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Kerry Speaks to AARP About Health Care; Cheneys Fight Back Over Kerry Remarks on Daughter; Ohio Focus Group Reacts to Debate; Twin Bombings Strike Baghdad's Green Zone; Both Candidates Make Factual Errors in Debate; Michael Moore Pay-per-View Deal Falls Through; Chris Rock to Host Oscars

Aired October 14, 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.


KYRA PHILLIPS, CO-HOST: Campaigning in Las Vegas. President Bush hopes to swing the odds in his favor in that toss-up stake. We're live from the high stakes campaign trail.
MILES O'BRIEN, CO-HOST: Senator Kerry hot on the heels of the president in Sin City. We expect him to talk with his -- some of his supporters this hour.

PHILLIPS: Will there be glitches on election day? Concerns about possible short circuits with electronic voting.

O'BRIEN: And illegal immigrants in America, it's a hot button election issue, but what it's like for the people caught between the two countries?

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: Well, we're two weeks and five days from election day, or as we like to call it the first day of the rest of the campaign.

For better or worse, the debates are behind now John Kerry and George W. Bush, the former having done better in the view of most polls, the latter worse in their head-to-head match-ups.

After last night's climactic clash in Arizona, viewers taking part in the CNN/"USA Today"/Gallup poll gave Kerry a lopsided win on par with his first debate showing in Florida. Only the second debate in Missouri was a toss-up, statistically speaking.

Tempe last night, Vegas today. We're quoting the itineraries of both campaigners, though they're not sharing any more stages or audiences. Later this hour, John Kerry is carrying his health care prescription to a very interested party, the American Association of Retired Persons.

CNN's Ed Henry is watching and waiting for that.

Hello, Ed.

ED HENRY, CNN CORRESPONDENT: Good afternoon, Miles. There's a comedy routine going on right now. You may hear that behind me. I apologize for that.

But first lady Laura Bush already spoke to the AARP conference. She said that her husband is not ready to go into retirement yet.

But John Kerry, who obviously wants to put the president into retirement, is feeling good about last night. He feels it was a clean sweep, that he's won three debates. And now that he may have the momentum to pivot towards the domestic agenda, something he's wanted to do for a long time.

And at a post debate rally last night, John Kerry said that, in fact, he's going to focus on, in the final 19 days, talking about how he will fight for the middle class.

But he also is going to be speaking to the AARP, to talk about Medicare and prescription drugs, another key part of the domestic agenda.

But all of that talk about the domestic agenda could be overshadowed by a controversy that's bubbling up because of some comments Kerry made at the debate last night when he mentioned the sexuality of Mary Cheney during a question about gay marriage.

Last night after the debate, Lynne Cheney lashed out at Senator Kerry for dragging her daughter into the debate. She called it, quote, "a cheap and tawdry political trick." She added of Kerry, quote, "This is not a good man."

And just a short while ago today, Vice President Cheney also lashed out at Senator Kerry.

(BEGIN VIDEO CLIP)

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: You saw a man who will say and do anything in order to get elected. And I am not speaking just as a father here, though I am a pretty angry father. But as a citizen.

(END VIDEO CLIP)

HENRY: Now Kerry advisers say this is ridiculous, that Mary Cheney's sexuality is not a secret, that the vice president himself has mentioned it on the campaign trail.

Elizabeth Edwards, wife of Senator John Edwards, told ABC Radio today that Lynne Cheney overreacted to what John Kerry said. She said that the comments also indicate, quote, "a certain degree of shame with respect to her daughter's sexual preferences."

That a quote from Elizabeth Edwards about Lynne Cheney.

Obviously, the words are getting pretty hot back and forth, but so far, John Kerry himself has not weighed in about his comments, Miles. O'BRIEN: Tell us about the AARP, Ed. Have they weighed in on the election? They're hearing from Senator Kerry and the first lady today. Are they going to endorse anybody at this juncture?

HENRY: Well, they usually do not issue political endorsements, but there is a very interesting political tug-of-war with the AARP.

They got behind the president's Medicare prescription drug Bill last year, and that was seen as the critical piece that got it through the Congress and got it signed into law.

