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CNN Producer Kidnapped in Gaza; Florida Residents Recover from Jeanne; Two More U.S. Soldiers Charged with Murder; College Football Losing Money

Aired September 27, 2004 - 13:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


KYRA PHILLIPS, CNN ANCHOR: Soaking the south, Jeanne marches northward leaving more than 2 million homes without power. Florida also in a state of emergency.
ED LAVANDERA, CNN CORRESPONDENT: I'm Ed Lavandera in Melbourne, Florida. We'll have the stories of the people that weathered Hurricane Jeanne, coming up.

PHILLIPS: We're about to vote in the first presidential election under a significant terror threat. What's being done to make you safe when you head to the polls?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): I chose by using the idea of a young writer going where your heart leads you. I chose the woman whose voice reminded me of my wife.

(END VIDEO CLIP)

PHILLIPS: Many called, one was chosen. The grandpa seeking a family in the classifieds packs up and heads for his new home.

From the CNN Center in Atlanta, I'm Kyra Phillips. Miles is on assignment. It's Monday, September 27. CNN's LIVE FROM starts right now.

Before we get to weather, this just in. A pretty heart-wrenching story for all of us, one of our own kidnapped in Gaza. Ben Wedeman on the phone with us now to tell us what happened with him and his producer.

Take us from the beginning, please.

BEN WEDEMAN, CNN CORRESPONDENT: Yes, Kyra, we just arrived in Gaza a few hours ago. We came to our office here and made lots of phone calls. And then we left the office about an hour and a half ago, driving in the direction of our hotel when a car pulled out in front of our taxi.

Out of the car got a man who pulled a revolver out of his pants, stuck it in the window of our car and said, "Which one of you is Riyad Ali," who of course is our producer who works here and elsewhere in the region.

Riyad calmly responded, "I am."

And they said, "Get out of the car."

There were several men who emerged from this car that they'd pulled in front of us. And they had AK-47 assault rifles and revolvers, as well. They -- they clearly had planned this, following us, it appears, to this spot.

And they took Riyad away now. And since then we've been burning up the phone lines, making contacts with every security organization, Palestinian security organization here, and the militant factions of which there are many. But none of them seem to know anything about where Riyad could be.

PHILLIPS: Ben, how were they dressed? Did they cover their faces? Did they have, I mean, that look of a terrorist? Do you believe these could have been terrorists?

WEDEMAN: No, Kyra. They looked like ordinary Gazans, ordinary young men in their early 20s. Their faces were not hidden. They made no attempt to cover their faces at all. They looked just like your average young man here in Gaza. Some had mustaches; some were unshaven.

But honestly, in fact, when the man initially got out of the car in front of us, I thought he was going to ask for directions or ask questions.

But clearly these men are familiar with how to use weapons. They looked very comfortable with them, exactly what they were doing. It looked like they had planned this thing very well.

PHILLIPS: Ben, I remember Riyad even worked here in Atlanta on the international desk. What is his ethnic background?

WEDEMAN: Riyad is an Arab. He is very familiar with this area. He is very well known here in Gaza. He -- he comes here on an almost monthly basis. He knows lots of people. He's somebody very comfortable in this environment. And clearly shocked as the rest of us for this to happen.

I've come to Gaza many, many times. Normally it's a place that, despite its reputation, you don't run into much hostility here. And many -- most people here understand and respect the -- the work of the media.

PHILLIPS: Do you know if Riyad had been working on anything controversial? Had he mentioned anything to you about fearing for his life or maybe being involved in something that might lead to this?

WEDEMAN: No. No indication whatsoever. He was clearly very comfortable here. He knew exactly what he was doing. We were not doing anything undercover or unusual. We were just doing what journalists normally do when they get to Gaza. You make lots of phone calls, make lots of contacts, try to set things up to cover the news as we always do. So there was nothing out of the ordinary or anything that I believe would arouse anybody's suspicion that we were doing anything other than the normal work of journalists in this part of the world.

PHILLIPS: Real quickly, Ben, authorities now searching for Riyad? What's happening right now to try and find him?

WEDEMAN: Everyone I know here in Gaza is making contacts, calling people. I've spoken with a member, a representative of Palestinian preventive security to give him our -- the story, what happened.

Basically, we are making as many contacts as possible. And our contacts are making contacts as well, to try to find out what exactly has happened and where Riyad could be.

