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Jackson, Peterson, And Bryant Trial Updates; Olympic Games Updates

Aired August 16, 2004 - 13:30   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: Taking a look at stories in the news right now. It's a family affair in the Michael Jackson case. The King of Pop, who is charged with child molestation, is attending a pretrial hearing this hour. In court are Jackson's parents, sisters Janet and LaToya, and brother Jermaine. In a minute, we'll get some legal analysis on the case.
The FDA just approved a device that could save thousands of people who suffer from strokes. During most strokes, a blood vessel in the brain becomes clogged by a blood clot. That device, a tiny corkscrew, can be threaded through an artery to clear that clot and restore blood flow.

Also, the 9/11 Report, a big focus on Capitol Hill today. The Senate Commerce Committee is holding one of three hearings on recommendations laid out by the panel. 9/11 Commission co-chairs Thomas Kean and Lee Hamilton are appearing before those committees.

BETTY NGUYEN, CNN ANCHOR: Well, the spotlight this afternoon is back on the California courts. Michael Jackson and members of his family are in court today. So is Scott Peterson's former mistress, Amber Frey.

With us today, we have Criminal Defense Attorney Mickey Sherman in Stanford, Connecticut and CNN legal analyst Chris Darden in Los Angeles. Good afternoon to both of you.

MICKEY SHERMAN, CRIMINAL DEFENSE ATTORNEY: Good afternoon.

CHRISTOPHER DARDEN, CNN LEGAL ANALYST: Good afternoon.

NGUYEN: Mickey, let's start with you. The big question in California today in the Jackson case is whether or not the D.A. violated attorney/client privilege when he seized key evidence from an investigator working for Michael Jackson's attorney.

How difficult is this going to be for the prosecution's case?

SHERMAN: It's going to be very difficult. Even the fact that they think that he may have done something wrong, I think casts a really horrible shadow on the state's case. I mean, it takes a lot to get a prosecutor to be made -- to be put on the witness stand. Judges are very, very reluctant to do anything like that unless it seems to be quite warranted.

So, the mere fact that he possibly did it just kind of gives -- as I say, it's an air of impropriety or the appearance of impropriety. And who knows where this is going to go? The defense -- the defense side is that Thomas Sneddon was biased, that he was a man with a mission and he stepped over the line. And he actually basically looked into the defense attorney's briefcase by going on this raid on the investigators.

NGUYEN: Chris, is this a case breaker?

DARDEN: Well, no, I don't think it's a case breaker at all. There's nothing in the law that precludes the D.A. from executing a search warrant on a defense investigator when the prosecution believes that that investigator was in possession of physical evidence.

Does it look bad? Well, it depends on your perspective I think. But certainly, the D.A. has a right to pursue this evidence.

NGUYEN: Mickey, we talked a little bit earlier in the show about the fact that Michael Jackson didn't have to be there today.

SHERMAN: Right.

NGUYEN: But he is because Sneddon is on the stand. This has turned very personal, hasn't it?

SHERMAN: Without a doubt. I mean, Jackson's written a song about him. Sneddon has gotten, what, 54 warrants -- search warrants against him. And you know, Jackson I don't think really has to be there today, nor does his family, but I think they're there for some serious gloating. And I don't think there's any other way to put it.

They are there to just be smug, to kind of smirk and say now it's time for you people to be on the hot seat. However, they're not being -- Sneddon is not being accused of a criminal offense.

NGUYEN: Chris, the State Attorney General's Office said that the sheriff's deputies did not manhandle Jackson when they took him into arrest last year. How does this affect the case?

DARDEN: Well, you know, I think that's what a lot of us concluded based on what we saw in videotapes and what was reported by the executive staff or the sheriff's department.

But I think Michael Jackson being there today only highlights the fact that there is this personal animosity between he and Sneddon. And how that plays with jurors in Santa Barbara County -- or rather in the Santa Maria area, you know, has yet to be seen. A lot of people in that community really like Tom Sneddon, and I'm not sure it's the smart thing for Michael Jackson to go head-to-head with him this way at this point.

NGUYEN: Chris, there's also some talk that the sheriff was going to file charges against Jackson for filing a false report in this instance. Think that's going to happen?

DARDEN: No, I don't think that's going to happen at all. I think that there are some cases by the California Supreme Court that might preclude the sheriff's department from suing Michael Jackson or even accusing him of filing a false police report.

