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Scott Peterson Trial Delayed; Mosques Targeted in Iraq; Investigators Discover Mob Dumping Ground; Red Sox/Yankees Rivalry Kicks off with Championship

Aired October 12, 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, CO-HOST: Strike at the insurgency -- U.S. and Iraqi forces bomb targets and storm mosques. We're live from Baghdad.
MILES O'BRIEN, CO-HOST: A cockpit camera captures images of war. A video circulating on the Internet raises questions about who was being targeted in Iraq.

PHILLIPS: A development today out of the Scott Peterson murder trial. It's put on hold just as the defense was about to begin its case. We're LIVE FROM the courthouse.

O'BRIEN: A Gotti graveyard? Digging up bones, in a reputed mafia burial ground. We're live from the site of the investigation.

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

PHILLIPS: And I'm Kyra Phillips. CNN's LIVE FROM starts right now.

It's been more than four months since the double murder trial of Scott Peterson began. And today, the defense was to officially begin its side of the sensational case.

But CNN's Rusty Dornin has breaking news, that the trial has been postponed now until October 18.

Rusty, what happened?

RUSTY DORNIN, CNN CORRESPONDENT: Well, Kyra, we became a little suspicious in the courtroom when they went behind closed doors for about 40 minutes.

The judge emerged to say that they cannot proceed right now, that there are some legal issues that must be worked out. He sent the jury home until next Monday.

Now we believe this involves the first witness that was scheduled to testify for the defense, who was an expert in cement. And we believe it's regarding some of his testimony. The prosecution is in opposition to it. There are some things that apparently just have to be worked out. The judge said he didn't want the jury having to hang around this week.

But he said, "Look, we want to keep this on a time line. So I'm telling you we're coming back next week." He's going to go five days, Monday through Friday. Usually, they have Fridays off. And then come back next week and do the same thing.

November 1, Monday he said there will be the first closing arguments. Second closing arguments on Tuesday, November 2. And then he will instruct the jury on November 3.

That's the schedule we're hearing about now. Of course, that's all subject to change.

But Kyra, a recess, very surprising, in the courtroom. The jury did look a bit annoyed, when they were called in. The judge said he was very sorry that he had to tell him this. He went into a long preamble before he actually told them, but that's the case, recess until October 18.

PHILLIPS: Could anything -- could it be involved with a credibility issue at all, Rusty?

DORNIN: Whether it's credibility or whether -- in the discovery, of something this person was going to say in their testimony, perhaps, that the prosecution said, wait a minute this is not -- you know, we've never seen this before. We're just not sure at this point.

PHILLIPS: All right. Rusty Dornin, working the developing story there. Now we've been told the trial for Scott Peterson has been postponed until October 18. Rusty Dornin, thank you so much.

Moving on, a monumental controversy lands on the doorstep of the highest court in the land. In a case that would stymie Solomon, the Supreme Court of the United States has agreed to decide whether courthouses, town squares, and other public places shalt or shalt not have the right to enshrine laws attributed to God.

It was almost a year ago the Ten Commandments controversy ended the career of a top judge in Alabama, who had put a 5,000-pound granite monument in the Montgomery courthouse lobby. Well, the Alabama case is not among the two the high court will take up in the coming term, but we're going to talk about the case and the conflicts with Roy Moore at the bottom of this hour of LIVE FROM.

O'BRIEN: A raid on Ramadi, mosques in the middle, days before the holy month of Ramadan.

In Iraq's Sunni Triangle, some 60 miles outside Baghdad, no fewer than seven mosques are in shambles after operations aimed at -- and we quote now -- "known terrorists, illegal weapons and insurgent propaganda," end of quote.

The raiders, Iraqi troops, backed by U.S. Marines, who say the holy sites are off-limits unless they're used for hostile purposes. Hostilities continue in Fallujah meanwhile. But all's well for the moment in Sadr City.

We get all the top developments from CNN's Brent Sadler in Baghdad.

(BEGIN VIDEOTAPE) BRENT SADLER, CNN CORRESPONDENT: U.S.-led military action, on multiple fronts in Iraq, targeting areas that lie in the heartland of the Sunni Muslim insurgency.

In separate air strikes, U.S. warplanes attacked suspected terror targets in Fallujah, west of Baghdad, a melting pot for insurgent groups, including some of Iraq's most ruthless foreign fighters, loyal to Abu Musab al-Zarqawi.

U.S. military officials here say jets struck a building where Zarqawi associates were planning more suicide bombings and kidnappings, as well as a Zarqawi safe house.

In Ramadi, some 60 miles west of Baghdad, Iraqi troops, backed up by U.S. Marines, launched a series of raids on seven mosques in the rebel stronghold. Mosques are normally afforded protected status in the fighting, but in Ramadi, the U.S. military says they were being used to store weapons, recruit fighters, harbor terrorists and promote acts of violence, justifying the series of raids led by Iraqi troops.

