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Airline Bomb Probe; Mass Transit Worries; Judge Rules in Favor of Insurer in Katrina Dispute; Census Shows Diversity Growing

Aired August 15, 2006 - 14:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Another arrest in the British airliner terror plot as investigators scour town and country alike for evidence.
CNN's Dan Rivers is in London.

(BEGIN VIDEOTAPE)

DAN RIVERS, CNN CORRESPONDENT (voice over): British security sources have told CNN they are confident in finding bomb-making material, even as the detailed forensic investigation into the alleged terror plot focuses on this apartment in east London. These exclusive CNN photos taken by a neighbor with a camera phone show plastic containers being carried from the flat by police.

UNIDENTIFIED MALE: Most of it's been packaged up. There seems -- drums, the chemical drums are sealed tight (INAUDIBLE). There's a few of them have come out.

RIVERS: The intensive police search is also continuing in woods near the town of High Wycombe. According to security sources, the police are looking for evidence of explosives testing.

The British security sources confirm the evidence seen so far indicates the alleged plotters were planning to blow up aircraft at their maximum cruising altitude mid-Atlantic, positioning the explosives at the weakest part of the aircraft, intending for evidence to sink to the bottom of the ocean, potentially, the sources said, allowing similar, follow-up attacks.

(on camera): Security sources have told CNN that they expect that some of the suspects being held at this high security police station in central London may well be released without being charged.

(voice over): The British security sources have also cast doubt on multiple British and Pakistani media reports that the suspects have links to this man, Matiur Rehman, one of Pakistan's most wanted men for his alleged links to al Qaeda.

Security delays eased slightly at London's main airports after the threat levels on both sides of the Atlantic were reduced. But Britain's home secretary stresses the security service MI-5 is still hunting dozens of potential terror cells.

JOHN REID, BRITISH HOME SECRETARY: There are a number of other security service operations under way. There is still a very serious threat of an attack. The threat level is at severe, indicating the high likelihood of an attempted terrorist attack at some stage.

RIVERS: MI-5 officers who were following the movements of the suspects have already been re-deployed to monitor dozens of other suspected terror cells around Britain. The security service estimating there are more than 1,200 individuals of concern across the U.K.

Dan Rivers, CNN, London.

(END VIDEOTAPE)

PHILLIPS: Let's get straight to the newsroom. Betty Nguyen with details on a developing story -- Betty.

BETTY NGUYEN, CNN ANCHOR: Hi there, Kyra.

Yes, we're getting more information on this developing story, and that being that a federal judge has ruled in a trial that basically dealt with homeowners claiming flood damage and thought that they were covered by their insurance. A Pascagoula police officer is suing his Nationwide insurance company, saying that his insurance agent assured them that they didn't need flood insurance because their homeowners policy covered all hurricane damage.

Well, today, a federal judge ruled in favor of the insurance company, saying its policy clearly excludes flood damage to Gulf Coast -- this Gulf Coast couple and their home. So, they apparently lost in this battle, and this is very important, because this could set a precedent in hundreds of other claims from families who lost their homes and they are suing their insurance companies for not covering the damage.

One of the biggest debates here is the wind versus water debate. Was this wind-driven water or was it simple flooding? And in this particular case, the judge said it was flooding and that the policy clearly excluded flood damage.

We're going to be talking with CNN's legal analyst Jeffrey Toobin in just a few minutes about this wind versus water debate, also about this particular case and what it means for hundreds of other couples out there, families, in fact, who are suing their insurance companies and still waiting for that trial.

So we'll get more on this for you -- Kyra.

PHILLIPS: You know the drill for boarding a plane: shoes off, pockets empty, liquids, as of last week, checked or chucked. But none of that applies to the millions of people who board trains or buses or ferries.

CNN Senior Correspondent Allan Chernoff reports from New York.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN SR. CORRESPONDENT (voice over): Sal Calcagno's commute from Staten Island to Manhattan requires a train to a ferry to the subway. Any one of which Sal acknowledges he is a potential target.

AUTOMATED VOICE: Backpacks and other large containers are subject to random search by police.

SAL CALCAGNO, COMMUTER: It's something I don't want to think about it, but at the same time I sort of have to think about. But it's something that I'm going to take a chance on, I guess.

CHERNOFF: Simply stepping on to a train is taking a bit of a chance, however small. Train bombings in Mumbai, India, London and Madrid have been grim reminders, as if New Yorkers needed any.