I'm not sure that Michael Jackson is the one that even filed this report or made this allegation, and it's not clear that Michael Jackson ever actually filed a false report.

NGUYEN: All right. Mickey, let's shift over to the Scott Peterson trial. Those tapes, Amber Frey on the stand: How damaging is this?

SHERMAN: I'm one of the very few people out here who say it's not the most damaging thing in the world. It's totally destructive of Scott Peterson's character, but that was a losing proposition to begin with.

It certainly proves beyond any doubt that he was a philandering guy, that he was devious, and that he's a practiced liar. That's probably the worst that it shows that this man knows how to lie.

But if he's not going to take the stand, the jury is not going to be seeing him lying, other than the fact that they will show the interviews he gave to the news media.

But again, you have to remember, what has he said? Has he said he committed a crime? No, he said he's in love with her, he's going to do this, he's going to do that. But whenever he's confronted by Amber Frey as to did he kill his wife, does he know who did it, he always denies it.

NGUYEN: Chris, do you agree that it's all circumstantial evidence?

DARDEN: Oh, it's all entirely circumstantial evidence. There's no direct evidence whatsoever that Scott Peterson killed his wife and unborn child. And I tell you, I have to agree with what Mickey -- this is not, you know, the end-all, you know, for the defense.

In fact, Scott hasn't admitted to killing his wife, and I would expect that Mark Geragos will play some tapes that show Scott Peterson stating that, in fact, he didn't kill his wife.

NGUYEN: Mickey, what do you think Geragos is going to do? Is he really going to be aggressive against Amber Frey, or would that work against him?

SHERMAN: No, I think he'll be as aggressive as it's warranted. Generally , you don't want to beat up on a witness, whether they're a good person or a bad person, unless they invite it. Jurors and the public in general doesn't want to see lawyers bully people unless, as I say, they kind of just feel the first punch.

I think what they'll try and do is catch Amber Frey in some lies, and I don't think they'll try do it in a mean way. I think they'll say, you know, "But didn't you say this at this point," and, "Didn't you say that at this point," and, "You told the police this, but you forgot or didn't -- and neglected to tell them that?"

If he's smart, which I think he is, I think he'll do it in a kind of a curious way, not in a mean-spirited way.

NGUYEN: Let's move now to the Kobe Bryant case. Quickly, Chris, is this all but over on the criminal side?

DARDEN: Well, you know, that's the speculation, of course, but you have a D.A. who is running for re-election in a high profile case, filed by him and personally handled by him throughout much of the case. He's going to be hard-pressed to dismiss this case.

To dismiss this case is to say that we were wrong, even though they're playing the blame game trying to blame the judge and the court for the release of information regarding the alleged victim's sexual history -- information that's been known to all of us for months and months. You know, I think he's going to have a tough go of it to dismiss the case, and I wouldn't be surprised if he did not dismiss it.

NGUYEN: Mickey, you agree?

SHERMAN: No, I think he'll dismiss the case. And his way out, his exit strategy will be blaming the victim, because she's going to come forward -- whether in writing, in person, or through her lawyers -- and say, "I do not want to be a witness in the criminal case. I'm going the other avenue. I'm sick of you people. You screwed up the entire case. You let things out. I don't trust the system," which basically she said.

"So, I'm not testifying in this case. I'll go get my pieces of silver in the civil court." And that gives him the out. That gives him the excuse to say, "Hey, I got no witness, I got no case." I say that happens within 36 hours.

NGUYEN: Pieces of silver? All right, Mickey Sherman and Chris Darden, thank you both -- Kyra?

PHILLIPS: If the Olympics are supposed to inspire greatness, then the U.S. Basketball Team needs an attitude check. We're going to take you live to Athens for Olympic highlights and low lights.

More high level competition? This race, though, isn't even in Greece.

Oh, and these dogs may not be dog show material, but that didn't stop them from winning a place in the record books. All these in- depth stories straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: A crushing blow for U.S. swimming sensation Michael Phelps. About an hour ago, Phelps dream of winning seven gold in the Summer Games came to an abrupt end.

CNN's Larry Smith joins us now live in Athens with the details, far away from the Uzo (ph).

Hi, Larry. LARRY SMITH, CNN CORRESPONDENT: That's right, as far away as I can get, Kyra.