PHILLIPS: Ben Wedeman, we're glad that you're safe. I know the search continues for one of our own.

One of our producers, Riyad Ali, kidnapped there at gunpoint in Gaza. We'll continue to follow the story and the fate of Riyad Ali as our newscast continues.

In other news, a bit more lean, a lot less mean. But Jeanne is still a mess on the radar screens across much of the southeast today.

The fourth hurricane to batter Florida in six weeks is spinning its way through Georgia as a weakening tropical storm, top winds 45 miles an hour. Along the way it's dropping four to six inches of rain on ground that's still pretty saturated from storms that came before.

In Florida, Jeanne added insult to injury. Yet again blackouts are rampant. Yet again, damage is in the billions of dollars. And yet again, deaths are being blamed on drownings, electrocution and fallen trees.

State and federal officials yet again are vowing to do and spend whatever it takes to recover. The head of FEMA admits a break would be nice.

(BEGIN VIDEO CLIP)

MICHAEL BROWN, FEMA DIRECTOR: Just for the teams to be able to get into some of these areas that have been hit time and time again. It's so frustrating for our teams. We have over 5,000 people deployed, trying to do recovery efforts. And we move into an area. Then we have to move out because of additional storms.

If we can just have a two or three week period where we could just get down here and stay down here, we could make an awful lot of progress.

(END VIDEO CLIP)

PHILLIPS: In Melbourne, some 50 miles north of where Jeanne came ashore late Saturday, a roof caved in on a shelter at the height of that storm. CNN's Ed Lavandera has the latest on the damage and the drama -- Ed.

ED LAVANDERA, CNN CORRESPONDENT: Hi, Kyra.

Well, here residents in Melbourne stuck in long lines of traffic as this is really the first full day that they've been able to venture out onto the roadways and get a glimpse of what the damage that has been left behind by Hurricane Jeanne.

Even though we've talked a lot about wind and rain over the last couple of days, but in the end what hurricanes are about is the story of people's lives.

(BEGIN VIDEOTAPE)

STEVE SNIFFIN, HURRICANE SURVIVOR: This is where the driveway used to be.

LAVANDERA (voice-over): Many Florida residents who did not evacuate their homes woke up after Hurricane Jeanne just like Steve Sniffin. He rolled out of bed after the storm and planted his feet in 12 inches of water.

SNIFFIN: I'll probably have water here tonight. This isn't going to just drain out the door. I'll be sweeping water out for the next several days probably.

LAVANDERA: Sniffin is unemployed; he doesn't have home insurance, and now he has to clean up after a second hurricane in less than a month blasted his Vero Beach home.

SNIFFIN: It's a miserable experience. I don't want to go through it again. This is the second time now. So I've had enough.

LAVANDERA: Along an expansive stretch of central Florida's eastern coastline, many roadways were under water, and giant trees were toppled to the ground.

Residents who did evacuate, like Patrick Pollard, struggled to move around the ravaged areas. Pollard heard reports his blues bar in Melbourne was being looted. He didn't find any thieves, but he did find half of the club's roof blown away.

PATRICK POLLARD, BAR OWNER: We just didn't think it was going to be that bad. I don't know. It's such a hassle to evacuate. You can't get back over on the island to check your property and damage.

UNIDENTIFIED FEMALE: He said, get me out of here. I don't like it no more.

LAVANDERA: Kim Moeller (ph) has something to feel a little better about, even though her home suffered serious damage. She evacuated but had to leave her cat behind, locked inside the bathroom. The cat is still a little angry, but at least Moeller (ph) feels a little better about how this story turned out.

UNIDENTIFIED FEMALE: I won't leave her again. No. (END VIDEOTAPE)

LAVANDERA: Well, we have been seen here throughout the day in Melbourne, and we can imagine as we go further south from where we are, long lines at gasoline stations. People may get to grocery stores as well, today as they venture back out to the roadways.

PHILLIPS: Ed Lavandera, thank you so much.

And just within the past two hours, tropical storm warnings were lifted for a long stretch of Florida's Gulf Coast. That's a ray of good news for the town of Steinhatchee.

CNN's Sean Callebs is there.

Hi, Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Hi, Kyra.

Indeed, a lot of people in this area, really from Gainesville, Orlando on into the Big Bend area, saw the damage that Jeanne caused along the coast. Very worried about the damaging winds and rain that came this way.

They fared pretty well in this area.