(on camera): How safe do you feel these days on the subways?

UNIDENTIFIED MALE: Not too safe.

CHERNOFF: Not too safe?

UNIDENTIFIED MALE: Not to safe. I'm on the subway because I have to be. And I'll do whatever I have to do to get to work.

CHERNOFF: In the post-9/11 world, we all recognize that a potential terrorist could walk into our car at any moment and even sit down right next to us. But in a subway system that transports seven million passengers a day, there's only so much that can be done about the threat of terrorists.

(voice over): Lou Schiliro directs counterterrorism planning for the Metropolitan Transit Authority.

LEWIS SCHILIRO, METROPOLITAN TRANSIT AUTHORITY: Every reasonable precaution that we can take, both overtly and covertly, are being taken in order to allow us to protect the system.

CHERNOFF (on camera): But protecting these trains right here, the way that airplanes are protected, it's just not possible.

SCHILIRO: Totally -- totally different systems. That's not possible in a system like this.

CHERNOFF (voice over): Still, trains are guarded as never before. Dozens of bomb-sniffing dogs are on the beat and more are now in training. Heavily armed officers patrol high-traffic stations. Tunnels are under watch, and hundreds of security cameras are appearing in stations.

UNIDENTIFIED MALE: I believe we're doing everything that we reasonably can do to protect the system.

CHERNOFF: And passengers themselves are on alert.

TIM CAHILL, COMMUTER: If somebody was to walk in here and leave a bag, like, that's something that I would -- that I would report immediately. Or...

CHERNOFF (on camera): Do you think you would have done that before 9/11?

CAHILL: No, I don't think I would have. I think I'm definitely much more careful now.

CHERNOFF (voice over): If you see something, say something. New Yorkers take the warning seriously, well aware, that simply riding the train these days can mean you're a player in the fight against terrorism.

Allan Chernoff, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: Hullabaloo over Hezbollah and heartfelt kudos from the president of Iran as cheering crowds thronged the streets of Ardebil as President Mahmoud Ahmadinejad blasted the U.S. and Israel while boasting that Hezbollah has hoisted the banner of victory over the Middle East.

(BEGIN VIDEO CLIP)

MAHMOUD AHMADINEJAD, IRANIAN PRESIDENT (through translator): America and England and the Zionist regime with all the equipment, old army they had, and they face a group of decent, devout young people. And those young people, by putting their trust in god and believing in god's fulfillment of his promises, stood against them.

(END VIDEO CLIP)

PHILLIPS: Ahmadinejad says that U.N. should force war reparations from Israel and its allies, including, of course, the United States.

Well, Iran is not the only country lambasting Israel and lauding Hezbollah. Syrian president Bashar al-Assad is speaking out for the first time since the conflict erupted a month ago.

(BEGIN VIDEO CLIP)

BASHAR AL-ASSAD, SYRIAN PRESIDENT (through translator): Israel is an enemy and does not want peace, because peace will impose on Israel to return the Arab lands and the rights because this enemy has not changed, only but to be expand and occupy. And we have always said the peace process is very important and crucial for the United States through its position as a superpower and connection with others, but not any United States. This administration may adopt the preemptive war, and it contradicts the principle of peace.

(END VIDEO CLIP)

PHILLIPS: Well, Assad took a further jab at Washington, saying U.S. plans for the Middle East became an illusion with Hezbollah's rebuff of the powerful Israeli military.

Moral support is one thing, but how else might Syria and Iran be supporting Hezbollah? CNN's Barbara Starr has more now from the Pentagon -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Kyra, that is the question that U.S. military and intelligence officials are most concerned about. In order to make the U.N. resolution really work and to have peace in this area, the question about how to arm -- disarm Hezbollah and whether that disarmament will work over the long term is really the key question.

U.S. intelligence and military officials say so far what they see is Iran and Syria trying to resupply Hezbollah with new arms. Officials telling CNN in the last couple of weeks there had been at least two flights, passenger flights from Tehran into Damascus, in which the cargo holds have carried ammunition and rockets into Syria for shipment on into Lebanon and to Hezbollah.

Iran having denied those charges, but earlier today a top U.S. Army general spoke on CNN's "AMERICAN MORNING" about what he sees going on.