Two swimming gold medals, however, for the U.S. tonight in swimming. Natalie Coughlin was gold in the women's 100-meter backstroke, Aaron Peirsol likewise in the men's 100-meter backstroke.

But as you mentioned, Michael Phelps not so much. The Baltimore teenager got off to a great start in the first half of the men's 200- meter freestyle, but it was Australian record holder Ian Thorpe who came up with the gold in the end, swimming away from the competition, dashing Phelps's bid to tie Mark Spitz's record of seven swimming gold medals.

Phelps ends up with a bronze medal behind Thorpe and Pieter van den Hoogenband of the Netherlands. Phelps now with a gold and two bronze medals in these Games. Next up for him, the 200-meter butterfly. He has, just a moment ago, qualified for that final, which comes up tomorrow night.

How about some men's basketball. Team USA in a position they have never been in before, going back to the drawing board after game one of these Olympics. Last night, they were slapped around by underdog Puerto Rico, 92-73, a reality check for the Americans. No longer can they simply expect to come up golden in men's hoops.

(BEGIN VIDEO CLIP)

LARRY BROWN, TEAM USA BASKETBALL COACH: I don't think anybody should be surprised. I'm not surprised, because I know what these teams are about. Dwayne Wade said it best. Arroyo said they've been practicing together three months, twice a day. To get our guys to do it would be next to impossible, because I don't think they understand the urgency of it. They don't understand how important it is to the teams we're playing against.

(END VIDEO CLIP)

SMITH: Well, they'll try to get it together tomorrow night versus host country Greece, Men's basketball.

Looking for a team to call a dream team? How about USA softball, 3-0 winner over Japan in eight innings. Japan had held them hitless through regulation, but they have now yet to allow a run, the U.S. has, in their three runs so far, the most unbeaten team still left in the softball competition here in the Athens.

And finally, Greek sprinter Kostas Kenteris and Katerina Thanou have been granted an extension for another 48 hours. They will meet with IOC officials on Wednesday morning to finally come up with a reason why they missed the mandatory drug test Thursday. However, Kyra, many Greek people that we talked to here have written the pair off, saying they're just kind of bad news from what was otherwise a positive experience for this country.

Back to you. PHILLIPS: Well, Larry, I'm curious, you've been cruising through all of these events. You can't beat the backdrop behind you. What are the crowds been like? Are the stands empty? Are they full?

SMITH: Well, it just depends on the venue. Obviously, last night's basketball was full. The swimming tonight is full, with the great race of the century going on.

Some of the other events have not been so much. Only about 500 people showing up for the first day of tennis, and it's that way at the Olympics. I think as you get further in, I know the Greek Olympic officials here are hoping for much better crowds as they go on through these next couple of weeks.

PHILLIPS: Larry, our director, and you know Scott very well, is wondering about the beach volleyball. How's the crowds there?

SMITH: I watch a lot on my TV.

PHILLIPS: No doubt.

(LAUGHTER)

SMITH: I'm sure they've been pretty good. I love beach volleyball.

PHILLIPS: Larry Smith, live from Athens. Thanks very much. We'll check in with you on the Olympics throughout the day. Thanks.

NGUYEN: Hmmm, I wonder if it has anything to do with those bikinis? Nah.

Well, honoring Olympians, sneakers and Spider-Man. Test your vertical limits, after this.

(COMMERCIAL BREAK)

PHILLIPS: Well, the barks are worse than their bites. About 200 dogs set a new world record for the loudest bark at this year's Bark in the Park in Wisconsin. Their barks measured about 112 decibels louder, than a power tool, to shatter that old record. Yes, that's about where I am, 112 decibels. The event is fund-raiser for the local humane society.

NGUYEN: I didn't know you could bark, Kyra.

PHILLIPS: My bite is much bigger.

NGUYEN: I imagine.

Well, if you think that was a bit odd, wait until you see this. A group of gutsy athletes taking on a contest unlike any other. All you need is a 40-story building, some good shoes, and above all, no fear of heights.

Here's CNN's Andrew Brown. (BEGIN VIDEOTAPE)

ANDREW BROWN, CNN CORRESPONDENT: It looks like a track you'd find in any athletic stadium, but the athletes resemble rock climbers, or ninjas from the side. Most spectators don't consider this a track event.

(on camera): Are they climbing or running?

UNIDENTIFIED MALE: I think it's climbing.