We are right in the heart of the Big Bend, about 95 miles east of Tallahassee and about 70 miles or so west of Gainesville.

To give you an idea, this is the Steinhatchee River. It's up about four feet. Last night, at the height of the storm -- you can just see the debris line here -- floodwaters moved well up in here, about two-thirds up that road.

And they have power out throughout Taylor County at the height of the storm. There's a lot of live oak, pine trees. They don't fare as well as the palm trees that we've seen so often in these kinds of storms.

But really, this is an area that did pretty well in terms of damage.

But joining us to talk about the economic damage, Jim Hunt runs a restaurant here as well as a hotel.

What's the last six weeks been like? Because this area really depends on tourism.

JIM HUNT, RESTAURANT OWNER: Well, the economic impact that we've had has been just horrible for this area. We have -- Steinhatchee is one of the places we call the old Florida that's left.

A lot of people like to come here. The fishing is great here. Scallop season is the main tourist time when we have so many people here. And of course, these storms, since you know, the first part of August, just seems like every week we were having another storm. So you know, people would call and cancel. And of course, that does, you know, give us a hard time.

CALLEBS: And of course, that part of the tourist season here is over. The scallop season wound down. It's from July till September. So what people can do is just hope for next year.

But a lot of people in this area -- Think about all the hurricanes that came through, Charley, Frances -- Frances knocked some power out in this area but didn't do a lot of damage. And then Ivan.

Think about, you know, the old carnie act where you have the knife thrower and the beautiful girl. Well, they've had four knives tossed at them in this area, but they've -- they've done pretty well so far. And they say they can get by without any -- without any more hurricanes this year, Kyra.

PHILLIPS: All right, Sean. Absolutely. Sean Callebs, thank you so much.

Well, she's seen them come; she's seen them go. As CNN meteorologist Jacqui Jeras is watching the waning hours of Jeanne and a waddling storm called Lisa. She seems to have her hands full.

Hi, Jacqui.

(WEATHER REPORT)

PHILLIPS: All right, Jacqui, thank you so much.

Well, are terrorists planning to impact the elections? Find out what's being done to make sure they don't. Satellites, security and you, ahead on LIVE FROM.

Turning up the heat on Iraq's insurgents. Air strikes and working on deals with Syria. The latest from the streets of Baghdad.

And the earth moved. What to make on the latest rumblings from Mount St. Helens. LIVE FROM goes under the volcano right after this.

(COMMERCIAL BREAK)

PHILLIPS: Two more U.S. troops killed in Iraq today. One died in a road accident north of Baghdad. A patrol returning from the scene was attacked with small arms fire, killing a second soldier.

Elsewhere in Iraq, U.S. jets pounded suspected Shiite militant positions in Baghdad's Sadr City. At least five were killed. Dozens were wounded, including women and children.

A U.S. military delegation is in Damascus for talks about securing the border between Syria and Iraq. The goal there is to keep insurgents from traveling between the two countries.

Two more U.S. soldiers are charged with murder in Iraq. CNN's Barbara Starr has been following all of these reports. She joins us live from the Pentagon with the latest -- Barbara.

BARBARA STARR, CNN CORRESPONDENT: Hello to you, Kyra.

Indeed, the U.S. military has announced two more soldiers charged with murder in the case of an Iraqi in the Baghdad area.

The 1st Cavalry Division announced that the charges were filed in the murder of an Iraqi civilian. That investigation is continuing.

Now you may remember that it was just late last week that the 1st Cav also announced premeditated murder charges against two other soldiers in the death -- deaths of three Iraqis while those soldiers were on patrol several weeks ago in the Sadr City suburb of Baghdad.

So now in one week, four soldiers from the same unit charged in two separate murder cases. All of these are still under investigation, charges filed, the matters moving forward.

There is one other case to update you about. The Army has let it be known very quietly that still another soldier -- we don't know his unit -- has pleaded guilty to a murder charge against an Iraqi and has now been sentenced to 25 years in prison -- Kyra.

PHILLIPS: Barbara Starr, live from the Pentagon.

(BEGIN VIDEO CLIP)

PHILLIPS (voice-over): Next on LIVE FROM, college sports are bigger than ever with millions of fans. Mucho merchandise and plenty of money, right? Wrong. Find out why it matters.

As the candidates prepare for Thursday's face-off, a look at the top ten issues facing both men as they compete in what our guests call a political decathlon.

