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Surprise Recess in Scott Peterson Trial; God and Country; Securing Canada

Aired October 12, 2004 - 14:00   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.


MILES O'BRIEN, CNN ANCHOR: Thou shalt not -- that shalt or shalt not display the Ten Commandments? The U.S. Supreme Court gets ready to apply man's law to God's.
RUSTY DORNIN, CNN CORRESPONDENT: I'm Rusty Dornin in Redwood City, California, where the Peterson defense team never got out of the chute. The judge calls for a delay in the proceedings. We'll tell you why.

KYRA PHILLIPS, CNN ANCHOR: Ready to rumble. On the eve of the last presidential debate, what do the candidates need to do to sway undecided voters?

O'BRIEN: And American terror threats from Canada? A CNN special report on security lapses north of the border.

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

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

O'BRIEN: We begin with the case that didn't begin, and won't begin for almost a week in Redwood City, California, to the surprise of almost everybody. Scott Peterson's capital murder trial went on recess today just as Mark Geragos, seen at Peterson's side, as always, was expected to debut his defense. CNN's Rusty Dornin delivers all the intrigue and insights from the courthouse grounds.

Just when you think it can't get any stranger, Rusty, sure enough it does.

DORNIN: That's right, Miles.

Well, we got a little suspicious in court when they were behind closed doors for about 40, 45 minutes. The judge then emerged and said, because of legal issues that had to be sorted out, there was going to be a one-week delay in the proceedings. Now, we believe, and legal analysts are believing, too, that the prosecutors found some kind of surprise testimony within the first scheduled witness was -- who was an expert on cement and didn't like those surprises.

(BEGIN VIDEO CLIP)

MICHAEL CARDOZA, LEGAL ANALYST: There had to be some new reports from one or two of their experts that the district attorney just received. And my guess is they got them in the last day or two. So they haven't had a chance to consult with their own experts to go through those expert opinions; therefore, they asked for a week continuance.

(END VIDEO CLIP)

DORNIN: The continuance will end on October 18, next Monday. That's when the defense will resume, or actually begin their case.

The judge apologized profusely to jurors for this delay. Once again, the jurors, some seemed a little shocked. One woman even said, "Wow," when he made the announcement. Others seemed slightly annoyed.

But the judge did say that he really wants to get back on track when they get back to court on the 18. He's going to go five days a week instead of four, for the next two weeks. And then November 1, Monday, it will be closing arguments, followed by another set of closing arguments on Tuesday. On the 3rd will be jury instructions, and then it will go to the jury.

But Miles, these schedules the judge has put out before have been delayed by instances just like this one.

O'BRIEN: Let's remind people, Rusty, this is an extraordinarily long case already. And this is not the way the legal system normally works, away from the glare of the media. So for this one to be delayed even further really is out of the norm.

DORNIN: Well, it's out of the norm. But, then again, you know, there could be a little bit of -- some of the legal analysts are saying there might be some brinkmanship going on.

I mean, the defense objected several times to when prosecutors would bring out reports or bring out witnesses to some of their testimony. They may be doing a little tit for tat for this -- or during this.

The defense doesn't have to announce who their witnesses are or what their testimony will be unless they intend to call them. Well, the defense could say, look, we just decided to call this guy over the weekend, and the prosecution saying, wait, we don't know anything about this, we've got to have our people look at these reports.

O'BRIEN: So what you're saying is Mark Geragos is playing hardball in the courtroom? There's some news, huh?

DORNIN: Yes, exactly. No, actually prosecutors are playing a little bit of his game.

O'BRIEN: That, too, yes. A little bit. All right. Rusty Dornin, thank you very much -- Kyra.

PHILLIPS: In god we trust? Maybe, but it's the nine people in the black robes in Washington who will decide whether and how the Ten Commandments can be displayed in courthouses and town squares from sea to shining sea. CNN's Bob Franken sorts out the supreme from the divine in our D.C. bureau. Holy Moses, Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Well, that's about 10 cliches in one sentence. That's pretty -- pretty good.

PHILLIPS: Just for you.

FRANKEN: Thank you so much.

The Supreme Court term would not really be a Supreme Court term, I fear, unless there was some sort of church-state separation case to be solved. And there are actually two of them, and it concern the Ten Commandments.