(BEGIN VIDEO CLIP)

BRIG. GEN. MARK KIMMITT, CENTCOM DEPUTY DIRECTOR: The recent activities in southern Lebanon, the recent uprising in Hezbollah, the linkages back to Iran are clear and convincing. Iran needs to be a element for stability in that region. It does not need to be -- take its present course of developing nuclear weapons or inspiring its terrorist proxies.

(END VIDEO CLIP)

STARR: Kyra, even though Iran -- officially, the government, of course, denies it. U.S. intelligence, U.S. military officials, as you see from General Kimmitt talking about clear linkages, firmly believe that they do see evidence that they do see evidence that Iran is trying to resupply Hezbollah, and they say that the U.S. will continue to monitor the situation behind the scenes. They say U.S. satellites, U.S. intelligence assets will be focused on this region to try and catch any resupply if it continues -- Kyra.

PHILLIPS: All right, Barbara. Thanks.

Straight ahead, shoe scans are now a mandatory part of airport security, but do they actually make flying safer? We do expect a briefing from the TSA this hour. A live picture from Reagan National Airport.

We'll take you there as soon as it begins.

(COMMERCIAL BREAK)

PHILLIPS: Live pictures from Reagan National Airport. We're expecting a briefing by the TSA. We'll bring that to you live as soon as it happens.

There's been a lot of back and forth on whether the x-rays in these airports can even pick up explosives in shoes when you take your shoes off and they go through the machines. They're going to hold a screening -- or a conference, rather, a news conference about that confusion between what we think and what they know.

Let's get straight to the newsroom. Betty Nguyen has details on a developing story -- Betty.

NGUYEN: Well, speaking of confusion, a little bit of it has been cleared up, kind of, sort of, today.

A federal judge has ruled in favor of an insurance company in a claim against that company from a Mississippi family whose home was destroyed in Katrina. They did not have flood insurance, but they were told that -- by their insurance agent that their homeowners' insurance would cover it. Well, today a judge said that is not the case. The policy clearly excludes flood damage to this couple's home.

So let's bring in CNN legal analyst Jeffrey Toobin to sort all of this out.

Jeffrey, one of the main contentions here is, was it wind-driven water, was it simply just water, for example, being a flood? So, today, a judge says, look, bottom line, you didn't have flood insurance, so you're not going to win this one.

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Right. It's painful advice, and certainly it's a painful lesson for this family, but you have to read your policy.

You can't count on a representation, a statement by a friendly insurance agent, because when push comes to shove, an insurance company is only going to pay what they have to pay. And it's the document, not any kind of oral statement by the insurance agent that controls. And the policy specifically excluded flood insurance, they're not going to pay.

NGUYEN: Well, what does this mean for hundreds of other couples and families, in fact, from the Gulf Coast region who lost everything in this? What does it mean for them? Because many of those, hundreds of those cases have not gone to trial yet.

TOOBIN: What it means is the insurance companies are playing hardball. And you can't count on anything that isn't written down in black and white. If the insurance policies excluded floods, they are not going to pay for most of the damages.

Now, there was a small loophole in the judge's decision today, where he said if they could prove, if the family could prove what portion of their damages was by wind, as opposed to water, then they could recover that amount. You know, that's a very difficult thing to do in the real world.

NGUYEN: Exactly. I mean, therein lies more questions. It goes back to that, is it wind-driven water or is it just wind, or which is it? Which leads to a whole lot of confusion.

TOOBIN: And expense.

NGUYEN: Right.

TOOBIN: If you want to go to court to try to prove this, you're going to have to hire an expert that -- that will try to differentiate between wind damage and water damage. All of that runs into a great deal of money that most people don't have. That's why the insurance companies have a tremendous upper hand here, because they do have the experts. They do try these lawsuits involved.

That's why most people have chosen to settle with the insurance companies rather than fight. But, you know, the lesson is, you've got to read the policy.

NGUYEN: All right. CNN legal analyst Jeffrey Toobin.

Thank you for that insight, joining us by phone from Connecticut -- Kyra.

PHILLIPS: All right.

We'll take you live to Reagan National now for that live news conference from the TSA about the screening.

(JOINED IN PROGRESS)

KIP HAWLEY, TSA ADMINISTRATOR: ... and basically our operations around the country. And he'll be available to answer any further questions you may have.

TSA instituted mandatory shoe screening as an additional security measure when the threat level for the aviation sector went to orange or high on Thursday, August 10th. Screening shoes by x-ray is an effective method of identifying any type of anomaly, including explosives.

