I'm going to put on my real glasses here so I can see what's going on. Yes, the first one we're going to talk about, we actually can't name the Web site because of legal reasons and, in fact, you do want to be careful if you're going to use this site.

But the whole idea behind is that it spoofs an e-mail from your boss and looks like when you get this e-mail in your inbox that you're maybe facing some disciplinary action for sending out too much e-mail.

Yes, so this is an example of what the e-mail might look like. It might say, "John, it's come to my attention that you've been using company resources for personal use. As stated in the employee handbook" and it's not going to say Widgets, Inc., it will say the name of your company, "takes this behavior very seriously and any continuation of this will result in immediate termination."

Now, we should point out a few things. First of all, it will look like it comes from your boss' e-mail. When you fill it out it does -- you can choose the domain name and everything, so if you reply back to it, it will go back to that person, so you have to be very careful here.

Also at the bottom of the e-mail message it does have a disclaimer that says, hey you know what, this is a big joke. Now, also on this site there are a couple of other pranks. You're seeing some video of it right now.

One of them you get an e-mail message and it looks like it's come from your university saying, you know what, we're sorry. That diploma you thought you got or that degree, you didn't have enough credits.

So, a little bit of fun here but do be careful, especially on the human resources or the legal side. You want to make sure that maybe people are in on it a little bit or it's somebody you know fairly well, so just be careful. Be forewarned. PHILLIPS: How about -- yes, I was just seeing the scroll down there. What about the imaginary girlfriend?

SIEBERG: Oh, imaginary girlfriends. Now this is a different site. This one we can tell you about. This is at imaginarygirlfriends.com. This is a little different. Imagine if you will that one of your friends tells you that they've suddenly got this amazing girlfriend. She's very attractive.

And we can't show you the pictures of them on this Web site for legal reasons again but what happens basically is you pay about $45 or $50 a month for this service, shall we say, and this girl who is supposed to be real, and we think they are real, sends you e-mail and photos of herself claiming to be your girlfriend.

Now why would you want to do that? Well, you might want to fool your friends into thinking you have an actual girlfriend. We hope that you don't believe that this is a real relationship because the idea here is that it's imaginary and it does say on the Web site please try and distinguish between fantasy and reality.

The best part about it though, Kyra, is when the money runs out, she will actually pretend to be begging to have you back. She'll say, oh I can't believe you've broken up with me. How could you? So, but again, you know (unintelligible).

PHILLIPS: You obviously have no need for that Web site.

SIEBERG: You're too kind. With those glasses you never know.

PHILLIPS: You could get any hot babe. All right, cell phones.

SIEBERG: Yes, cell phones. Well, everybody is familiar with ring tones that are out there. This is a little different. In this case, we're talking about cell phone noises that are in the background.

This is at a site called simeda.com. Now this is if you want to fool somebody, not just on April Fool's Day but any other time of the year and we have an example we can show you.

The idea is that if you're let's say late for work, you're lying in bed and you want to fool somebody into thinking you're on your way to work. You could say, OK, yes, I'm just on my way to work. I'm sorry, I'm stuck in traffic right now. I really can't hear you very well.

I'm sorry if you could just speak up a little. The traffic is horrible on the 85 on the way in right now. I just can't hear a thing. You know what, I'm going to be a little bit late but, you know, I'll try and get back to you, OK.

PHILLIPS: That's pretty smart.

SIEBERG: That was one of them. Yes, it's pretty smart.

PHILLIPS: OK.

SIEBERG: Now there's another one we can show you.

PHILLIPS: All right.

SIEBERG: This is if you're at the dentist's office or you're trying to fool somebody into thinking you're at the dentist's office, you know, really there. You can say, yes, I'm sorry.

I'm just having some dental work done and I don't know if you can hear the drill very well right now. It's supposed to sound like you're at the dentist and the idea being that maybe you're on your way home. Maybe you're not really at the dentist but you're trying to fool somebody into thinking you are.

PHILLIPS: Playing hooky, maybe on the golf course.

SIEBERG: Playing hooky, exactly, right.

PHILLIPS: But now all our bosses here are going to know if we try and pull that off.

SIEBERG: Now this doesn't work for every -- you see this is what we're saying. We're sort of giving this away a little bit. I'm sorry.

PHILLIPS: Sorry.

SIEBERG: But, you know, some people may not know about it. Now we should say this does not work with every cell phone and you do have to obviously pay for this service. They're trying to update it for more and more cell phones in the future.

So, again, please be careful when you're pulling any April Fool's prank on somebody. You do want to maybe just think about it a little bit before you do it, before you execute, before you pull the trigger. Just be careful that's all.

PHILLIPS: I'm really surprised you didn't pull any jokes on me. Thank you very much.

SIEBERG: Well, you were lucky. You were lucky this time.

PHILLIPS: So, I think. Yes, really. All right, Daniel Sieberg.

Well still ahead is England's handsome Prince William off the market? Hum.

Speaking of markets...

SCHAFFLER: I'm Rhonda Schaffler in New York. Not so sweet prices for our favorite summertime treats. That story and a check on all the market action when LIVE FROM continues right after this break.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BART SIMPSON: Actual enemy is the pile?

LISA SIMPSON: I can't believe you went to the movies with the teacher. What happened to the Bart Simpson who put the mothballs in the beef stew?

B. SIMPSON: Hey, I only hung out (unintelligible).

(END VIDEO CLIP)

PHILLIPS: Homer Simpson is looking for a little more dough. Daily "Variety" reports the actors who provide the voices for the Simpsons have gone on strike. They're trying to force a settlement of lengthy contract talks. Their old deal expired just a few months ago.

"Variety" quotes insiders as saying each cast member is looking to pull down about $8 million a season. Right now they each make about $2.75 million. Yes, that's definitely not enough.

The Hollywood walk of fame, the late John Belushi being honored today with his own star. Aside from "Animal House" Belushi may be best known from his stint on "Saturday Night Live" and his role in the "Blues Brothers." You may remember he died of a drug overdose in 1982 at the age of 33.

Prince William is said to be royally upset. "London Sun" tabloid published photos today of the 21-year-old heir to the British throne and his roommate who is rumored to be his girlfriend.

Newspapers like "The Sun" aren't supposed to take pictures of the prince in exchange for an official photo shoot every school term. But the paper said the public had the right to see the pictures saying one of William's girlfriends could one day be the queen.

The other man is a new tell-all book by actor and model Michael Bergin. In it he reveals what he says was a long-running affair with Carolyn Bessette Kennedy, the wife of John F. Kennedy, Jr. The Kennedys were killed several years ago in a plane crash off Martha's Vineyard. Now Bergin wonders if she would still be alive today if she had chosen him over Kennedy.

CNN's Paula Zahn spoke recently with him and a Kennedy family friend about the book.

(BEGIN VIDEOTAPE)

MICHAEL BERGIN, AUTHOR "THE OTHER MAN": She was such a good person, such a giving person that you could only wish her happiness and as long as I knew she was happy I was happy for her whether she was with me or not.

PAULA ZAHN, CNN ANCHOR: And if Carolyn were alive today you say you wanted to write a book that was sympathetic about her.

BERGIN: Yes. ZAHN: You wanted people to know the truth. How could she possibly be happy about this book and the invasion of her privacy?

BERGIN: She'd be proud of the book and she'd be proud of me. She would say thank you.

PAUL WILMOT, FRIEND OF CAROLYN BESSETTE KENNEDY: I think there are one of three scenarios. One it's not true at all in which case it's reprehensible that he's written this. There's nobody to defend her, to refute it. They're all -- they've all passed away and he just did it for money.

The second thing is maybe it's a little bit true. Maybe they had a friendship in which case he's written something that's still erroneous and he did it for money.

The third thing is maybe it is true. If it is true, why write it? I mean why soil the reputation of this beautiful girl and her marriage to the crowned prince of America and the tragedy that surrounded the thing? This guy did it for money.

(END VIDEOTAPE)

PHILLIPS: Well, the author says that he and Carolyn Bessette first started dating while they both worked for Calvin Klein. He says they also saw each other off and on while she was married.

Well if you want to treat yourself to an ice cream cone or sundae this summer be prepared to shell out a bit more cash. Rhonda Schaffler live from the New York Stock Exchange with the details on that -- Rhonda.

SCHAFFLER: Hi, Kyra. If you're hanging out at the ice cream parlor this summer it might cost you a bit more. That's because of near record prices for milk and butter topped with record prices for vanilla and the high cost of chocolate. Retailers must decide whether to raise prices or simply eat those costs -- Kyra.

PHILLIPS: Well, meantime it looks like problems with balancing checkbooks and credit card debt may be around for some time. We know that.

SCHAFFLER: Yes, exactly. We probably don't need this study to tell us this but the Federal Reserve's got a new one anyway and it finds that the financial know-how of high school seniors is "dismal but improving."

On average, twelfth graders given a finance quiz answered just more than half those questions correctly. Right now only four states require students to take a course covering personal finance before graduating.

And, as far as money on Wall Street goes, we'll show you the market action. Stocks moving modestly higher. The Dow Industrial Average up 31 points. The NASDAQ tacking on two-thirds of one percent. Retail stocks moving lower though around the (unintelligible) raised by Merrill Lynch. That means shares of Wal-Mart and (unintelligible) all shedding more than $1 and that is the very latest from Wall Street.

Coming up, call it the blue chip shuffle, a trio of big name companies getting the boot from the Dow Jones Industrial Average, details in the next hour. For now, Kyra, back to you.

PHILLIPS: Rhonda, thank you.

Coming up in the second hour of LIVE FROM, an emotional reunion for soldier and son. A first-grader gets a surprise pickup at school.

(COMMERCIAL BREAK)

PHILLIPS: Outrage and talk of revenge over attacks in Fallujah, the latest from there. How does it play on Arab TV? Find out this hour.

Also coming up...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I'm crying because I was so happy.

(END VIDEO CLIP)

PHILLIPS: Oh, a soldier surprises his son. Grab a hanky for this one, folks, the emotional family moment caught on tape.

Harmless grab for 15 minutes of fame, cogs in the wheels of justice or both, controversial jurors steal the spotlight in high profile trials.

And a loving husband utters those magic words, sweetheart I've got the numbers. What they have to say about winning the second biggest lottery haul in history.

From the CNN Center in Atlanta, I'm Kyra Phillips. This hour of CNN'S LIVE FROM starts right now.

First, Iraq and a decision to deal with Fallujah. After months of resistance in the pro-Saddam stronghold, the brutal killings of four Americans appear to have tipped the scales and there was another attack today. After vowing retribution, the military now is saying it will go in big.

Our report from Baghdad contains images many viewers are likely to find disturbing. Here's CNN's Jim Clancy.

(BEGIN VIDEOTAPE)

JIM CLANCY, CNN CORRESPONDENT: First let's flashback to Fallujah on Wednesday, the horrific scenes around that vehicle in which four security guards were killed. They were American citizens, an angry mob pulling their charred bodies from the vehicles and dismembering them and then hanging them on public display.

That has upset a lot of people. Some Iraqis here in Baghdad excusing it as a reaction to the U.S. occupation. Others, though, expressing shock that the Americans were targeted. They were after all civilians.

Now we had a response today from Paul Bremer, the civilian administrator here in Baghdad. He was speaking to a group of cadets about that incident and he had this to say.

PAUL BREMER, U.S. CIVILIAN ADMINISTRATOR: The acts we have seen were despicable and inexcusable. The violate the tenets of all religions, including Islam as well as the foundations of civilized society. Their deaths will not go unpunished.

CLANCY: All right. That was Paul Bremer and it should be noted that as he had some tough language there, so too did a spokesman of the U.S. military here in Baghdad saying that Fallujah one way or another would be pacified that the U.S. wasn't going to back away from that trouble spot in the heart of the Sunni Triangle. Meantime, the attacks continued. As you noted, it was a fuel convoy that was making its way southward.

(voice-over): It was in northwest Baghdad. First, one roadside bomb exploded. That injured an Iraqi civilian. The convoy pulled up to a halt just as U.S. military escort, military police were sending out a robot to search for any more unexploded roadside bombs another blast tore through the area.

It did not strike the fuel trucks themselves the obvious target in all of this. There was no fire that was caused by it. What there was were there were some shattered windshields and one driver had to be treated for either shrapnel or glass wounds that he received. It's not clear yet whether he was a U.S. citizen, a U.S. soldier or more likely a contractor, perhaps a foreign national.

(on camera): So that, as you see it, another difficult day for the U.S. military here in Iraq even as they're trying to come to grips with those horrific scenes that played out yesterday from Fallujah.

(END VIDEOTAPE)

PHILLIPS: What happened in Fallujah is also the talk of the town in Washington.

CNN's Sean Callebs has been engaging in the fallout on Capitol Hill. He joins us now live from Washington. Sean, what's the talk?

SEAN CALLEBS, CNN CORRESPONDENT: Good day to you, Kyra.

Certainly the talk here in Washington, D.C. and the majority of the people here in the nation's capital found out about what happened in Fallujah the same way people across the world did in those graphic images that were broadcast on TV beginning late last night and then also in newspapers today, as editors struggled with exactly what to put in those. Now, various news conferences, regularly scheduled meetings on the Hill, it is also coming up. A lot of lawmakers are voicing their utter contempt, their utter disgust for the way this played out. In fact, it came up during a terrorism meeting today on Capitol Hill. Let's take a listen.

(BEGIN VIDEO CLIP)

REP. NICK SMITH (R), MICHIGAN: Help me better understand the kind of attitude that seems so inconceivable to most of us that a crowd can gather around and cheer with that kind of -- that kind of, for lack of a better word, brutality?

REP. NANCY PELOSI (D), MINORITY LEADER: We're not going to run out of town because some people were lawless in Fallujah but we have to be smart about how we protect our troops and our civilians when we put them in harm's way.

(END VIDEO CLIP)

CALLEBS: And here's how a couple of the major papers out here in the city covered it. Let's first look at "The Washington Times," pretty sobering and not terribly graphic considering exactly what went on. You can see that's a burning Jeep right there and the headline "Four Americans Mutilated."

But "The Washington Post," this is what a number of newspapers across the country did as well. This is much more graphic. It says "U.S. Civilians Mutilated in Iraq Attack." There the charred bodies of the four Americans lay down as a number of people in Fallujah are also hitting the bodies with their shoes, again an insult in that area of the country.

Without question, Kyra, this is certainly having an impact on the Hill. As you heard, Nancy Pelosi say, the U.S. is not going to leave that country, clearly making some reference to what happened back in Mogadishu in '93.

PHILLIPS: Sean Callebs live from Washington, sure appreciate it. Sean, we're going to go straight from you over to the White House now.

Suzanne Malveaux also following the questions being raised about what happened in Fallujah -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Kyra, we have understood and we've realized today that President Bush saw some of those horrific images, many of those images that even broadcasters did not actually show because they were so terrible.

But White House Spokesman Scott McClellan saying of course that this has only intensified the administration's resolve that they will not be deterred. They'll stay the course.

We understand that they will not change the troop numbers. They say they're going to stick with that deadline to turn over power to the Iraqi people by the end of the summer essentially. But they are saying, look you know, this is personally important to the president and also politically important. As you know, he is running on his record as a wartime president -- Kyra.

PHILLIPS: Suzanne Malveaux live from the White House thank you.

Well, she was missing for four days. Now, University of Wisconsin student Audrey Seiler is back home safe and sound but puzzling questions about her apparent abduction cloud the happy homecoming.

We get the details now from CNN's Eric Phillips who is live from Madison, Wisconsin -- Eric.

E. PHILLIPS: Kyra, we're here at the Madison Police Department where authorities just held an impromptu press conference. What they essentially said during that press conference is they have no reason to not believe Audrey Seiler's story at this point.

They believe fully at this point that there is a suspect out there and, as a matter of fact, they're working on a composite sketch that they're planning to release at some point this afternoon as soon as possible. So, they have been interviewing her for hours and that interview is ongoing at this hour.

Meanwhile, as you know, Audrey Seiler was found yesterday in a very swampy area that she was cold and that she was dehydrated but much to the grins and happiness of her family and friends she was very much alive.

(BEGIN VIDEOTAPE)

E. PHILLIPS (voice-over): Friends and family say they never gave up hope of finding 20-year-old Audrey Seiler alive.

STEPHANIE SEILER, AUDREY'S MOTHER: Right now we're just focusing on being together and holding each other and hugging each other.

E. PHILLIPS: A passerby spotted Seiler Wednesday afternoon in a marshy area two miles east of the University of Wisconsin in Madison where she is a sophomore honor student.

She had been missing since Saturday after a surveillance camera caught her leaving her apartment with no coat or purse. Hundreds took part in all-out search for Seiler, including many from her home town of Rockford, Minnesota. The ordeal was a wake-up call for others.

UNIDENTIFIED FEMALE: It was really scary just like hearing about it and I definitely felt a little bit less safe, just like walking around the campus knowing that one of the students was missing.

E. PHILLIPS: Police are now hunting for a suspect who Seiler says kidnapped her at knifepoint. They're using dogs, helicopters and infrared thermal imaging.

(END VIDEOTAPE) E. PHILLIPS: Again, police are interviewing Audrey Seiler at this hour as they have been for hours. Many more questions than answers at this point. They're hoping to sort of level that out during this interview and, of course, Audrey

Seiler says this is not the first time something like this has happened to her. She says back in February someone followed her, attacked her from behind and knocked her out. When she awakened she was behind a building nearby but she says she had not been robbed nor was she seriously injured.

And so, Kyra, police are going to be questioning her about that incident as well as this latest incident trying to see if there's any link between the two and trying to see if it may have been the same suspect or different people all together. Still many, many questions unanswered. They're hoping to produce some of those answers today -- Kyra.

PHILLIPS: All right, Eric Phillips live from Madison, thank you.

A check of news across America now.

Michael Jackson's accuser has his day. Sources tell CNN today that the 14-year-old boy who accuses Jackson of molestation has testified before a grand jury. Jackson, who has denied the charges, was on Capitol Hill this week to talk about the AIDS crisis in Africa.

An explanation begins the eleventh day of deliberations in the Tyco trial. The judge in the case clarified to jurors that the charges against former CEO Dennis Kozlowski and former CFO Mark Swartz. Those charges include securities fraud and conspiracy.