It's a go in the desert. The Mojave team set for launch in the quest for the $10 million X Prize. Do it yourself space travel can only mean one thing: Miles O'Brien on the scene. Tomorrow on LIVE FROM.

(COMMERCIAL BREAK)

PHILLIPS: Well, it's college football season. And for many fans, of course, that means settling in with your remote. But regardless of your school colors, your team could be drowning in red.

Chris Huntington of CNN financial news explains.

(BEGIN VIDEOTAPE)

CHRIS HUNTINGTON, CNN CORRESPONDENT (voice-over): American college sports have never been more popular. More televised.

UNIDENTIFIED MALE: Over 25 men's and women's collegiate sports.

HUNTINGTON: And more in debt than they are right now. Even with record revenue flowing in, including new streams from cable channels exclusively covering college sports, most intercollegiate athletic programs lose money.

DR. WILLIAM FRIDAY, CHAIRMAN, KNIGHT COMMISSION: Increasing supply of money distorts the picture so badly.

HUNTINGTON: One glaring example: Syracuse University unexpectedly raised tuition this year to cover a $2.5 million budget deficit run up by its athletic department. The problem, says the top watchdog for college sports, is lavish spending, particularly on football and basketball.

FRIDAY: We're in an arms race. And you have coaches making seven, eight times the salary of the chief executive officer. You know, that can't be tolerated.

HUNTINGTON: Friday blames a win at all costs culture fostered by fans and fueled by big TV contracts. CBS, for instance, is paying the NCAA $6 billion over 11 years to cover the basketball tournament known as March Madness.

The broadcast rights for college football bowl championship series go for nearly $50 million a game.

BRIAN BEDOL, CEO, CSTV: Any time you have a lot of money going into any business, you're at risk for abuse.

HUNTINGTON: Brian Bedol runs College Sports TV, an all college sports channel launched last year with backing from George Soros and J.P. Morgan. CSTV features many sports that rarely get coverage and educational programming that Bedol believes will push back against the negative stereotypes associated with big time, big money college sports.

BEDOL: What bothers me is about -- about the coverage of the abuse is that you create this perception that college sports are bad. And the fact is that college sports in the United States are probably one of the greatest opportunities that young people have to have somebody else pay for their education while pursuing athletic excellence.

HUNTINGTON: The nagging problem is that in pursuing athletic excellence in college, academics often get trampled. Fewer than one- third of the teams in this year's NCAA tournament had graduation rates of 50 percent or better.

(END VIDEOTAPE)

HUNTINGTON: Now, another unfortunate statistic, more than half the Division 1-a schools -- that's 106 schools that really are the biggest powerhouse sports schools -- have been operating under some form of sanction or probation in the last 10 years -- Kyra.

PHILLIPS: Well, Chris, how widespread is this? Or is it just a few bad apples? HUNTINGTON: It is -- it is unfortunately pretty widespread when you talk about the Division 1-a schools. I just cited that stat there of 50 percent of them having been sanctioned or put on probation in the last 10 years.

Any time have you've got a really big football or basketball program, there's a lot of money flowing in there. And unfortunately, the abuse tends to go with the big money.

On the whole scope of American universities, by and large, most of them are doing the right thing in trying to support lesser programs on their campus.

PHILLIPS: Chris Huntington, thanks.

Well, attention space cadets: if you're craving an otherworldly experience, well, you could never hack the match to become an astronaut. You still have a sub orbital shot, thanks to that friend of flight, Sir Richard Branson.

Now of course, numbers are still involved, meaning the number of bucks you'll have to fork over to climb aboard the world's first passenger service to space, Branson's Virgin Galactic.

(BEGIN VIDEO CLIP)

SIR RICHARD BRANSON, THE VIRGIN GROUP: Initially, the tickets will not be cheap. They'll be something like $170,000.

But if we can get the first three passengers signed up and on board and flying, you know, our pledge is that we'll reinvest any profits we make in trying to bring the price of tickets down.

And I think if we can get -- you know, if we can get those prices down by a half, then I think a lot more people will be able to fly. So that's something which we're aiming to do.

(END VIDEO CLIP)

PHILLIPS: Well, that ticket price will include three days of advance flight training for many missions that will last two to three hours. Branson is teaming up with Microsoft co-founder Paul Allen to build five capsules for the flights.

Here's some animation of the working design they've got going. And hey, maybe that's why Miles isn't here today: he's spending the day on the phone, trying to book his seat.