It follows a U.S. air strike Monday, targeting another mosque in the neighboring town of Heit (ph), where U.S. Marines battled a well armed force of around 100 insurgents.

Meanwhile in Sadr City, on the outskirts of the capital, the U.S. military reports a second slow day for a surrender of weapons by Mehdi Army militiamen. Unless armed militants hand over weapons, in their thousands, by week's end, an accord will be deemed to have failed, says the U.S. military, with certain military consequences.

Brent Sadler, CNN, Baghdad.

(END VIDEOTAPE)

O'BRIEN: Now to the case of the missing machinery. It's not just any machinery. In the wrong hands, says the International Atomic Energy Agency, it could be used to make nuclear weapons.

It's been disappearing from Iraq, the agency says, in some cases, entire facilities, since the U.S. invaded in the spring of '03.

The watchdog group says the equipment has a multitude of applications and was not used to make nukes in Iraq. But unless and until it turns up, officials warn it is a serious proliferation concern.

Signs of movement in the nuclear impasse in Iran tops our news around the world today.

Iran's foreign minister has offered a pledge not to produce nuclear bombs if its right to enrich uranium for energy is recognized. Meanwhile, there are reports today that the U.S., Britain, Germany and France, considering offering economic incentives if Tehran scraps its uranium enrichment program.

In Beslan, Russia, he official mourning period now over, the pain still fresh, however. It's been 40 days since more than 300 hostages died in a school gymnasium there. More than half of those killed were children.

Today, hundreds paid respects and left tributes to the victims, including food and water, which the hostage-takers denied them during that two-day siege. Local leaders are concerned that, as the mourning period ends, there may be reprisals against Chechen separatists.

PHILLIPS: One's on the stump, one's out of sight, one day away from their third and final one-on-one.

George W. Bush is trying to blunt John Kerry's attempt to win Colorado, a state that's voted GOP in nine of last 11 presidential elections. At the moment, Bush is headed to a fundraiser in Phoenix, very near tomorrow night's debate site at Arizona State University.

The speech from Kerry yesterday is the last that we expect to see of him until 9 p.m. Eastern tomorrow in Tempe.

The Democrat is spending one more day holed up with aides in rehearsal and not just on so-called domestic issues. Despite the stated focus of the final debate, aides say Iraq will surely come up in part because of its economic implications.

And be sure to stay with CNN for complete coverage of the third and final presidential debate tomorrow night. We're live, beginning at 7 Eastern from Tempe, Arizona. The debate starts at 9.

O'BRIEN: More Democratic static over Sinclair Broadcasting's plans to air a Kerry-bashing documentary next week in prime time. The DNC, Democratic National Committee, complaining to the FCC, Federal Communications Commission, that Sinclair's edict to its 62 stations, reaching almost a quarter of U.S. households, amounts to an illegal in-kind contribution to the Bush/Cheney campaign.

Now party chairman Terry McAuliffe was a guest today on CNN's "AMERICAN MORNING."

(BEGIN VIDEO CLIP)

TERRY MCAULIFFE, CHAIRMAN, DNC: This is the first time in the history of the Democratic Party that we have filed a FCC complaint against a media corporation.

We have done it because of the extraordinary circumstances around this. This is a group that is going to preempt their airtime to run a 90-minute documentary attacking Senator Kerry. This is a use of corporate funds. And under the law, you cannot use corporate funds to go out there and advocate for a party or for a political candidate.

(END VIDEO CLIP)

O'BRIEN: The program at issue is entitled "Stolen Honor: Wounds That Never Heal." It accuses Kerry of betraying his comrades in Vietnam by opposing the war when he came back home. Sinclair has offered Kerry airtime immediately afterward. But whether he or his surrogates accept or decline, the broadcaster says the documentary itself is newsworthy, and the contribution allegation is unfounded.

(BEGIN VIDEO CLIP)

MARK HYMAN, SINCLAIR BROADCAST GROUP: The accusations coming from Terry McAuliffe and others is that because there are some elements of this that may reflect poorly on Kerry that it's somehow an in-kind contribution to George Bush.

If you use that logic and reasoning, that means every car bomb in Iraq would be considered an in-kind contribution to John Kerry. Weak job performance ratings that came out last month would have been an in-kind contribution to John Kerry. That's nonsense. This is news.

I can't change the fact that these people decided to come forward today. The networks had this opportunity over a month ago to speak with these people. They chose to suppress them. The chose to ignore them. They're acting like Holocaust deniers, pretending these men don't exist.

(END VIDEO CLIP)

O'BRIEN: Sinclair stations run the gamut of network affiliations and are seen in the so-called battleground states of Florida, Ohio and Wisconsin.