Now, you talked in the last hour with the former Alabama Supreme Court chief justice, Ray Moore, who was removed from office after he refused to remove this statue from the Alabama Supreme Court building. Just a week ago, the Supreme Court of the United States justices refused to take his case.

It's over. And he is saying that the problem with all this is that it's not up to government to decide the roll of god, it is up to god. And, of course, the question always is, who's god, and what about those who don't have a god?

The issue here, the Ten Commandments. Can they be represented on other government properties? Specifically one in Texas, the state house grounds there in form of a statue, or in a courthouse -- on a courthouse in Kentucky? The justice are going to try to and untangle some confused rulings.

On the one hand, in the Texas case, the judge has ruled that it could stay. In the case of the Kentucky case, the -- judges in the lower court ruled that the Ten Commandments could not stay up there.

So, since 1980, the Supreme Court justices have avoided ruling on Ten Commandments cases, but now they've said they've got to try and untangle a mess. It has, of course, a political aspect, Kyra, because it has one of those incendiary issues in the campaign. But this is really a matter of jurisprudence -- Kyra.

PHILLIPS: So Bob, why -- therein lies the heart of the -- of the debate, is why now, why have they decided to listen to these cases when previously they didn't? Do you think that Chief Justice Roy Moore, that case that he made, and then the controversy -- controversy that was created is sort of forcing the justices now to look at these cases one by one?

FRANKEN: Well, they take up in an order that is determined at some point whether they're going to grant certiorari. That's the term that means whether they're going to take the case.

It takes four justices to decide. The grant cert came up. Now is the time that they were going to do it.

They decided that there was no issue they needed to resolve in the case of Justice Moore, but there were issues of confusion that they needed to untangle. And so now is when they decided. But you do point out something, and that is the coincidence of an election three weeks away, and an issue that is going to rev up people on both sides of that issue.

PHILLIPS: Bob Franken, thanks so much.

O'BRIEN: Today in Iraq, U.S. forces and Iraqi troops left no stone unturned in the ongoing effort to root out terrorists and insurgents. Even mosques are no longer off limits. CNN's Brent Sadler has the latest on the battles for control in Iraq's most volatile areas.

(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 airstrikes, U.S. warplanes attacked suspected terror targets in Falluja, west of Baghdad, a melting pot for insurgent groups, including some of Iraq's most loyal 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 raids on seven mosques in the rebel stronghold. Mosques are normally afforded protected status in the fighting. But in Ramadi, the U.S. military sas 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. airstrike Monday targeting another mosque in the neighboring town of Hit, 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 the 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)

PHILLIPS: The world's nuclear watchdog is raising the red flag about machinery that has gone missing in Iraq since the U.S.-led invasion. The IAEA says the equipment could be used to develop nuclear weapons. It says satellite photos show facilities that used to be monitored by U.N. weapons inspectors and now they've been completely dismantled.

The U.S. and its European allies are considering economic incentives to persuade Iran to stop enriching uranium. Iran says its program is geared toward energy production, not bombs. The IAEA has given Tehran until the end of next month to stop the uranium enrichment. Iran says it has a legitimate right to do so and does not intend to stop.

O'BRIEN: A scathing report on security lapses in Canada. Could they be a terror loophole? We'll investigate just ahead.

And rivalry revival. The post-season match-up getting Beantown fans fired up in talking about the dreaded curse once again. This is the year. Repeat after me, this is the year.

And Michael Jackson may be mad enough to curse himself. Find out why he won't be inviting Eminem to Neverland anytime soon.

(COMMERCIAL BREAK)

PHILLIPS: Terrorism and border security are a top concern today, but it was only months ago in March that the Canadian government was slammed by its own auditor general for big lapses in security. Has anything changed? A progress report now from CNN's Deborah Feyerick.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): The report by Canada's auditor general found scathing lapses in national security, problems that included no routine background checks on thousands of airport workers, old, incomplete border watch lists, and Customs agents unable to access critical information on any of the 25,000 Canadian passports lost or stolen each year.

PETER KASURAK, CANADIAN GOVT. INVESTIGATOR: The RCMP basically didn't have enough people to keep inputting information into their system, and there wasn't a good way to link their system to the front- line customs agents.