Well, oil is closing in on $50 a barrel mark. What's putting that pressure on? Let's get the story from Rhonda Schaffler. She's at the New York Stock Exchange -- Rhonda.

(STOCK REPORT)

(COMMERCIAL BREAK)

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Aired September 27, 2004 - 13:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Soaking the south, Jeanne marches northward leaving more than 2 million homes without power. Florida also in a state of emergency.
ED LAVANDERA, CNN CORRESPONDENT: I'm Ed Lavandera in Melbourne, Florida. We'll have the stories of the people that weathered Hurricane Jeanne, coming up.

PHILLIPS: We're about to vote in the first presidential election under a significant terror threat. What's being done to make you safe when you head to the polls?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): I chose by using the idea of a young writer going where your heart leads you. I chose the woman whose voice reminded me of my wife.

(END VIDEO CLIP)

PHILLIPS: Many called, one was chosen. The grandpa seeking a family in the classifieds packs up and heads for his new home.

From the CNN Center in Atlanta, I'm Kyra Phillips. Miles is on assignment. It's Monday, September 27. CNN's LIVE FROM starts right now.

Before we get to weather, this just in. A pretty heart-wrenching story for all of us, one of our own kidnapped in Gaza. Ben Wedeman on the phone with us now to tell us what happened with him and his producer.

Take us from the beginning, please.

BEN WEDEMAN, CNN CORRESPONDENT: Yes, Kyra, we just arrived in Gaza a few hours ago. We came to our office here and made lots of phone calls. And then we left the office about an hour and a half ago, driving in the direction of our hotel when a car pulled out in front of our taxi.

Out of the car got a man who pulled a revolver out of his pants, stuck it in the window of our car and said, "Which one of you is Riyad Ali," who of course is our producer who works here and elsewhere in the region.

Riyad calmly responded, "I am."

And they said, "Get out of the car."

There were several men who emerged from this car that they'd pulled in front of us. And they had AK-47 assault rifles and revolvers, as well. They -- they clearly had planned this, following us, it appears, to this spot.

And they took Riyad away now. And since then we've been burning up the phone lines, making contacts with every security organization, Palestinian security organization here, and the militant factions of which there are many. But none of them seem to know anything about where Riyad could be.

PHILLIPS: Ben, how were they dressed? Did they cover their faces? Did they have, I mean, that look of a terrorist? Do you believe these could have been terrorists?

WEDEMAN: No, Kyra. They looked like ordinary Gazans, ordinary young men in their early 20s. Their faces were not hidden. They made no attempt to cover their faces at all. They looked just like your average young man here in Gaza. Some had mustaches; some were unshaven.

But honestly, in fact, when the man initially got out of the car in front of us, I thought he was going to ask for directions or ask questions.

But clearly these men are familiar with how to use weapons. They looked very comfortable with them, exactly what they were doing. It looked like they had planned this thing very well.

PHILLIPS: Ben, I remember Riyad even worked here in Atlanta on the international desk. What is his ethnic background?

WEDEMAN: Riyad is an Arab. He is very familiar with this area. He is very well known here in Gaza. He -- he comes here on an almost monthly basis. He knows lots of people. He's somebody very comfortable in this environment. And clearly shocked as the rest of us for this to happen.

I've come to Gaza many, many times. Normally it's a place that, despite its reputation, you don't run into much hostility here. And many -- most people here understand and respect the -- the work of the media.

PHILLIPS: Do you know if Riyad had been working on anything controversial? Had he mentioned anything to you about fearing for his life or maybe being involved in something that might lead to this?

WEDEMAN: No. No indication whatsoever. He was clearly very comfortable here. He knew exactly what he was doing. We were not doing anything undercover or unusual. We were just doing what journalists normally do when they get to Gaza. You make lots of phone calls, make lots of contacts, try to set things up to cover the news as we always do. So there was nothing out of the ordinary or anything that I believe would arouse anybody's suspicion that we were doing anything other than the normal work of journalists in this part of the world.

PHILLIPS: Real quickly, Ben, authorities now searching for Riyad? What's happening right now to try and find him?

WEDEMAN: Everyone I know here in Gaza is making contacts, calling people. I've spoken with a member, a representative of Palestinian preventive security to give him our -- the story, what happened.

Basically, we are making as many contacts as possible. And our contacts are making contacts as well, to try to find out what exactly has happened and where Riyad could be.