One programming note for you. Tonight Larry King hosts first lady Laura Bush. That begins, as always, at 9 Eastern, right here on CNN. We invite you to watch that.

And investigators found the Dapper Don's dumping ground. Digging for John Gotti's dirt and finding human bones, possibly connected with mafia crime families. We'll have a live report on this just ahead.

Target Iraq: video of a bomb dropped from an American jet fighter jet cockpit camera is stirring some questions. We'll take a closer look at that.

And a flu shot shortage. Just ahead, how to find out where the vaccine is available in your area. Stay with us.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

PHILLIPS: Curious deaths surrounding infamous gangster families always seem to turn heads. Now mobster turncoats have the feds looking into a vacant lot in Queens, New York, a potential gold mine for investigators armed with backhoes and cadaver dogs, hoping to solve another mob mystery.

Several human bones have now been found in what's believed to be the dumping grounds of the late mob boss John Gotti.

Marcus Solis of CNN affiliate WABC is live from the site to tell us more -- Marcus.

MARCUS SOLIS, WABC REPORTER: Well, Kyra, the FBI began digging last week, didn't find anything until yesterday. They recovered what they were expecting to mind, human remains.

Today a forensic anthropologist will begin trying to extract DNA from those bones, to try and determine who the remains are. But in the meantime, the search for other potential mob rubout victims continues.

(BEGIN VIDEOTAPE)

SOLIS (voice-over): Sifting by hand.

The excavation work by law enforcement officials has resumed in Ozone Park today. This morning, heavy equipment cleared away trees, while the search for human remains continues.

The FBI began digging last Monday through what is believed to be a mob graveyard. For a week, there was nothing. Then yesterday, investigators found human bone, pieces of a leg, jaw bone, parts of a hand or a foot were unearthed, along with skull fragments, a wristwatch and glasses were also recovered.

Law enforcement officials believe several mob members may be buried at the site, along with John Favara, the furniture salesman who was John Gotti's neighbor. He disappeared in 1980, after accidentally running over and killing the Dapper Don's 12-year-old son.

(END VIDEOTAPE)

SOLIS: It's believed that other mob members, captains in the Bonanno crime family, also members that were part of the Lucchese crime family could be buried here, up to as many as six people.

The FBI has been at it for about a week, as we said. They expect to be here another week. They say they will not stop digging until they are convinced they have found everything that they're going to find here, Kyra.

PHILLIPS: Now Marcus, you and I were talking earlier about some of the names of possible bodies that might be in this gravesite. And we can't forget the movie "Goodfellas." Joe Pesci playing -- I guess his character was based on Thomas DeSimone in this film. You mentioned that could possibly be one of the bodies in there.

Who else could possibly be buried in this gravesite?

SOLIS: Well, DeSimone was one of the members of the Lucchese crime family, along with his brother-in-law, Joseph Spion (ph), who both disappeared in 1989.

This has been referred to as "the hole." Believe it or not, 20 years ago, this was even less developed than it is now. And it was long believed to be a mob dumping ground.

In 1981, some kids playing in the field found the body of -- an arm of a body sticking up. And a body was recovered, that of Alfonse Indelicato, who was with the Bonanno crime family. At the time, he was the only one recovered. But recently, an informant has given the FBI additional material, to -- which they're acting on now and that's the result of the dig you see here.

PHILLIPS: And Marcus, I know you're still working your sources and working this story, but is it possible that some cases could be reopened if they discover who these bodies are, and are there individuals still alive that could be held accountable?

SOLIS: Well, of course, the headline name here is John Gotti, who died in prison, the Dapper Don.

But in the words of one investigator, absolutely there are people who are still involved. Presumably, the information that led to where these bodies are also would include who took part in carrying out some of these hits. And there are people, we understand, who are still alive and can be prosecuted.

Of course, it's a long way from identification to prosecution. But they have certainly begun the process here.

PHILLIPS: Marcus Solis with CNN affiliate WABC, working the story for us. Thanks, Marcus.

O'BRIEN: An awful lot of people working hard to get a shot in the arm. A flu shot, to be precise. And if you're among them, get pen and paper ready right now. We have a useful web address I'm going to give you in just a few seconds.

Take a look at this line, meanwhile, in Sarasota, Florida. Seniors, who are more at risk because of the flu, are spending hours waiting for flu shots. At one store, the line began forming at the crack of dawn about 5 a.m. And even though that clinic didn't open its doors until 10 a.m.

If you're looking for flu shot clinics in your area, here's the big question. There is a web site that can help you. Go to -- stay with me on this -- www.FindAFluShot -- all one word -- FindAFluShot.com. Throw in a backslash, and then hit LungUSA. I know that's tough.

You can also Google "flu shot." About the fifth item down is this site you're seeing right there. And when you get there, you enter your zip code and you'll get a list of places close by where those shots are being given and where they have the vaccine.