UNIDENTIFIED FEMALE: Climbing.

BROWN (voice-over): The organizers call it an impossible sprint.

UNIDENTIFIED MALE: I'm running. I'm running.

BROWN: They gave CNN a tour of the track, which in reality is the outside of a 40-story office building in downtown Hong Kong.

UNIDENTIFIED MALE: (INAUDIBLE) raising up the building vertically, and we'll see which one is the fastest.

BROWN: Adidas, the organizer, looked all over Asia for suitable buildings. They needed a wall big enough to fit a 100 meter track.

(on camera): That's a long way, isn't it?

UNIDENTIFIED MALE: It's not that long. It takes a couple minutes.

BROWN (voice-over): In theory, your race could end a lot quicker than that.

(on camera): Would anyone ever fall off?

UNIDENTIFIED MALE: Fall off? What do you mean, fall off?

BROWN (voice-over): You feel like an accident waiting to happen up there.

Though the organizers say they put safety first and stress no competitors were even injured in these impossible sprints heat.

Some spectators may have sore necks after watching the sprint. That's to be expected. When Batman and Robin climbed buildings, they turned a few heads, as well. Best to go horizontal if you're taking pictures.

Adidas says everyone will be sprinting vertically soon.

(on camera): Is Nike going to copy the vertical sprint?

CHRISTOPHE BEZU, ADIDAS: I'm sure. I'm sure!

BROWN (voice-over): If you can't go up, go down, although down's not easy either.

(on camera): What floor are we on?

UNIDENTIFIED MALE: What floor? I don't know. No idea. I don't care what floor.

BROWN: Andrew Brown, CNN, Hong Kong.

(COMMERCIAL BREAK)

NGUYEN: Well, record high oil prices are not being felt at the gas pump just yet, but as you know, that could soon change.

PHILLIPS: Rhonda Schaffler, live from the New York Stock Exchange with that story. Hi, Rhonda.

RHONDA SCHAFFLER, CNN SR. BUSINESS CORRESPONDENT: Hi again, Kyra and Betty.

At this point, gas prices down nearly a nickel a gallon during the past three weeks. You now pay on average $1.87 for self-service regular. According to the Lundberg survey, that is well off the record price of $2.07 a gallon. That was hit back in May. Drivers in Tulsa, Oklahoma, pay the least to fill up, while those in Honolulu pay the most.

But don't count on the price of gas to stay where it is for much longer. Oil prices hit a record high just last week, and analysts say wholesale gas prices are already climbing, so that means it's only a matter of time before prices at the pump start edging up all over again.

Kyra, Betty?

PHILLIPS: All right, how about a check of numbers on wall street?

SCHAFFLER: Let's start first with oil, since that's been a huge focus. And for now the oil prices are retreating from the record high hit last week, but still above $46 a barrel.

Over the weekend, Venezuelan President Hugo Chavez survived a recall vote. That news is why we're seeing oil retreat a bit. Venezuela is the world's fifth largest oil exporter. Now, that drop in oil prices helping out stocks here on Wall Street. The Dow Industrial Average is surging on this Monday, up 118 points, and the Nasdaq is up close to 1.5%. That's the very latest from Wall Street.

Coming up in the next hour of LIVE FROM, 7-Up is going pink and Coca-Cola, the movie. I'm going to explain both of those stories coming up. Kyra, Betty, all yours.

NGUYEN: Very interesting. OK, thank you, Rhonda.

Also in our second hour of LIVE FROM, dealing with Hurricane Charley's aftermath. We have the latest next. PHILLIPS: Thousands of troops heading home. Why the president is moving them and what it means for the big picture coming up. LIVE FROM's hour of power begins right after this.

(COMMERCIAL BREAK)

PHILLIPS: How do you rebuild a life when your home looks like this? Florida residents trying to find the answer. Some help after Hurricane Charley blows through

NGUYEN: Michael Jackson back in court, but today, the prosecutor is the one facing the tough questions. We're live from the courthouse.

PHILLIPS: The Kobe Bryant case: A judge's refusal could turn into a slam dunk for the NBA star's defense.

And are men better at quitting smoking than women? New information on why kicking the habit may be harder depending on your gender.

From the CNN Center in Atlanta, I'm Kyra Phillips.

NGUYEN: And I'm Betty Nguyen, in for Miles O'Brien. This hour of CNN's LIVE FROM starts right now.