Our highly-trained transportation security officers can see if a shoe has been tampered with when they view it on the x-ray equipment. By requiring all passengers to remove shoes for x-ray screening, we increase both security and simplicity at the checkpoint.

Today, improvised explosive devices, IEDs, are the number one threat that we guard against. More than 31,000 of our TSOs have received rigorous training in IED detection and are required to complete four hours every month of explosives training.

Training and technology are two layers of our system's approach to security at the airport. Other layers include intelligence, behavior observation technique, random K-9 team searches, federal air marshals, federal flight deck officers, and additional security measures, both visible and invisible, to the public.

Each one of these layers alone is capable of stopping a terrorist attack. In combination, their security value is multiplied, creating a much stronger, much more formidable system. I want to assure the traveling public that we're working aggressively to protect the public against threats we expect and those we do not expect. Again, we thank the public for their continued cooperation and vigilance.

Now, I mentioned that a large part of our program is in training and testing. And it's training I have taken myself, and it's why I really personally wanted to come over here today to talk about the ability of x-rays to find explosive devices.

And what I'm going to share with you in a minute is actual screen shots. It was until about 15 minutes ago classified material, and we decided to declassify it because of the intense interest on the part of the public in whether or not we can find shoe bombs with our x-ray machines at the checkpoint.

You'll be able to satisfy yourselves -- in fact, we can.

What I'm going to show you is what we use in our covert testing program. This is -- this is a slide that shows a mockup of the Richard Reid shoe bomb with a simulated explosive that would look the same as explosives in the x-ray. And we're going to show you how it looks in a photograph and then how it looks when viewed through the x- ray. And I think you'll be able to see what I mean.

So, I'm going to describe what it is, and then I'll make it available for you to take pictures of it.

So, what you have here is a pair of photographs of a shoe with explosives in it and a shoe without explosives in it. And this is taken with the x-rays that we used at checkpoints, and you can see very clearly the difference between a shoe with an explosive and one without. And here is a side view, as well.

And you can -- you can see that it does pop out at you that there is, in fact, something in there that you need to look at. And here's just a picture of what it is.

So, I'm going to make this available to you, and then we can answer any questions that you might have. So, I'm actually going to give it to Ellen (ph) so I don't have to figure out what to do with it.

QUESTION: Why -- what is it looking for, a different density of material in the bomb or the explosive compared to leather or rubber or whatever else?

HAWLEY: It's more complicated than that. There are actually many different ways that you can use the x-ray to find an explosive or any other device that we're looking for. There are -- there are many views that you can use of this equipment, and it is, as with the device itself, the combination of the different views that allows you to get to a satisfactory picture.

QUESTION: But in each view, what it's looking at is density, right? HAWLEY: Well, it looks at a number of things, and I really don't want to go into exactly what -- what the formula is.

QUESTION: Yes, what is TSA doing to further the development of (INAUDIBLE) detecting explosive (INAUDIBLE)?

HAWLEY: Well, we have hundreds of millions of dollars invested in the business of finding explosives. And there are, as you know, a number of these machines that are out there in operational testing. There are quite a few that are coming behind it that we're looking at to see how it does, versus explosives, and then we'll get it out there.

And you mentioned the puffers. There is quadruaple (ph) resonance, which is a technology that is very promising. There is the continued development of the so-called CAT scan that we currently use in the EDS system.

QUESTION: You mentioned (INAUDIBLE).

HAWLEY: So do I take a vote? Do I wait until this is over?

QUESTION: It doesn't matter to me.

HAWLEY: I got a lot of advice from that after last week.

It's part of the security.

QUESTION: No, my question was...

HAWLEY: Right. Right, you bet.

Well, we do use behavioral observation technique. And we are very mindful of the civil rights needs and the value needs to keep it privacy-friendly. And that's why we call it "behavior." So, it is involuntary muscular behaviors that are...

PHILLIPS: TSA Assistant Secretary Kip Hawley holding a live news conference there at Reagan National, talking about the shoe scans, now a mandatory part of airport security.

The Associated Press had obtained a 16-month-old Homeland Security report that found that x-rays machines do not detect explosives hidden in shoes, but as you heard there from the assistant secretary, that he disagrees with that. He actually showed a picture of Richard Reid's shoes, you know, the shoe bomber that has been arrested, that he said clearly shows how those x-rays pick up something awkward in a shoe, and he showed those pictures.

So we'll continue to follow this. You can go to cnn.com/pipeline if you want to keep watching it.