Now, since the shortage was announced there are fewer places where you may find one this year, obviously.

Meanwhile, the company that manufactured a vaccine that was pulled for safety concerns is headed under a legal microscope as we speak. Chiron Corporation says it has been subpoenaed by a federal grand jury after its fluvirin vaccine was removed from U.S. markets last week after an advisory from British health authorities.

The action left the U.S. with about half the flu vaccine supply needed, the source of all the trouble we're telling you about. Chiron officials say the company will cooperate fully with that probe.

(BEGIN VIDEO CLIP)

PHILLIPS (voice-over): Next on LIVE FROM: psychological warfare with Kobe Bryant. Legendary NBA coach Phil Jackson lays out his frustration with the controversial Lakers star.

Window on war. F-16 cockpit video of anti-insurgent operations in Iraq circulates on the Web. CNN takes a closer look at the HUD (ph) tape.

Tomorrow on LIVE FROM, he's got a collection of gold records and glitzy costumes, but Sir Elton John wants to sell you some treasures you may not know about.

(MUSIC)

(END VIDEO CLIP)

(COMMERCIAL BREAK)

PHILLIPS: Do you ever say your life is so crazed you could write a book? Former L.A. Lakers coach Phil Jackson has done just that and the result isn't likely to earn a favorable review from Kobe Bryant.

In "The Last Season: A Team in Search of its Soul," the retired coach writes that he and Bryant were engaged in a psychological war. Jackson says he saw a therapist and was so frustrated at one point he asked the team to trade Bryant, but management wouldn't go for it.

O'BRIEN: The latest chapter's about to unfold in the greatest rivalry in the history of professional sporting endeavor anywhere, anytime. Little hyperbole there.

Well, it must be Yankees/Red Sox time. The ALCS (begins tonight.

CNN's Matt Morrison has a preview of game one.

(BEGIN VIDEOTAPE)

MATT MORRISON, CNN CORRESPONDENT (voice-over): In last year's American League championship series, the Boston Red Sox were five outs away from eliminating their bitter rivals and make their first World Series appearance since 1986.

But the New York Yankees prevailed when Aaron Boon hit a walk off home run in the 11th inning, and another Red Sox winter of discontent began.

A few months after the ALCS meltdown, the Red Sox bolstered their pitching staff with the addition of Curt Schilling, but faltered in a trade for Alex Rodriguez, once again giving the Yankees an opportunity to accomplish what Boston couldn't. A-rod became the next piece of the pinstripe puzzle, leaving all of Boston's fans seeing red.

ALEX RODRIGUEZ, YANKEES THIRD BASEMAN: Any log you throw onto the fire is going to add to the rivalry. Me being the point of my career where I'm in, and almost going there and then coming here, sure, I think it adds a little juice to it, and I think it's exciting.

UNIDENTIFIED MALE: This was the first winter that the Red Sox/Yankees was a bigger deal off the field than it was on. And it just heightened expectations.

MORRISON: The bitterness was heightened during the season, as well. A-Rod took exception to being hit by pitch and Jason Varitek made it clear that the Sox would not back down, which set off a brawl between the teams that add to the history of hostilities.

RODRIGUEZ: This rivalry heads all of baseball. And I think -- I know that I was watching very closely last year as a fan of the game, and I'm going to have a lot more fun playing it.

UNIDENTIFIED MALE: You can make a name for yourself in one inning, one play, one pitch, that you can't make in another series, with any other teams.

MORRISON: Boston seeks to put its past and its nemesis behind them. The Yankees, however, look to return to the World Series for the seventh time in the last nine years. In any case, the Red Sox/Yankees' rivalry is sure to continue long after the first pitch of this season.

Matt Morrison, CNN sports.

(END VIDEOTAPE)

O'BRIEN: Now, as I tossed to that Matt Morrison story, David Scheckter (ph), here in our assignment desk, said, "You know, you really have to come clean, Miles. Indicate your allegiances."

And I think in the interest of full disclosure, go Sox. This is the year.

Next hour, we go live to Yankee stadium, you know, that other stadium, for some on the scene insights from "Sports Illustrated" writer Josh Elliott. You want to tune in for that -- Kyra.

O'BRIEN: Miles, you got even because you know how Dave Scheckter (ph) hates to be on television. Yes, yes. He hates it. There he is. He's always working hard.

O'BRIEN: We're going to pay. We are going to pay for that one.

PHILLIPS: We'll get nothing out of Washington now.

Thank you, Miles.

O'BRIEN: All right. PHILLIPS: Well, it's no secret that several major airlines are in deep financial trouble. But a key law that protects travelers is set to expire soon.

Rhonda Schaffler joins us live from the New York Stock Exchange.

Hi, Rhonda.