PHILLIPS: Ben Wedeman, we're glad that you're safe. I know the search continues for one of our own.

One of our producers, Riyad Ali, kidnapped there at gunpoint in Gaza. We'll continue to follow the story and the fate of Riyad Ali as our newscast continues.

In other news, a bit more lean, a lot less mean. But Jeanne is still a mess on the radar screens across much of the southeast today.

The fourth hurricane to batter Florida in six weeks is spinning its way through Georgia as a weakening tropical storm, top winds 45 miles an hour. Along the way it's dropping four to six inches of rain on ground that's still pretty saturated from storms that came before.

In Florida, Jeanne added insult to injury. Yet again blackouts are rampant. Yet again, damage is in the billions of dollars. And yet again, deaths are being blamed on drownings, electrocution and fallen trees.

State and federal officials yet again are vowing to do and spend whatever it takes to recover. The head of FEMA admits a break would be nice.

(BEGIN VIDEO CLIP)

MICHAEL BROWN, FEMA DIRECTOR: Just for the teams to be able to get into some of these areas that have been hit time and time again. It's so frustrating for our teams. We have over 5,000 people deployed, trying to do recovery efforts. And we move into an area. Then we have to move out because of additional storms.

If we can just have a two or three week period where we could just get down here and stay down here, we could make an awful lot of progress.

(END VIDEO CLIP)

PHILLIPS: In Melbourne, some 50 miles north of where Jeanne came ashore late Saturday, a roof caved in on a shelter at the height of that storm. CNN's Ed Lavandera has the latest on the damage and the drama -- Ed.

ED LAVANDERA, CNN CORRESPONDENT: Hi, Kyra.

Well, here residents in Melbourne stuck in long lines of traffic as this is really the first full day that they've been able to venture out onto the roadways and get a glimpse of what the damage that has been left behind by Hurricane Jeanne.

Even though we've talked a lot about wind and rain over the last couple of days, but in the end what hurricanes are about is the story of people's lives.

(BEGIN VIDEOTAPE)

STEVE SNIFFIN, HURRICANE SURVIVOR: This is where the driveway used to be.

LAVANDERA (voice-over): Many Florida residents who did not evacuate their homes woke up after Hurricane Jeanne just like Steve Sniffin. He rolled out of bed after the storm and planted his feet in 12 inches of water.

SNIFFIN: I'll probably have water here tonight. This isn't going to just drain out the door. I'll be sweeping water out for the next several days probably.

LAVANDERA: Sniffin is unemployed; he doesn't have home insurance, and now he has to clean up after a second hurricane in less than a month blasted his Vero Beach home.

SNIFFIN: It's a miserable experience. I don't want to go through it again. This is the second time now. So I've had enough.

LAVANDERA: Along an expansive stretch of central Florida's eastern coastline, many roadways were under water, and giant trees were toppled to the ground.

Residents who did evacuate, like Patrick Pollard, struggled to move around the ravaged areas. Pollard heard reports his blues bar in Melbourne was being looted. He didn't find any thieves, but he did find half of the club's roof blown away.

PATRICK POLLARD, BAR OWNER: We just didn't think it was going to be that bad. I don't know. It's such a hassle to evacuate. You can't get back over on the island to check your property and damage.

UNIDENTIFIED FEMALE: He said, get me out of here. I don't like it no more.

LAVANDERA: Kim Moeller (ph) has something to feel a little better about, even though her home suffered serious damage. She evacuated but had to leave her cat behind, locked inside the bathroom. The cat is still a little angry, but at least Moeller (ph) feels a little better about how this story turned out.

UNIDENTIFIED FEMALE: I won't leave her again. No. (END VIDEOTAPE)

LAVANDERA: Well, we have been seen here throughout the day in Melbourne, and we can imagine as we go further south from where we are, long lines at gasoline stations. People may get to grocery stores as well, today as they venture back out to the roadways.

PHILLIPS: Ed Lavandera, thank you so much.

And just within the past two hours, tropical storm warnings were lifted for a long stretch of Florida's Gulf Coast. That's a ray of good news for the town of Steinhatchee.

CNN's Sean Callebs is there.

Hi, Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Hi, Kyra.

Indeed, a lot of people in this area, really from Gainesville, Orlando on into the Big Bend area, saw the damage that Jeanne caused along the coast. Very worried about the damaging winds and rain that came this way.