But they've now switched a little bit. The AARP has pulled back, has criticized some elements of how that law is being implemented, and also, the AARP has endorsed the -- the John Kerry idea of importing cheaper drugs from Canada, something that the president has not endorsed.

So the AARP is a major lobbying force, and they've been behind the president in general. But now they're coming out a little bit against him on the cheaper drug imports from Canada. So very interesting political fight developing here -- Miles.

O'BRIEN: Ed Henry in Las Vegas at the AARP convention.

John Kerry should be up there talking, replacing the comedy act in just a little while. We'll bring that to you as soon as it happens. Anticipated for 2:30 Eastern, but that is a fairly soft time as it were. In any case you'll see it live when it happens -- Kyra.

PHILLIPS: Well, George W. Bush says he enjoyed the debates and looks forward to a sprint to the finish. Bush -- Bush, rather, spoke to reporters on Air Force One en route to a rally in Vegas attended by a group that he used to be a member of, the Republican Governors.

In remarks we brought you live in our first hour of LIVE FROM, Bush looked ahead by looking back.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We had a great debate last night. Those debates, all three debates clarified the differences in our records, our approaches and our plans for the future.

I'm proud of my record. My opponent seemed to want to avoid talking about his. My record is one of lowering taxes, reforming education, providing prescription drugs to seniors, improving our homeland protections and waging an aggressive war against the terrorists.

The senator's record is 20 years of out of the mainstream votes with -- without many significant reforms or results. Our very different records are a window into what we believe and what we'll do in the next four years.

(END VIDEO CLIP) PHILLIPS: If snap polls aren't fast enough for you, we now have real time meter readings on the candidate's every sigh and syllable. During the debates anyway.

Last night, CNN once again followed the dips and surges of a focus group watching in Ohio.

CNN's Bill Hemmer was there.

(BEGIN VIDEOTAPE)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: All across our country -- go to Ohio...

BILL HEMMER, CO-HOST, "AMERICAN MORNING" (voice-over): Few states have gotten the attention that Ohio is getting now.

On the campus of the Ohio State University, 24 men and women were looking and listening for answers in this final debate: issues like tax cuts, health care and the war on Iraq.

On a scale from one to 10, with men in blue and women in yellow, we watched the meter rise and fall in real time. The economy is critical in the Buckeye State, and Senator Kerry scored well when he talked about increasing the minimum wage.

KERRY: In America, this is one of those issues that separates the president and myself. We have fought to try to raise the minimum wage in the last years.

HEMMER: The president the picked up strong support when he talked about crime and gun laws.

BUSH: The best way to protect our citizens from guns is to prosecute those who commit crimes with guns.

HEMMER: In our 90 minute survey, women were scoring the senator higher' men were stronger for the president.

UNIDENTIFIED FEMALE: I think Senator Kerry did a good job, and I think that he's the man for the job because he's -- I feel safe with him. He's got more intelligence.

HEMMER: One voter made up her mind during this debate. She'll vote for President Bush.

UNIDENTIFIED FEMALE: I just felt that he was more honest and more sincere throughout the debate.

HEMMER: The final tally from this group, seven say they will vote for the president; 10 will vote for Senator Kerry. And after three presidential debates, seven still remain undecided.

Bill Hemmer, CNN, Columbus, Ohio.

(END VIDEOTAPE) PHILLIPS: After sparring twice before, you'd probably think that President Bush and Senator John Kerry would have had their facts straight. As it turns out, both got a few things wrong. We're going to tell you about that a little later in the hour.

And tonight "PRIME TIME POLITICS" with Paula Zahn, Paula hosts a town hall meeting in Bucks County, Pennsylvania. That's at 8 p.m. Eastern, 5 Pacific.

O'BRIEN: Well, first Abu Ghraib, now Bagram. The 28 U.S. Army soldiers now named into a criminal investigation report on the deaths of two Afghan detainees in December 2002.

The investigation cites possible offenses, including involuntary manslaughter, assault, battery, maiming, maltreatment, dereliction of duty and conspiracy.

Coroners said the cause of the deaths was homicide of those detainees was homicide due to blunt force trauma. The report has been sent to unit commanders for possible action against the soldiers.