FEYERICK: The RCMP, or Royal Canadian Mounted Police, and other Canadian officials say many of the problems have now been fixed. A single agency similar to the Department of Homeland Security in the U.S. was created last December prior to the March report. Officials say it's resulted in better sharing and analysis of intelligence.

But because al Qaeda plans years in advance, security officials realize terrorists may have a dangerous head start. Indeed, two of the seven people on an FBI watch list reissued in May are Canadians.

UNIDENTIFIED FEMALE: I'd love to be able to tell Canadians that I am 100 percent sure that no one slipped into this country who is here as part of a plan to do us harm. I can't say that.

FEYERICK: Canadian security analyst Martin Rudner (ph) says the reason Canada may be attractive to would-be terrorists is Canada's long tradition of liberal immigration.

UNIDENTIFIED MALE: We do not have discriminatory immigration policies, as is appropriate.

FEYERICK (on camera): Canadian officials say they have a dual responsibility. One, put enough security in place to prevent an attack in their country. And two, make sure that Canada does not become a staging ground for terrorists to launch an attack across the border.

(voice-over): Over the last decade, the Canadian government has detained or deported at least 25 men with ties to Islamic terrorism. Tough new laws make it easier for prosecutors to go after terror suspects. The first criminal charges using the laws were brought in March against a computer programmer living in Ottawa. Some analysts say part of the security challenge is, unlike most Americans, Canadians simply don't feel they're in the crosshairs.

UNIDENTIFIED MALE: I think a Canadian approach would be, if you had Osama bin Laden prisoner, what you want to do is you want to give him a lecture in both official languages of Canada about sustainable development, gender equity, charter rights and freedoms.

FEYERICK: As for border security now on a scale of one to 10?

UNIDENTIFIED MALE: We were at about -- maybe about a six prior to 9/11, and we're moving some place up towards the eight zone now.

FEYERICK: Substantially improved, Canadian officials say, but still far from perfect.

Deborah Feyerick, CNN, Ottawa.

(END VIDEOTAPE)

PHILLIPS: And tonight, Deborah Feyerick looks at the growing problem and threat of Canadian jihadist radicals who find sanctuary in Canada, then use it as a staging ground to wage holy war in the west. That's on CNN's "NEWSNIGHT" with Aaron Brown, 10:00 p.m. Eastern.

O'BRIEN: Are you ready for round three? The president and Senator Kerry get set for their final debate. Can they really do or say anything at this point to change your mind?

Stay with us.

(COMMERCIAL BREAK)

(WEATHER REPORT)

PHILLIPS: Beautiful, but still a potential danger. Mount St. Helens has been fairly quiet today, but scientists say that the steady steam and bulging in the crater are signs that magma is close to the surface. They want to fly an unmanned drone over the volcano today to measure the gases.

To entertainment headlines now. Conflict is brewing between two celebrities, this time it's not Elton John and Madonna. CNN's Sibila Vargas is live in New York with more on this latest controversy between a pop king and a rap giant.

Sibila, what's the scoop?

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT: Well, it's Michael Jackson. He is fighting mad, and the subject of his wrath is rapper Eminem. Apparently, Slim Shady's new video called "Just Lose It" takes one too many jabs at the king of pop.

The video shows several scenes with Eminem dressed up as Michael Jackson. One has Eminem as Jackson, with little boys jumping up and down on a bed. Another shows a Jackson-clad Eminem with his hair catching fire, which is reminiscent of Jackson's ill-fated 1984 Pepsi commercial. Now, Jackson's spokeswoman told "The New York Daily News" that Michael Jackson feels that Eminem has crossed the line, and said Jackson is calling upon all networks to pull the video.

PHILLIPS: So, Sibila, has anyone pulled the video yet?

VARGAS: Well, yes. Actually, BET has pulled the video. But they told us it was a management decision. They would not confirm it was at Jackson's request. And also, MTV says they aren't playing the video on MTV and MTV 2 in heavy rotation, but they have not been contacted by Jackson's people.

And speaking of the Jacksons, you thought CBS had troubles with the FCC after Janet Jackson's Super Bowl incident? Now Fox may be in hot water for airing a sexy episode of "Married By America."

FCC sources tell the -- CNN the agency is prepared to levy a fine of $1 million or more against Fox Broadcasting. Reports say it all stems from an April 2003 episode of the reality show "Married By America," depicting a bachelor party where the contestants licked whipped cream off of each others' bodies.