They fared pretty well in this area.

We are right in the heart of the Big Bend, about 95 miles east of Tallahassee and about 70 miles or so west of Gainesville.

To give you an idea, this is the Steinhatchee River. It's up about four feet. Last night, at the height of the storm -- you can just see the debris line here -- floodwaters moved well up in here, about two-thirds up that road.

And they have power out throughout Taylor County at the height of the storm. There's a lot of live oak, pine trees. They don't fare as well as the palm trees that we've seen so often in these kinds of storms.

But really, this is an area that did pretty well in terms of damage.

But joining us to talk about the economic damage, Jim Hunt runs a restaurant here as well as a hotel.

What's the last six weeks been like? Because this area really depends on tourism.

JIM HUNT, RESTAURANT OWNER: Well, the economic impact that we've had has been just horrible for this area. We have -- Steinhatchee is one of the places we call the old Florida that's left.

A lot of people like to come here. The fishing is great here. Scallop season is the main tourist time when we have so many people here. And of course, these storms, since you know, the first part of August, just seems like every week we were having another storm. So you know, people would call and cancel. And of course, that does, you know, give us a hard time.

CALLEBS: And of course, that part of the tourist season here is over. The scallop season wound down. It's from July till September. So what people can do is just hope for next year.

But a lot of people in this area -- Think about all the hurricanes that came through, Charley, Frances -- Frances knocked some power out in this area but didn't do a lot of damage. And then Ivan.

Think about, you know, the old carnie act where you have the knife thrower and the beautiful girl. Well, they've had four knives tossed at them in this area, but they've -- they've done pretty well so far. And they say they can get by without any -- without any more hurricanes this year, Kyra.

PHILLIPS: All right, Sean. Absolutely. Sean Callebs, thank you so much.

Well, she's seen them come; she's seen them go. As CNN meteorologist Jacqui Jeras is watching the waning hours of Jeanne and a waddling storm called Lisa. She seems to have her hands full.

Hi, Jacqui.

(WEATHER REPORT)

PHILLIPS: All right, Jacqui, thank you so much.

Well, are terrorists planning to impact the elections? Find out what's being done to make sure they don't. Satellites, security and you, ahead on LIVE FROM.

Turning up the heat on Iraq's insurgents. Air strikes and working on deals with Syria. The latest from the streets of Baghdad.

And the earth moved. What to make on the latest rumblings from Mount St. Helens. LIVE FROM goes under the volcano right after this.

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PHILLIPS: Two more U.S. troops killed in Iraq today. One died in a road accident north of Baghdad. A patrol returning from the scene was attacked with small arms fire, killing a second soldier.

Elsewhere in Iraq, U.S. jets pounded suspected Shiite militant positions in Baghdad's Sadr City. At least five were killed. Dozens were wounded, including women and children.

A U.S. military delegation is in Damascus for talks about securing the border between Syria and Iraq. The goal there is to keep insurgents from traveling between the two countries.

Two more U.S. soldiers are charged with murder in Iraq. CNN's Barbara Starr has been following all of these reports. She joins us live from the Pentagon with the latest -- Barbara.

BARBARA STARR, CNN CORRESPONDENT: Hello to you, Kyra.

Indeed, the U.S. military has announced two more soldiers charged with murder in the case of an Iraqi in the Baghdad area.

The 1st Cavalry Division announced that the charges were filed in the murder of an Iraqi civilian. That investigation is continuing.

Now you may remember that it was just late last week that the 1st Cav also announced premeditated murder charges against two other soldiers in the death -- deaths of three Iraqis while those soldiers were on patrol several weeks ago in the Sadr City suburb of Baghdad.

So now in one week, four soldiers from the same unit charged in two separate murder cases. All of these are still under investigation, charges filed, the matters moving forward.

There is one other case to update you about. The Army has let it be known very quietly that still another soldier -- we don't know his unit -- has pleaded guilty to a murder charge against an Iraqi and has now been sentenced to 25 years in prison -- Kyra.

PHILLIPS: Barbara Starr, live from the Pentagon.

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PHILLIPS (voice-over): Next on LIVE FROM, college sports are bigger than ever with millions of fans. Mucho merchandise and plenty of money, right? Wrong. Find out why it matters.

As the candidates prepare for Thursday's face-off, a look at the top ten issues facing both men as they compete in what our guests call a political decathlon.