Meanwhile, deadly violence strikes across Iraq on the eve of Ramadan, a time when Muslims devote themselves to God and to practice self-control.

The latest attack came today in Baghdad's Green Zone, which houses the U.S. embassy, among other things. At least five were killed, including three Americans.

CNN's Brent Sadler is in Baghdad with the latest.

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN CORRESPONDENT: A major breach in security inside what's supposed to be Iraq's best protected area, the capital's so-called Green Zone, in effect, the seat of power here, home to Iraq's interim government, as well as the U.S. and British embassies.

Two powerful explosions within close proximity of each other shook the capital, targeting a popular market area, as well as a cafe inside the zone, used by many who live and work there, especially among the international community.

Thick columns of black smoke rose over the central Baghdad compound immediately after the blasts, indicating a large-scale attack.

The U.S. military says five people died in the explosions, including three Department of Defense personnel. Twenty other people were wounded, including U.S. Servicemen and civilians.

Investigators are now working on eyewitness accounts that suicide bombers may have penetrated the security. U.S. military officials say it's too early to tell, but they have confirmed that explosives appear to have been hand carried into the zone. If so, it would be the first time insurgents have successfully infiltrated this area and detonated bombs. It raises serious concerns about the level of security inside the zone, especially as it follows the discovery just over a week ago of a bomb hidden inside a sandbag at one of the blast sites.

Meanwhile, in Fallujah, U.S. warplanes struck suspected terror targets in the key insurgent stronghold west of Baghdad. The sustained use of American airpower coincides with a new central government threat to launch a military offensive against the city, if it continues to harbor dangerous groups of foreign fighters.

Brent Sadler, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Who got it right and who got it wrong? Crunching the numbers and checking the claims made by both candidates in last night's debate. Our CNN fact check, straight ahead.

Michael Moore wants to get the last word on the eve of the presidential election. We'll explain, later on LIVE FROM.

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

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

PHILLIPS: Well, I don't know about you, but after watching the debate last night, I was a bit confused, confused about the facts within what John Kerry and President Bush had to say. Both men said to each other, "My opponent has the facts wrong." So who do we believe?

Jeanne Meserve reports.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): For this one night at least, Tempe, Arizona was the home of the whopper. Both candidates got facts wrong.

BUSH: I don't think I ever said I'm not worried about Osama bin Laden. That's kind of one of those exaggerations.

MESERVE: Well, he said something awfully close in March of 2002.

BUSH: I repeat what I said, I truly am not that concerned about him.

MESERVE: But Kerry got things wrong, too. KERRY: Let me just share something. This president is the first president ever, I think, not to -- not to meet with the NAACP. This is a president who hasn't met with the Black Congressional Caucus.

MESERVE: It is true that Bush is the first president since Herbert Hoover not to meet with the NAACP, but he has met with the Congressional Black Caucus at least twice, once last February.

BUSH: He voted to increase taxes 98 times.

MESERVE: But an independent analysis says that counts multiple votes on the same bill.

KERRY: Five hundred thousand kids lost after-school programs because of your budget.

MESERVE: Wrong. Bush did propose cutting $400 million in after- school funding in his 2004 budget, but Congress refused to go along. No children lost the program.

BUSH: He's proposed $2 trillion of new spending, and yet...

MESERVE: Bush was using an old figure from the Conservative American Enterprise Institute.

An analysis by the nonpartisan Concorde Coalition says Kerry's proposals will cost $1.3 trillion. That group put the very same price tag on the proposals of George W. Bush.

KERRY: Five million Americans have lost their health insurance in this country.

MESERVE: Well, the number of uninsured has gone up, but Kerry is incorrect to suggest that all those people lost their health care coverage.

In previous debates, Kerry repeatedly got one fact wrong.

KERRY: And so today, we are 90 percent of the casualties and 90 percent of the costs, $200 billion.

We could have saved $200 billion and an invasion of Iraq...

MESERVE: Wednesday night he put it differently.

KERRY: And America now is paying already $120 billion, up to $200 billion before we're finished and much more...

MESERVE: He got it right, finally.

Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: The last time around was a bit of a debacle. Hanging chads, closed chads, butterfly ballots. But this time around, we're going to get a bit of high tech help.

Daniel Sieberg, our resident geek techie, be here a little later to take us through the Electronic Voting 101. So keep it here. That's coming up later in the show.

O'BRIEN: News across America now.

This could be more painful than the flu itself. The vaccine shortage is leading to widespread price gouging. A nationwide survey of hospital pharmacy directors showing some vendors are offering hospital -- hospitals vaccines at up to 10 times their original price.

Supplies are scarce this year because of contamination problems at a British manufacturing plant.

In Colorado, flu vaccine could actually become a street drug. Thieves in Aurora have stolen more than 60 boxes of the medicine from a pediatric office. That's enough to give shots to more than 600 children.

A wildfire in northern California now almost half contained. The fire has been burning in a remote area of Yolo and Napa counties, almost 60 miles northeast of San Francisco.

The blaze has consumed more than 37,000 acres so far.

Farther north, a small plume of steam still rising from the crater of Mount St. Helens. Beautiful picture, isn't it? Scientists say magma has broken through the surface of the volcano and is slowly building up a new lava dome. It's a process that could go on for months, maybe even years.

PHILLIPS: Will Michael Moore realize his dream for election eve? That's just ahead.

RHONDA SCHAFFLER, CNN CORRESPONDENT: I'm Rhonda Schaffler in New York. Crude oil prices keep rising. Heating oil, too. What's the latest mess about? I'll have all the details coming up.

(COMMERCIAL BREAK)

PHILLIPS: Will the anti-Bush documentary "Fahrenheit 9/11" heat up pay-per-view just in time for elections? Controversial film director Michael Moore is making news, and so is comedian Chris rock,

CNN's entertainment reporter, Sibila Vargas, live from Las Angeles with all the Hollywood headlines.

Hi Sibila.

SIBILA VARGAS, CNN CORRESPONDENT: Hi, Kyra.

As things continue to heat up politically, it looks like filmmaker Michael Moore is getting the cold shoulder.

Moore had planned to air his political documentary "Fahrenheit 9/11" on the pay-per-view service In Demand the night before the election. But what seemed like a done deal is now dead.

In Demand told us today they pulled the event from their schedule. Company representatives, however, would not say why.

And, Kyra, we attempted to reach Moore for comment, but his people say he's traveling at the moment.

PHILLIPS: Pay-per-view? Does he really need that? Seeing that the DVD is out, the video is out? How are those doing? And does he really need to do it?

VARGAS: He doesn't even need to do it. It was a wish of his, but he doesn't really need it. He's doing so incredibly well.

The film shattered records as the No. 1 documentary video of all time with more than 2.6 million people checking it out during its first week. Moore, of course, made a big splash at Oscars in 2003 accepting an Academy Award for "Bowling for Columbine."

And Kyra, do you know who's making a big splash this coming year?

PHILLIPS: I've already heard, Chris Rock. I've got to tell you, he's one of my favorites.

VARGAS: I know. The Motion Picture Academy has announced that the comedian will host the Oscars for the first time come February 27. So it will be a lot of fun.

PHILLIPS: You think he'll be well behaved?

VARGAS: You know, it's kind of hard to tell with Chris Rock.

PHILLIPS: Exactly. We'll all be waiting.

Miles is shaking his head.

O'BRIEN: No way.

PHILLIPS: Miles thinks no way.

O'BRIEN: Two words, no way.

PHILLIPS: Thanks, Sibila.

VARGAS: Thank you.

O'BRIEN: All right. Well, defending the nation can be costly business. Of course it would be cheaper if the folks at the Transportation Security Administration spent a little less time patting themselves on the back.

An awards party for employees of the anti-terrorism agency last year cost -- get this, folks -- about half a million bucks. More than $1,400 for three balloon arches, $1,800 on seven cakes. Party planners sent in a bill for 85K. Oh, and let's not forget the photographer for all those shots that fill up office walls in D.C. The fee there, five grand.

It's your money. Actually it's our money.

PHILLIPS: It's all of our money.

O'BRIEN: Nice to know it's being spent on balloon arches.