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 August 16, 2004 - 13:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Taking a look at stories in the news right now. It's a family affair in the Michael Jackson case. The King of Pop, who is charged with child molestation, is attending a pretrial hearing this hour. In court are Jackson's parents, sisters Janet and LaToya, and brother Jermaine. In a minute, we'll get some legal analysis on the case.
The FDA just approved a device that could save thousands of people who suffer from strokes. During most strokes, a blood vessel in the brain becomes clogged by a blood clot. That device, a tiny corkscrew, can be threaded through an artery to clear that clot and restore blood flow.

Also, the 9/11 Report, a big focus on Capitol Hill today. The Senate Commerce Committee is holding one of three hearings on recommendations laid out by the panel. 9/11 Commission co-chairs Thomas Kean and Lee Hamilton are appearing before those committees.

BETTY NGUYEN, CNN ANCHOR: Well, the spotlight this afternoon is back on the California courts. Michael Jackson and members of his family are in court today. So is Scott Peterson's former mistress, Amber Frey.

With us today, we have Criminal Defense Attorney Mickey Sherman in Stanford, Connecticut and CNN legal analyst Chris Darden in Los Angeles. Good afternoon to both of you.

MICKEY SHERMAN, CRIMINAL DEFENSE ATTORNEY: Good afternoon.

CHRISTOPHER DARDEN, CNN LEGAL ANALYST: Good afternoon.

NGUYEN: Mickey, let's start with you. The big question in California today in the Jackson case is whether or not the D.A. violated attorney/client privilege when he seized key evidence from an investigator working for Michael Jackson's attorney.

How difficult is this going to be for the prosecution's case?

SHERMAN: It's going to be very difficult. Even the fact that they think that he may have done something wrong, I think casts a really horrible shadow on the state's case. I mean, it takes a lot to get a prosecutor to be made -- to be put on the witness stand. Judges are very, very reluctant to do anything like that unless it seems to be quite warranted.

So, the mere fact that he possibly did it just kind of gives -- as I say, it's an air of impropriety or the appearance of impropriety. And who knows where this is going to go? The defense -- the defense side is that Thomas Sneddon was biased, that he was a man with a mission and he stepped over the line. And he actually basically looked into the defense attorney's briefcase by going on this raid on the investigators.

NGUYEN: Chris, is this a case breaker?

DARDEN: Well, no, I don't think it's a case breaker at all. There's nothing in the law that precludes the D.A. from executing a search warrant on a defense investigator when the prosecution believes that that investigator was in possession of physical evidence.

Does it look bad? Well, it depends on your perspective I think. But certainly, the D.A. has a right to pursue this evidence.

NGUYEN: Mickey, we talked a little bit earlier in the show about the fact that Michael Jackson didn't have to be there today.

SHERMAN: Right.

NGUYEN: But he is because Sneddon is on the stand. This has turned very personal, hasn't it?

SHERMAN: Without a doubt. I mean, Jackson's written a song about him. Sneddon has gotten, what, 54 warrants -- search warrants against him. And you know, Jackson I don't think really has to be there today, nor does his family, but I think they're there for some serious gloating. And I don't think there's any other way to put it.

They are there to just be smug, to kind of smirk and say now it's time for you people to be on the hot seat. However, they're not being -- Sneddon is not being accused of a criminal offense.

NGUYEN: Chris, the State Attorney General's Office said that the sheriff's deputies did not manhandle Jackson when they took him into arrest last year. How does this affect the case?

DARDEN: Well, you know, I think that's what a lot of us concluded based on what we saw in videotapes and what was reported by the executive staff or the sheriff's department.

But I think Michael Jackson being there today only highlights the fact that there is this personal animosity between he and Sneddon. And how that plays with jurors in Santa Barbara County -- or rather in the Santa Maria area, you know, has yet to be seen. A lot of people in that community really like Tom Sneddon, and I'm not sure it's the smart thing for Michael Jackson to go head-to-head with him this way at this point.

NGUYEN: Chris, there's also some talk that the sheriff was going to file charges against Jackson for filing a false report in this instance. Think that's going to happen?

DARDEN: No, I don't think that's going to happen at all. I think that there are some cases by the California Supreme Court that might preclude the sheriff's department from suing Michael Jackson or even accusing him of filing a false police report.