It's a go in the desert. The Mojave team set for launch in the quest for the $10 million X Prize. Do it yourself space travel can only mean one thing: Miles O'Brien on the scene. Tomorrow on LIVE FROM.

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PHILLIPS: Well, it's college football season. And for many fans, of course, that means settling in with your remote. But regardless of your school colors, your team could be drowning in red.

Chris Huntington of CNN financial news explains.

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CHRIS HUNTINGTON, CNN CORRESPONDENT (voice-over): American college sports have never been more popular. More televised.

UNIDENTIFIED MALE: Over 25 men's and women's collegiate sports.

HUNTINGTON: And more in debt than they are right now. Even with record revenue flowing in, including new streams from cable channels exclusively covering college sports, most intercollegiate athletic programs lose money.

DR. WILLIAM FRIDAY, CHAIRMAN, KNIGHT COMMISSION: Increasing supply of money distorts the picture so badly.

HUNTINGTON: One glaring example: Syracuse University unexpectedly raised tuition this year to cover a $2.5 million budget deficit run up by its athletic department. The problem, says the top watchdog for college sports, is lavish spending, particularly on football and basketball.

FRIDAY: We're in an arms race. And you have coaches making seven, eight times the salary of the chief executive officer. You know, that can't be tolerated.

HUNTINGTON: Friday blames a win at all costs culture fostered by fans and fueled by big TV contracts. CBS, for instance, is paying the NCAA $6 billion over 11 years to cover the basketball tournament known as March Madness.

The broadcast rights for college football bowl championship series go for nearly $50 million a game.

BRIAN BEDOL, CEO, CSTV: Any time you have a lot of money going into any business, you're at risk for abuse.

HUNTINGTON: Brian Bedol runs College Sports TV, an all college sports channel launched last year with backing from George Soros and J.P. Morgan. CSTV features many sports that rarely get coverage and educational programming that Bedol believes will push back against the negative stereotypes associated with big time, big money college sports.

BEDOL: What bothers me is about -- about the coverage of the abuse is that you create this perception that college sports are bad. And the fact is that college sports in the United States are probably one of the greatest opportunities that young people have to have somebody else pay for their education while pursuing athletic excellence.

HUNTINGTON: The nagging problem is that in pursuing athletic excellence in college, academics often get trampled. Fewer than one- third of the teams in this year's NCAA tournament had graduation rates of 50 percent or better.

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HUNTINGTON: Now, another unfortunate statistic, more than half the Division 1-a schools -- that's 106 schools that really are the biggest powerhouse sports schools -- have been operating under some form of sanction or probation in the last 10 years -- Kyra.

PHILLIPS: Well, Chris, how widespread is this? Or is it just a few bad apples? HUNTINGTON: It is -- it is unfortunately pretty widespread when you talk about the Division 1-a schools. I just cited that stat there of 50 percent of them having been sanctioned or put on probation in the last 10 years.

Any time have you've got a really big football or basketball program, there's a lot of money flowing in there. And unfortunately, the abuse tends to go with the big money.

On the whole scope of American universities, by and large, most of them are doing the right thing in trying to support lesser programs on their campus.

PHILLIPS: Chris Huntington, thanks.

Well, attention space cadets: if you're craving an otherworldly experience, well, you could never hack the match to become an astronaut. You still have a sub orbital shot, thanks to that friend of flight, Sir Richard Branson.

Now of course, numbers are still involved, meaning the number of bucks you'll have to fork over to climb aboard the world's first passenger service to space, Branson's Virgin Galactic.

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SIR RICHARD BRANSON, THE VIRGIN GROUP: Initially, the tickets will not be cheap. They'll be something like $170,000.

But if we can get the first three passengers signed up and on board and flying, you know, our pledge is that we'll reinvest any profits we make in trying to bring the price of tickets down.

And I think if we can get -- you know, if we can get those prices down by a half, then I think a lot more people will be able to fly. So that's something which we're aiming to do.

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PHILLIPS: Well, that ticket price will include three days of advance flight training for many missions that will last two to three hours. Branson is teaming up with Microsoft co-founder Paul Allen to build five capsules for the flights.

Here's some animation of the working design they've got going. And hey, maybe that's why Miles isn't here today: he's spending the day on the phone, trying to book his seat.

Well, oil is closing in on $50 a barrel mark. What's putting that pressure on? Let's get the story from Rhonda Schaffler. She's at the New York Stock Exchange -- Rhonda.

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