PHILLIPS: Speaking of our money...

O'BRIEN: Well, we could be spending it on oil. Rhonda, what's the latest?

(STOCK REPORT)

(COMMERCIAL BREAK)

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Aired October 14, 2004 - 14:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CO-HOST: Campaigning in Las Vegas. President Bush hopes to swing the odds in his favor in that toss-up stake. We're live from the high stakes campaign trail.
MILES O'BRIEN, CO-HOST: Senator Kerry hot on the heels of the president in Sin City. We expect him to talk with his -- some of his supporters this hour.

PHILLIPS: Will there be glitches on election day? Concerns about possible short circuits with electronic voting.

O'BRIEN: And illegal immigrants in America, it's a hot button election issue, but what it's like for the people caught between the two countries?

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: Well, we're two weeks and five days from election day, or as we like to call it the first day of the rest of the campaign.

For better or worse, the debates are behind now John Kerry and George W. Bush, the former having done better in the view of most polls, the latter worse in their head-to-head match-ups.

After last night's climactic clash in Arizona, viewers taking part in the CNN/"USA Today"/Gallup poll gave Kerry a lopsided win on par with his first debate showing in Florida. Only the second debate in Missouri was a toss-up, statistically speaking.

Tempe last night, Vegas today. We're quoting the itineraries of both campaigners, though they're not sharing any more stages or audiences. Later this hour, John Kerry is carrying his health care prescription to a very interested party, the American Association of Retired Persons.

CNN's Ed Henry is watching and waiting for that.

Hello, Ed.

ED HENRY, CNN CORRESPONDENT: Good afternoon, Miles. There's a comedy routine going on right now. You may hear that behind me. I apologize for that.

But first lady Laura Bush already spoke to the AARP conference. She said that her husband is not ready to go into retirement yet.

But John Kerry, who obviously wants to put the president into retirement, is feeling good about last night. He feels it was a clean sweep, that he's won three debates. And now that he may have the momentum to pivot towards the domestic agenda, something he's wanted to do for a long time.

And at a post debate rally last night, John Kerry said that, in fact, he's going to focus on, in the final 19 days, talking about how he will fight for the middle class.

But he also is going to be speaking to the AARP, to talk about Medicare and prescription drugs, another key part of the domestic agenda.

But all of that talk about the domestic agenda could be overshadowed by a controversy that's bubbling up because of some comments Kerry made at the debate last night when he mentioned the sexuality of Mary Cheney during a question about gay marriage.

Last night after the debate, Lynne Cheney lashed out at Senator Kerry for dragging her daughter into the debate. She called it, quote, "a cheap and tawdry political trick." She added of Kerry, quote, "This is not a good man."

And just a short while ago today, Vice President Cheney also lashed out at Senator Kerry.

(BEGIN VIDEO CLIP)

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: You saw a man who will say and do anything in order to get elected. And I am not speaking just as a father here, though I am a pretty angry father. But as a citizen.

(END VIDEO CLIP)

HENRY: Now Kerry advisers say this is ridiculous, that Mary Cheney's sexuality is not a secret, that the vice president himself has mentioned it on the campaign trail.

Elizabeth Edwards, wife of Senator John Edwards, told ABC Radio today that Lynne Cheney overreacted to what John Kerry said. She said that the comments also indicate, quote, "a certain degree of shame with respect to her daughter's sexual preferences."

That a quote from Elizabeth Edwards about Lynne Cheney.

Obviously, the words are getting pretty hot back and forth, but so far, John Kerry himself has not weighed in about his comments, Miles. O'BRIEN: Tell us about the AARP, Ed. Have they weighed in on the election? They're hearing from Senator Kerry and the first lady today. Are they going to endorse anybody at this juncture?

HENRY: Well, they usually do not issue political endorsements, but there is a very interesting political tug-of-war with the AARP.

They got behind the president's Medicare prescription drug Bill last year, and that was seen as the critical piece that got it through the Congress and got it signed into law.

But they've now switched a little bit. The AARP has pulled back, has criticized some elements of how that law is being implemented, and also, the AARP has endorsed the -- the John Kerry idea of importing cheaper drugs from Canada, something that the president has not endorsed.