I'm not sure that Michael Jackson is the one that even filed this report or made this allegation, and it's not clear that Michael Jackson ever actually filed a false report.

NGUYEN: All right. Mickey, let's shift over to the Scott Peterson trial. Those tapes, Amber Frey on the stand: How damaging is this?

SHERMAN: I'm one of the very few people out here who say it's not the most damaging thing in the world. It's totally destructive of Scott Peterson's character, but that was a losing proposition to begin with.

It certainly proves beyond any doubt that he was a philandering guy, that he was devious, and that he's a practiced liar. That's probably the worst that it shows that this man knows how to lie.

But if he's not going to take the stand, the jury is not going to be seeing him lying, other than the fact that they will show the interviews he gave to the news media.

But again, you have to remember, what has he said? Has he said he committed a crime? No, he said he's in love with her, he's going to do this, he's going to do that. But whenever he's confronted by Amber Frey as to did he kill his wife, does he know who did it, he always denies it.

NGUYEN: Chris, do you agree that it's all circumstantial evidence?

DARDEN: Oh, it's all entirely circumstantial evidence. There's no direct evidence whatsoever that Scott Peterson killed his wife and unborn child. And I tell you, I have to agree with what Mickey -- this is not, you know, the end-all, you know, for the defense.

In fact, Scott hasn't admitted to killing his wife, and I would expect that Mark Geragos will play some tapes that show Scott Peterson stating that, in fact, he didn't kill his wife.

NGUYEN: Mickey, what do you think Geragos is going to do? Is he really going to be aggressive against Amber Frey, or would that work against him?

SHERMAN: No, I think he'll be as aggressive as it's warranted. Generally , you don't want to beat up on a witness, whether they're a good person or a bad person, unless they invite it. Jurors and the public in general doesn't want to see lawyers bully people unless, as I say, they kind of just feel the first punch.

I think what they'll try and do is catch Amber Frey in some lies, and I don't think they'll try do it in a mean way. I think they'll say, you know, "But didn't you say this at this point," and, "Didn't you say that at this point," and, "You told the police this, but you forgot or didn't -- and neglected to tell them that?"

If he's smart, which I think he is, I think he'll do it in a kind of a curious way, not in a mean-spirited way.

NGUYEN: Let's move now to the Kobe Bryant case. Quickly, Chris, is this all but over on the criminal side?

DARDEN: Well, you know, that's the speculation, of course, but you have a D.A. who is running for re-election in a high profile case, filed by him and personally handled by him throughout much of the case. He's going to be hard-pressed to dismiss this case.

To dismiss this case is to say that we were wrong, even though they're playing the blame game trying to blame the judge and the court for the release of information regarding the alleged victim's sexual history -- information that's been known to all of us for months and months. You know, I think he's going to have a tough go of it to dismiss the case, and I wouldn't be surprised if he did not dismiss it.

NGUYEN: Mickey, you agree?

SHERMAN: No, I think he'll dismiss the case. And his way out, his exit strategy will be blaming the victim, because she's going to come forward -- whether in writing, in person, or through her lawyers -- and say, "I do not want to be a witness in the criminal case. I'm going the other avenue. I'm sick of you people. You screwed up the entire case. You let things out. I don't trust the system," which basically she said.

"So, I'm not testifying in this case. I'll go get my pieces of silver in the civil court." And that gives him the out. That gives him the excuse to say, "Hey, I got no witness, I got no case." I say that happens within 36 hours.

NGUYEN: Pieces of silver? All right, Mickey Sherman and Chris Darden, thank you both -- Kyra?

PHILLIPS: If the Olympics are supposed to inspire greatness, then the U.S. Basketball Team needs an attitude check. We're going to take you live to Athens for Olympic highlights and low lights.

More high level competition? This race, though, isn't even in Greece.

Oh, and these dogs may not be dog show material, but that didn't stop them from winning a place in the record books. All these in- depth stories straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: A crushing blow for U.S. swimming sensation Michael Phelps. About an hour ago, Phelps dream of winning seven gold in the Summer Games came to an abrupt end.

CNN's Larry Smith joins us now live in Athens with the details, far away from the Uzo (ph).

Hi, Larry. LARRY SMITH, CNN CORRESPONDENT: That's right, as far away as I can get, Kyra.