We'll take a quick break. We'll be right back.

(COMMERCIAL BREAK)

PHILLIPS: Day two of the Middle East cease-fire. It appears to be holding, if only by a diplomatic thread.

CNN's Chris Lawrence has more now from the Israeli-Lebanese border.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): The cease-fire has created peace, but not peace of mind.

UNIDENTIFIED MALE: It seems very fragile at the moment.

LAWRENCE: Even after the cease-fire there were several skirmishes. Israeli soldiers shot and killed several suspected Hezbollah fighters who they say posed a threat to their forces in southern Lebanon.

UNIDENTIFIED MALE: That's why it's imperative that the vastly expanded UNIFIL and the Lebanese army take up their positions as quickly as possible.

LAWRENCE: The commander of U.N. peacekeepers met with Israeli and Lebanese officials on the border. They expect a multinational force of 15,000 fighters to start deploying there by early next week.

UNIDENTIFIED MALE: That buffer then makes the cease-fire hold.

LAWRENCE: Israeli officials say that until the United Nations takes over security, Israeli troops will engage Hezbollah guerrillas only if they're threatened.

UNIDENTIFIED MALE: We are calling upon them to leave their weapons and walk away. Even if they don't leave their weapons we are not shooting them from the back.

LAWRENCE: In northern Israel, the sound of mortars is giving way to the sound of mothers.

UNIDENTIFIED FEMALE: (INAUDIBLE)

LAWRENCE: Segal Efrack (ph) and her family evacuated last month. They've come back to Kiryat Shmona. Their hometown was hit by 242 rockets since they left.

UNIDENTIFIED FEMALE: We hope there going to be peace, but I do not believe it and I think that it's not safe to be here.

LAWRENCE: Still, for the first time in more than a month there was peace and life on Israeli streets.

(on camera): As for those Katyusha rockets that apparently broke the peace and landed in southern Lebanon, Israeli officials now tell us they landed close enough for Israeli troops stationed in southern Lebanon to actually watch them fall.

Chris Lawrence, CNN, on the Israel-Lebanon border.

(END VIDEOTAPE)

PHILLIPS: Well, imagine reporting on your country as it crumbles around you. That's what Lebanese reporter Sultan Sleiman did a lot of over the past month. We'll get his first-hand account straight ahead.

Well, a major battery recall could affect millions of laptop users. Susan Lisovicz live from the New York Stock Exchange with all the details.

(BUSINESS REPORT)

PHILLIPS: Well, Uncle Sam better get a bigger melting pot. Coming up, details on the latest consensus, proving that diversity is going coast-to-coast.

(COMMERCIAL BREAK)

PHILLIPS: Well, he's not just close to the story, he's lived it. Sultan Sleiman is a reporter for the Lebanese Broadcasting Corporation, and a witness to the war in his own homeland. He joins me today from one of the hardest hit areas, the port city of Tyre.

Sultan, good to see you again. What has it been like to watch so many of these refugees try and make it back home, a lot of them going back to absolutely nothing? Sultan, can you hear me okay?

SULTAN SLEIMAN, LBC REPORTER: Yes, yes, I can hear you.

PHILLIPS: You can hear me now.

SLEIMAN: Yes, now I can hear you.

PHILLIPS: OK, very good. Talk to me about the refugees that are finally able to get back home or start moving home. This must be a tremendous relief for hundreds and hundreds of people.

SLEIMAN: It's amazing how people are reacting to the cease-fire in south Lebanon. We saw dozens or hundreds of cars coming back, despite the fact that gasoline has the high price right now in southern Lebanon, but they've managed to come and they are coming here to find out they don't have any more houses. They are coming carrying just sponge mattresses to put it under the sky, under the destructed houses just to sleep there on their homeland.

And when you talk to them, you find that they are more sympathized with Hezbollah than ever before. So we spoke to a lot of them and I can assure you that none of them had any bad feelings towards Hezbollah or its general secretary, Sayed Hassan Nasrallah.

One woman said to me I lost my son, I lost my house, and I lost the land that I used to live from, but despite all of this destruction, despite all this big loss, I'm still supporting the resistance and I serve my life for Sayed Nasrallah. This is the atmosphere here and most of the villages in south Lebanon, which is a majority Shia. PHILLIPS: So, Sultan, do you think the majority of these people understand how this war began in the first place and that was with the capture of these Israeli soldiers? Do they understand that? What do they think started this war from the very beginning?