So the AARP is a major lobbying force, and they've been behind the president in general. But now they're coming out a little bit against him on the cheaper drug imports from Canada. So very interesting political fight developing here -- Miles.

O'BRIEN: Ed Henry in Las Vegas at the AARP convention.

John Kerry should be up there talking, replacing the comedy act in just a little while. We'll bring that to you as soon as it happens. Anticipated for 2:30 Eastern, but that is a fairly soft time as it were. In any case you'll see it live when it happens -- Kyra.

PHILLIPS: Well, George W. Bush says he enjoyed the debates and looks forward to a sprint to the finish. Bush -- Bush, rather, spoke to reporters on Air Force One en route to a rally in Vegas attended by a group that he used to be a member of, the Republican Governors.

In remarks we brought you live in our first hour of LIVE FROM, Bush looked ahead by looking back.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We had a great debate last night. Those debates, all three debates clarified the differences in our records, our approaches and our plans for the future.

I'm proud of my record. My opponent seemed to want to avoid talking about his. My record is one of lowering taxes, reforming education, providing prescription drugs to seniors, improving our homeland protections and waging an aggressive war against the terrorists.

The senator's record is 20 years of out of the mainstream votes with -- without many significant reforms or results. Our very different records are a window into what we believe and what we'll do in the next four years.

(END VIDEO CLIP) PHILLIPS: If snap polls aren't fast enough for you, we now have real time meter readings on the candidate's every sigh and syllable. During the debates anyway.

Last night, CNN once again followed the dips and surges of a focus group watching in Ohio.

CNN's Bill Hemmer was there.

(BEGIN VIDEOTAPE)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: All across our country -- go to Ohio...

BILL HEMMER, CO-HOST, "AMERICAN MORNING" (voice-over): Few states have gotten the attention that Ohio is getting now.

On the campus of the Ohio State University, 24 men and women were looking and listening for answers in this final debate: issues like tax cuts, health care and the war on Iraq.

On a scale from one to 10, with men in blue and women in yellow, we watched the meter rise and fall in real time. The economy is critical in the Buckeye State, and Senator Kerry scored well when he talked about increasing the minimum wage.

KERRY: In America, this is one of those issues that separates the president and myself. We have fought to try to raise the minimum wage in the last years.

HEMMER: The president the picked up strong support when he talked about crime and gun laws.

BUSH: The best way to protect our citizens from guns is to prosecute those who commit crimes with guns.

HEMMER: In our 90 minute survey, women were scoring the senator higher' men were stronger for the president.

UNIDENTIFIED FEMALE: I think Senator Kerry did a good job, and I think that he's the man for the job because he's -- I feel safe with him. He's got more intelligence.

HEMMER: One voter made up her mind during this debate. She'll vote for President Bush.

UNIDENTIFIED FEMALE: I just felt that he was more honest and more sincere throughout the debate.

HEMMER: The final tally from this group, seven say they will vote for the president; 10 will vote for Senator Kerry. And after three presidential debates, seven still remain undecided.

Bill Hemmer, CNN, Columbus, Ohio.

(END VIDEOTAPE) PHILLIPS: After sparring twice before, you'd probably think that President Bush and Senator John Kerry would have had their facts straight. As it turns out, both got a few things wrong. We're going to tell you about that a little later in the hour.

And tonight "PRIME TIME POLITICS" with Paula Zahn, Paula hosts a town hall meeting in Bucks County, Pennsylvania. That's at 8 p.m. Eastern, 5 Pacific.

O'BRIEN: Well, first Abu Ghraib, now Bagram. The 28 U.S. Army soldiers now named into a criminal investigation report on the deaths of two Afghan detainees in December 2002.

The investigation cites possible offenses, including involuntary manslaughter, assault, battery, maiming, maltreatment, dereliction of duty and conspiracy.

Coroners said the cause of the deaths was homicide of those detainees was homicide due to blunt force trauma. The report has been sent to unit commanders for possible action against the soldiers.

Meanwhile, deadly violence strikes across Iraq on the eve of Ramadan, a time when Muslims devote themselves to God and to practice self-control.