The Virginia couple is $239 million richer. J.R. Tripplett bought the winning Mega Millions jackpot ticket. The retired truck driver and his wife both had different ways of expressing their happiness.

(BEGIN VIDEO CLIP)

J.R. TRIPLETT, MEGA MILLIONS JACKPOT WINNER: She kind of broke down and got down on her knees and said a little prayer to thank the Lord. But I don't know it didn't upset me too much or excite me. And to be honest with you to this day it doesn't excite me that much. But like the lady there a while ago with the lottery she said, well maybe when you go check your bank account maybe it will excite you then and it probably will.

(END VIDEO CLIP)

PHILLIPS: Well, that $239 million jackpot prize is the second largest single ticket lottery win.

Straight ahead there are no pranks at all in our video of this day's April fools, just a heartwarming surprise that will bring a tear to your eye. I promise you that. The happiest little boy we've seen in a long time straight ahead. And speaking of surprises find out what Arab TV viewers didn't see from the attacks in Fallujah.

And, oh how the mighty have fallen, the chips are down for some companies you've always thought as top notch. LIVE FROM names names right after this.

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

(COMMERCIAL BREAK)

(WEATHER FORECAST)

(COMMERCIAL BREAK)

PHILLIPS: It's the top story in the United States but how has Arab media been covering yesterday's brutal killing of four American civilians in Fallujah, Iraq?

Our Senior Editor for Arab Affairs Octavia Nasr has been tuning into the coverage. She joins us now. Pretty interesting, things have changed that is for sure over the years haven't they?

OCTAVIA NASR, CNN SR. EDITOR FOR ARAB AFFAIRS: They have, yes, and if we take a closer look at how we monitored three networks. We start with Abu Dhabi TV. Let's take a look at how they covered the story.

Here's their anchor introducing the story and then from there on, Kyra, they showed everything. When I say everything, everything, the charred bodies, the dragging of the bodies. The only thing that they did that was a little bit different from local stations is cut those shots a little bit shorter than other local stations.

And if we move, for example, to Al-Jazeera, you know Al-Jazeera is know for showing gruesome pictures and for showing all and they took a lot of heat in the past for showing everything they've got. This time around they cleaned up their act. You look at those images. You don't see any bodies and, if you do, they're really in the distance. You have to look for them. Al-Jazeera reported on the story in a very, very responsible way, I would say in a very cautious way.

If you compare it, for example, to another 24-hour news network and that is Al Aribiya based in Dubai and here we see the pictures that Al Aribiya aired. You see no editing there but they covered the gruesome scenes. They covered where we see the bodies, for example, like here, any gruesome and graphic images were covered if you watched Al Aribiya.

So you had all kinds of things depending on the network, depending on their audience. Each of them chose to deal with these images in a different way.

PHILLIPS: Just seeing the images really pulls at your heart but you were even saying that times have changed with regard to ethics and policies on how to cover these stories, right, because in the past while it's always been a part of the culture that they've kind of seen all the blood and guts of a civil war or a war situation.

NASR: Right and the Arab audience want to see it all. This is -- when you talk to Arabs they say, you know, there's no need to clean the video. There's no need to edit anything. Show me everything. If it's too gruesome I just won't watch.

Now things are changing because these networks are now talking to different audiences. Remember this is not a local channel. This is a network that has a reach, an international reach. We can see them here in the states, all over Asia, Latin America, Europe, everywhere in the world Arab speakers are tuning in to watch these Arab networks.

So, they feel a bit more responsible and they also follow the western rules when it comes to ethics. When we talk about ethics, for example, if you take the example of local stations like Lebanese stations, both LBC and Future TV, they showed everything. As gruesome as those images were and as long as those shots were they stayed on them. They showed them because they said that their audience wants to see this.

Now, people will be surprised to know that there is no media ethic guideline in Lebanon. They don't even know what's appropriate, what's not appropriate. They don't have any guidelines. They just go with whatever they get they put on the air, which is a bit dangerous when you compare it to western standards.

PHILLIPS: Yes, interesting. You look at our standards, boy hard core. So now these standards slowly being implemented overseas. Do you think we'd even be able to compare our standards to their standards or is it sort of kind of a slow maybe sort of an experimentation that's going on right now to see what type of response they get from those that live in country and out of country?

NASR: Yes. It is slow in coming. It's not going to be an overnight change. You won't see western standards. Not that they think that western standards are perfect. They do criticize us for lots of things, rightly or wrongly so. I mean that's another issue but they are moving towards more acceptable international ethics.

PHILLIPS: Set of guidelines.

NASR: Yes and they're getting there slowly but surely.

PHILLIPS: You and I talked about Mogadishu. How can we forget that? The movie "Black Hawk Down" came out. You remember the American pilots, the bodies being dragged through the streets. I mean that, boy did that make an effect on Americans. It was talked about a lot. Has this been compared to Mogadishu overseas? It's definitely been brought up around here.

NASR: Absolutely. It is Mogadishu all over again. If you watch Arab networks this is what they're reporting. This is what they're telling their audience. They're also trying to show the U.S. administration and its efforts to make sure people don't draw that parallel. Unfortunately it's not working for the U.S. administration. Take a look at this quote that I picked for you from (unintelligible) newspaper.

It says: "The images from Fallujah reminded the Americans of the dragging of some 18 of their dead servicemen around the streets of Mogadishu in 1983. The incident that sent the final blow to operation 'Restoring Hope' in Somalia under the presidency of the Senior President George Bush."

So, not only are they reminding their audiences and readers that this is very similar to Mogadishu and Somalia but they're also reminding their audience of who was in charge of that operation and how that operation failed in a big way and how images such as these forced the U.S. to pull out of Somalia back in '93.

PHILLIPS: Interesting and, as you know, the White House coming forward saying no matter what we're not pulling out of Iraq. All right, Octavia Nasr thanks so much.

NASR: Thank you, Kyra.

PHILLIPS: Well, when daddy's a soldier in Iraq there's nothing more thrilling for a child to hear than the words "daddy's home." Scott Johnson with affiliate station WJXT was there to watch when one little boy got the surprise of a lifetime. This is going to grab your heart.

(BEGIN VIDEOTAPE)

LT. MATT GAPINSKI: Andrew doesn't know that I'm coming home today.

SCOTT JOHNSON, WJXT CORRESPONDENT (voice-over): While 7-year-old Andrew Gapinski sang patriotic songs in his class, little did he know his own patriot was soon showing up.

M. GAPINSKI: He knows that I'm coming home soon, probably this week but he doesn't know that today is the day.

ANDREW GAPINSKI: We were singing songs and then my dad came through the back door.

JOHNSON: And Andrew's expression said it all. He along with his little sister and brother were seeing Lieutenant Colonel Matt Gapinski for the first time in months. He's back from Iraq permanently.

M. GAPINSKI: Wow, did you guys make that?

JOHNSON: The school is covered with signs thanking this soldier.

A. GAPINSKI: I was like going to cry because I was so happy.

JOHNSON: And while Andrew holds back the tears...

M. GAPINSKI: Can you say da, da, da? JOHNSON: His 11-month-old brother is meeting his dad for only the second time.

M. GAPINSKI: He probably doesn't remember me so I need to get acquainted with him, re-acquainted with him.

JOHNSON: Now there will finally be time for catching up.

A. GAPINSKI: I was just so excited.

JOHNSON: Could you believe it?

A. GAPINSKI: Yes.

(END VIDEOTAPE)

PHILLIPS: Well, Andrew sure is holding back those tears. I told you, you would, it would probably get to you.

All right, straight ahead are jurors in high profile cases getting out of control? We're going to take that up with Simpson trial alumnus Christopher Darden.

Also ahead...

SCHAFFLER: I'm Rhonda Schaffler in New York. Down and out on the Dow, three aging giants are being shown the door. That story and more when LIVE FROM moves on right after this break.

(COMMERCIAL BREAK)

PHILLIPS: Oh, man. How many more times do we have to show that graphic? If funky dreams are keeping you up at night let radio's dream doctor tell you what it's all about. Friday on LIVE FROM he'll interpret your most twisted dreams, maybe your more intimate dreams.

Just tell us what your dreams are. Dreamy details to livefrom@cnn.com. Please no indecent material please. The sooner the better and just maybe we can help you get a more peaceful eight hours.

Well, this election year there's a change in the air, well on the air waves. The new liberal talk radio network is now broadcasting on several stations around the country. Can it compete with conservative heavyweights like O'Reilly and Limbaugh?

CNN's Kitty Pilgrim reports.

(BEGIN VIDEOTAPE)

AL FRANKEN, AIR AMERICA HOST: Broadcasting from an underground bunker 3,500 feet below Dick Cheney's bunker, Air America Radio is on the air.

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): Enter stage left, political author and former "Saturday Night Live" comedian Al Franken. He has teamed up with actress Janeane Garofalo and Chuck D from the rap group Public Enemy to take back the airwaves from conservative radio shows. Can they do it?

MATTHEW FELLING, CENTER FOR MEDIA AND PUBLIC AFFAIRS: The road behind is full of the carcasses of attempted liberal talk radio programs and liberal talk radio hosts. What they have lacked that Air America has is a certain personality and a certainly entertainment value.

PILGRIM: The competition is tough. Conservative Rush Limbaugh is the country's top talk radio host, 20 million listeners a week through 600 stations. Conservative radio had meteoric rise in the Clinton years. Liberals are hoping these same anti-establishment dynamic works for them.

MARK WALSH, CEO, AIR AMERICA RADIO: Fifty-one percent of America voted against George Bush in November of 2000. Those are our potential listeners. Anybody that's dissatisfied with the status quo.

PILGRIM: It's also about larger than life personalities. Franken has called his show the "O'Franken Factor," a play on conservative Bill O'Reilly's show. The two clashed at a book fair last year.

BILL O'REILLY: Shut up.

FRANKEN: This isn't your show, Bill.

O'REILLY: This is what this guy does.

PILGRIM: But this is no shouting match. It's business. Right now conservative talk shows outnumber liberal ones roughly five to one.

(on camera): Even with programming in New York, Los Angeles, Chicago, and some other markets, Air America will only have a fraction of the audience of conservative radio and a fraction of the revenue.

Kitty Pilgrim, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: A trio of top companies are getting ousted from blue chip roster. Rhonda Schaffler live from the New York Stock Exchange with the details -- Rhonda.

SCHAFFLER: Hi, Kyra.

Some of the best known names in corporate America are being dropped from the Dow Jones Industrial Average. AT&T, Eastman Kodak and International Paper will be removed as of a week from now. They'll be replaced by Pfizer, Verizon Communications and the insurance giant AIG.

It's the end of an era for AT&T in particular. It's been a key component of the Dow since 1916, except for a few years in the 1930s. Now Ma Bell is out of the loop and two of the so-called baby bells are in. Verizon and FCC Communications were just added back in 1999 -- Kyra.

PHILLIPS: All right. How are investors reacting to the ouster?

SCHAFFLER: Well, the three stock being dropped from the average are all sharply lower this session. Being a Dow component carries a lot of prestige and it means that exchange traded funds that track the Dow will now sell these stocks.

Overall, stocks kicking off the second quarter with some modest gains. The Dow Jones Industrial Average moving higher by 29 points and the NASDAQ edging up two-thirds of one percent. That's it from Wall Street.

Later this hour a major credit card company teaming up with Donald Trump in what could be a winning deal.

There's a lot more LIVE FROM right after this break.

(COMMERCIAL BREAK)

PHILLIPS: I'm Kyra Phillips. You're watching LIVE FROM. Here's what's all new this half hour.

The fine art of jury selection gets more scrutiny as jurors in big cases make headlines of their own.

We can't tell you who won "The Apprentice" but we can tell you about Donald Trump's efforts to get into your wallet.

American-style reality shows cross the line overseas. Get the story behind the kiss that took this version of big brother off the air.

Paul Bremer promises to hunt down those guilty of brutally murdering four U.S. security contractors in Fallujah. The U.S. administrator in Iraq called the grisly killings a dramatic example of the ongoing struggle between human dignity and barbarism.

The United States is seeking a new U.N. resolution on Iraq. It would lay the groundwork for the return of sovereignty scheduled for July 1st. Some U.N. advisers are already in Iraq helping to develop an electoral system and caretaker government.

Police continue searching a marsh near the University of Wisconsin in Madison for the man Audrey Seiler says abducted her at gunpoint over the weekend. Seiler was not hurt but she could face several hours of police questioning. A police spokesman says they have a lot of details to go over.

And coming up next hour, President Bush scheduled to sign the Unborn Victims of Violence Act. The bill took five years to get through Congress. Informally called the Laci and Connor Act after the Laci Peterson case, that bill makes it a crime to harm a fetus during an assault on a pregnant woman.

Martha Stewart's defense team is judging the behavior of a juror right now. The defense is requesting a new trial, alleging misconduct by juror Chappell Hartridge. Well, Stewart's lawyers say that Hartridge made biased statements after Stewart's conviction.

Take a listen.

(BEGIN VIDEO CLIP)

CHAPPELL HARTRIDGE, JUROR, MARTHA STEWART CASE: Well, the first thing we wanted to get clear was we had very important decisions to make. We had people's lives in our hands.

Well, she committed a crime. She got convicted.

(END VIDEO CLIP)

PHILLIPS: Well, juror conduct is under scrutiny in several high- profile cases. To talk about that and the importance of jury selection, CNN legal analyst Christopher Darden.

Let's talk about the number of high-profile cases and what's going on with the jurors.

CHRISTOPHER DARDEN, CNN LEGAL ANALYST: Oh, you know, many, many things are going on with jurors in high-profile cases over the past five or six days.

In the Tyco case, one juror was accused by the other 11 of not deliberating. In the Peterson case, a potential juror, according to Mark Geragos, had already made up her mind and was trying to get on to the jury simply to give Scott Peterson what she thought he deserved, which was an execution. And now, of course, we have a new issue with the Martha Stewart case. These are all high-profile cases and weird things are going on with the jurors.

PHILLIPS: So what's the deal? Something just in the air, Chris?

DARDEN: No, I don't think it's that it's something in the air. You know, when you are a juror, or when you're involved in any fashion in a high-profile case, you can make a little bit of money, quite frankly, or you can get, you know, an extra 15 minutes of fame.

And, you know, in the Martha Stewart case, you have this gentlemen who is being accused of having committed perjury in his jury questionnaire and who is being accused of having had an agenda to get on to that jury. And, you know, he's like a lot of people, he will lie to get on a panel. It happens all the time.

PHILLIPS: So, OK, I want to ask you more about that happening all the time.

But during jury selection, can you really look into the eyes of these potential jurors and tell if indeed they're lying or not?

DARDEN: Well, some psychologists believe they can. And certainly some of these jury advisers who are paid tens and tens of thousands of dollars to help defendants pick juries in high-profile cases believe that they have a science or an approach to picking out the perfect juror and also in determining who is lying and who isn't.

Now for me, you know -- and I'm the kind of guy who tries cases, even today, without jury consultants -- it's very difficult to pick out who is lying and who isn't, who will be a good juror and who won't be a good juror.

PHILLIPS: I can just see you going up, toe-to-toe looking these people in the eyes. I sure wouldn't lie to you.

All right. Let's talk about the fact this juror lied on the questionnaire in the Martha Stewart case. And then, of course, we saw what happened. We saw the records that came out on him.

Is this a long shot now that the verdict could be overturned?

DARDEN: You know, I don't believe that the verdict will be overturned. Not at this point. Now certainly they've made the allegation that this juror had an agenda and a bias and that he got on to the jury simply to make money later.

But I don't think that's enough right now. At this point, it's just an allegation. Now if other witnesses come forward or if there is other evidence, more concrete evidence, to suggest that he was biased and that he had a -- had already decided what approach he was going to take in the jury room, then maybe they have a shot. But don't expect to have the Martha Stewart conviction overturned.

PHILLIPS: And, of course, we're talking about Hartridge. He was arrested and charged with physically abusing his girlfriend and never reported that when filling out the questionnaire. We're looking at the videotape of him right now.

How are lawyers going to try to prove that he had a motive?

DARDEN: Well, you know, you look at this guy. He's on television. He is the issue of the day in sectors. You know, he knows people and people know him, and people know his history and his background. And you can expect that some of those people that he thinks are his friends are going to come forward to the defense.

Martha Stewart has a lot of money to investigate this juror and I'm sure she's going to spend some of it.

PHILLIPS: Be very interesting. Christopher Darden, thanks again for your insight today.

DARDEN: Any time.

PHILLIPS: All right.

Well, football fallacies from an NFL hall of famer. Paul Hornung is expressing regret after saying that Notre Dame should dumb down its academic standards to -- quote -- "get the black athlete."

CNN's Josie Burke has the reaction from the Fighting Irish over this sports controversy. (BEGIN VIDEOTAPE)

JOSIE BURKE, CNN CORRESPONDENT (voice-over): With the golden dome and touchdown Jesus and a record number of championships to its name, Notre Dame is a place that loves tradition and heroes almost as much as winning itself. But the team is losing and heroes don't always act the part and, on this day, Paul Hornung said he was sorry.

PAUL HORNUNG, PRO FOOTBALL HALL OF FAMER: I didn't mean to say just the African American athlete. I should have said all athletes. It's tough to get into Notre Dame. I don't have to tell that to anybody.

BURKE: The apology comes a day after remarks he made on a radio station in Detroit about winning and standards and race.

HORNUNG: We can't stay as strict as we are as far as the academic structure is concerned, because we got to get the black athlete. We must get the black athlete if we're going to compete.

We open up with Michigan State -- I mean Michigan, Michigan St. and Purdue. Those are the first three games, you know, and you can't play a schedule like this unless you have the black athlete today. You just can't do it.

MARQUES BOLDEN, NOTRE DAME SOPHOMORE: It was kind of offensive just basically saying that African American students couldn't get into a school without standards being lowered. It shows that, you know, maybe this feel is probably widespread and it's just not probably him.

BURKE: True or not his alma mater was quick to respond.

"Paul Hornung in no way speaks for the university and we strongly disagree with the thesis of his remarks. These are generally insensitive and specifically insulting to our past and current African American student athletes."

He does, however, join a list of sports notables who have spoken on the subject in haste. Former ESPN analyst Rush Limbaugh on Eagle's quarterback Donovan McNabb.