Now, the episode that you're watching now is not that episode. But the episode in question apparently incensed a watchdog group called the Parents Television Council, which lodged a complaint with the FCC. Now, Fox tells CNN it has not received notice of a fine and has no comment -- Kyra.

PHILLIPS: All right. Sibila Vargas, thank you so much -- Miles.

O'BRIEN: Florida's orange production expects it to plunge because of this year's major hurricanes. Rhonda Schaffler joining us from the New York Stock Exchange with more on that.

Hello, Rhonda.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

O'BRIEN: All right. Welcome back to CNN LIVE FROM. We're at the CNN Center in Atlanta. You're elsewhere. I'm Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. Here's what's all new this half-hour.

We're sure fired up about two big rivalries right now. First, the race for the White House. We're going to see if lessons from past debates can help predict who will win the White House this year.

O'BRIEN: Got to believe, baby, this is the year for the Sox to go all the way. Or will the dreaded Bronx bombers obliterate their chances once again? We're live from that stadium in the Bronx. But first...

PHILLIPS: Yankee Stadium. Say the word.

O'BRIEN: I can't say it. First, here's what's happening "Now in the News."

PHILLIPS: A last-minute delay in the Scott Peterson murder trial. A judge postponed the trial today until Monday, just as the defense was to begin presenting its case. The judge told jurors the delay came at the request of lawyers.

A plea in court for a Pakistani man accused of scoping out skyscrapers and landmarks in several U.S. cities. Kamran Ahtar (ph) pleaded guilty to five charges, none related to terrorism. In exchange, Ahtar (ph) will spend as long as six months in prison before he's deported.

New legal problems for the maker of a flu vaccine recently pulled from the market. Chiron Corporation has been slapped with a federal grand jury subpoena about problems with that drug. The vaccine, which is made in England, was pulled by British regulators last week due to health concerns. Chiron says it intends to fully cooperate with the probe.

The Democratic National Committee making good on its promise to take legal action against Sinclair Broadcast Group. The DNC filed a complaint today over Sinclair's plans to air an anti-John Kerry documentary on its 62 television stations just days before the presidential election. Reaction just ahead on "WOLF BLITZER REPORTS."

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 October 12, 2004 - 14:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Thou shalt not -- that shalt or shalt not display the Ten Commandments? The U.S. Supreme Court gets ready to apply man's law to God's.
RUSTY DORNIN, CNN CORRESPONDENT: I'm Rusty Dornin in Redwood City, California, where the Peterson defense team never got out of the chute. The judge calls for a delay in the proceedings. We'll tell you why.

KYRA PHILLIPS, CNN ANCHOR: Ready to rumble. On the eve of the last presidential debate, what do the candidates need to do to sway undecided voters?

O'BRIEN: And American terror threats from Canada? A CNN special report on security lapses north of the border.

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

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

O'BRIEN: We begin with the case that didn't begin, and won't begin for almost a week in Redwood City, California, to the surprise of almost everybody. Scott Peterson's capital murder trial went on recess today just as Mark Geragos, seen at Peterson's side, as always, was expected to debut his defense. CNN's Rusty Dornin delivers all the intrigue and insights from the courthouse grounds.

Just when you think it can't get any stranger, Rusty, sure enough it does.

DORNIN: That's right, Miles.

Well, we got a little suspicious in court when they were behind closed doors for about 40, 45 minutes. The judge then emerged and said, because of legal issues that had to be sorted out, there was going to be a one-week delay in the proceedings. Now, we believe, and legal analysts are believing, too, that the prosecutors found some kind of surprise testimony within the first scheduled witness was -- who was an expert on cement and didn't like those surprises.

(BEGIN VIDEO CLIP)

MICHAEL CARDOZA, LEGAL ANALYST: There had to be some new reports from one or two of their experts that the district attorney just received. And my guess is they got them in the last day or two. So they haven't had a chance to consult with their own experts to go through those expert opinions; therefore, they asked for a week continuance.

(END VIDEO CLIP)

DORNIN: The continuance will end on October 18, next Monday. That's when the defense will resume, or actually begin their case.

The judge apologized profusely to jurors for this delay. Once again, the jurors, some seemed a little shocked. One woman even said, "Wow," when he made the announcement. Others seemed slightly annoyed.