Two swimming gold medals, however, for the U.S. tonight in swimming. Natalie Coughlin was gold in the women's 100-meter backstroke, Aaron Peirsol likewise in the men's 100-meter backstroke.

But as you mentioned, Michael Phelps not so much. The Baltimore teenager got off to a great start in the first half of the men's 200- meter freestyle, but it was Australian record holder Ian Thorpe who came up with the gold in the end, swimming away from the competition, dashing Phelps's bid to tie Mark Spitz's record of seven swimming gold medals.

Phelps ends up with a bronze medal behind Thorpe and Pieter van den Hoogenband of the Netherlands. Phelps now with a gold and two bronze medals in these Games. Next up for him, the 200-meter butterfly. He has, just a moment ago, qualified for that final, which comes up tomorrow night.

How about some men's basketball. Team USA in a position they have never been in before, going back to the drawing board after game one of these Olympics. Last night, they were slapped around by underdog Puerto Rico, 92-73, a reality check for the Americans. No longer can they simply expect to come up golden in men's hoops.

(BEGIN VIDEO CLIP)

LARRY BROWN, TEAM USA BASKETBALL COACH: I don't think anybody should be surprised. I'm not surprised, because I know what these teams are about. Dwayne Wade said it best. Arroyo said they've been practicing together three months, twice a day. To get our guys to do it would be next to impossible, because I don't think they understand the urgency of it. They don't understand how important it is to the teams we're playing against.

(END VIDEO CLIP)

SMITH: Well, they'll try to get it together tomorrow night versus host country Greece, Men's basketball.

Looking for a team to call a dream team? How about USA softball, 3-0 winner over Japan in eight innings. Japan had held them hitless through regulation, but they have now yet to allow a run, the U.S. has, in their three runs so far, the most unbeaten team still left in the softball competition here in the Athens.

And finally, Greek sprinter Kostas Kenteris and Katerina Thanou have been granted an extension for another 48 hours. They will meet with IOC officials on Wednesday morning to finally come up with a reason why they missed the mandatory drug test Thursday. However, Kyra, many Greek people that we talked to here have written the pair off, saying they're just kind of bad news from what was otherwise a positive experience for this country.

Back to you. PHILLIPS: Well, Larry, I'm curious, you've been cruising through all of these events. You can't beat the backdrop behind you. What are the crowds been like? Are the stands empty? Are they full?

SMITH: Well, it just depends on the venue. Obviously, last night's basketball was full. The swimming tonight is full, with the great race of the century going on.

Some of the other events have not been so much. Only about 500 people showing up for the first day of tennis, and it's that way at the Olympics. I think as you get further in, I know the Greek Olympic officials here are hoping for much better crowds as they go on through these next couple of weeks.

PHILLIPS: Larry, our director, and you know Scott very well, is wondering about the beach volleyball. How's the crowds there?

SMITH: I watch a lot on my TV.

PHILLIPS: No doubt.

(LAUGHTER)

SMITH: I'm sure they've been pretty good. I love beach volleyball.

PHILLIPS: Larry Smith, live from Athens. Thanks very much. We'll check in with you on the Olympics throughout the day. Thanks.

NGUYEN: Hmmm, I wonder if it has anything to do with those bikinis? Nah.

Well, honoring Olympians, sneakers and Spider-Man. Test your vertical limits, after this.

(COMMERCIAL BREAK)

PHILLIPS: Well, the barks are worse than their bites. About 200 dogs set a new world record for the loudest bark at this year's Bark in the Park in Wisconsin. Their barks measured about 112 decibels louder, than a power tool, to shatter that old record. Yes, that's about where I am, 112 decibels. The event is fund-raiser for the local humane society.

NGUYEN: I didn't know you could bark, Kyra.

PHILLIPS: My bite is much bigger.

NGUYEN: I imagine.

Well, if you think that was a bit odd, wait until you see this. A group of gutsy athletes taking on a contest unlike any other. All you need is a 40-story building, some good shoes, and above all, no fear of heights.

Here's CNN's Andrew Brown. (BEGIN VIDEOTAPE)

ANDREW BROWN, CNN CORRESPONDENT: It looks like a track you'd find in any athletic stadium, but the athletes resemble rock climbers, or ninjas from the side. Most spectators don't consider this a track event.

(on camera): Are they climbing or running?

UNIDENTIFIED MALE: I think it's climbing.

UNIDENTIFIED FEMALE: Climbing.