RUSH LIMBAUGH, FORMER ESPN ANALYST: I think the media has been very desirous that a black quarterback do well (UNINTELLIGIBLE) black coaches and black quarterbacks doing well I think there is a little hope invested in McNabb.

BURKE: He lost his job. So did Al Campanas and Jimmy the Greek. Like the dome and touchdown Jesus, a tradition, just nothing to brag about.

Josie Burke, CNN.

(END VIDEOTAPE)

PHILLIPS: So does it seem like the Donald is everywhere these days? Get ready for another Trump item to hit the market. Just what we all wanted. Special combover.

The 2004 political conventions aren't far off. Will the massive security needed be ready? We're going to look at that.

And later, "Big Brother" gets big-footed in the Middle East. How reality TV plays overseas.

(COMMERCIAL BREAK)

PHILLIPS: News "Around the World" now.

A Tunisian fugitive is the suspected mastermind behind the Madrid train bombings last month. According to arrest warrants, the Tunisian had been talking about preparing a violent attack in Spain since last year. He along with five other suspects remain at large.

Uzbekistan now links this week's bloody round of terrorist violence to al Qaeda. The country has closed its border crossings. At least 44 people, most of them suspected terrorists, have died this week in a series of suicide bombings and shoot-outs with police.

Back in the U.S., growing concerns about terror at two major political conventions this year. Homeland security correspondent Jeanne Meserve reports some extraordinary security measures that are in the works.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): Zip down Interstate 93 in Boston and you pass within feet of the Fleet Center, the venue for this summer's Democratic convention. For that very reason, the road will be shut down during evening hours while the convention is in town. About 200,000 people a day use this stretch of road.

And as if that isn't enough of a headache, 24,000 rail commuters will have to use alternative routes and modes of transportation because North Station will be shuttered down for a week. It is right underneath the Fleet.

STEVE HICCARDI, U.S. SECRET SERVICE: Our goal is to provide a safe and secure environment for all event participants and the general public.

MESERVE: But the general public expects commuter chaos.

UNIDENTIFIED FEMALE: Well, I think it's very wrong, because what about the people that lives in Chelsea like myself? And plus people that have to get to work and get back and forth? I think it's very wrong.

UNIDENTIFIED FEMALE: we're going to get to work somehow, some way. We'll get here.

UNIDENTIFIED MALE: I plan to stay out of the city for a week. MESERVE: The announcement of the closures comes just weeks after the Madrid train bombing that killed 190. And the Democrats' convention will be the first since the September 11 attacks.

But there are no plans at this point to close New York's Penn Station during the Republican Convention, even though it is right underneath Madison Square Garden.

ANN HOMAN, U.S. SECRET SERVICE: All our security plans are site- specific, and each security plan is tailored to each venue.

MESERVE (on camera): Although there will and security perimeter around Madison Square Garden, the New York City Police Department says no major thoroughfares are slated to be closed. The Secret Service cautions, however, that the security plans for both conventions are still fluid.

Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: How's this for do-it-yourself security? A teenager's Web cam catches a burglar in the act. We're going to show you that.

Donald Trump wants to get in your wallet. Hey, it's not what you think. Well, with her, hmmm....

And, ay caramba! Who are all the Simpsons actors reportedly not showing up for work?

(COMMERCIAL BREAK)

PHILLIPS: And this just in to CNN: 9/11 Commission sources telling us that next week, we are told, -- at the end of the week, Dr. Condoleezza Rice, national security adviser, will testify before the 9/11 Commission. As you know, President Bush coming forward, reversing his decision to allow his national security adviser to testify publicly before that commission. Now we are being told it should happen at the -- later next week.

Well, an alarming videotape is at the center of an investigation by California's attorney general. That tape allegedly shows two young people being beaten while in custody.

Our Rusty Dornin joins us now with the details of this tape -- Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Kyra, there has been a lot of controversy about this tape.

We knew that the tape existed. We knew about a report about it. But the agencies were not releasing it. And until today, when a state senator, Gloria Romero, decided it was time the press see the tapes and the California Youth Authority of these two so-called wards -- that's what they call the inmates there. Now what you see in the tape -- what you don't see is what happened before the fights ensued with these wards and the counselors. Apparently, the wards allegedly attacked the counselors, then two fights break out into the room. You see them roll on to the floor. And in the foreground, you see the one counselor after subduing the youngster, holding him down and then hitting him, punching him 28 times, both with his left and his right hand. Also, one of the (ph) background apparently, the counselor did kick the youth after the youth was also down. Guards were also spraying the youths with some kind of pepper spray and a pepper ball rifle.

And the two youths were prosecuted for this -- for attack being the counselors. But during the preliminary hearing for that, four of the guards refused to testify. They took the Fifth Amendment, saying they didn't want to incriminate name themselves. Then, the Youth Authority did an internal report and they decided that according to this videotape, and other reports by the people that were in the room, that there was excessive force used, that assault and battery charges should be filed against those counselors.

But when they took to the local district attorney's office, they were turned down. The district attorney in San Joaquin County said there just wasn't enough evidence.

Well, now the state attorney general is looking at it. We did speak to him a short time ago on the steps of the Capitol. He says they're looking to see what premeditated this whole thing, looking at medical reports and that sort of thing. And he is not going to make a decision until the end of this week or sometime next week.

Also, there were some guards representative of the unions in the room today at the press conference. They said, you don't understand the kind of violence that goes on in those kinds of facilities and those guards had every right to defend themselves.

But of course, this videotape comes on the end of a lot of charges and accusations that have been filed recently, including state reports against the youth correctional facilities in California, claiming that they used excessive force. So this is another one that makes it all too clear that possibly that's what's going on. But we'll have to see whether any charges will be filed from the state attorney general's office -- Kyra.

PHILLIPS: Well, Rusty, obviously we see the tape. It picks up there when the counselors are punching on the students.

My question to you is, does a longer version of that tape even exist?

DORNIN: There is no tape that shows what happened behind the doors, when apparently, allegedly the wards attacked the counselors. We do not see that. That does not exist on a tape anywhere.

Apparently, the tape does go on a little later. The youths are picked up and taken directly to jail. They were not treated for any of the possible medical problems that happened to them as a result of the fight. That tape does exist.

But there are no other tapes that showed what happened before.

PHILLIPS: Rusty Dornin, thanks so much.

More LIVE FROM -- we're still here; we didn't get blown away -- right after the quick break.

(COMMERCIAL BREAK)

PHILLIPS: In this wired world, we all knew it was just a matter of time until we had virtual laundry. Instead of waiting by the machines, students at Carnegie Mellon University in Pittsburgh can now monitor their laundry online. The E-suds system sends e-mails when their laundry is done and users can check their clothes' progress on the Web.

Seattle area police call them crime fighters. The two teens describe themselves as computer nerds. It seems they set up a Web cam inside their home before leaving for vacation. When they checked in, they saw their home in disarray. Well, using the Internet, they cranked up the stereo, saw an intruder rush to turn it down, and called police. The man under arrest, by the way, is a family friend. Probably not anymore.

(MARKET UPDATE)

PHILLIPS: Well, whether you're falling into a canyon, running from insane killers or making out with someone you hate, you know what's really happening. You're dreaming. And in the spirit of National Sleep Awareness Week, LIVE FROM wants to know what you're dreaming about. Come on, give us all the scoop. Tomorrow's radio's dream doctor joins to us interpret your dreams, as freaky as they could be. Just e-mail the details to livefrom@cnn.com. And get some rest. Tune in Friday at 3:00 p.m. Eastern to find out how screwed up you really are.

Checking entertainment headlines, it's April Fool's Day, but no laughs from the cast of the Simpsons according to Daily Variety. Krusty won't clown and Bart will stay dumb in more than one sense of the word unless producers cough up some more cash. Insiders say each cast member wants their salary bumped up from $125,000 to $360,000 an episode.

John Belushi fans will tell you, no one holds a toga to the late comic actor. Well, better late than never for Belushi to get a star on the Walk of Fame. Jim Belushi in Hollywood to accept the award on his brother's behalf. John Belushi died of a drug overdose back in 1982.

Confession may be good for the soul, but if you're Usher, it's also good for your bank account. Usher's CD "Confession" and his alleged tell-all track about an affair is burning up the sales charts -- 1.1 million copies sold in its debut week.

Reality TV shows popping up across the world now. The Middle East can now match variations of "American Idol" and "Fear Factor." But if you blinked, you may have missed "Big Brother" out of Bahrain. A controversial kiss sent the show to an early demise.

CNN's Brent Sadler reports.

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN CORRESPONDENT (voice-over): They are a huge commercial success, Western-style reality TV shows captivating audiences in the Middle East, daring brands of entertainment here featuring young men and women under one roof for all to see. "Big Brother" clashed head-on with conservative Islam.

REINA SARKIS, PSYCHOLOGIST: It's as if that show sort of lifted the veil, not from women's faces, but from the society's face.

SADLER: Seen in some form, say the Dutch creators, by as many as two billion viewers in 25 countries, including the United States.

(on camera): But not in the Middle East until producers thought they had worked out a new format that would not cross...

(END VIDEOTAPE)

PHILLIPS: We have to interrupt that package. Straight to the White House now. President Bush scheduled to sign the Unborn Victims of Violence Act. The bill took five years to get through congress.

Let's listen in.

(INTERRUPTED BY LIVE EVENT)

PHILLIPS: The president of the United States signing the Unborn Victims of Violence Act. That bill took five years to get through Congress, formally called the Laci and Connor Act after the Laci Peterson case. You can see the president there surrounded by Laci Peterson's family.

This bill makes it a crime to harm a fetus during an assault on a pregnant woman. And, as you can imagine, passions on both sides run high on this. Many opponents fear that the law will lead to restrictions on abortion rights.

This morning, House Minority Leader Nancy Pelosi commented on the Unborn Victims bill. This is what she had to say.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA) MINORITY LEADER: And I didn't think it was necessary to go to the lengths that the administration did. But they did. And the president will sign the bill today. And it remains to be seen how it will be implemented.

I didn't support it at the time. I am completely sympathetic with the issue that was being addressed, but did not think that it was necessary to pass the bill that was passed.

(END VIDEO CLIP) PHILLIPS: Pelosi says an alternative was a competing bill that would have toughened the penalty for harming a pregnant woman, but would not have made the fetus a separate victim.

The cycle of violence continues in Iraq's Sunni Triangle. Three U.S. troops wounded when a roadside bomb blew up in the Fallujah area. The crowd reportedly set one of the vehicles on fire after it was abandoned.

This is the same general area where four American civilian contracts were killed in a particularly grisly attack yesterday. The region is home to many members of the former regime, and a hotbed of Iraqi resistance. The deaths were quickly condemned, and there were calls for the killers' capture.

(BEGIN VIDEO CLIP)

PAUL BREMER, U.S. CIVILIAN ADMINISTRATOR: The acts we have seen were despicable and inexcusable. They violate the tenets of all religions, including Islam, as well as the foundations of civilized society. Their debts will not go unpunished.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

AHMED CHALABI, IRAQI GOVERNING COUNCIL: The Iraqi people abhor what happened. We condemn it and we offer our condolences to the families of the victims.

This was an uncivilized savage act that was conducted by murderers, remnants of the Ba'ath Party, and supporters of Saddam, and terrorists. I believe that those people should be apprehended. They are in an area where their leadership is known. I think we should go after them more aggressively.

(END VIDEO CLIP)

PHILLIPS: Well, yesterday's deadline came and went for the federal government to put together a comprehensive list of possible terrorists. A list like this could be shared by all law enforcement agencies. But Justice correspondent Kelli Arena reports the project is far from complete.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE DEPT. CORRESPONDENT (voice-over): The goal: to keep known terrorists, like two of the September 11 hijackers, from ever getting into the United States again. How? By combining information about suspects gathered by any U.S. intelligence and law enforcement agency into a single terror watch list.

Two-and-a-half years after the attacks there now is one. But officials admit it's a work in progress.

DONNA BUCELLA, TERRORIST SCREENING CENTER: We now have a singing database which is updated daily and is unclassified, law enforcement sensitive, containing identifying information of known or suspected terrorists.

ARENA: The Terrorist Screening Center, housed within the FBI, currently has about 55,000 names on its new consolidated terror watch list. It's accessible to everyone from Customs and border patrol agents to local police, but not instantaneously.

REP. JIM TURNER (D), TEXAS: If you have the 1-800 number, and you are a law enforcement officer or a federal official, you can call in and you can give them a name, and they will run a search on the database. But they still do not have the ability to access that in real time.

ARENA: What's more, the list is incomplete. Some agencies still have not handed over all their names. And despite an effort to include identifying information, some travelers are still mistaken for terrorists who share the same name.

UNIDENTIFIED MALE: It was very embarrassing. I mean, I was just discriminated on the basis of my name. And that has been repeatedly going on.

ARENA (on camera): Officials say they will put a mechanism in place to resolve that issue, and they promise a complete and fully automated list by the end of the year.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: And confirming word that National Security Adviser Condoleezza Rice will testify publicly before the 9/11 Commission at the -- later next week.

Live at the White House now, Suzanne Malveaux has more on this -- Suzanne.

MALVEAUX: Well, Kyra, I just spoke with the spokesman of the 9/11 Commission who confirms that Dr. Rice will testify before the full commission on the 8th. That is a Thursday.

We are told that she will testify for several hours before the full commission, that there will be no other witnesses that day. It will be very much set up like that of Richard Clarke on his day.

We are told it will take place on the Hill. This is something, as you know, they've been preparing for, they've been asking for some time. The White House recently relenting, saying, yes, that they would make an exception to this and allow her to publicly testify. They have it on their calendars; that will happen on the 8th -- Kyra.

PHILLIPS: Suzanne Malveaux, thank you.

Straight ahead: makeovers all the rage these days. Even Wall Street is getting in on the act. You'll want to see if this is your own stock.

And some of the coolest music ever made almost lost to history if it were not for this man. Do you recognize him? You'll want to see the segment. Stick around.

(COMMERCIAL BREAK)

PHILLIPS: News across America now.

In Washington, D.C., records are meant to be broken. But hard to imagine that anyone will ever top the voting career of Senator Robert Byrd. The 86-year-old West Virginia Democrat cast his 17,000th vote on the Senate floor today. If you're keeping track, it was a vote on welfare reorganization -- or reauthorization.

The senator's record has been amassed during the past 45 years. Eight consecutive terms.

In Richmond, Virginia, a retired truck driver and his wife collect the second largest lottery pay-out in history. The Mega Millions jackpot was worth $239 million. Although J.R. and Peggy Triplett decided to take a smaller lump sum amount.

They say they'll invest some of that $140 million in real estate. In J.R.'s words, they don't make "No more dirt."

(STOCK MARKET REPORT)

PHILLIPS: Well, Grateful Dead drummer Mickey Hart is with us this afternoon talking about some of the best music that was almost lost to history if it were not for this man. Here's a taste of that music.

(MUSIC)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ALAN LOMAX, FOLKLORIST: Freedom of speech, and freedom of movement, and freedom to work and live and enjoy yourself. And freedom for your culture to express itself. Because that's all we've got, you know. Just culture.

(END VIDEO CLIP)

PHILLIPS: Just the culture. That was folklorist Alan Lomax and his effort to preserve musical culture, still influence what you hear on the radio on burn on your CDs.

Beginning in the early 1930s, Lomax discovered singers like Woody Guthrie, Leadbelly, Pete Seger, preserving their songs on film and tape for the Library of Congress. Without Lomax, this cool blues riff would have died with the singers.

(MUSIC) PHILLIPS: Oh yeah. This and some 5,000 other recordings, photographs and notes are now partly of the newly acquired Alan Lomax collection at the Library of Congress.

Here with us to talk about the Lomax legacy, hey, a legacy himself. Grateful Dead drummer Mickey Hart. He joins us from San Francisco.

Hey, Mickey.

MICKEY HART, GRATEFUL DEAD DRUMMER: Hi. How are you doing?

PHILLIPS: Good. Great to see you. You're looking good.

HART: Feel good.

PHILLIPS: All right. Hey, let's talk about Alan Lomax, his collections, and why we should all value what he has done for us.

HART: Well, Lomax, the greatest of the song catchers. He's done it all. He's been all over the world.

A great musician, a passionate advocate for -- he's a musical activist really. A great lover of music. And preservationist.

And now, all of his recordings are alive again at the Library of Congress. The American Folk Life Center. It's sort of under one roof now. It's back where it started, because the Library of Congress initially funded his forays into the field.

PHILLIPS: Well, it's pretty amazing. We're looking at a number of the pictures right now, Mickey. And I understand you have a special story about this one picture, I believe of the Italian fisherman. Is that right?

HART: Well, if it's that -- I can't see the photo. But he recorded all over. And the people there, you know, they have their normal songs and they say, "We're fishing from the bottom and bringing up the fish." But then he said, we're speaking to the world now. We're talking to Washington; our voices are going to be recorded and the world will hear us.

And then Lomax really got it. He said well, you know, he's giving voice to the voiceless. And these songs are not just songs.

They contain thousands of years of a cultural evolution. The history, the hopes, the dreams, the fears of many generations. And it allows us to tell us -- it allows us to see where we've been and where we're going.

So perhaps our greatest treasures are masterpieces, as a Renoir, Monet, only in sound, are these recordings that Lomax captured on wax, acetate, magnetic tape, all over the world. A real heroic journey, I might add; 40, 50 years of recording. Quite an amazing feat.

PHILLIPS: Well you mention the recordings. You talk about the treasures. Let's listen to a little Leadbelly.

(MUSIC)

PHILLIPS: Man that just -- you just feel it. And I'm seeing you, you're smiling, you're jamming. I can hear your hands with the beat.

HART: If there wasn't -- if Lomax didn't record Leadbelly and Woody Guthrie and all these folk songs, perhaps there be no Paul Simon, no Santana, no Grateful Dead. I mean, we based our music on this great legacy.

I mean, when a musician starts off his career, he bases his skill on something that has preceded him, a body of work. And then eventually he finds his own voice.

But in the case of the Grateful Dead, it was a jug band, then a blues band, and then American music band. And whatever it turned out to be. It was a culmination of a lot of things. And Leadbelly, Robert Johnson, there would be no Eric Clayton.

PHILLIPS: Well -- and, Mickey, you mentioned Woody Guthrie. I've got to get a little of this in. And then let's talk a little bit more about Woody.