But the judge did say that he really wants to get back on track when they get back to court on the 18. He's going to go five days a week instead of four, for the next two weeks. And then November 1, Monday, it will be closing arguments, followed by another set of closing arguments on Tuesday. On the 3rd will be jury instructions, and then it will go to the jury.

But Miles, these schedules the judge has put out before have been delayed by instances just like this one.

O'BRIEN: Let's remind people, Rusty, this is an extraordinarily long case already. And this is not the way the legal system normally works, away from the glare of the media. So for this one to be delayed even further really is out of the norm.

DORNIN: Well, it's out of the norm. But, then again, you know, there could be a little bit of -- some of the legal analysts are saying there might be some brinkmanship going on.

I mean, the defense objected several times to when prosecutors would bring out reports or bring out witnesses to some of their testimony. They may be doing a little tit for tat for this -- or during this.

The defense doesn't have to announce who their witnesses are or what their testimony will be unless they intend to call them. Well, the defense could say, look, we just decided to call this guy over the weekend, and the prosecution saying, wait, we don't know anything about this, we've got to have our people look at these reports.

O'BRIEN: So what you're saying is Mark Geragos is playing hardball in the courtroom? There's some news, huh?

DORNIN: Yes, exactly. No, actually prosecutors are playing a little bit of his game.

O'BRIEN: That, too, yes. A little bit. All right. Rusty Dornin, thank you very much -- Kyra.

PHILLIPS: In god we trust? Maybe, but it's the nine people in the black robes in Washington who will decide whether and how the Ten Commandments can be displayed in courthouses and town squares from sea to shining sea. CNN's Bob Franken sorts out the supreme from the divine in our D.C. bureau. Holy Moses, Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Well, that's about 10 cliches in one sentence. That's pretty -- pretty good.

PHILLIPS: Just for you.

FRANKEN: Thank you so much.

The Supreme Court term would not really be a Supreme Court term, I fear, unless there was some sort of church-state separation case to be solved. And there are actually two of them, and it concern the Ten Commandments.

Now, you talked in the last hour with the former Alabama Supreme Court chief justice, Ray Moore, who was removed from office after he refused to remove this statue from the Alabama Supreme Court building. Just a week ago, the Supreme Court of the United States justices refused to take his case.

It's over. And he is saying that the problem with all this is that it's not up to government to decide the roll of god, it is up to god. And, of course, the question always is, who's god, and what about those who don't have a god?

The issue here, the Ten Commandments. Can they be represented on other government properties? Specifically one in Texas, the state house grounds there in form of a statue, or in a courthouse -- on a courthouse in Kentucky? The justice are going to try to and untangle some confused rulings.

On the one hand, in the Texas case, the judge has ruled that it could stay. In the case of the Kentucky case, the -- judges in the lower court ruled that the Ten Commandments could not stay up there.

So, since 1980, the Supreme Court justices have avoided ruling on Ten Commandments cases, but now they've said they've got to try and untangle a mess. It has, of course, a political aspect, Kyra, because it has one of those incendiary issues in the campaign. But this is really a matter of jurisprudence -- Kyra.

PHILLIPS: So Bob, why -- therein lies the heart of the -- of the debate, is why now, why have they decided to listen to these cases when previously they didn't? Do you think that Chief Justice Roy Moore, that case that he made, and then the controversy -- controversy that was created is sort of forcing the justices now to look at these cases one by one?

FRANKEN: Well, they take up in an order that is determined at some point whether they're going to grant certiorari. That's the term that means whether they're going to take the case.

It takes four justices to decide. The grant cert came up. Now is the time that they were going to do it.

They decided that there was no issue they needed to resolve in the case of Justice Moore, but there were issues of confusion that they needed to untangle. And so now is when they decided. But you do point out something, and that is the coincidence of an election three weeks away, and an issue that is going to rev up people on both sides of that issue.

PHILLIPS: Bob Franken, thanks so much.

O'BRIEN: Today in Iraq, U.S. forces and Iraqi troops left no stone unturned in the ongoing effort to root out terrorists and insurgents. Even mosques are no longer off limits. CNN's Brent Sadler has the latest on the battles for control in Iraq's most volatile areas.