RHONDA SCHAFFLER, CNN CORRESPONDENT: Can I get a word in for the Yankees, first, just to balance Miles a little bit here? This is New York, after all.

PHILLIPS: There you go, right.

(STOCK REPORT)

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Aired October 12, 2004 - 13:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CO-HOST: Strike at the insurgency -- U.S. and Iraqi forces bomb targets and storm mosques. We're live from Baghdad.
MILES O'BRIEN, CO-HOST: A cockpit camera captures images of war. A video circulating on the Internet raises questions about who was being targeted in Iraq.

PHILLIPS: A development today out of the Scott Peterson murder trial. It's put on hold just as the defense was about to begin its case. We're LIVE FROM the courthouse.

O'BRIEN: A Gotti graveyard? Digging up bones, in a reputed mafia burial ground. We're live from the site of the investigation.

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

PHILLIPS: And I'm Kyra Phillips. CNN's LIVE FROM starts right now.

It's been more than four months since the double murder trial of Scott Peterson began. And today, the defense was to officially begin its side of the sensational case.

But CNN's Rusty Dornin has breaking news, that the trial has been postponed now until October 18.

Rusty, what happened?

RUSTY DORNIN, CNN CORRESPONDENT: Well, Kyra, we became a little suspicious in the courtroom when they went behind closed doors for about 40 minutes.

The judge emerged to say that they cannot proceed right now, that there are some legal issues that must be worked out. He sent the jury home until next Monday.

Now we believe this involves the first witness that was scheduled to testify for the defense, who was an expert in cement. And we believe it's regarding some of his testimony. The prosecution is in opposition to it. There are some things that apparently just have to be worked out. The judge said he didn't want the jury having to hang around this week.

But he said, "Look, we want to keep this on a time line. So I'm telling you we're coming back next week." He's going to go five days, Monday through Friday. Usually, they have Fridays off. And then come back next week and do the same thing.

November 1, Monday he said there will be the first closing arguments. Second closing arguments on Tuesday, November 2. And then he will instruct the jury on November 3.

That's the schedule we're hearing about now. Of course, that's all subject to change.

But Kyra, a recess, very surprising, in the courtroom. The jury did look a bit annoyed, when they were called in. The judge said he was very sorry that he had to tell him this. He went into a long preamble before he actually told them, but that's the case, recess until October 18.

PHILLIPS: Could anything -- could it be involved with a credibility issue at all, Rusty?

DORNIN: Whether it's credibility or whether -- in the discovery, of something this person was going to say in their testimony, perhaps, that the prosecution said, wait a minute this is not -- you know, we've never seen this before. We're just not sure at this point.

PHILLIPS: All right. Rusty Dornin, working the developing story there. Now we've been told the trial for Scott Peterson has been postponed until October 18. Rusty Dornin, thank you so much.

Moving on, a monumental controversy lands on the doorstep of the highest court in the land. In a case that would stymie Solomon, the Supreme Court of the United States has agreed to decide whether courthouses, town squares, and other public places shalt or shalt not have the right to enshrine laws attributed to God.

It was almost a year ago the Ten Commandments controversy ended the career of a top judge in Alabama, who had put a 5,000-pound granite monument in the Montgomery courthouse lobby. Well, the Alabama case is not among the two the high court will take up in the coming term, but we're going to talk about the case and the conflicts with Roy Moore at the bottom of this hour of LIVE FROM.

O'BRIEN: A raid on Ramadi, mosques in the middle, days before the holy month of Ramadan.

In Iraq's Sunni Triangle, some 60 miles outside Baghdad, no fewer than seven mosques are in shambles after operations aimed at -- and we quote now -- "known terrorists, illegal weapons and insurgent propaganda," end of quote.

The raiders, Iraqi troops, backed by U.S. Marines, who say the holy sites are off-limits unless they're used for hostile purposes. Hostilities continue in Fallujah meanwhile. But all's well for the moment in Sadr City.

We get all the top developments from CNN's Brent Sadler in Baghdad.

(BEGIN VIDEOTAPE) BRENT SADLER, CNN CORRESPONDENT: U.S.-led military action, on multiple fronts in Iraq, targeting areas that lie in the heartland of the Sunni Muslim insurgency.

In separate air strikes, U.S. warplanes attacked suspected terror targets in Fallujah, west of Baghdad, a melting pot for insurgent groups, including some of Iraq's most ruthless foreign fighters, loyal to Abu Musab al-Zarqawi.

U.S. military officials here say jets struck a building where Zarqawi associates were planning more suicide bombings and kidnappings, as well as a Zarqawi safe house.

In Ramadi, some 60 miles west of Baghdad, Iraqi troops, backed up by U.S. Marines, launched a series of raids on seven mosques in the rebel stronghold. Mosques are normally afforded protected status in the fighting, but in Ramadi, the U.S. military says they were being used to store weapons, recruit fighters, harbor terrorists and promote acts of violence, justifying the series of raids led by Iraqi troops.