(MUSIC)

PHILLIPS: It's like the gypsy spirituals here. Tell me how you based your music on legends like Woody Guthrie and Leadbelly.

HART: Well, the music talks about life. And you can say things in music that you can't normally say. You can say just about anything through music.

Woody was a musical activist. And so are we. And so are most musicians.

He had a thing on his guitar. He had a sign saying "This guitar kills fascists." And so, I mean, that was his weapon.

And that's how he screamed. That's how he made a difference. That's how he made change.

So Woody and many musicians used their music to make a better world and to speak for the people who can't -- who don't have a voice, who aren't on commercial radio. And you won't hear them on the radio airwaves, but you'll hear them in the fields, you'll hear them on the seashores and the deserts and the mountains. Where Alan Lomax went to record with this incredibly bulky equipment back in the 30s and 40s and 50s.

It's not like a DAT (ph) machine now, or go out in the field. I mean, he had -- he'd put it in the trunk of a car, or he was on horseback or on a donkey or what have you, to bring this sonic treasure back. So very heroic -- very heroic adventure not just for Alan Lomax, but for all the song catchers, many of them women, as a matter of fact.

PHILLIPS: Well, Mickey, I know this is the same philosophy that rests deep in your heart. Tell us quickly about your book. You keep mentioning song catchers. I got mention "Song Catchers: In Search of the World's Music," your book, your personal quest. Give us a brief.

HART: Well, "Song Catchers: In Search of the World's Music," I wrote it with National Geographic last year. It's sort of an overview of the men and women who went out in the field and the machines they used to bring back this sonic treasure.

That's basically what it is. And it talks about Alan Lomax being one of the premiere song catchers. But it really tips the hat to those people, because without those people we wouldn't be sitting here talking about music.

I mean, it's -- it started in the 1890s, so we've only really been recording music for a little over 100 years. It hasn't been forever.

The talking machine, 1877, Edison. So it's basically a new phenomenon. But now the airwaves circle this blue-green spinning rock.

PHILLIPS: Well, Mickey...

HART: It's everywhere.

PHILLIPS: And it continues on with you. You look terrific. You sound terrific.

HART: You look great.

PHILLIPS: Thank you so much, Mickey Hart. What a pleasure. All right.

HART: Thank you.

PHILLIPS: Continues to rock on.

Well, we're nearing the bottom of the hour. That means it's time for "INSIDE POLITICS." Candy Crowley is in today for Judy Woodruff.

Hi, Candy.

CANDY CROWLEY, CNN CORRESPONDENT: Hi, Kyra. Thanks a lot.

Up next, we've got a political exclusive: the Kerry and Bush campaign chairs face off for the first time ever. Marc Racicot and Jeanne Shaheen battle over negative campaigning and much more.

Plus, John Kerry won the race for the Democratic presidential nomination a month ago, so why is Dennis Kucinich still running for the White House? I'll ask him. He's my guest.

Stay with us, when I go "INSIDE POLITICS." TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired April 1, 2004 - 12:57   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Dead Americans dragged through the streets of Fallujah with more attacks today. How will the U.S. react?
(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hunt down the criminals, we will kill them or we will capture them and we will pacify Fallujah.

(END VIDEO CLIP)

ERIC PHILLIPS, CNN CORRESPONDENT: A Wisconsin college student who was once missing mysteriously is now found. Now police continue the hunt for her alleged abdicator. I'm Eric Phillips. The latest in a live report coming up.

PHILLIPS: OK, you've tried the warm milk, counting sheep, maybe even a little pill now and then. To no avail. Find out what really works when it comes to getting your Zs.

And before you reply to your e-mail today, watch our segment on April fool's pranks. This stuff is nuts. And could really trip you up or make your day depending on which side of the joke that you're on.

From the CNN Center in Atlanta, we promise no jokes here today. I'm Kyra Phillips. It is April 1, Thursday. CNN's LIVE FROM starts right now.

More flareups of violence in Iraq, in the wake of yesterday's grisly killings in Fallujah. Roadside bombs hit a convoy near Baghdad, traveling under U.S. military escort. Two drivers are wounded. CNN senior international correspondent Walter Rodgers joins us now live from Baghdad with the latest -- Walt.

WALTER RODGERS, CNN SR. INTERNATIONAL CORRESPONDENT: Hello, Kyra. There was a startling admission and acknowledgement from a top U.S. general here in Iraq today. He seemed to be saying that the Americans temporarily lost control of Fallujah, the town yesterday in which four civilian contractors were brutally murdered and butchered. General Mark Kimmitt said U.S. forces will return to Fallujah. He promised it would be pacified. But again, there was very clear frustration and cold fury on the part of U.S. officials today. They suggested that the problem they're having in Fallujah is they're getting no cooperation from the local Iraqi officials. No one is cooperating with them, helping them to try to capture those responsible for that terrible, terrible murder of the four civilian contractors. U.S. officials are speculating now that those responsible for this crime may indeed have been former Iraqi intelligence officers who once worked for Saddam Hussein.

They are certainly calling them Iraqis, which is very interesting because they are not saying these are foreign fighters or terrorists. They acknowledge that this resistance, this crime was committed by Iraqi nationals.

Again, it's been a very frustrating day for U.S. soldiers here or for U.S. officials here simply because they're not getting any cooperation from the officials in Fallujah in solving this crime. They promise they will.

Also another blip on the radar screen coming up. There's a Shiite holiday called arbiyeen (ph) and it is the tenth of April. U.S. officials are bracing for more violence then. The Shiites have always been victims of the kinds of bombings, the large scale bombings here and U.S. officials are virtually acknowledging that may be inevitable on April 10 -- Kyra.

PHILLIPS: Walter Rodgers live from Baghdad, thank you.

Well, the bodies were dragged through the streets. Now the U.S. military is promising a precise and overwhelming response to the deaths of four American contractors yesterday in the Sunni Triangle.

CNN's Jamie McIntyre is standing by live at the Pentagon with more on this -- Jamie.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, Kyra, the Marines who are in charge of that area are from the 1st Marine Division and coincidentally their division motto is "no better friend, no worst enemy" and that encapsulates the strategy that they're going to try to employ here over the coming days.

They're going to be trying to hit back very hard against the suspected insurgents inside Fallujah, conducting raids they say at their place and time of choosing to hunt down the criminals. Today, General Mark Kimmitt again vowed very angrily that the Marines would step up to the task.

(BEGIN VIDEO CLIP)

BRIG. GEN. MARK KIMMITT, U.S. ARMY SPOKESMAN: Quite simply we will respond. We are not going to do a pell-mell rush into the city. It's going to be deliberate. It will be precise and it will be overwhelming. We will not rush in to make things worse. We will plan our way through this and we will reestablish control of that city and we will pacify that city.

(END VIDEO CLIP)

MCINTYRE: Tough words from General Kimmitt there in Baghdad but, again, the United States now stepping up its response, reassessing its strategy, which was to allow Iraqi police to try to take the lead role in providing security with U.S. forces in the background.

They're now going to be stepping up some of those Marine patrols, specifically trying to hunt down the insurgents while, at the same time, increasing the aid to build schools, clinics, provide aid to the people of Fallujah to try to win their hearts and minds as well.

Now, as I said, they haven't rushed back in. In fact, one of the journalists at the briefing today asked General Kimmitt didn't it send a message of weakness that the -- that no American forces went in to retrieve those bodies that were mutilated yesterday until very, very late in the day?

He said doesn't that send a bad message that the U.S. is tolerating the violence? And, General Kimmitt simply answered very curtly ask them after the Americans have come back in -- Kyra.

PHILLIPS: Jamie, you mention hitting back hard. Does this mean the rules of engagement will change and there will be a no tolerance policy?

MCINTYRE: Well, no the rules of engagement will stay the same. It's really sort of how you apply those rules of engagement. Up until now the U.S. has been trying very hard to get the Iraqis to provide for their own security in Fallujah.

I mean they recognize there's a lot of anti-U.S. sentiment in that area and they don't believe they're going to solve the problem until Iraqis are in control but they're sort of going back to their previous strategy of having a greater U.S. involvement in the security, particularly in trying to hunt down the perpetrators of these kinds of acts of terror, while at the same time, again, increasing aid, trying to have a carrot and stick approach where they try to win over the population, get more intelligence but not send the sign of weakness that the U.S. is going to hunker down or step back because they've been the victim of these attacks.

PHILLIPS: Jamie McIntyre, live from the Pentagon, thank you.

The four contractors who were killed in Fallujah worked U.S.- based Blackwater Security Consulting. That company is one of many that supplies security in the United States and overseas.

Discussing this, Mike Brooks for a closer look at Blackwater and companies like this. Mike, you actually went through training with Blackwater, didn't you?

MIKE BROOKS, CNN CORRESPONDENT: Yes, Kyra, I have trained there. In fact, I even did a story there on the federal flight deck officer program and I can tell you there's a lot of companies that since 9/11 have sprung up, security companies that are using contractors in Iraq.

Some of these it's become almost a cottage industry and some of these folks over there, security consultants over there and have been back have told me there's a lot of cowboys but Blackwater is one of the professional companies that's working in Iraq. It started in 1996. They're based in Moyock, North Carolina, just a short distance from Little Creek, Virginia, which is the home to the East Coast Navy SEALS.

Now it's a 6,000-acre facility that has trained over 50,000 people since they've opened up. Now they train all kinds of different clients. Their training includes, among other things, firearms, tactical training, canine training and security training.

Some of their clients include local, state and federal law enforcement, Department of State, Department of Transportation, multinational corporations that come there for training and the Department of Defense.

Now those four contractors, those four Blackwater employees that were killed in Fallujah they were there as subcontractors for the Department of Defense and they were escorting a food supply for the Iraqi people.

Now, Blackwater, you might say what kind of people would want to do this? What kind of people work there? Well, Blackwater recruits former Special Operations personnel, former law enforcement that have a military background.

Again, these are professionals, Kyra. These are not cowboys that are out there as soldiers of fortune. These are people who get out of the military, are looking for a profession and they provide a profession as well as law enforcement.

I know some people that are working for Blackwater and over there right now. I heard from one of those people, told me that he was OK but, again, I want to stress that these are professionals not cowboys.

PHILLIPS: And you're talking about basic -- I asked you this question why wouldn't these guys or these contractors have had security with them? Well, they are the security so the question now is will the security consultants need added security?

BROOKS: Well, that's a good question and that will go back to the Department of Defense on whether or not they do have the manpower to provide additional training.

But again, Kyra, there were four of these people escorting a food convoy and these four people were professionals. As I said, they recruit from the Navy SEALS, from other Special Operations groups and they're professionals. They're there to do a job but it remains to be seen whether or not they'll need extra protection. This is a dangerous, dangerous place.

PHILLIPS: Well, Mike, I wonder too if this training might change at Blackwater, specifically courses on ambush, booby traps.

BROOKS: Well, they go through that. The people who are sent overseas they go through some additional training there at Blackwater before they're sent overseas and some of that is in medicine, emergency medicine, booby traps, bombs and explosives, recognition of bombs and explosives, extensive weapons training.

There at Blackwater you have live firehouses so they can actually put in conditions that they may run into in Iraq. They can train for that before they go over there.

PHILLIPS: Our Mike Brooks thanks.

Police fanned out across Europe today and arrested 54 suspected members of the Turkish militant group. Most were arrested in Turkey but raids were also carried out in Germany, Italy, Belgium and the Netherlands. Police say the suspects belong to a Turkish Marxist organization responsible for a number of attacks in Turkey and elsewhere.

In Spain, authorities think they've identified a key figure in the Madrid train bombings. Arrest warrants, viewed by CNN, accuse a Tunisian man of coordinating the attacks and indoctrinating others in jihad. The warrants say that he is one of six suspected Islamic militants being sought in last month's bombings, which killed at least 190 people. The other five are from Morocco.

Well, we want to look back now at one of the (unintelligible) images from the Iraq War. One year ago today, U.S. forces rescued Private First Class Jessica Lynch from a hospital in Nasiriyah. Lynch had been captured during an ambush instantly dubbed a hero.

Well, she has returned to West Virginia and the Associated Press reports that she still spends hours a day in physical therapy. She's created a foundation to educate the children of veterans.

On now to the baffling disappearance and reappearance of a University of Wisconsin student in Madison. Twenty-year-old Audrey Seiler was found alive and healthy yesterday not more than two miles from where she was last seen four days earlier. Now police have some questions for her.

Eric Phillips live from Madison, Wisconsin now with the latest -- Eric.

E. PHILLIPS: Kyra, good afternoon to you.

We're here at the Madison Police Department and, as you say, they have many questions for her. They plan on questioning her today during an interview session that will last for hours they say.

Of course they're continuing their search for the alleged abductor of Audrey Seiler. Meanwhile, as you mentioned, she was found yesterday cold and dehydrated but most of all alive.

(BEGIN VIDEOTAPE)

E. PHILLIPS (voice-over): Friends and family say they never gave up hope of finding 20-year-old Audrey Seiler alive.

STEPHANIE SEILER, AUDREY'S MOTHER: Right now we're just focusing on being together and holding each other and hugging each other. E. PHILLIPS: A passerby spotted Seiler Wednesday afternoon in a marshy area two miles east of the University of Wisconsin in Madison where she is an honor student.

She had been missing since Saturday after a surveillance camera caught her leaving her apartment with no coat or purse. Hundreds took part in all-out search for Seiler, including many from her home town of Rockford, Minnesota. The ordeal was a wake-up call for others.

UNIDENTIFIED FEMALE: It was really scary just like hearing about it and I definitely felt a little bit less safe, just like walking around the campus knowing that one of the students was missing.

E. PHILLIPS: Police are now hunting for a suspect who Seiler says kidnapped her at knifepoint. They're using dogs, helicopters and infrared thermal imaging. Authorities are equally as interested in getting more details from Seiler. They plan to interview her about this incident and an assault she reported in February.

UNIDENTIFIED MALE: I anticipate the interview with Audrey is going to last several hours. It's just something that we're going to have to take our time with and make sure that we have the correct and accurate information from Audrey.

(END VIDEOTAPE)

E. PHILLIPS: In that February incident, Audrey Seiler reported that she had been attacked from behind and that she had been knocked unconscious as she was walking one night after midnight. She says she woke up behind a nearby building but that she had not been robbed nor seriously injured -- Kyra.

PHILLIPS: Eric, has the question been raised, is it being discussed that possibly this could be a hoax?

E. PHILLIPS: The question has definitely been raised. Police have not raised it officially but certainly citizens around here have been asking that question because there are so many unanswered questions. It's forcing people to come up with their own theories and, of course, that's one of them.

Police, however, are only officially saying that the circumstances surrounding this abduction or this alleged abduction are very interesting and they're saying that they want to question her and find out more information about the "unique circumstances."

PHILLIPS: Eric Phillips live from Madison thanks Eric.

Last year one of the big stories was the Elizabeth Smart case. She was found safe and sound months after she was abducted. Today in Utah there's a hearing over reporters in the courtroom for Brian David Mitchell's competency hearing. Mitchell is accused of kidnapping Smart. His attorneys have asked that his competency hearings be closed to the media and public.

Think she'll send a thank you note? Maybe so if an outspoken juror's past keeps Martha Stewart out of the slammer.

What hot commodity does John Kerry have more than any other Democrat in campaign history? Here's a hint. Even Bill Clinton couldn't raise this much.

And location, location, location, ladies apparently being there is half the game when it comes to winning Prince William's heart.

LIVE FROM's spring fever continues right after this.

(COMMERCIAL BREAK)

(WEATHER FORECAST)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

CHAPPELL HARTRIDGE, MARTHA STEWART JUROR: The one thing we wanted to get clear was we had very important decisions to make. We had people's lives in our hands. Well, she committed a crime and she got convicted.

(END VIDEO CLIP)

PHILLIPS: Juror Chappell Hartridge speaking out last month after finding Martha Stewart guilty of stock fraud. Now he's at the center of a legal motion seeking to have Stewart's conviction overturned.

Hartridge allegedly lied on a pretrial questionnaire when he did not mention he'd been arrested in the past and charged with domestic violence. Stewart's lawyers say if they'd known about his run-in with the law, they'd have kept Hartridge off the jury.

And it's day eleven of the deliberations in the trial of two former Tyco executives accused of ripping the company off for $600 million. Last week a dispute among jurors threatened to derail the trial.

CNN Financial Correspondent Allan Chernoff joins us now with the latest on where things stand -- Allan.

ALLAN CHERNOFF, CNN FINANCIAL CORRESPONDENT: Kyra, the jurors walked into the courtroom for about 40 minutes this morning. They heard a re-reading of their instructions for the conspiracy charge and the securities fraud charge against Dennis Kozlowski and Mark Swartz, the former top two executives of Tyco.

And since then the jury has been deliberating now in day number eleven. That perhaps is a reflection of how complicated this case is. It's been going on for more than half a year now. There were 49 witnesses to take the stand, about 700 exhibits and it's even gotten very confusing for the jury.

Late yesterday, the jury asked for some exhibits that don't even exist and for other exhibits for which they've already received information in the jury room. So, Kyra, the deliberations going on and lots of people are hoping to have some resolution before very long -- Kyra.

PHILLIPS: Well, what's the talk, Allan? What are lawyers saying? Do they think they'll get a verdict soon?

CHERNOFF: Well, just a few moments ago, Charles Stillman, the lead attorney for Mark Swartz told me hey, it's April Fool's Day, anything could happen today so at least he's keeping a good sense of humor about it.

PHILLIPS: All right well I'm going to make sure you're not joking if indeed there is a verdict. Allan Chernoff live from New York thank you.

Well don't ever say LIVE FROM never does anything for you. It's going to be a touch weekend ahead for those who savor their sleep so we've go tips to help get you through to switch to the Daylight Savings Time.

DANIEL SIEBERG, CNN CORRESPONDENT: I'm Daniel Sieberg. Coming up on LIVE FROM, you might receive a few pranks in your in-box and on your cell phone today. I'll play the role of the spoiler coming up later this hour.

PHILLIPS: Well, they might look happy on TV but America's favorite cartoon family reportedly is bonding together over cold hard cash. LIVE FROM's got the details coming up.

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

(COMMERCIAL BREAK)

PHILLIPS: Daylight Savings Time starts this weekend. That means you'll have to spring forward and lose an hour of sleep. It's kind of a bummer but there are ways to make sure you always get a good night's sleep and keep yourself in good health too.