(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 airstrikes, U.S. warplanes attacked suspected terror targets in Falluja, west of Baghdad, a melting pot for insurgent groups, including some of Iraq's most loyal 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 raids on seven mosques in the rebel stronghold. Mosques are normally afforded protected status in the fighting. But in Ramadi, the U.S. military sas 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. airstrike Monday targeting another mosque in the neighboring town of Hit, 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 the 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)

PHILLIPS: The world's nuclear watchdog is raising the red flag about machinery that has gone missing in Iraq since the U.S.-led invasion. The IAEA says the equipment could be used to develop nuclear weapons. It says satellite photos show facilities that used to be monitored by U.N. weapons inspectors and now they've been completely dismantled.

The U.S. and its European allies are considering economic incentives to persuade Iran to stop enriching uranium. Iran says its program is geared toward energy production, not bombs. The IAEA has given Tehran until the end of next month to stop the uranium enrichment. Iran says it has a legitimate right to do so and does not intend to stop.

O'BRIEN: A scathing report on security lapses in Canada. Could they be a terror loophole? We'll investigate just ahead.

And rivalry revival. The post-season match-up getting Beantown fans fired up in talking about the dreaded curse once again. This is the year. Repeat after me, this is the year.

And Michael Jackson may be mad enough to curse himself. Find out why he won't be inviting Eminem to Neverland anytime soon.

(COMMERCIAL BREAK)

PHILLIPS: Terrorism and border security are a top concern today, but it was only months ago in March that the Canadian government was slammed by its own auditor general for big lapses in security. Has anything changed? A progress report now from CNN's Deborah Feyerick.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): The report by Canada's auditor general found scathing lapses in national security, problems that included no routine background checks on thousands of airport workers, old, incomplete border watch lists, and Customs agents unable to access critical information on any of the 25,000 Canadian passports lost or stolen each year.

PETER KASURAK, CANADIAN GOVT. INVESTIGATOR: The RCMP basically didn't have enough people to keep inputting information into their system, and there wasn't a good way to link their system to the front- line customs agents.

FEYERICK: The RCMP, or Royal Canadian Mounted Police, and other Canadian officials say many of the problems have now been fixed. A single agency similar to the Department of Homeland Security in the U.S. was created last December prior to the March report. Officials say it's resulted in better sharing and analysis of intelligence.

But because al Qaeda plans years in advance, security officials realize terrorists may have a dangerous head start. Indeed, two of the seven people on an FBI watch list reissued in May are Canadians.

UNIDENTIFIED FEMALE: I'd love to be able to tell Canadians that I am 100 percent sure that no one slipped into this country who is here as part of a plan to do us harm. I can't say that.

FEYERICK: Canadian security analyst Martin Rudner (ph) says the reason Canada may be attractive to would-be terrorists is Canada's long tradition of liberal immigration.

UNIDENTIFIED MALE: We do not have discriminatory immigration policies, as is appropriate.

FEYERICK (on camera): Canadian officials say they have a dual responsibility. One, put enough security in place to prevent an attack in their country. And two, make sure that Canada does not become a staging ground for terrorists to launch an attack across the border.

(voice-over): Over the last decade, the Canadian government has detained or deported at least 25 men with ties to Islamic terrorism. Tough new laws make it easier for prosecutors to go after terror suspects. The first criminal charges using the laws were brought in March against a computer programmer living in Ottawa. Some analysts say part of the security challenge is, unlike most Americans, Canadians simply don't feel they're in the crosshairs.

UNIDENTIFIED MALE: I think a Canadian approach would be, if you had Osama bin Laden prisoner, what you want to do is you want to give him a lecture in both official languages of Canada about sustainable development, gender equity, charter rights and freedoms.

FEYERICK: As for border security now on a scale of one to 10?

UNIDENTIFIED MALE: We were at about -- maybe about a six prior to 9/11, and we're moving some place up towards the eight zone now.

FEYERICK: Substantially improved, Canadian officials say, but still far from perfect.

Deborah Feyerick, CNN, Ottawa.

(END VIDEOTAPE)

PHILLIPS: And tonight, Deborah Feyerick looks at the growing problem and threat of Canadian jihadist radicals who find sanctuary in Canada, then use it as a staging ground to wage holy war in the west. That's on CNN's "NEWSNIGHT" with Aaron Brown, 10:00 p.m. Eastern.