The latest attack came today in Baghdad's Green Zone, which houses the U.S. embassy, among other things. At least five were killed, including three Americans.

CNN's Brent Sadler is in Baghdad with the latest.

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN CORRESPONDENT: A major breach in security inside what's supposed to be Iraq's best protected area, the capital's so-called Green Zone, in effect, the seat of power here, home to Iraq's interim government, as well as the U.S. and British embassies.

Two powerful explosions within close proximity of each other shook the capital, targeting a popular market area, as well as a cafe inside the zone, used by many who live and work there, especially among the international community.

Thick columns of black smoke rose over the central Baghdad compound immediately after the blasts, indicating a large-scale attack.

The U.S. military says five people died in the explosions, including three Department of Defense personnel. Twenty other people were wounded, including U.S. Servicemen and civilians.

Investigators are now working on eyewitness accounts that suicide bombers may have penetrated the security. U.S. military officials say it's too early to tell, but they have confirmed that explosives appear to have been hand carried into the zone. If so, it would be the first time insurgents have successfully infiltrated this area and detonated bombs. It raises serious concerns about the level of security inside the zone, especially as it follows the discovery just over a week ago of a bomb hidden inside a sandbag at one of the blast sites.

Meanwhile, in Fallujah, U.S. warplanes struck suspected terror targets in the key insurgent stronghold west of Baghdad. The sustained use of American airpower coincides with a new central government threat to launch a military offensive against the city, if it continues to harbor dangerous groups of foreign fighters.

Brent Sadler, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Who got it right and who got it wrong? Crunching the numbers and checking the claims made by both candidates in last night's debate. Our CNN fact check, straight ahead.

Michael Moore wants to get the last word on the eve of the presidential election. We'll explain, later on LIVE FROM.

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

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

PHILLIPS: Well, I don't know about you, but after watching the debate last night, I was a bit confused, confused about the facts within what John Kerry and President Bush had to say. Both men said to each other, "My opponent has the facts wrong." So who do we believe?

Jeanne Meserve reports.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): For this one night at least, Tempe, Arizona was the home of the whopper. Both candidates got facts wrong.

BUSH: I don't think I ever said I'm not worried about Osama bin Laden. That's kind of one of those exaggerations.

MESERVE: Well, he said something awfully close in March of 2002.

BUSH: I repeat what I said, I truly am not that concerned about him.

MESERVE: But Kerry got things wrong, too. KERRY: Let me just share something. This president is the first president ever, I think, not to -- not to meet with the NAACP. This is a president who hasn't met with the Black Congressional Caucus.

MESERVE: It is true that Bush is the first president since Herbert Hoover not to meet with the NAACP, but he has met with the Congressional Black Caucus at least twice, once last February.

BUSH: He voted to increase taxes 98 times.

MESERVE: But an independent analysis says that counts multiple votes on the same bill.

KERRY: Five hundred thousand kids lost after-school programs because of your budget.

MESERVE: Wrong. Bush did propose cutting $400 million in after- school funding in his 2004 budget, but Congress refused to go along. No children lost the program.

BUSH: He's proposed $2 trillion of new spending, and yet...

MESERVE: Bush was using an old figure from the Conservative American Enterprise Institute.

An analysis by the nonpartisan Concorde Coalition says Kerry's proposals will cost $1.3 trillion. That group put the very same price tag on the proposals of George W. Bush.

KERRY: Five million Americans have lost their health insurance in this country.

MESERVE: Well, the number of uninsured has gone up, but Kerry is incorrect to suggest that all those people lost their health care coverage.

In previous debates, Kerry repeatedly got one fact wrong.

KERRY: And so today, we are 90 percent of the casualties and 90 percent of the costs, $200 billion.

We could have saved $200 billion and an invasion of Iraq...

MESERVE: Wednesday night he put it differently.

KERRY: And America now is paying already $120 billion, up to $200 billion before we're finished and much more...

MESERVE: He got it right, finally.

Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: The last time around was a bit of a debacle. Hanging chads, closed chads, butterfly ballots. But this time around, we're going to get a bit of high tech help.