Medical Correspondent Holly Firfer explains.

(BEGIN VIDEOTAPE)

HOLLY FIRFER, CNN MEDICAL CORRESPONDENT (voice-over): Want to know how you can help prevent diabetes, hypertension and obesity? Get a good night's sleep. Impossible you say, especially since we'll be setting the clocks forward losing a precious hour of sleep no one can afford.

Well listen up. There are some simple solutions from the National Sleep Foundation to be sure you get the seven to nine hours of sleep recommended for adults and ten to eleven hours school-age children need to stay healthy.

First off, forget it's Saturday. We all look to the weekend as a time to catch up on sleep but sleep experts say it's important to keep your body clock on the same time, no more lazy weekend mornings. You should get up at the same time every day.

If you need a few extra hours of shuteye you can take a nap but only if it's for an hour or less and before 3:00 p.m. Otherwise, you run the risk of having trouble falling asleep at night.

While you're awake expose yourself to as much daylight as possible. A 45-minute daily walk outdoors is recommended. No caffeine between four and six hours before you go to bed and no more than two alcoholic drinks per day. Some suggest no drinks up to four hours before bedtime.

Exercising after a long day can relieve stress but it revs you up, so sleep docs say doing so too close to bedtime can keep you awake as can the stimulant effects of nicotine, so no smoking either.

Use your bedroom for sleep and sex. Do not use it as an office, a place to read, or watch TV. And, if you have trouble sleeping or wake up in the middle of the night, leave the bedroom and go read or listen to relaxing music. Go back to bed when you're sleepy and, whatever you do, don't look at the clock. This will just stress you out and keep you up.

And, as we lose an hour of sleep Saturday night, sleep experts say don't sleep in on Sunday to make up for that lost sleep. Start the transition today. Go to bed 15 minutes earlier each night so you body clock won't be telling you the wrong time.

Holly Firfer, CNN, Atlanta.

(END VIDEOTAPE)

PHILLIPS: Well, for more health news, remember you can always click on to cnn.com/health.

And if funky dreams are keeping you up at night, well let radio's dream doctor tell you what it's all about. Friday on LIVE FROM, he'll interpret your most twisted dreams.

OK, I'm just now looking at the cute little graphic. I promise we don't wear hats like that when we got to sleep or caps or whatever you want to call them. Just e-mail the dreamy details to livefrom@cnn.com, the sooner the better of course and just maybe we can help you get a more peaceful eight hours, nice robe. Thanks, Scott.

All right, U.S. and Canadian officials say that they've made a huge drug bust. Yesterday, law enforcement agents from both countries broke up what they call a major Asian criminal organization. That group allegedly made an estimated $100 million making and distributing ecstasy throughout North America.

In all there were busts in 16 U.S. and three Canadian cities. The raids ended a two year investigation of a syndicate thought to be responsible for as much as 50 (ph) percent of all ecstasy smuggled into the U.S. Energy Secretary Spencer Abraham testified before a House committee this morning as gas prices have reached record highs but prices at U.S. pumps are actually much lower than in many countries.

Rhonda Schaffler dares to compare, hi Rhonda.

RHONDA SCHAFFLER, CNN FINANCIAL CORRESPONDENT: Hi there, Kyra.

It may feel like the price we're paying for a gallon of gas in the U.S. is a lot. It's $1.80 on average but drivers elsewhere around the world might consider that a bargain.

Motorists in Hong Kong shell out nearly $5.50 per gallon. In London and Paris around $5.00. On the flipside you'll find the cheapest gas in Venezuela. That's because it's a major oil producer. The oil is government owned and local prices are kept low as a benefit to citizens there.

The main reason for soaring prices elsewhere government policies. Taxes make up as much as 75 percent of gas costs in some European nations -- Kyra.

PHILLIPS: Rhonda, there's big changes afoot at the stock exchange I'm told.

SCHAFFLER: That's right, a little bit of spring cleaning here, out with the old, in with the new. Three big name companies are getting kicked off the Dow Jones Industrial Average, AT&T, Eastman Kodak and International Paper. Taking their place Pfizer, Verizon and the insurance giant AIG. The news was taking a toll on shares of the booted companies.

Overall, though, the market trend is positive today. The Dow Industrial Average up 17 points, the NASDAQ half of one percent higher. That is the latest from Wall Street.

Coming up, consumers may scream over the price of ice cream this summer. Details later this hour.

And there's a lot more LIVE FROM coming up after the break.

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PHILLIPS: Poised to sign new legislation protecting the unborn. During a ceremony this afternoon, President Bush is scheduled to sign the Unborn Victims of Violence Act. That new legislation will make it a crime to harm a fetus while committing a federal crime. A number of states already have similar laws.

Final highway construction plan or simply a budget buster? The House today takes up a $275 million highway bill. Supporters say it will improve the nation's roads, create new jobs and the White House is not sold on it. If the bill reaches the president's desk, senior advisers say they'll recommend that he veto it because it's just too expensive. A political milestone for Senator Robert Byrd of West Virginia. Today he cast his 17,000th vote. Byrd was elected to the Senate in 1958.

Other news across America, a murderous mother or a textbook case of insanity? The defense begins laying out its case in the capital murder trial of Deanne Laney (ph) in Tyler, Texas. A psychiatrist testified today Laney did not know right from wrong when she stoned her three sons, killing two of them. She has pleaded not guilty by reason of insanity.

An explosion at the pump followed by an arrest at home, a New Hampshire man is charged in the blast at a Maine convenience store. Police say he was driving drunk when he smashed his truck into a gas pump then drove away. Another motorist followed him home.

And you could call him President Bush's youngest fan. Now he's in trouble with the law. A New Hampshire teen faces criminal charges after police say he voted in the primary under his father's name. At 17, the boy is too young to vote.

So, do you want to be the president? Better know how to load up that war chest because campaigns these days don't come cheaply.

CNN political guru Carlos Watson checks in from San Francisco to run the numbers for us including a new record for the Kerry campaign. All right, let's talk numbers. First of all have you started saving money, Carlos, for your campaign?

CARLOS WATSON, CNN POLITICAL ANALYST: Kyra, you take way too good care of me but that's why I love coming back to join you every time.

PHILLIPS: There you go. I've been talking to your mother again. OK. Let's talk about John Kerry and give us the numbers.

WATSON: So, John Kerry is going to announce tomorrow that he's raised more money in one quarter than any Democrat ever and when I say more money, I don't mean just a little bit more, Kyra. I mean he's going to smash Howard Dean's former record of $14.8 million.

You remember six months ago, Howard Dean raised $14 million, almost $15 million. At the time, it was more than any Democratic presidential candidate ever raised in a quarter. Everyone talked about how he transformed fund-raising for Democrats with the Internet.

And now, John Kerry is coming along tomorrow and is going to tell you, Kyra, that he raised not twice as much but almost three times as much and is now ready to fight with President Bush in a very serious way.

PHILLIPS: Well, let's talk about what that says about John Kerry and what's the last record financially?

WATSON: So the last record, again, was $14.8 million for Howard Dean and now John Kerry's gong to raise north of $40 million tomorrow but I think it says...

PHILLIPS: I thought Clinton was in there. Wasn't Bill Clinton?

WATSON: Back in '96, as an incumbent, President Clinton had the record with about $10 million in a quarter.

PHILLIPS: OK.

WATSON: So, when Howard Dean came along last year and raised $14.8 million they said, wow, small town governor who is raising more than a sitting president.

PHILLIPS: So, do you think Dean and Kerry should team up here? They seem to make the most money.

WATSON: Well, in some ways they already have. I mean if you think about the $40 million that John Kerry is raising, a substantial portion of that, probably north of $10 million will come from the Internet and so while he didn't pioneer the use of the Internet for fund-raising, certainly he's piggybacked off of what Howard Dean has done.

And the fact that Howard Dean said a couple weeks ago that he's going to start to help John Kerry means that the next quarter may even be better than this quarter, so those people who live in battleground states get ready for a lot of ads this time from the Democratic side.

PHILLIPS: All right. Let's talk about what this means, the fact that John Kerry's been able to raise so much money. Is it because he is so popular? Is it because more people are involved in politics? Is it because of 9/11 and people see the presidency in a different way now and what should happen when it comes to running this country?

WATSON: I think all those things, Kyra. In fact, I'd probably point to four things, one the fact that he wrapped up the nomination earlier than any Democrat ever has, has allowed him really to kind of unify the party and put money together.

Two, I think the fact that the last election was so close and so bitterly divided, obviously with the Florida recount, I think has a lot of Democrats saying we can't take this for granted. We really need to pony up if we're serious about it.

Three, I think the issues are very different this time. Remember in 2000, we had a relatively healthy economy. We weren't talking about war and an attack on our soil and so I think people are much more serious about this and the issues, the issue difference between the candidates is so stark that I think you see Democrats obviously ponying up, by the way not just to Kerry but to these other groups.

And last but not least, I think that you're seeing a real interest on the part of Americans. You know the latest poll shows that close to two-thirds of Americans think that this election is important and are paying attention, whereas last time at this time it was about 45 percent. So, all those I think are reasons that John Kerry is able to raise a lot more money and why obviously President Bush also has been even more successful having raised close to $200 million at this point for his entire campaign.

PHILLIPS: And as you look at that money that's been raised, just real quickly I'm curious to see what you think about sort of the younger generation and its involvement. You know the story we ran just before you, this 17-year-old voting under his father's name, are you seeing more the youth getting involved this time around? Is that making an impact or not?

WATSON: Not yet. I mean in recent times still the best turnout we had among young voters and, by the way since 18-year-olds got the right to vote in '72 it's kind of steadily declined, was '92 where more young voters showed up at the polls. But, again, the numbers have gone south.

So far not yet but, again, John Kerry was on MTV earlier this week and Reggie the Registration Bus, the Republicans registration vehicle was there and kind of profiled. So, you know, we'll stay tuned.

One of the other last things I'll add is that rap impresario Russell Simmons is actually leading a major effort to get two million young people, additional young people to turn out to vote, so maybe he'll be successful.

PHILLIPS: Carlos Watson, thank you.

WATSON: Good to see you.

PHILLIPS: Good to see you too.

Other news around the world now, U.S. Secretary of State Colin Powell arrived in Brussels today where he'll meet with NATO leaders to talk on improving peacekeeping measures in Iraq. Earlier, Powell was interviewed on German television. He says the U.S. will not be run out of Iraq despite yesterday's brutal attacks in Fallujah.

Leaving no stone unturned in Bosnia/Herzegovina, more than three dozen NATO troops stormed a residential building in search of wanted war crimes suspect Radovan Karadzic today. Efforts to capture the former Bosnian/Serb leader have been ratcheted up since January.

And more bloodshed in Uzbekistan, an alleged suicide bomber blew herself up earlier today killing one man and critically injuring herself. This was the latest bloodshed in a violent week that began last Sunday when an explosion killed ten people.

One official is blaming al Qaeda for the string of attacks which have killed at least 44 people, most of them alleged terrorists. Uzbekistan is a key U.S. ally, as you know, in the central Asia region.

It sounds like stuff of science fiction, a remote-controlled plane that can be sent to drop a bomb without risking the life of a pilot.

CNN Pentagon Correspondent Barbara Starr says attack drones are already being tested and debated.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): A perfect day for flying earlier this month in the California desert. The experimental X-45A drops a 250-pound bomb.

Just one thing, there is no cockpit. There is no pilot onboard. Ground station operators are miles away. This is the first time an unmanned warplane has dropped a weapon. This is the future of warfare. The Pentagon is testing unmanned warplanes hoping to make them part of the U.S. arsenal.

For the first night of the war in Iraq, it would have been the ultimate stealthy weapon flying towards Iraqi radars and missiles without risking a U.S. air crew.

MICHAEL FRANCIS, PROGRAM DIRECTOR, DEFENSE ADVANCED PROJECTS: We can spot that threat before he spots us.

STARR: These unmanned aircraft will be able to fly at 40,000 feet and at the speed of commercial airplanes, more capable than current drones. Fleets of unmanned airplanes will move across enemy airspace, some conducting surveillance through onboard cameras, some dropping bombs.

But question of ethics, even with a human operator able to see the target through onboard sensors, should what is essentially a flying computer be used to attack?

MICHAEL O'HANLON, BROOKINGS INSTITUTION: You could imagine an unmanned vehicle correctly finding a target but then maybe a train passes by that target at just that minute with a lot of women and children onboard.

STARR: The Pentagon says there are limitations.

FRANCIS: We still haven't replaced the human computer. The digital computer as good as it is can't do some things that we do very well.

STARR (on camera): The Pentagon says humans will always be involved in the decision to fire but if a plane can be ordered to drop a weapon by someone a continent away that will give the Pentagon a 21st Century battlefield advantage.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

PHILLIPS: We're going to take you live to the White House now with Scott McClellan addressing reporters, talking about Fallujah at this time. UNIDENTIFIED FEMALE: ...al Qaeda attacked America away from American soil but why not (unintelligible).

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: We're talking about one speech here and look at the actions and steps that we were taking prior to September 11. I think that's what you need to look at to measure our commitment to addressing this high priority.

There obviously -- she's the national security adviser, April. She's responsible for overseeing our efforts to implement the important priorities of this administration when it comes to foreign policy.

And certainly there are a number of important priorities on our foreign policy agenda, whether it's terrorism, whether it's going after rogue states or confronting rogue states that seek weapons of mass destruction or have weapons of mass destruction, whether it's addressing the proliferation of weapons of mass destruction or missile defense or other priorities.

You need to keep in mind -- you need to keep in mind that it's not necessarily an either/or proposition here. These aren't mutually exclusive. Confronting one can help us address the other.

UNIDENTIFIED FEMALE: OK. On an other subject on OPEC, Reverend Jesse Jackson is asking that this administration look at other resources in the wake of OPEC cutting its production.

He's saying since America, since the White House is dealing with having a partnership with Africa with all these democracies there and it's a oil rich, mineral rich nation or continent, why not go to Africa and try to work out something in the long term, maybe build infrastructures in some countries to help with our problem here?

MCCLELLAN: Well, that's assuming we're not looking at some of those ideas but obviously there are producers beyond OPEC that we stay in close contact with. I think what he ought to do is urge Congress to pass the president's comprehensive national energy policy so that we can reduce our dependence on foreign sources of energy so we don't continue to go through this issue year after year. That's what he ought to do.

PHILLIPS: We're going to follow the White House briefing there with Scott McClellan.

Meanwhile, straight ahead making sure the joke's not on you. Everybody's favorite day for fooling around is going high tech. We'll show you how to uncover those tricky e-mail and cell phone pranks.

And this is no joke, the voices of one of TV's most popular shows reportedly goes silent. We'll tell you why.

(COMMERCIAL BREAK)

PHILLIPS: Well, back in the good old days, April fools might rely on standards like goofy glasses or goofy whoopee cushions to get a few laughs.

SIEBERG: All journalistic credibility is going away as we speak.

PHILLIPS: Oh, we are so classy here on CNN. Well there's more elaborate pranks like this one that we call "Foiled Again," but they're still pretty low tech. But, of course, Daniel Sieberg has high tech alternatives, including normal glasses guaranteed to get a response if not a lawsuit.

Remember, we're not sanctioning any of this. We just want you to think about, you know, what's going on and you have a right to know.

SIEBERG: Being aware, being alert, exactly. We're going to be a bit of a spoiler here, Kyra.

PHILLIPS: Oh, no.

SIEBERG: But we're still going to have a little bit of fun.

PHILLIPS: OK.

SIEBERG: I'm going to put on my real glasses here so I can see what's going on. Yes, the first one we're going to talk about, we actually can't name the Web site because of legal reasons and, in fact, you do want to be careful if you're going to use this site.

But the whole idea behind is that it spoofs an e-mail from your boss and looks like when you get this e-mail in your inbox that you're maybe facing some disciplinary action for sending out too much e-mail.

Yes, so this is an example of what the e-mail might look like. It might say, "John, it's come to my attention that you've been using company resources for personal use. As stated in the employee handbook" and it's not going to say Widgets, Inc., it will say the name of your company, "takes this behavior very seriously and any continuation of this will result in immediate termination."

Now, we should point out a few things. First of all, it will look like it comes from your boss' e-mail. When you fill it out it does -- you can choose the domain name and everything, so if you reply back to it, it will go back to that person, so you have to be very careful here.

Also at the bottom of the e-mail message it does have a disclaimer that says, hey you know what, this is a big joke. Now, also on this site there are a couple of other pranks. You're seeing some video of it right now.

One of them you get an e-mail message and it looks like it's come from your university saying, you know what, we're sorry. That diploma you thought you got or that degree, you didn't have enough credits.

So, a little bit of fun here but do be careful, especially on the human resources or the legal side. You want to make sure that maybe people are in on it a little bit or it's somebody you know fairly well, so just be careful. Be forewarned. PHILLIPS: How about -- yes, I was just seeing the scroll down there. What about the imaginary girlfriend?

SIEBERG: Oh, imaginary girlfriends. Now this is a different site. This one we can tell you about. This is at imaginarygirlfriends.com. This is a little different. Imagine if you will that one of your friends tells you that they've suddenly got this amazing girlfriend. She's very attractive.

And we can't show you the pictures of them on this Web site for legal reasons again but what happens basically is you pay about $45 or $50 a month for this service, shall we say, and this girl who is supposed to be real, and we think they are real, sends you e-mail and photos of herself claiming to be your girlfriend.

Now why would you want to do that? Well, you might want to fool your friends into thinking you have an actual girlfriend. We hope that you don't believe that this is a real relationship because the idea here is that it's imaginary and it does say on the Web site please try and distinguish between fantasy and reality.

The best part about it though, Kyra, is when the money runs out, she will actually pretend to be begging to have you back. She'll say, oh I can't believe you've broken up with me. How could you? So, but again, you know (unintelligible).

PHILLIPS: You obviously have no need for that Web site.

SIEBERG: You're too kind. With those glasses you never know.

PHILLIPS: You could get any hot babe. All right, cell phones.

SIEBERG: Yes, cell phones. Well, everybody is familiar with ring tones that are out there. This is a little different. In this case, we're talking about cell phone noises that are in the background.

This is at a site called simeda.com. Now this is if you want to fool somebody, not just on April Fool's Day but any other time of the year and we have an example we can show you.