SLEIMAN: Let me tell you that the people here are very much politicized. Nobody buys the story that the war started because Hezbollah captured two Israeli soldiers, because before that time, Hezbollah captured three Israeli soldiers in the year 2002, and nothing happened -- or 2001, I don't remember exactly. But Israel didn't react like that.

So many times Hezbollah attacked the Israeli borders and nothing happened like that, so nobody here buys the story of the Israelis that they are reacting for the capture of two soldiers. The whole story that you hear from the people here that the attack had the target of destroying Hezbollah, and by one way or another, it's destroying the dignity of the Shia population which is about 35 percent of the population of Lebanon. It's more than one million people.

So that's why among Shiites right now, and the masses of the Shiites, you can hear that. Despite that, the Israelis attack all the Shiite areas in south Lebanon, in Bekaa and in the southern suburbs, really. These are the areas inhabited by Shiites, and the destruction is about to be 70 to 75 percent.

But despite all of that, they say that we still keep our dignity, keep our pride and we are the first -- the people that the first time won the war with Israel among all the Arabs that fought Israel. We know that the Arabs had so many wars in 1956 ...

PHILLIPS: Now, Sultan -- Sultan -- you say that Hezbollah has attacked the borders in the past, and then we saw this ongoing war. Do you think Hezbollah is going to disarm and allow for people to get back home in a safe manner?

SLEIMAN: I can't -- according to my view and my analysis, I don't think that Hezbollah can be armed in the near future. And nobody is going to do it. Now, Hezbollah feels that it -- they want this battle. And this battle aimed at disarming Hezbollah. Now, how do they -- how they will disarm Hezbollah if they -- Hezbollah won the battle against the strongest army in the region?

So, if this strongest army in the region couldn't disarm Hezbollah, how there will be other means. I don't think that there will be other means to disarm Hezbollah. And now, if the international community will pressure Lebanon to go forward in this plan, I guess we are going forward a civil war, once again, in Lebanon.

PHILLIPS: Sultan Sleiman, covering this for the LBC, joining us live from Tyre. Thank you.

Well, Uncle Sam better get a bigger melting pot. Coming up, details on the latest census proving that diversity is going coast-to- coast. (COMMERCIAL BREAK)

PHILLIPS: Well, we talk sometimes about average Americans, but a batch of new numbers from the Census Bureau shows there may not be any such thing.

CNN's Gary Nurenberg has more -- Gary.

GARY NURENBERG, CNN CORRESPONDENT: Well, census numbers are always fascinating, Kyra, because they provide hard evidence of things that are going on in the country. The bureau's 2005 American community survey tells us we have many more immigrants living in many more places.

Some of the biggest increases have been in the Southeast -- Georgia, North Carolina -- but the increases are also showing up in unexpected places. The immigrant population in South Dakota, for example, jumped 44 percent in five years. It rose 34 percent in Indiana, 32 percent in Delaware. Colorado jumped 28 percent and New Hampshire 26 percent.

And the number of illegal immigrants is up, 3.5 million in 1990, 12 million last year. More places are seeing illegal immigrants now. More places are seeing legal immigrants, too.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: As immigrants have spread out, have fanned out to new communities and have made their homes in lots of new places across the United States. But many, many more native-born Americans are becoming aware of immigrants in this country. And, so, they can relate a little bit more to the national immigrant debate if they see what's happening around their community.

(END VIDEO CLIP)

NURENBERG: The new numbers show a rapid growth in the number of immigrants living in American households. Up 16 percent, Kyra, in the last five years.

PHILLIPS: So where are most immigrants living?

NURENBERG: Still mostly the gateway states where they always have, about half a dozen states. Those are California, Texas, Florida, New York, New Jersey and Illinois. But what's interesting is that the percentage of illegal immigrants living in those states is actually down. Those six states used to have about 80 percent of all illegal immigrants. Now it's about 60 percent, as the legals move to more different places.

PHILLIPS: All right, so, stepping away from immigration for a minute, did the survey say anything else that was pretty interesting?

NURENBERG: National education levels are rising. Twenty-seven percent of Americans over 25 now have four-year college degrees. It was less than 25 percent only five years ago. And the percentage with bachelors degree in 1940, 4.6 percent.

PHILLIPS: Wow. Gary, thanks.