BROWN (voice-over): The organizers call it an impossible sprint.

UNIDENTIFIED MALE: I'm running. I'm running.

BROWN: They gave CNN a tour of the track, which in reality is the outside of a 40-story office building in downtown Hong Kong.

UNIDENTIFIED MALE: (INAUDIBLE) raising up the building vertically, and we'll see which one is the fastest.

BROWN: Adidas, the organizer, looked all over Asia for suitable buildings. They needed a wall big enough to fit a 100 meter track.

(on camera): That's a long way, isn't it?

UNIDENTIFIED MALE: It's not that long. It takes a couple minutes.

BROWN (voice-over): In theory, your race could end a lot quicker than that.

(on camera): Would anyone ever fall off?

UNIDENTIFIED MALE: Fall off? What do you mean, fall off?

BROWN (voice-over): You feel like an accident waiting to happen up there.

Though the organizers say they put safety first and stress no competitors were even injured in these impossible sprints heat.

Some spectators may have sore necks after watching the sprint. That's to be expected. When Batman and Robin climbed buildings, they turned a few heads, as well. Best to go horizontal if you're taking pictures.

Adidas says everyone will be sprinting vertically soon.

(on camera): Is Nike going to copy the vertical sprint?

CHRISTOPHE BEZU, ADIDAS: I'm sure. I'm sure!

BROWN (voice-over): If you can't go up, go down, although down's not easy either.

(on camera): What floor are we on?

UNIDENTIFIED MALE: What floor? I don't know. No idea. I don't care what floor.

BROWN: Andrew Brown, CNN, Hong Kong.

(COMMERCIAL BREAK)

NGUYEN: Well, record high oil prices are not being felt at the gas pump just yet, but as you know, that could soon change.

PHILLIPS: Rhonda Schaffler, live from the New York Stock Exchange with that story. Hi, Rhonda.

RHONDA SCHAFFLER, CNN SR. BUSINESS CORRESPONDENT: Hi again, Kyra and Betty.

At this point, gas prices down nearly a nickel a gallon during the past three weeks. You now pay on average $1.87 for self-service regular. According to the Lundberg survey, that is well off the record price of $2.07 a gallon. That was hit back in May. Drivers in Tulsa, Oklahoma, pay the least to fill up, while those in Honolulu pay the most.

But don't count on the price of gas to stay where it is for much longer. Oil prices hit a record high just last week, and analysts say wholesale gas prices are already climbing, so that means it's only a matter of time before prices at the pump start edging up all over again.

Kyra, Betty?

PHILLIPS: All right, how about a check of numbers on wall street?

SCHAFFLER: Let's start first with oil, since that's been a huge focus. And for now the oil prices are retreating from the record high hit last week, but still above $46 a barrel.

Over the weekend, Venezuelan President Hugo Chavez survived a recall vote. That news is why we're seeing oil retreat a bit. Venezuela is the world's fifth largest oil exporter. Now, that drop in oil prices helping out stocks here on Wall Street. The Dow Industrial Average is surging on this Monday, up 118 points, and the Nasdaq is up close to 1.5%. That's the very latest from Wall Street.

Coming up in the next hour of LIVE FROM, 7-Up is going pink and Coca-Cola, the movie. I'm going to explain both of those stories coming up. Kyra, Betty, all yours.

NGUYEN: Very interesting. OK, thank you, Rhonda.

Also in our second hour of LIVE FROM, dealing with Hurricane Charley's aftermath. We have the latest next. PHILLIPS: Thousands of troops heading home. Why the president is moving them and what it means for the big picture coming up. LIVE FROM's hour of power begins right after this.

(COMMERCIAL BREAK)

PHILLIPS: How do you rebuild a life when your home looks like this? Florida residents trying to find the answer. Some help after Hurricane Charley blows through

NGUYEN: Michael Jackson back in court, but today, the prosecutor is the one facing the tough questions. We're live from the courthouse.

PHILLIPS: The Kobe Bryant case: A judge's refusal could turn into a slam dunk for the NBA star's defense.

And are men better at quitting smoking than women? New information on why kicking the habit may be harder depending on your gender.

From the CNN Center in Atlanta, I'm Kyra Phillips.

NGUYEN: And I'm Betty Nguyen, in for Miles O'Brien. This hour of CNN's LIVE FROM starts right now.

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