The idea is that if you're let's say late for work, you're lying in bed and you want to fool somebody into thinking you're on your way to work. You could say, OK, yes, I'm just on my way to work. I'm sorry, I'm stuck in traffic right now. I really can't hear you very well.

I'm sorry if you could just speak up a little. The traffic is horrible on the 85 on the way in right now. I just can't hear a thing. You know what, I'm going to be a little bit late but, you know, I'll try and get back to you, OK.

PHILLIPS: That's pretty smart.

SIEBERG: That was one of them. Yes, it's pretty smart.

PHILLIPS: OK.

SIEBERG: Now there's another one we can show you.

PHILLIPS: All right.

SIEBERG: This is if you're at the dentist's office or you're trying to fool somebody into thinking you're at the dentist's office, you know, really there. You can say, yes, I'm sorry.

I'm just having some dental work done and I don't know if you can hear the drill very well right now. It's supposed to sound like you're at the dentist and the idea being that maybe you're on your way home. Maybe you're not really at the dentist but you're trying to fool somebody into thinking you are.

PHILLIPS: Playing hooky, maybe on the golf course.

SIEBERG: Playing hooky, exactly, right.

PHILLIPS: But now all our bosses here are going to know if we try and pull that off.

SIEBERG: Now this doesn't work for every -- you see this is what we're saying. We're sort of giving this away a little bit. I'm sorry.

PHILLIPS: Sorry.

SIEBERG: But, you know, some people may not know about it. Now we should say this does not work with every cell phone and you do have to obviously pay for this service. They're trying to update it for more and more cell phones in the future.

So, again, please be careful when you're pulling any April Fool's prank on somebody. You do want to maybe just think about it a little bit before you do it, before you execute, before you pull the trigger. Just be careful that's all.

PHILLIPS: I'm really surprised you didn't pull any jokes on me. Thank you very much.

SIEBERG: Well, you were lucky. You were lucky this time.

PHILLIPS: So, I think. Yes, really. All right, Daniel Sieberg.

Well still ahead is England's handsome Prince William off the market? Hum.

Speaking of markets...

SCHAFFLER: I'm Rhonda Schaffler in New York. Not so sweet prices for our favorite summertime treats. That story and a check on all the market action when LIVE FROM continues right after this break.

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(BEGIN VIDEO CLIP)

BART SIMPSON: Actual enemy is the pile?

LISA SIMPSON: I can't believe you went to the movies with the teacher. What happened to the Bart Simpson who put the mothballs in the beef stew?

B. SIMPSON: Hey, I only hung out (unintelligible).

(END VIDEO CLIP)

PHILLIPS: Homer Simpson is looking for a little more dough. Daily "Variety" reports the actors who provide the voices for the Simpsons have gone on strike. They're trying to force a settlement of lengthy contract talks. Their old deal expired just a few months ago.

"Variety" quotes insiders as saying each cast member is looking to pull down about $8 million a season. Right now they each make about $2.75 million. Yes, that's definitely not enough.

The Hollywood walk of fame, the late John Belushi being honored today with his own star. Aside from "Animal House" Belushi may be best known from his stint on "Saturday Night Live" and his role in the "Blues Brothers." You may remember he died of a drug overdose in 1982 at the age of 33.

Prince William is said to be royally upset. "London Sun" tabloid published photos today of the 21-year-old heir to the British throne and his roommate who is rumored to be his girlfriend.

Newspapers like "The Sun" aren't supposed to take pictures of the prince in exchange for an official photo shoot every school term. But the paper said the public had the right to see the pictures saying one of William's girlfriends could one day be the queen.

The other man is a new tell-all book by actor and model Michael Bergin. In it he reveals what he says was a long-running affair with Carolyn Bessette Kennedy, the wife of John F. Kennedy, Jr. The Kennedys were killed several years ago in a plane crash off Martha's Vineyard. Now Bergin wonders if she would still be alive today if she had chosen him over Kennedy.

CNN's Paula Zahn spoke recently with him and a Kennedy family friend about the book.

(BEGIN VIDEOTAPE)

MICHAEL BERGIN, AUTHOR "THE OTHER MAN": She was such a good person, such a giving person that you could only wish her happiness and as long as I knew she was happy I was happy for her whether she was with me or not.

PAULA ZAHN, CNN ANCHOR: And if Carolyn were alive today you say you wanted to write a book that was sympathetic about her.

BERGIN: Yes. ZAHN: You wanted people to know the truth. How could she possibly be happy about this book and the invasion of her privacy?

BERGIN: She'd be proud of the book and she'd be proud of me. She would say thank you.

PAUL WILMOT, FRIEND OF CAROLYN BESSETTE KENNEDY: I think there are one of three scenarios. One it's not true at all in which case it's reprehensible that he's written this. There's nobody to defend her, to refute it. They're all -- they've all passed away and he just did it for money.

The second thing is maybe it's a little bit true. Maybe they had a friendship in which case he's written something that's still erroneous and he did it for money.

The third thing is maybe it is true. If it is true, why write it? I mean why soil the reputation of this beautiful girl and her marriage to the crowned prince of America and the tragedy that surrounded the thing? This guy did it for money.

(END VIDEOTAPE)

PHILLIPS: Well, the author says that he and Carolyn Bessette first started dating while they both worked for Calvin Klein. He says they also saw each other off and on while she was married.

Well if you want to treat yourself to an ice cream cone or sundae this summer be prepared to shell out a bit more cash. Rhonda Schaffler live from the New York Stock Exchange with the details on that -- Rhonda.

SCHAFFLER: Hi, Kyra. If you're hanging out at the ice cream parlor this summer it might cost you a bit more. That's because of near record prices for milk and butter topped with record prices for vanilla and the high cost of chocolate. Retailers must decide whether to raise prices or simply eat those costs -- Kyra.

PHILLIPS: Well, meantime it looks like problems with balancing checkbooks and credit card debt may be around for some time. We know that.

SCHAFFLER: Yes, exactly. We probably don't need this study to tell us this but the Federal Reserve's got a new one anyway and it finds that the financial know-how of high school seniors is "dismal but improving."

On average, twelfth graders given a finance quiz answered just more than half those questions correctly. Right now only four states require students to take a course covering personal finance before graduating.

And, as far as money on Wall Street goes, we'll show you the market action. Stocks moving modestly higher. The Dow Industrial Average up 31 points. The NASDAQ tacking on two-thirds of one percent. Retail stocks moving lower though around the (unintelligible) raised by Merrill Lynch. That means shares of Wal-Mart and (unintelligible) all shedding more than $1 and that is the very latest from Wall Street.

Coming up, call it the blue chip shuffle, a trio of big name companies getting the boot from the Dow Jones Industrial Average, details in the next hour. For now, Kyra, back to you.

PHILLIPS: Rhonda, thank you.

Coming up in the second hour of LIVE FROM, an emotional reunion for soldier and son. A first-grader gets a surprise pickup at school.

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PHILLIPS: Outrage and talk of revenge over attacks in Fallujah, the latest from there. How does it play on Arab TV? Find out this hour.

Also coming up...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I'm crying because I was so happy.

(END VIDEO CLIP)

PHILLIPS: Oh, a soldier surprises his son. Grab a hanky for this one, folks, the emotional family moment caught on tape.

Harmless grab for 15 minutes of fame, cogs in the wheels of justice or both, controversial jurors steal the spotlight in high profile trials.

And a loving husband utters those magic words, sweetheart I've got the numbers. What they have to say about winning the second biggest lottery haul in history.

From the CNN Center in Atlanta, I'm Kyra Phillips. This hour of CNN'S LIVE FROM starts right now.

First, Iraq and a decision to deal with Fallujah. After months of resistance in the pro-Saddam stronghold, the brutal killings of four Americans appear to have tipped the scales and there was another attack today. After vowing retribution, the military now is saying it will go in big.

Our report from Baghdad contains images many viewers are likely to find disturbing. Here's CNN's Jim Clancy.

(BEGIN VIDEOTAPE)

JIM CLANCY, CNN CORRESPONDENT: First let's flashback to Fallujah on Wednesday, the horrific scenes around that vehicle in which four security guards were killed. They were American citizens, an angry mob pulling their charred bodies from the vehicles and dismembering them and then hanging them on public display.

That has upset a lot of people. Some Iraqis here in Baghdad excusing it as a reaction to the U.S. occupation. Others, though, expressing shock that the Americans were targeted. They were after all civilians.

Now we had a response today from Paul Bremer, the civilian administrator here in Baghdad. He was speaking to a group of cadets about that incident and he had this to say.

PAUL BREMER, U.S. CIVILIAN ADMINISTRATOR: The acts we have seen were despicable and inexcusable. The violate the tenets of all religions, including Islam as well as the foundations of civilized society. Their deaths will not go unpunished.

CLANCY: All right. That was Paul Bremer and it should be noted that as he had some tough language there, so too did a spokesman of the U.S. military here in Baghdad saying that Fallujah one way or another would be pacified that the U.S. wasn't going to back away from that trouble spot in the heart of the Sunni Triangle. Meantime, the attacks continued. As you noted, it was a fuel convoy that was making its way southward.

(voice-over): It was in northwest Baghdad. First, one roadside bomb exploded. That injured an Iraqi civilian. The convoy pulled up to a halt just as U.S. military escort, military police were sending out a robot to search for any more unexploded roadside bombs another blast tore through the area.

It did not strike the fuel trucks themselves the obvious target in all of this. There was no fire that was caused by it. What there was were there were some shattered windshields and one driver had to be treated for either shrapnel or glass wounds that he received. It's not clear yet whether he was a U.S. citizen, a U.S. soldier or more likely a contractor, perhaps a foreign national.

(on camera): So that, as you see it, another difficult day for the U.S. military here in Iraq even as they're trying to come to grips with those horrific scenes that played out yesterday from Fallujah.

(END VIDEOTAPE)

PHILLIPS: What happened in Fallujah is also the talk of the town in Washington.

CNN's Sean Callebs has been engaging in the fallout on Capitol Hill. He joins us now live from Washington. Sean, what's the talk?

SEAN CALLEBS, CNN CORRESPONDENT: Good day to you, Kyra.

Certainly the talk here in Washington, D.C. and the majority of the people here in the nation's capital found out about what happened in Fallujah the same way people across the world did in those graphic images that were broadcast on TV beginning late last night and then also in newspapers today, as editors struggled with exactly what to put in those. Now, various news conferences, regularly scheduled meetings on the Hill, it is also coming up. A lot of lawmakers are voicing their utter contempt, their utter disgust for the way this played out. In fact, it came up during a terrorism meeting today on Capitol Hill. Let's take a listen.

(BEGIN VIDEO CLIP)

REP. NICK SMITH (R), MICHIGAN: Help me better understand the kind of attitude that seems so inconceivable to most of us that a crowd can gather around and cheer with that kind of -- that kind of, for lack of a better word, brutality?

REP. NANCY PELOSI (D), MINORITY LEADER: We're not going to run out of town because some people were lawless in Fallujah but we have to be smart about how we protect our troops and our civilians when we put them in harm's way.

(END VIDEO CLIP)

CALLEBS: And here's how a couple of the major papers out here in the city covered it. Let's first look at "The Washington Times," pretty sobering and not terribly graphic considering exactly what went on. You can see that's a burning Jeep right there and the headline "Four Americans Mutilated."

But "The Washington Post," this is what a number of newspapers across the country did as well. This is much more graphic. It says "U.S. Civilians Mutilated in Iraq Attack." There the charred bodies of the four Americans lay down as a number of people in Fallujah are also hitting the bodies with their shoes, again an insult in that area of the country.

Without question, Kyra, this is certainly having an impact on the Hill. As you heard, Nancy Pelosi say, the U.S. is not going to leave that country, clearly making some reference to what happened back in Mogadishu in '93.

PHILLIPS: Sean Callebs live from Washington, sure appreciate it. Sean, we're going to go straight from you over to the White House now.

Suzanne Malveaux also following the questions being raised about what happened in Fallujah -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Kyra, we have understood and we've realized today that President Bush saw some of those horrific images, many of those images that even broadcasters did not actually show because they were so terrible.

But White House Spokesman Scott McClellan saying of course that this has only intensified the administration's resolve that they will not be deterred. They'll stay the course.

We understand that they will not change the troop numbers. They say they're going to stick with that deadline to turn over power to the Iraqi people by the end of the summer essentially. But they are saying, look you know, this is personally important to the president and also politically important. As you know, he is running on his record as a wartime president -- Kyra.

PHILLIPS: Suzanne Malveaux live from the White House thank you.

Well, she was missing for four days. Now, University of Wisconsin student Audrey Seiler is back home safe and sound but puzzling questions about her apparent abduction cloud the happy homecoming.

We get the details now from CNN's Eric Phillips who is live from Madison, Wisconsin -- Eric.

E. PHILLIPS: Kyra, we're here at the Madison Police Department where authorities just held an impromptu press conference. What they essentially said during that press conference is they have no reason to not believe Audrey Seiler's story at this point.

They believe fully at this point that there is a suspect out there and, as a matter of fact, they're working on a composite sketch that they're planning to release at some point this afternoon as soon as possible. So, they have been interviewing her for hours and that interview is ongoing at this hour.

Meanwhile, as you know, Audrey Seiler was found yesterday in a very swampy area that she was cold and that she was dehydrated but much to the grins and happiness of her family and friends she was very much alive.

(BEGIN VIDEOTAPE)

E. PHILLIPS (voice-over): Friends and family say they never gave up hope of finding 20-year-old Audrey Seiler alive.

STEPHANIE SEILER, AUDREY'S MOTHER: Right now we're just focusing on being together and holding each other and hugging each other.

E. PHILLIPS: A passerby spotted Seiler Wednesday afternoon in a marshy area two miles east of the University of Wisconsin in Madison where she is a sophomore honor student.

She had been missing since Saturday after a surveillance camera caught her leaving her apartment with no coat or purse. Hundreds took part in all-out search for Seiler, including many from her home town of Rockford, Minnesota. The ordeal was a wake-up call for others.

UNIDENTIFIED FEMALE: It was really scary just like hearing about it and I definitely felt a little bit less safe, just like walking around the campus knowing that one of the students was missing.

E. PHILLIPS: Police are now hunting for a suspect who Seiler says kidnapped her at knifepoint. They're using dogs, helicopters and infrared thermal imaging.

(END VIDEOTAPE) E. PHILLIPS: Again, police are interviewing Audrey Seiler at this hour as they have been for hours. Many more questions than answers at this point. They're hoping to sort of level that out during this interview and, of course, Audrey

Seiler says this is not the first time something like this has happened to her. She says back in February someone followed her, attacked her from behind and knocked her out. When she awakened she was behind a building nearby but she says she had not been robbed nor was she seriously injured.

And so, Kyra, police are going to be questioning her about that incident as well as this latest incident trying to see if there's any link between the two and trying to see if it may have been the same suspect or different people all together. Still many, many questions unanswered. They're hoping to produce some of those answers today -- Kyra.

PHILLIPS: All right, Eric Phillips live from Madison, thank you.

A check of news across America now.

Michael Jackson's accuser has his day. Sources tell CNN today that the 14-year-old boy who accuses Jackson of molestation has testified before a grand jury. Jackson, who has denied the charges, was on Capitol Hill this week to talk about the AIDS crisis in Africa.

An explanation begins the eleventh day of deliberations in the Tyco trial. The judge in the case clarified to jurors that the charges against former CEO Dennis Kozlowski and former CFO Mark Swartz. Those charges include securities fraud and conspiracy.

The Virginia couple is $239 million richer. J.R. Tripplett bought the winning Mega Millions jackpot ticket. The retired truck driver and his wife both had different ways of expressing their happiness.

(BEGIN VIDEO CLIP)

J.R. TRIPLETT, MEGA MILLIONS JACKPOT WINNER: She kind of broke down and got down on her knees and said a little prayer to thank the Lord. But I don't know it didn't upset me too much or excite me. And to be honest with you to this day it doesn't excite me that much. But like the lady there a while ago with the lottery she said, well maybe when you go check your bank account maybe it will excite you then and it probably will.

(END VIDEO CLIP)

PHILLIPS: Well, that $239 million jackpot prize is the second largest single ticket lottery win.

Straight ahead there are no pranks at all in our video of this day's April fools, just a heartwarming surprise that will bring a tear to your eye. I promise you that. The happiest little boy we've seen in a long time straight ahead. And speaking of surprises find out what Arab TV viewers didn't see from the attacks in Fallujah.

And, oh how the mighty have fallen, the chips are down for some companies you've always thought as top notch. LIVE FROM names names right after this.

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

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PHILLIPS: It's the top story in the United States but how has Arab media been covering yesterday's brutal killing of four American civilians in Fallujah, Iraq?

Our Senior Editor for Arab Affairs Octavia Nasr has been tuning into the coverage. She joins us now. Pretty interesting, things have changed that is for sure over the years haven't they?

OCTAVIA NASR, CNN SR. EDITOR FOR ARAB AFFAIRS: They have, yes, and if we take a closer look at how we monitored three networks. We start with Abu Dhabi TV. Let's take a look at how they covered the story.

Here's their anchor introducing the story and then from there on, Kyra, they showed everything. When I say everything, everything, the charred bodies, the dragging of the bodies. The only thing that they did that was a little bit different from local stations is cut those shots a little bit shorter than other local stations.

And if we move, for example, to Al-Jazeera, you know Al-Jazeera is know for showing gruesome pictures and for showing all and they took a lot of heat in the past for showing everything they've got. This time around they cleaned up their act. You look at those images. You don't see any bodies and, if you do, they're really in the distance. You have to look for them. Al-Jazeera reported on the story in a very, very responsible way, I would say in a very cautious way.

If you compare it, for example, to another 24-hour news network and that is Al Aribiya based in Dubai and here we see the pictures that Al Aribiya aired. You see no editing there but they covered the gruesome scenes. They covered where we see the bodies, for example, like here, any gruesome and graphic images were covered if you watched Al Aribiya.

So you had all kinds of things depending on the network, depending on their audience. Each of them chose to deal with these images in a different way.

PHILLIPS: Just seeing the images really pulls at your heart but you were even saying that times have changed with regard to ethics and policies on how to cover these stories, right, because in the past while it's always been a part of the culture that they've kind of seen all the blood and guts of a civil war or a war situation.