Well, too much all at once. Storms ripped through central Oklahoma overnight, flooding roads and leaving some 5,000 homes and businesses in the dark. But rain did bring relief from the heat, dropping temperatures to the mid-70s. Don't expect that to last, though.

(WEATHER REPORT)

PHILLIPS: Well, straight ahead, entertainment news with A.J. Hammer of "SHOWBIZ TONIGHT." A.J., good to see you. It's been a while.

A.J. HAMMER, CNN HOST: Nice to see you, as well. It has been awhile, Kyra, but I am here to tell you that a celebrity couple unfortunately, sadly going their separate ways. A slew of stars are putting on their dancing shoes and Jeff Foxworthy had some pretty big plans for Labor Day weekend that may surprise you. All the details when LIVE FROM continues.

(COMMERCIAL BREAK)

PHILLIPS: Well celebrity splitting, stars dancing. "SHOWBIZ TONIGHT's" A.J. Hammer joins me now with all the latest scoop. A.J.?

HAMMER: Kyra, if I may, I'm going to be beginning today with a bad play on a movie title. It's you, me and divorce for actress Kate Hudson and her husband, Black Crowes frontman Chris Robinson. We're actually kind of bummed out about this one. We thought this was the one that was going to make it. But, no, after six years of marriage, this couple has separated. They do have a two and a half year old son Ryder. Twenty-seven-year-old Hudson is the daughter of Goldie Hawn and currently starring in the comedy "You, Me and Dupree."

So are you ready to tango? Well the third season of ABC's "Dancing With the Stars" is going to be kicking off on September 12th. A whole new batch of celebrities are stepping up to the challenge. I must say, kind of an odd mix this season. Here's a bit of the line up: country singer Sara Evans, talk show host Jerry Springer, actress Vivica A. Fox is going to be a part of it. Actor Harry Hamlin, whose wife Lisa Rinna competed last year in the show. Former new kid on the block Joey Lawrence, who's now called Joe, plus three-time Super Bowl champ Emmitt Smith also dancing this year.

Well this next story is for women who are pregnant and due on Labor Day weekend. Pay close attention if that's you. Funny man Jeff Foxworthy is launching his new baby, a sketch comedy show. It's called "Foxworthy's Big Night Out." It's on CMT. Well with the birth of his new series, he's actually looking for an expectant mom to deliver during the program's premiere. You heard me correct. The woman who's able to pull this whole thing off is going to go home with her new arrival of course, and 50,000 bucks. Now here's the goal. They must be born at Friday September 1st at 8:30 p.m. Eastern time. But you have to register first at foxworthy.cmt.com. Now if your timing is a little off at that particular show, maybe a couple of weeks off, well an additional $5,000 will be given away each week to the first baby born during the 11 subsequent episodes.

Kyra, what do you make of that? I believe possibly unprecedented in television.

PHILLIPS: You're talking -- oh, with Jeff Foxworthy. He's always doing unprecedented things, though.

HAMMER: Yes, and I'm not going it tell any of his jokes on the program today.

PHILLIPS: You thought you were a redneck -- you know, he's local guy here. He performs at a lot of churches and things like that. He's a clean, funny sense of humor, A.J.

HAMMER: And he is truly one of the nicest people in show business.

PHILLIPS: Yes, he is a good guy. All right, anything else you want to plug tonight?

HAMMER: Well, here's what's coming up. Yes, tonight on "SHOWBIZ TONIGHT," on the heels of Chris Robinson getting divorced from his wife, it's marriage and divorce in Hollywood. New breakups raising the question, why is it so hard for stars to stay together? And what lessons can you learn to keep your marriage together? There are actually a few out there. We're going to have a special report on T.V.'s most provocative entertainment news show, "SHOWBIZ TONIGHT." You'll find us at 11:00 p.m. Eastern on CNN Headline Prime. Kyra, call all of your pregnant friends who are due right around Labor Day for Jeff Foxworthy

PHILLIPS: All right, and marriage counseling with A.J. Hammer coming up tonight. Thanks, A.J.

Well those confusing carry-on rules, navigating them may be the scariest part of your plane ride.

(BEGIN VIDEO CLIP)

JEANNE MOOS, CNN CORRESPONDENT: Mascara, not allowed. Wrench under seven inches, allowed. Now, which one do you think I could do more damage with?

(END VIDEO CLIP)

PHILLIPS: Common sense or chaos? Jeanne Moos shows us the reality of the rules, only on CNN.

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