Daniel Sieberg, our resident geek techie, be here a little later to take us through the Electronic Voting 101. So keep it here. That's coming up later in the show.

O'BRIEN: News across America now.

This could be more painful than the flu itself. The vaccine shortage is leading to widespread price gouging. A nationwide survey of hospital pharmacy directors showing some vendors are offering hospital -- hospitals vaccines at up to 10 times their original price.

Supplies are scarce this year because of contamination problems at a British manufacturing plant.

In Colorado, flu vaccine could actually become a street drug. Thieves in Aurora have stolen more than 60 boxes of the medicine from a pediatric office. That's enough to give shots to more than 600 children.

A wildfire in northern California now almost half contained. The fire has been burning in a remote area of Yolo and Napa counties, almost 60 miles northeast of San Francisco.

The blaze has consumed more than 37,000 acres so far.

Farther north, a small plume of steam still rising from the crater of Mount St. Helens. Beautiful picture, isn't it? Scientists say magma has broken through the surface of the volcano and is slowly building up a new lava dome. It's a process that could go on for months, maybe even years.

PHILLIPS: Will Michael Moore realize his dream for election eve? That's just ahead.

RHONDA SCHAFFLER, CNN CORRESPONDENT: I'm Rhonda Schaffler in New York. Crude oil prices keep rising. Heating oil, too. What's the latest mess about? I'll have all the details coming up.

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PHILLIPS: Will the anti-Bush documentary "Fahrenheit 9/11" heat up pay-per-view just in time for elections? Controversial film director Michael Moore is making news, and so is comedian Chris rock,

CNN's entertainment reporter, Sibila Vargas, live from Las Angeles with all the Hollywood headlines.

Hi Sibila.

SIBILA VARGAS, CNN CORRESPONDENT: Hi, Kyra.

As things continue to heat up politically, it looks like filmmaker Michael Moore is getting the cold shoulder.

Moore had planned to air his political documentary "Fahrenheit 9/11" on the pay-per-view service In Demand the night before the election. But what seemed like a done deal is now dead.

In Demand told us today they pulled the event from their schedule. Company representatives, however, would not say why.

And, Kyra, we attempted to reach Moore for comment, but his people say he's traveling at the moment.

PHILLIPS: Pay-per-view? Does he really need that? Seeing that the DVD is out, the video is out? How are those doing? And does he really need to do it?

VARGAS: He doesn't even need to do it. It was a wish of his, but he doesn't really need it. He's doing so incredibly well.

The film shattered records as the No. 1 documentary video of all time with more than 2.6 million people checking it out during its first week. Moore, of course, made a big splash at Oscars in 2003 accepting an Academy Award for "Bowling for Columbine."

And Kyra, do you know who's making a big splash this coming year?

PHILLIPS: I've already heard, Chris Rock. I've got to tell you, he's one of my favorites.

VARGAS: I know. The Motion Picture Academy has announced that the comedian will host the Oscars for the first time come February 27. So it will be a lot of fun.

PHILLIPS: You think he'll be well behaved?

VARGAS: You know, it's kind of hard to tell with Chris Rock.

PHILLIPS: Exactly. We'll all be waiting.

Miles is shaking his head.

O'BRIEN: No way.

PHILLIPS: Miles thinks no way.

O'BRIEN: Two words, no way.

PHILLIPS: Thanks, Sibila.

VARGAS: Thank you.

O'BRIEN: All right. Well, defending the nation can be costly business. Of course it would be cheaper if the folks at the Transportation Security Administration spent a little less time patting themselves on the back.

An awards party for employees of the anti-terrorism agency last year cost -- get this, folks -- about half a million bucks. More than $1,400 for three balloon arches, $1,800 on seven cakes. Party planners sent in a bill for 85K. Oh, and let's not forget the photographer for all those shots that fill up office walls in D.C. The fee there, five grand.

It's your money. Actually it's our money.

PHILLIPS: It's all of our money.

O'BRIEN: Nice to know it's being spent on balloon arches.

PHILLIPS: Speaking of our money...

O'BRIEN: Well, we could be spending it on oil. Rhonda, what's the latest?

(STOCK REPORT)

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