It follows a U.S. air strike Monday, targeting another mosque in the neighboring town of Heit (ph), where U.S. Marines battled a well armed force of around 100 insurgents.

Meanwhile in Sadr City, on the outskirts of the capital, the U.S. military reports a second slow day for a surrender of weapons by Mehdi Army militiamen. Unless armed militants hand over weapons, in their thousands, by week's end, an accord will be deemed to have failed, says the U.S. military, with certain military consequences.

Brent Sadler, CNN, Baghdad.

(END VIDEOTAPE)

O'BRIEN: Now to the case of the missing machinery. It's not just any machinery. In the wrong hands, says the International Atomic Energy Agency, it could be used to make nuclear weapons.

It's been disappearing from Iraq, the agency says, in some cases, entire facilities, since the U.S. invaded in the spring of '03.

The watchdog group says the equipment has a multitude of applications and was not used to make nukes in Iraq. But unless and until it turns up, officials warn it is a serious proliferation concern.

Signs of movement in the nuclear impasse in Iran tops our news around the world today.

Iran's foreign minister has offered a pledge not to produce nuclear bombs if its right to enrich uranium for energy is recognized. Meanwhile, there are reports today that the U.S., Britain, Germany and France, considering offering economic incentives if Tehran scraps its uranium enrichment program.

In Beslan, Russia, he official mourning period now over, the pain still fresh, however. It's been 40 days since more than 300 hostages died in a school gymnasium there. More than half of those killed were children.

Today, hundreds paid respects and left tributes to the victims, including food and water, which the hostage-takers denied them during that two-day siege. Local leaders are concerned that, as the mourning period ends, there may be reprisals against Chechen separatists.

PHILLIPS: One's on the stump, one's out of sight, one day away from their third and final one-on-one.

George W. Bush is trying to blunt John Kerry's attempt to win Colorado, a state that's voted GOP in nine of last 11 presidential elections. At the moment, Bush is headed to a fundraiser in Phoenix, very near tomorrow night's debate site at Arizona State University.

The speech from Kerry yesterday is the last that we expect to see of him until 9 p.m. Eastern tomorrow in Tempe.

The Democrat is spending one more day holed up with aides in rehearsal and not just on so-called domestic issues. Despite the stated focus of the final debate, aides say Iraq will surely come up in part because of its economic implications.

And be sure to stay with CNN for complete coverage of the third and final presidential debate tomorrow night. We're live, beginning at 7 Eastern from Tempe, Arizona. The debate starts at 9.

O'BRIEN: More Democratic static over Sinclair Broadcasting's plans to air a Kerry-bashing documentary next week in prime time. The DNC, Democratic National Committee, complaining to the FCC, Federal Communications Commission, that Sinclair's edict to its 62 stations, reaching almost a quarter of U.S. households, amounts to an illegal in-kind contribution to the Bush/Cheney campaign.

Now party chairman Terry McAuliffe was a guest today on CNN's "AMERICAN MORNING."

(BEGIN VIDEO CLIP)

TERRY MCAULIFFE, CHAIRMAN, DNC: This is the first time in the history of the Democratic Party that we have filed a FCC complaint against a media corporation.

We have done it because of the extraordinary circumstances around this. This is a group that is going to preempt their airtime to run a 90-minute documentary attacking Senator Kerry. This is a use of corporate funds. And under the law, you cannot use corporate funds to go out there and advocate for a party or for a political candidate.

(END VIDEO CLIP)

O'BRIEN: The program at issue is entitled "Stolen Honor: Wounds That Never Heal." It accuses Kerry of betraying his comrades in Vietnam by opposing the war when he came back home. Sinclair has offered Kerry airtime immediately afterward. But whether he or his surrogates accept or decline, the broadcaster says the documentary itself is newsworthy, and the contribution allegation is unfounded.

(BEGIN VIDEO CLIP)

MARK HYMAN, SINCLAIR BROADCAST GROUP: The accusations coming from Terry McAuliffe and others is that because there are some elements of this that may reflect poorly on Kerry that it's somehow an in-kind contribution to George Bush.

If you use that logic and reasoning, that means every car bomb in Iraq would be considered an in-kind contribution to John Kerry. Weak job performance ratings that came out last month would have been an in-kind contribution to John Kerry. That's nonsense. This is news.

I can't change the fact that these people decided to come forward today. The networks had this opportunity over a month ago to speak with these people. They chose to suppress them. The chose to ignore them. They're acting like Holocaust deniers, pretending these men don't exist.

(END VIDEO CLIP)

O'BRIEN: Sinclair stations run the gamut of network affiliations and are seen in the so-called battleground states of Florida, Ohio and Wisconsin.