O'BRIEN: Are you ready for round three? The president and Senator Kerry get set for their final debate. Can they really do or say anything at this point to change your mind?

Stay with us.

(COMMERCIAL BREAK)

(WEATHER REPORT)

PHILLIPS: Beautiful, but still a potential danger. Mount St. Helens has been fairly quiet today, but scientists say that the steady steam and bulging in the crater are signs that magma is close to the surface. They want to fly an unmanned drone over the volcano today to measure the gases.

To entertainment headlines now. Conflict is brewing between two celebrities, this time it's not Elton John and Madonna. CNN's Sibila Vargas is live in New York with more on this latest controversy between a pop king and a rap giant.

Sibila, what's the scoop?

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT: Well, it's Michael Jackson. He is fighting mad, and the subject of his wrath is rapper Eminem. Apparently, Slim Shady's new video called "Just Lose It" takes one too many jabs at the king of pop.

The video shows several scenes with Eminem dressed up as Michael Jackson. One has Eminem as Jackson, with little boys jumping up and down on a bed. Another shows a Jackson-clad Eminem with his hair catching fire, which is reminiscent of Jackson's ill-fated 1984 Pepsi commercial. Now, Jackson's spokeswoman told "The New York Daily News" that Michael Jackson feels that Eminem has crossed the line, and said Jackson is calling upon all networks to pull the video.

PHILLIPS: So, Sibila, has anyone pulled the video yet?

VARGAS: Well, yes. Actually, BET has pulled the video. But they told us it was a management decision. They would not confirm it was at Jackson's request. And also, MTV says they aren't playing the video on MTV and MTV 2 in heavy rotation, but they have not been contacted by Jackson's people.

And speaking of the Jacksons, you thought CBS had troubles with the FCC after Janet Jackson's Super Bowl incident? Now Fox may be in hot water for airing a sexy episode of "Married By America."

FCC sources tell the -- CNN the agency is prepared to levy a fine of $1 million or more against Fox Broadcasting. Reports say it all stems from an April 2003 episode of the reality show "Married By America," depicting a bachelor party where the contestants licked whipped cream off of each others' bodies.

Now, the episode that you're watching now is not that episode. But the episode in question apparently incensed a watchdog group called the Parents Television Council, which lodged a complaint with the FCC. Now, Fox tells CNN it has not received notice of a fine and has no comment -- Kyra.

PHILLIPS: All right. Sibila Vargas, thank you so much -- Miles.

O'BRIEN: Florida's orange production expects it to plunge because of this year's major hurricanes. Rhonda Schaffler joining us from the New York Stock Exchange with more on that.

Hello, Rhonda.

(STOCK MARKET REPORT)

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O'BRIEN: All right. Welcome back to CNN LIVE FROM. We're at the CNN Center in Atlanta. You're elsewhere. I'm Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. Here's what's all new this half-hour.

We're sure fired up about two big rivalries right now. First, the race for the White House. We're going to see if lessons from past debates can help predict who will win the White House this year.

O'BRIEN: Got to believe, baby, this is the year for the Sox to go all the way. Or will the dreaded Bronx bombers obliterate their chances once again? We're live from that stadium in the Bronx. But first...

PHILLIPS: Yankee Stadium. Say the word.

O'BRIEN: I can't say it. First, here's what's happening "Now in the News."

PHILLIPS: A last-minute delay in the Scott Peterson murder trial. A judge postponed the trial today until Monday, just as the defense was to begin presenting its case. The judge told jurors the delay came at the request of lawyers.

A plea in court for a Pakistani man accused of scoping out skyscrapers and landmarks in several U.S. cities. Kamran Ahtar (ph) pleaded guilty to five charges, none related to terrorism. In exchange, Ahtar (ph) will spend as long as six months in prison before he's deported.

New legal problems for the maker of a flu vaccine recently pulled from the market. Chiron Corporation has been slapped with a federal grand jury subpoena about problems with that drug. The vaccine, which is made in England, was pulled by British regulators last week due to health concerns. Chiron says it intends to fully cooperate with the probe.

The Democratic National Committee making good on its promise to take legal action against Sinclair Broadcast Group. The DNC filed a complaint today over Sinclair's plans to air an anti-John Kerry documentary on its 62 television stations just days before the presidential election. Reaction just ahead on "WOLF BLITZER REPORTS."

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