NASR: Right and the Arab audience want to see it all. This is -- when you talk to Arabs they say, you know, there's no need to clean the video. There's no need to edit anything. Show me everything. If it's too gruesome I just won't watch.

Now things are changing because these networks are now talking to different audiences. Remember this is not a local channel. This is a network that has a reach, an international reach. We can see them here in the states, all over Asia, Latin America, Europe, everywhere in the world Arab speakers are tuning in to watch these Arab networks.

So, they feel a bit more responsible and they also follow the western rules when it comes to ethics. When we talk about ethics, for example, if you take the example of local stations like Lebanese stations, both LBC and Future TV, they showed everything. As gruesome as those images were and as long as those shots were they stayed on them. They showed them because they said that their audience wants to see this.

Now, people will be surprised to know that there is no media ethic guideline in Lebanon. They don't even know what's appropriate, what's not appropriate. They don't have any guidelines. They just go with whatever they get they put on the air, which is a bit dangerous when you compare it to western standards.

PHILLIPS: Yes, interesting. You look at our standards, boy hard core. So now these standards slowly being implemented overseas. Do you think we'd even be able to compare our standards to their standards or is it sort of kind of a slow maybe sort of an experimentation that's going on right now to see what type of response they get from those that live in country and out of country?

NASR: Yes. It is slow in coming. It's not going to be an overnight change. You won't see western standards. Not that they think that western standards are perfect. They do criticize us for lots of things, rightly or wrongly so. I mean that's another issue but they are moving towards more acceptable international ethics.

PHILLIPS: Set of guidelines.

NASR: Yes and they're getting there slowly but surely.

PHILLIPS: You and I talked about Mogadishu. How can we forget that? The movie "Black Hawk Down" came out. You remember the American pilots, the bodies being dragged through the streets. I mean that, boy did that make an effect on Americans. It was talked about a lot. Has this been compared to Mogadishu overseas? It's definitely been brought up around here.

NASR: Absolutely. It is Mogadishu all over again. If you watch Arab networks this is what they're reporting. This is what they're telling their audience. They're also trying to show the U.S. administration and its efforts to make sure people don't draw that parallel. Unfortunately it's not working for the U.S. administration. Take a look at this quote that I picked for you from (unintelligible) newspaper.

It says: "The images from Fallujah reminded the Americans of the dragging of some 18 of their dead servicemen around the streets of Mogadishu in 1983. The incident that sent the final blow to operation 'Restoring Hope' in Somalia under the presidency of the Senior President George Bush."

So, not only are they reminding their audiences and readers that this is very similar to Mogadishu and Somalia but they're also reminding their audience of who was in charge of that operation and how that operation failed in a big way and how images such as these forced the U.S. to pull out of Somalia back in '93.

PHILLIPS: Interesting and, as you know, the White House coming forward saying no matter what we're not pulling out of Iraq. All right, Octavia Nasr thanks so much.

NASR: Thank you, Kyra.

PHILLIPS: Well, when daddy's a soldier in Iraq there's nothing more thrilling for a child to hear than the words "daddy's home." Scott Johnson with affiliate station WJXT was there to watch when one little boy got the surprise of a lifetime. This is going to grab your heart.

(BEGIN VIDEOTAPE)

LT. MATT GAPINSKI: Andrew doesn't know that I'm coming home today.

SCOTT JOHNSON, WJXT CORRESPONDENT (voice-over): While 7-year-old Andrew Gapinski sang patriotic songs in his class, little did he know his own patriot was soon showing up.

M. GAPINSKI: He knows that I'm coming home soon, probably this week but he doesn't know that today is the day.

ANDREW GAPINSKI: We were singing songs and then my dad came through the back door.

JOHNSON: And Andrew's expression said it all. He along with his little sister and brother were seeing Lieutenant Colonel Matt Gapinski for the first time in months. He's back from Iraq permanently.

M. GAPINSKI: Wow, did you guys make that?

JOHNSON: The school is covered with signs thanking this soldier.

A. GAPINSKI: I was like going to cry because I was so happy.

JOHNSON: And while Andrew holds back the tears...

M. GAPINSKI: Can you say da, da, da? JOHNSON: His 11-month-old brother is meeting his dad for only the second time.

M. GAPINSKI: He probably doesn't remember me so I need to get acquainted with him, re-acquainted with him.

JOHNSON: Now there will finally be time for catching up.

A. GAPINSKI: I was just so excited.

JOHNSON: Could you believe it?

A. GAPINSKI: Yes.

(END VIDEOTAPE)

PHILLIPS: Well, Andrew sure is holding back those tears. I told you, you would, it would probably get to you.

All right, straight ahead are jurors in high profile cases getting out of control? We're going to take that up with Simpson trial alumnus Christopher Darden.

Also ahead...

SCHAFFLER: I'm Rhonda Schaffler in New York. Down and out on the Dow, three aging giants are being shown the door. That story and more when LIVE FROM moves on right after this break.

(COMMERCIAL BREAK)

PHILLIPS: Oh, man. How many more times do we have to show that graphic? If funky dreams are keeping you up at night let radio's dream doctor tell you what it's all about. Friday on LIVE FROM he'll interpret your most twisted dreams, maybe your more intimate dreams.

Just tell us what your dreams are. Dreamy details to livefrom@cnn.com. Please no indecent material please. The sooner the better and just maybe we can help you get a more peaceful eight hours.

Well, this election year there's a change in the air, well on the air waves. The new liberal talk radio network is now broadcasting on several stations around the country. Can it compete with conservative heavyweights like O'Reilly and Limbaugh?

CNN's Kitty Pilgrim reports.

(BEGIN VIDEOTAPE)

AL FRANKEN, AIR AMERICA HOST: Broadcasting from an underground bunker 3,500 feet below Dick Cheney's bunker, Air America Radio is on the air.

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): Enter stage left, political author and former "Saturday Night Live" comedian Al Franken. He has teamed up with actress Janeane Garofalo and Chuck D from the rap group Public Enemy to take back the airwaves from conservative radio shows. Can they do it?

MATTHEW FELLING, CENTER FOR MEDIA AND PUBLIC AFFAIRS: The road behind is full of the carcasses of attempted liberal talk radio programs and liberal talk radio hosts. What they have lacked that Air America has is a certain personality and a certainly entertainment value.

PILGRIM: The competition is tough. Conservative Rush Limbaugh is the country's top talk radio host, 20 million listeners a week through 600 stations. Conservative radio had meteoric rise in the Clinton years. Liberals are hoping these same anti-establishment dynamic works for them.

MARK WALSH, CEO, AIR AMERICA RADIO: Fifty-one percent of America voted against George Bush in November of 2000. Those are our potential listeners. Anybody that's dissatisfied with the status quo.

PILGRIM: It's also about larger than life personalities. Franken has called his show the "O'Franken Factor," a play on conservative Bill O'Reilly's show. The two clashed at a book fair last year.

BILL O'REILLY: Shut up.

FRANKEN: This isn't your show, Bill.

O'REILLY: This is what this guy does.

PILGRIM: But this is no shouting match. It's business. Right now conservative talk shows outnumber liberal ones roughly five to one.

(on camera): Even with programming in New York, Los Angeles, Chicago, and some other markets, Air America will only have a fraction of the audience of conservative radio and a fraction of the revenue.

Kitty Pilgrim, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: A trio of top companies are getting ousted from blue chip roster. Rhonda Schaffler live from the New York Stock Exchange with the details -- Rhonda.

SCHAFFLER: Hi, Kyra.

Some of the best known names in corporate America are being dropped from the Dow Jones Industrial Average. AT&T, Eastman Kodak and International Paper will be removed as of a week from now. They'll be replaced by Pfizer, Verizon Communications and the insurance giant AIG.

It's the end of an era for AT&T in particular. It's been a key component of the Dow since 1916, except for a few years in the 1930s. Now Ma Bell is out of the loop and two of the so-called baby bells are in. Verizon and FCC Communications were just added back in 1999 -- Kyra.

PHILLIPS: All right. How are investors reacting to the ouster?

SCHAFFLER: Well, the three stock being dropped from the average are all sharply lower this session. Being a Dow component carries a lot of prestige and it means that exchange traded funds that track the Dow will now sell these stocks.

Overall, stocks kicking off the second quarter with some modest gains. The Dow Jones Industrial Average moving higher by 29 points and the NASDAQ edging up two-thirds of one percent. That's it from Wall Street.

Later this hour a major credit card company teaming up with Donald Trump in what could be a winning deal.

There's a lot more LIVE FROM right after this break.

(COMMERCIAL BREAK)

PHILLIPS: I'm Kyra Phillips. You're watching LIVE FROM. Here's what's all new this half hour.

The fine art of jury selection gets more scrutiny as jurors in big cases make headlines of their own.

We can't tell you who won "The Apprentice" but we can tell you about Donald Trump's efforts to get into your wallet.

American-style reality shows cross the line overseas. Get the story behind the kiss that took this version of big brother off the air.

Paul Bremer promises to hunt down those guilty of brutally murdering four U.S. security contractors in Fallujah. The U.S. administrator in Iraq called the grisly killings a dramatic example of the ongoing struggle between human dignity and barbarism.

The United States is seeking a new U.N. resolution on Iraq. It would lay the groundwork for the return of sovereignty scheduled for July 1st. Some U.N. advisers are already in Iraq helping to develop an electoral system and caretaker government.

Police continue searching a marsh near the University of Wisconsin in Madison for the man Audrey Seiler says abducted her at gunpoint over the weekend. Seiler was not hurt but she could face several hours of police questioning. A police spokesman says they have a lot of details to go over.

And coming up next hour, President Bush scheduled to sign the Unborn Victims of Violence Act. The bill took five years to get through Congress. Informally called the Laci and Connor Act after the Laci Peterson case, that bill makes it a crime to harm a fetus during an assault on a pregnant woman.

Martha Stewart's defense team is judging the behavior of a juror right now. The defense is requesting a new trial, alleging misconduct by juror Chappell Hartridge. Well, Stewart's lawyers say that Hartridge made biased statements after Stewart's conviction.

Take a listen.

(BEGIN VIDEO CLIP)

CHAPPELL HARTRIDGE, JUROR, MARTHA STEWART CASE: Well, the first thing we wanted to get clear was we had very important decisions to make. We had people's lives in our hands.

Well, she committed a crime. She got convicted.

(END VIDEO CLIP)

PHILLIPS: Well, juror conduct is under scrutiny in several high- profile cases. To talk about that and the importance of jury selection, CNN legal analyst Christopher Darden.

Let's talk about the number of high-profile cases and what's going on with the jurors.

CHRISTOPHER DARDEN, CNN LEGAL ANALYST: Oh, you know, many, many things are going on with jurors in high-profile cases over the past five or six days.

In the Tyco case, one juror was accused by the other 11 of not deliberating. In the Peterson case, a potential juror, according to Mark Geragos, had already made up her mind and was trying to get on to the jury simply to give Scott Peterson what she thought he deserved, which was an execution. And now, of course, we have a new issue with the Martha Stewart case. These are all high-profile cases and weird things are going on with the jurors.

PHILLIPS: So what's the deal? Something just in the air, Chris?

DARDEN: No, I don't think it's that it's something in the air. You know, when you are a juror, or when you're involved in any fashion in a high-profile case, you can make a little bit of money, quite frankly, or you can get, you know, an extra 15 minutes of fame.

And, you know, in the Martha Stewart case, you have this gentlemen who is being accused of having committed perjury in his jury questionnaire and who is being accused of having had an agenda to get on to that jury. And, you know, he's like a lot of people, he will lie to get on a panel. It happens all the time.

PHILLIPS: So, OK, I want to ask you more about that happening all the time.

But during jury selection, can you really look into the eyes of these potential jurors and tell if indeed they're lying or not?

DARDEN: Well, some psychologists believe they can. And certainly some of these jury advisers who are paid tens and tens of thousands of dollars to help defendants pick juries in high-profile cases believe that they have a science or an approach to picking out the perfect juror and also in determining who is lying and who isn't.

Now for me, you know -- and I'm the kind of guy who tries cases, even today, without jury consultants -- it's very difficult to pick out who is lying and who isn't, who will be a good juror and who won't be a good juror.

PHILLIPS: I can just see you going up, toe-to-toe looking these people in the eyes. I sure wouldn't lie to you.

All right. Let's talk about the fact this juror lied on the questionnaire in the Martha Stewart case. And then, of course, we saw what happened. We saw the records that came out on him.

Is this a long shot now that the verdict could be overturned?

DARDEN: You know, I don't believe that the verdict will be overturned. Not at this point. Now certainly they've made the allegation that this juror had an agenda and a bias and that he got on to the jury simply to make money later.

But I don't think that's enough right now. At this point, it's just an allegation. Now if other witnesses come forward or if there is other evidence, more concrete evidence, to suggest that he was biased and that he had a -- had already decided what approach he was going to take in the jury room, then maybe they have a shot. But don't expect to have the Martha Stewart conviction overturned.

PHILLIPS: And, of course, we're talking about Hartridge. He was arrested and charged with physically abusing his girlfriend and never reported that when filling out the questionnaire. We're looking at the videotape of him right now.

How are lawyers going to try to prove that he had a motive?

DARDEN: Well, you know, you look at this guy. He's on television. He is the issue of the day in sectors. You know, he knows people and people know him, and people know his history and his background. And you can expect that some of those people that he thinks are his friends are going to come forward to the defense.

Martha Stewart has a lot of money to investigate this juror and I'm sure she's going to spend some of it.

PHILLIPS: Be very interesting. Christopher Darden, thanks again for your insight today.

DARDEN: Any time.

PHILLIPS: All right.

Well, football fallacies from an NFL hall of famer. Paul Hornung is expressing regret after saying that Notre Dame should dumb down its academic standards to -- quote -- "get the black athlete."

CNN's Josie Burke has the reaction from the Fighting Irish over this sports controversy. (BEGIN VIDEOTAPE)

JOSIE BURKE, CNN CORRESPONDENT (voice-over): With the golden dome and touchdown Jesus and a record number of championships to its name, Notre Dame is a place that loves tradition and heroes almost as much as winning itself. But the team is losing and heroes don't always act the part and, on this day, Paul Hornung said he was sorry.

PAUL HORNUNG, PRO FOOTBALL HALL OF FAMER: I didn't mean to say just the African American athlete. I should have said all athletes. It's tough to get into Notre Dame. I don't have to tell that to anybody.

BURKE: The apology comes a day after remarks he made on a radio station in Detroit about winning and standards and race.

HORNUNG: We can't stay as strict as we are as far as the academic structure is concerned, because we got to get the black athlete. We must get the black athlete if we're going to compete.

We open up with Michigan State -- I mean Michigan, Michigan St. and Purdue. Those are the first three games, you know, and you can't play a schedule like this unless you have the black athlete today. You just can't do it.

MARQUES BOLDEN, NOTRE DAME SOPHOMORE: It was kind of offensive just basically saying that African American students couldn't get into a school without standards being lowered. It shows that, you know, maybe this feel is probably widespread and it's just not probably him.

BURKE: True or not his alma mater was quick to respond.

"Paul Hornung in no way speaks for the university and we strongly disagree with the thesis of his remarks. These are generally insensitive and specifically insulting to our past and current African American student athletes."

He does, however, join a list of sports notables who have spoken on the subject in haste. Former ESPN analyst Rush Limbaugh on Eagle's quarterback Donovan McNabb.

RUSH LIMBAUGH, FORMER ESPN ANALYST: I think the media has been very desirous that a black quarterback do well (UNINTELLIGIBLE) black coaches and black quarterbacks doing well I think there is a little hope invested in McNabb.

BURKE: He lost his job. So did Al Campanas and Jimmy the Greek. Like the dome and touchdown Jesus, a tradition, just nothing to brag about.

Josie Burke, CNN.

(END VIDEOTAPE)

PHILLIPS: So does it seem like the Donald is everywhere these days? Get ready for another Trump item to hit the market. Just what we all wanted. Special combover.

The 2004 political conventions aren't far off. Will the massive security needed be ready? We're going to look at that.

And later, "Big Brother" gets big-footed in the Middle East. How reality TV plays overseas.

(COMMERCIAL BREAK)

PHILLIPS: News "Around the World" now.

A Tunisian fugitive is the suspected mastermind behind the Madrid train bombings last month. According to arrest warrants, the Tunisian had been talking about preparing a violent attack in Spain since last year. He along with five other suspects remain at large.

Uzbekistan now links this week's bloody round of terrorist violence to al Qaeda. The country has closed its border crossings. At least 44 people, most of them suspected terrorists, have died this week in a series of suicide bombings and shoot-outs with police.

Back in the U.S., growing concerns about terror at two major political conventions this year. Homeland security correspondent Jeanne Meserve reports some extraordinary security measures that are in the works.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): Zip down Interstate 93 in Boston and you pass within feet of the Fleet Center, the venue for this summer's Democratic convention. For that very reason, the road will be shut down during evening hours while the convention is in town. About 200,000 people a day use this stretch of road.

And as if that isn't enough of a headache, 24,000 rail commuters will have to use alternative routes and modes of transportation because North Station will be shuttered down for a week. It is right underneath the Fleet.

STEVE HICCARDI, U.S. SECRET SERVICE: Our goal is to provide a safe and secure environment for all event participants and the general public.

MESERVE: But the general public expects commuter chaos.

UNIDENTIFIED FEMALE: Well, I think it's very wrong, because what about the people that lives in Chelsea like myself? And plus people that have to get to work and get back and forth? I think it's very wrong.

UNIDENTIFIED FEMALE: we're going to get to work somehow, some way. We'll get here.

UNIDENTIFIED MALE: I plan to stay out of the city for a week. MESERVE: The announcement of the closures comes just weeks after the Madrid train bombing that killed 190. And the Democrats' convention will be the first since the September 11 attacks.

But there are no plans at this point to close New York's Penn Station during the Republican Convention, even though it is right underneath Madison Square Garden.

ANN HOMAN, U.S. SECRET SERVICE: All our security plans are site- specific, and each security plan is tailored to each venue.

MESERVE (on camera): Although there will and security perimeter around Madison Square Garden, the New York City Police Department says no major thoroughfares are slated to be closed. The Secret Service cautions, however, that the security plans for both conventions are still fluid.

Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: How's this for do-it-yourself security? A teenager's Web cam catches a burglar in the act. We're going to show you that.

Donald Trump wants to get in your wallet. Hey, it's not what you think. Well, with her, hmmm....

And, ay caramba! Who are all the Simpsons actors reportedly not showing up for work?

(COMMERCIAL BREAK)

PHILLIPS: And this just in to CNN: 9/11 Commission sources telling us that next week, we are told, -- at the end of the week, Dr. Condoleezza Rice, national security adviser, will testify before the 9/11 Commission. As you know, President Bush coming forward, reversing his decision to allow his national security adviser to testify publicly before that commission. Now we are being told it should happen at the -- later next week.

Well, an alarming videotape is at the center of an investigation by California's attorney general. That tape allegedly shows two young people being beaten while in custody.

Our Rusty Dornin joins us now with the details of this tape -- Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Kyra, there has been a lot of controversy about this tape.

We knew that the tape existed. We knew about a report about it. But the agencies were not releasing it. And until today, when a state senator, Gloria Romero, decided it was time the press see the tapes and the California Youth Authority of these two so-called wards -- that's what they call the inmates there. Now what you see in the tape -- what you don't see is what happened before the fights ensued with these wards and the counselors. Apparently, the wards allegedly attacked the counselors, then two fights break out into the room. You see them roll on to the floor. And in the foreground, you see the one counselor after subduing the youngster, holding him down and then hitting him, punching him 28 times, both with his left and his right hand. Also, one of the (ph) background apparently, the counselor did kick the youth after the youth was also down. Guards were also spraying the youths with some kind of pepper spray and a pepper ball rifle.

And the two youths were prosecuted for this -- for attack being the counselors. But during the preliminary hearing for that, four of the guards refused to testify. They took the Fifth Amendment, saying they didn't want to incriminate name themselves. Then, the Youth Authority did an internal report and they decided that according to this videotape, and other reports by the people that were in the room, that there was excessive force used, that assault and battery charges should be filed against those counselors.

But when they took to the local district attorney's office, they were turned down. The district attorney in San Joaquin County said there just wasn't enough evidence.

Well, now the state attorney general is looking at it. We did speak to him a short time ago on the steps of the Capitol. He says they're looking to see what premeditated this whole thing, looking at medical reports and that sort of thing. And he is not going to make a decision until the end of this week or sometime next week.

Also, there were some guards representative of the unions in the room today at the press conference. They said, you don't understand the kind of violence that goes on in those kinds of facilities and those guards had every right to defend themselves.

But of course, this videotape comes on the end of a lot of charges and accusations that have been filed recently, including state reports against the youth correctional facilities in California, claiming that they used excessive force. So this is another one that makes it all too clear that possibly that's what's going on. But we'll have to see whether any charges will be filed from the state attorney general's office -- Kyra.

PHILLIPS: Well, Rusty, obviously we see the tape. It picks up there when the counselors are punching on the students.

My question to you is, does a longer version of that tape even exist?

DORNIN: There is no tape that shows what happened behind the doors, when apparently, allegedly the wards attacked the counselors. We do not see that. That does not exist on a tape anywhere.

Apparently, the tape does go on a little later. The youths are picked up and taken directly to jail. They were not treated for any of the possible medical problems that happened to them as a result of the fight. That tape does exist.

But there are no other tapes that showed what happened before.

PHILLIPS: Rusty Dornin, thanks so much.

More LIVE FROM -- we're still here; we didn't get blown away -- right after the quick break.

(COMMERCIAL BREAK)

PHILLIPS: In this wired world, we all knew it was just a matter of time until we had virtual laundry. Instead of waiting by the machines, students at Carnegie Mellon University in Pittsburgh can now monitor their laundry online. The E-suds system sends e-mails when their laundry is done and users can check their clothes' progress on the Web.

Seattle area police call them crime fighters. The two teens describe themselves as computer nerds. It seems they set up a Web cam inside their home before leaving for vacation. When they checked in, they saw their home in disarray. Well, using the Internet, they cranked up the stereo, saw an intruder rush to turn it down, and called police. The man under arrest, by the way, is a family friend. Probably not anymore.

(MARKET UPDATE)

PHILLIPS: Well, whether you're falling into a canyon, running from insane killers or making out with someone you hate, you know what's really happening. You're dreaming. And in the spirit of National Sleep Awareness Week, LIVE FROM wants to know what you're dreaming about. Come on, give us all the scoop. Tomorrow's radio's dream doctor joins to us interpret your dreams, as freaky as they could be. Just e-mail the details to livefrom@cnn.com. And get some rest. Tune in Friday at 3:00 p.m. Eastern to find out how screwed up you really are.

Checking entertainment headlines, it's April Fool's Day, but no laughs from the cast of the Simpsons according to Daily Variety. Krusty won't clown and Bart will stay dumb in more than one sense of the word unless producers cough up some more cash. Insiders say each cast member wants their salary bumped up from $125,000 to $360,000 an episode.

John Belushi fans will tell you, no one holds a toga to the late comic actor. Well, better late than never for Belushi to get a star on the Walk of Fame. Jim Belushi in Hollywood to accept the award on his brother's behalf. John Belushi died of a drug overdose back in 1982.

Confession may be good for the soul, but if you're Usher, it's also good for your bank account. Usher's CD "Confession" and his alleged tell-all track about an affair is burning up the sales charts -- 1.1 million copies sold in its debut week.

Reality TV shows popping up across the world now. The Middle East can now match variations of "American Idol" and "Fear Factor." But if you blinked, you may have missed "Big Brother" out of Bahrain. A controversial kiss sent the show to an early demise.

CNN's Brent Sadler reports.

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN CORRESPONDENT (voice-over): They are a huge commercial success, Western-style reality TV shows captivating audiences in the Middle East, daring brands of entertainment here featuring young men and women under one roof for all to see. "Big Brother" clashed head-on with conservative Islam.

REINA SARKIS, PSYCHOLOGIST: It's as if that show sort of lifted the veil, not from women's faces, but from the society's face.

SADLER: Seen in some form, say the Dutch creators, by as many as two billion viewers in 25 countries, including the United States.

(on camera): But not in the Middle East until producers thought they had worked out a new format that would not cross...

(END VIDEOTAPE)

PHILLIPS: We have to interrupt that package. Straight to the White House now. President Bush scheduled to sign the Unborn Victims of Violence Act. The bill took five years to get through congress.

Let's listen in.

(INTERRUPTED BY LIVE EVENT)

PHILLIPS: The president of the United States signing the Unborn Victims of Violence Act. That bill took five years to get through Congress, formally called the Laci and Connor Act after the Laci Peterson case. You can see the president there surrounded by Laci Peterson's family.

This bill makes it a crime to harm a fetus during an assault on a pregnant woman. And, as you can imagine, passions on both sides run high on this. Many opponents fear that the law will lead to restrictions on abortion rights.

This morning, House Minority Leader Nancy Pelosi commented on the Unborn Victims bill. This is what she had to say.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA) MINORITY LEADER: And I didn't think it was necessary to go to the lengths that the administration did. But they did. And the president will sign the bill today. And it remains to be seen how it will be implemented.

I didn't support it at the time. I am completely sympathetic with the issue that was being addressed, but did not think that it was necessary to pass the bill that was passed.

(END VIDEO CLIP) PHILLIPS: Pelosi says an alternative was a competing bill that would have toughened the penalty for harming a pregnant woman, but would not have made the fetus a separate victim.

The cycle of violence continues in Iraq's Sunni Triangle. Three U.S. troops wounded when a roadside bomb blew up in the Fallujah area. The crowd reportedly set one of the vehicles on fire after it was abandoned.

This is the same general area where four American civilian contracts were killed in a particularly grisly attack yesterday. The region is home to many members of the former regime, and a hotbed of Iraqi resistance. The deaths were quickly condemned, and there were calls for the killers' capture.

(BEGIN VIDEO CLIP)

PAUL BREMER, U.S. CIVILIAN ADMINISTRATOR: The acts we have seen were despicable and inexcusable. They violate the tenets of all religions, including Islam, as well as the foundations of civilized society. Their debts will not go unpunished.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

AHMED CHALABI, IRAQI GOVERNING COUNCIL: The Iraqi people abhor what happened. We condemn it and we offer our condolences to the families of the victims.

This was an uncivilized savage act that was conducted by murderers, remnants of the Ba'ath Party, and supporters of Saddam, and terrorists. I believe that those people should be apprehended. They are in an area where their leadership is known. I think we should go after them more aggressively.

(END VIDEO CLIP)

PHILLIPS: Well, yesterday's deadline came and went for the federal government to put together a comprehensive list of possible terrorists. A list like this could be shared by all law enforcement agencies. But Justice correspondent Kelli Arena reports the project is far from complete.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE DEPT. CORRESPONDENT (voice-over): The goal: to keep known terrorists, like two of the September 11 hijackers, from ever getting into the United States again. How? By combining information about suspects gathered by any U.S. intelligence and law enforcement agency into a single terror watch list.

Two-and-a-half years after the attacks there now is one. But officials admit it's a work in progress.

DONNA BUCELLA, TERRORIST SCREENING CENTER: We now have a singing database which is updated daily and is unclassified, law enforcement sensitive, containing identifying information of known or suspected terrorists.

ARENA: The Terrorist Screening Center, housed within the FBI, currently has about 55,000 names on its new consolidated terror watch list. It's accessible to everyone from Customs and border patrol agents to local police, but not instantaneously.

REP. JIM TURNER (D), TEXAS: If you have the 1-800 number, and you are a law enforcement officer or a federal official, you can call in and you can give them a name, and they will run a search on the database. But they still do not have the ability to access that in real time.

ARENA: What's more, the list is incomplete. Some agencies still have not handed over all their names. And despite an effort to include identifying information, some travelers are still mistaken for terrorists who share the same name.

UNIDENTIFIED MALE: It was very embarrassing. I mean, I was just discriminated on the basis of my name. And that has been repeatedly going on.

ARENA (on camera): Officials say they will put a mechanism in place to resolve that issue, and they promise a complete and fully automated list by the end of the year.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: And confirming word that National Security Adviser Condoleezza Rice will testify publicly before the 9/11 Commission at the -- later next week.

Live at the White House now, Suzanne Malveaux has more on this -- Suzanne.

MALVEAUX: Well, Kyra, I just spoke with the spokesman of the 9/11 Commission who confirms that Dr. Rice will testify before the full commission on the 8th. That is a Thursday.

We are told that she will testify for several hours before the full commission, that there will be no other witnesses that day. It will be very much set up like that of Richard Clarke on his day.

We are told it will take place on the Hill. This is something, as you know, they've been preparing for, they've been asking for some time. The White House recently relenting, saying, yes, that they would make an exception to this and allow her to publicly testify. They have it on their calendars; that will happen on the 8th -- Kyra.

PHILLIPS: Suzanne Malveaux, thank you.

Straight ahead: makeovers all the rage these days. Even Wall Street is getting in on the act. You'll want to see if this is your own stock.

And some of the coolest music ever made almost lost to history if it were not for this man. Do you recognize him? You'll want to see the segment. Stick around.

(COMMERCIAL BREAK)

PHILLIPS: News across America now.

In Washington, D.C., records are meant to be broken. But hard to imagine that anyone will ever top the voting career of Senator Robert Byrd. The 86-year-old West Virginia Democrat cast his 17,000th vote on the Senate floor today. If you're keeping track, it was a vote on welfare reorganization -- or reauthorization.

The senator's record has been amassed during the past 45 years. Eight consecutive terms.

In Richmond, Virginia, a retired truck driver and his wife collect the second largest lottery pay-out in history. The Mega Millions jackpot was worth $239 million. Although J.R. and Peggy Triplett decided to take a smaller lump sum amount.

They say they'll invest some of that $140 million in real estate. In J.R.'s words, they don't make "No more dirt."

(STOCK MARKET REPORT)

PHILLIPS: Well, Grateful Dead drummer Mickey Hart is with us this afternoon talking about some of the best music that was almost lost to history if it were not for this man. Here's a taste of that music.

(MUSIC)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ALAN LOMAX, FOLKLORIST: Freedom of speech, and freedom of movement, and freedom to work and live and enjoy yourself. And freedom for your culture to express itself. Because that's all we've got, you know. Just culture.

(END VIDEO CLIP)

PHILLIPS: Just the culture. That was folklorist Alan Lomax and his effort to preserve musical culture, still influence what you hear on the radio on burn on your CDs.

Beginning in the early 1930s, Lomax discovered singers like Woody Guthrie, Leadbelly, Pete Seger, preserving their songs on film and tape for the Library of Congress. Without Lomax, this cool blues riff would have died with the singers.

(MUSIC) PHILLIPS: Oh yeah. This and some 5,000 other recordings, photographs and notes are now partly of the newly acquired Alan Lomax collection at the Library of Congress.

Here with us to talk about the Lomax legacy, hey, a legacy himself. Grateful Dead drummer Mickey Hart. He joins us from San Francisco.

Hey, Mickey.

MICKEY HART, GRATEFUL DEAD DRUMMER: Hi. How are you doing?

PHILLIPS: Good. Great to see you. You're looking good.

HART: Feel good.

PHILLIPS: All right. Hey, let's talk about Alan Lomax, his collections, and why we should all value what he has done for us.

HART: Well, Lomax, the greatest of the song catchers. He's done it all. He's been all over the world.

A great musician, a passionate advocate for -- he's a musical activist really. A great lover of music. And preservationist.

And now, all of his recordings are alive again at the Library of Congress. The American Folk Life Center. It's sort of under one roof now. It's back where it started, because the Library of Congress initially funded his forays into the field.

PHILLIPS: Well, it's pretty amazing. We're looking at a number of the pictures right now, Mickey. And I understand you have a special story about this one picture, I believe of the Italian fisherman. Is that right?

HART: Well, if it's that -- I can't see the photo. But he recorded all over. And the people there, you know, they have their normal songs and they say, "We're fishing from the bottom and bringing up the fish." But then he said, we're speaking to the world now. We're talking to Washington; our voices are going to be recorded and the world will hear us.

And then Lomax really got it. He said well, you know, he's giving voice to the voiceless. And these songs are not just songs.

They contain thousands of years of a cultural evolution. The history, the hopes, the dreams, the fears of many generations. And it allows us to tell us -- it allows us to see where we've been and where we're going.

So perhaps our greatest treasures are masterpieces, as a Renoir, Monet, only in sound, are these recordings that Lomax captured on wax, acetate, magnetic tape, all over the world. A real heroic journey, I might add; 40, 50 years of recording. Quite an amazing feat.

PHILLIPS: Well you mention the recordings. You talk about the treasures. Let's listen to a little Leadbelly.

(MUSIC)

PHILLIPS: Man that just -- you just feel it. And I'm seeing you, you're smiling, you're jamming. I can hear your hands with the beat.

HART: If there wasn't -- if Lomax didn't record Leadbelly and Woody Guthrie and all these folk songs, perhaps there be no Paul Simon, no Santana, no Grateful Dead. I mean, we based our music on this great legacy.

I mean, when a musician starts off his career, he bases his skill on something that has preceded him, a body of work. And then eventually he finds his own voice.

But in the case of the Grateful Dead, it was a jug band, then a blues band, and then American music band. And whatever it turned out to be. It was a culmination of a lot of things. And Leadbelly, Robert Johnson, there would be no Eric Clayton.

PHILLIPS: Well -- and, Mickey, you mentioned Woody Guthrie. I've got to get a little of this in. And then let's talk a little bit more about Woody.

(MUSIC)

PHILLIPS: It's like the gypsy spirituals here. Tell me how you based your music on legends like Woody Guthrie and Leadbelly.

HART: Well, the music talks about life. And you can say things in music that you can't normally say. You can say just about anything through music.

Woody was a musical activist. And so are we. And so are most musicians.

He had a thing on his guitar. He had a sign saying "This guitar kills fascists." And so, I mean, that was his weapon.

And that's how he screamed. That's how he made a difference. That's how he made change.

So Woody and many musicians used their music to make a better world and to speak for the people who can't -- who don't have a voice, who aren't on commercial radio. And you won't hear them on the radio airwaves, but you'll hear them in the fields, you'll hear them on the seashores and the deserts and the mountains. Where Alan Lomax went to record with this incredibly bulky equipment back in the 30s and 40s and 50s.

It's not like a DAT (ph) machine now, or go out in the field. I mean, he had -- he'd put it in the trunk of a car, or he was on horseback or on a donkey or what have you, to bring this sonic treasure back. So very heroic -- very heroic adventure not just for Alan Lomax, but for all the song catchers, many of them women, as a matter of fact.

PHILLIPS: Well, Mickey, I know this is the same philosophy that rests deep in your heart. Tell us quickly about your book. You keep mentioning song catchers. I got mention "Song Catchers: In Search of the World's Music," your book, your personal quest. Give us a brief.

HART: Well, "Song Catchers: In Search of the World's Music," I wrote it with National Geographic last year. It's sort of an overview of the men and women who went out in the field and the machines they used to bring back this sonic treasure.

That's basically what it is. And it talks about Alan Lomax being one of the premiere song catchers. But it really tips the hat to those people, because without those people we wouldn't be sitting here talking about music.

I mean, it's -- it started in the 1890s, so we've only really been recording music for a little over 100 years. It hasn't been forever.

The talking machine, 1877, Edison. So it's basically a new phenomenon. But now the airwaves circle this blue-green spinning rock.

PHILLIPS: Well, Mickey...

HART: It's everywhere.

PHILLIPS: And it continues on with you. You look terrific. You sound terrific.

HART: You look great.

PHILLIPS: Thank you so much, Mickey Hart. What a pleasure. All right.

HART: Thank you.

PHILLIPS: Continues to rock on.

Well, we're nearing the bottom of the hour. That means it's time for "INSIDE POLITICS." Candy Crowley is in today for Judy Woodruff.

Hi, Candy.

CANDY CROWLEY, CNN CORRESPONDENT: Hi, Kyra. Thanks a lot.

Up next, we've got a political exclusive: the Kerry and Bush campaign chairs face off for the first time ever. Marc Racicot and Jeanne Shaheen battle over negative campaigning and much more.

Plus, John Kerry won the race for the Democratic presidential nomination a month ago, so why is Dennis Kucinich still running for the White House? I'll ask him. He's my guest.

Stay with us, when I go "INSIDE POLITICS." TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com