One programming note for you. Tonight Larry King hosts first lady Laura Bush. That begins, as always, at 9 Eastern, right here on CNN. We invite you to watch that.

And investigators found the Dapper Don's dumping ground. Digging for John Gotti's dirt and finding human bones, possibly connected with mafia crime families. We'll have a live report on this just ahead.

Target Iraq: video of a bomb dropped from an American jet fighter jet cockpit camera is stirring some questions. We'll take a closer look at that.

And a flu shot shortage. Just ahead, how to find out where the vaccine is available in your area. Stay with us.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

PHILLIPS: Curious deaths surrounding infamous gangster families always seem to turn heads. Now mobster turncoats have the feds looking into a vacant lot in Queens, New York, a potential gold mine for investigators armed with backhoes and cadaver dogs, hoping to solve another mob mystery.

Several human bones have now been found in what's believed to be the dumping grounds of the late mob boss John Gotti.

Marcus Solis of CNN affiliate WABC is live from the site to tell us more -- Marcus.

MARCUS SOLIS, WABC REPORTER: Well, Kyra, the FBI began digging last week, didn't find anything until yesterday. They recovered what they were expecting to mind, human remains.

Today a forensic anthropologist will begin trying to extract DNA from those bones, to try and determine who the remains are. But in the meantime, the search for other potential mob rubout victims continues.

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SOLIS (voice-over): Sifting by hand.

The excavation work by law enforcement officials has resumed in Ozone Park today. This morning, heavy equipment cleared away trees, while the search for human remains continues.

The FBI began digging last Monday through what is believed to be a mob graveyard. For a week, there was nothing. Then yesterday, investigators found human bone, pieces of a leg, jaw bone, parts of a hand or a foot were unearthed, along with skull fragments, a wristwatch and glasses were also recovered.

Law enforcement officials believe several mob members may be buried at the site, along with John Favara, the furniture salesman who was John Gotti's neighbor. He disappeared in 1980, after accidentally running over and killing the Dapper Don's 12-year-old son.

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SOLIS: It's believed that other mob members, captains in the Bonanno crime family, also members that were part of the Lucchese crime family could be buried here, up to as many as six people.

The FBI has been at it for about a week, as we said. They expect to be here another week. They say they will not stop digging until they are convinced they have found everything that they're going to find here, Kyra.

PHILLIPS: Now Marcus, you and I were talking earlier about some of the names of possible bodies that might be in this gravesite. And we can't forget the movie "Goodfellas." Joe Pesci playing -- I guess his character was based on Thomas DeSimone in this film. You mentioned that could possibly be one of the bodies in there.

Who else could possibly be buried in this gravesite?

SOLIS: Well, DeSimone was one of the members of the Lucchese crime family, along with his brother-in-law, Joseph Spion (ph), who both disappeared in 1989.

This has been referred to as "the hole." Believe it or not, 20 years ago, this was even less developed than it is now. And it was long believed to be a mob dumping ground.

In 1981, some kids playing in the field found the body of -- an arm of a body sticking up. And a body was recovered, that of Alfonse Indelicato, who was with the Bonanno crime family. At the time, he was the only one recovered. But recently, an informant has given the FBI additional material, to -- which they're acting on now and that's the result of the dig you see here.

PHILLIPS: And Marcus, I know you're still working your sources and working this story, but is it possible that some cases could be reopened if they discover who these bodies are, and are there individuals still alive that could be held accountable?

SOLIS: Well, of course, the headline name here is John Gotti, who died in prison, the Dapper Don.

But in the words of one investigator, absolutely there are people who are still involved. Presumably, the information that led to where these bodies are also would include who took part in carrying out some of these hits. And there are people, we understand, who are still alive and can be prosecuted.

Of course, it's a long way from identification to prosecution. But they have certainly begun the process here.

PHILLIPS: Marcus Solis with CNN affiliate WABC, working the story for us. Thanks, Marcus.

O'BRIEN: An awful lot of people working hard to get a shot in the arm. A flu shot, to be precise. And if you're among them, get pen and paper ready right now. We have a useful web address I'm going to give you in just a few seconds.

Take a look at this line, meanwhile, in Sarasota, Florida. Seniors, who are more at risk because of the flu, are spending hours waiting for flu shots. At one store, the line began forming at the crack of dawn about 5 a.m. And even though that clinic didn't open its doors until 10 a.m.

If you're looking for flu shot clinics in your area, here's the big question. There is a web site that can help you. Go to -- stay with me on this -- www.FindAFluShot -- all one word -- FindAFluShot.com. Throw in a backslash, and then hit LungUSA. I know that's tough.

You can also Google "flu shot." About the fifth item down is this site you're seeing right there. And when you get there, you enter your zip code and you'll get a list of places close by where those shots are being given and where they have the vaccine.

Now, since the shortage was announced there are fewer places where you may find one this year, obviously.

Meanwhile, the company that manufactured a vaccine that was pulled for safety concerns is headed under a legal microscope as we speak. Chiron Corporation says it has been subpoenaed by a federal grand jury after its fluvirin vaccine was removed from U.S. markets last week after an advisory from British health authorities.

The action left the U.S. with about half the flu vaccine supply needed, the source of all the trouble we're telling you about. Chiron officials say the company will cooperate fully with that probe.

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PHILLIPS (voice-over): Next on LIVE FROM: psychological warfare with Kobe Bryant. Legendary NBA coach Phil Jackson lays out his frustration with the controversial Lakers star.

Window on war. F-16 cockpit video of anti-insurgent operations in Iraq circulates on the Web. CNN takes a closer look at the HUD (ph) tape.

Tomorrow on LIVE FROM, he's got a collection of gold records and glitzy costumes, but Sir Elton John wants to sell you some treasures you may not know about.

(MUSIC)

(END VIDEO CLIP)

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PHILLIPS: Do you ever say your life is so crazed you could write a book? Former L.A. Lakers coach Phil Jackson has done just that and the result isn't likely to earn a favorable review from Kobe Bryant.

In "The Last Season: A Team in Search of its Soul," the retired coach writes that he and Bryant were engaged in a psychological war. Jackson says he saw a therapist and was so frustrated at one point he asked the team to trade Bryant, but management wouldn't go for it.

O'BRIEN: The latest chapter's about to unfold in the greatest rivalry in the history of professional sporting endeavor anywhere, anytime. Little hyperbole there.

Well, it must be Yankees/Red Sox time. The ALCS (begins tonight.

CNN's Matt Morrison has a preview of game one.

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MATT MORRISON, CNN CORRESPONDENT (voice-over): In last year's American League championship series, the Boston Red Sox were five outs away from eliminating their bitter rivals and make their first World Series appearance since 1986.

But the New York Yankees prevailed when Aaron Boon hit a walk off home run in the 11th inning, and another Red Sox winter of discontent began.

A few months after the ALCS meltdown, the Red Sox bolstered their pitching staff with the addition of Curt Schilling, but faltered in a trade for Alex Rodriguez, once again giving the Yankees an opportunity to accomplish what Boston couldn't. A-rod became the next piece of the pinstripe puzzle, leaving all of Boston's fans seeing red.

ALEX RODRIGUEZ, YANKEES THIRD BASEMAN: Any log you throw onto the fire is going to add to the rivalry. Me being the point of my career where I'm in, and almost going there and then coming here, sure, I think it adds a little juice to it, and I think it's exciting.

UNIDENTIFIED MALE: This was the first winter that the Red Sox/Yankees was a bigger deal off the field than it was on. And it just heightened expectations.

MORRISON: The bitterness was heightened during the season, as well. A-Rod took exception to being hit by pitch and Jason Varitek made it clear that the Sox would not back down, which set off a brawl between the teams that add to the history of hostilities.

RODRIGUEZ: This rivalry heads all of baseball. And I think -- I know that I was watching very closely last year as a fan of the game, and I'm going to have a lot more fun playing it.

UNIDENTIFIED MALE: You can make a name for yourself in one inning, one play, one pitch, that you can't make in another series, with any other teams.

MORRISON: Boston seeks to put its past and its nemesis behind them. The Yankees, however, look to return to the World Series for the seventh time in the last nine years. In any case, the Red Sox/Yankees' rivalry is sure to continue long after the first pitch of this season.

Matt Morrison, CNN sports.

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O'BRIEN: Now, as I tossed to that Matt Morrison story, David Scheckter (ph), here in our assignment desk, said, "You know, you really have to come clean, Miles. Indicate your allegiances."

And I think in the interest of full disclosure, go Sox. This is the year.

Next hour, we go live to Yankee stadium, you know, that other stadium, for some on the scene insights from "Sports Illustrated" writer Josh Elliott. You want to tune in for that -- Kyra.

O'BRIEN: Miles, you got even because you know how Dave Scheckter (ph) hates to be on television. Yes, yes. He hates it. There he is. He's always working hard.

O'BRIEN: We're going to pay. We are going to pay for that one.

PHILLIPS: We'll get nothing out of Washington now.

Thank you, Miles.

O'BRIEN: All right. PHILLIPS: Well, it's no secret that several major airlines are in deep financial trouble. But a key law that protects travelers is set to expire soon.

Rhonda Schaffler joins us live from the New York Stock Exchange.

Hi, Rhonda.

RHONDA SCHAFFLER, CNN CORRESPONDENT: Can I get a word in for the Yankees, first, just to balance Miles a little bit here? This is New York, after all.

PHILLIPS: There you go, right.

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