jane: we will see you tomorrow. trace: we are live here in new york. martha: time-life -- behind me, you see the john f. kennedy presidential library in dorchester section of boston. this is where senator ted kennedy lies in propose this afternoon. thousands of mourners -- there is an extraordinary line here. they have been streaming behind me. everyone is extremely patient. they're paying their respects. we want to have much more of the life and fascinating complexities of the legacy of senator ted kennedy throughout the broadcast. trace: we're getting breaking information on this mind- boggling story out of california involving jaycee lee dugard. after 18 years, she is back with

her family. a new picture of her has not yet been released, but this is an age progress photo showing how she might look today. with each hour, we get new information on the ordeal that she went through and the man who allegedly raped her for all those years. new information about where she will go from here it is a fascinating inside look coming up just moments away. first, back to martha in short -- in dorchester, massachusetts. martha: sitting here is sort of like a walk through history. at times, it feels like it is a walk through people magazine. you see the names and faces all around us. just moments ago, we saw william kennedy smith. he came out. he is the son of jean kennedy smith, the last remaining of that generation of kennedy siblings. let's look at what he had to say moments ago.

>> he had amazing energy. he had extraordinary focus on the little things and the big things. he was a bit -- he was able to connect people stories with the larger issues. over the years, he has touched so many people. martha: it is so fascinating when you look at william kennedy smith and you think back to that time, the rape allegations, the trial -- ted kennedy, this is one of the clearest examples of the kennedy family sticking together through thick and thin. that was an embarrassing time for senator kennedy. he testified in that trial. william kennedy smith was exonerated. the other thing that strikes me, when you talk to people on the line, the familiarity that people feel with the family. think of another politician you

can think of that is referred to not only by his first name, but his nickname. everybody feels such a familial interconnection with his family. we are going to have a lot more coming up throughout the afternoon and throughout the show of everything that is happening around us. we will keep you up-to-date on it. trace: we very much look forward to that. she was just 11 years old when she was kidnapped by her school bus stop in california. 18 years later -- 18 years later, she has been found alive we're finding disturbing new details. this is a picture of what she might look like now. turns out that she was kept as a slave in the backyard of her alleged kidnapper. for a while, her stepfather was considered a suspect in the case. listen. >> just total shock. after 18 years -- my wife called

me, are you sitting down? and she said, they found jaycee. she said, she's alive. we both cried for about 10 minutes. trace: it is emerging as just a bizarre story. we're learning a lot more about this case. >> we are permitted in just a few hours, the couple that owns the home behind me in antioch, california will be making their first court appearance when they are reined in and eldorado county courthouse. his wife nancy also faces charges of kidnapping and conspiracy because she stood by and watched as she was brought to this home and turned into a sex slave and kept in complete isolation for 18 years, eventually bury two children now

age 11 and 153 loss of questions about how parole agents who visited this home had evens -- and even searched the backyard, did not see what was going on here. neighbors are also in disbelief that they did not know the house down the street was a house of horrors. many of -- many know that he was a registered sex offender, but they say that he kept to himself and ran a printing business out of his home. he had a secret compound of tents and sheds strategically arranged where jaycee and her two daughters lived. it was like camping for 18 years. it is not clear how they got water and food. they never went to food or saw a doctor. she delivered her first baby when she was 14 years old. all of this happening at a home less than 200 miles away from where jaycee was kidnapped 18 years ago she has been reunited

with her mother who is now saying that her daughter looks young and healthy, but is feeling guilty about having bonded with her up doctor. clearly a lot of emotional turmoil here as this family tries to move forward. at least now, this woman who was kidnapped all those years ago will get a new shot at a new life far away from this place. trace: claudia, thank you. she mentioned a lot of questions. we will seek those answers coming up in the minutes and hours ahead. there are other cases out there where kids have been found months or even years later. remember the case of shawn hornbeck? in january, 2007, he was found in the suburban st. louis apartment of michael devlin.

devlin was sentenced to life in prison. then there is elizabeth smart, a story that captured the nation back in the summer of 2002. she was 14 years old when she was a abducted from her salt lake city home. nine months later, they were spotted walking in the streets in a salt lake city suburb. they were found incompetent to stand trial. then there's the case there'ssteven stayner. he was kidnapped in 1972. he escaped his captivity in 1980. he died in a motorcycle accident in 1995 -- in 1989 when he was 24 years old police later busted kenneth eugene parnell. the latest word out of the world

health organization, h1n1 case is in the southern hemisphere are declining as the seasonal flu time comes to an end. here in the northern hemisphere, flu season is just beginning to ramp up. the new numbers just out of the who reported cases of h1n1 case is in all 50 states. more than 550 people have died. for all the latest information on h1n1, how much it is going to impact our lives, log onto our website. it will give you all the information you could hope to have claimed. a top ford executive says the monthly car sales are way up. the reason is the cash for clunkers program. the federal initiative giving car owners rebates to trade and vehicles. ford is outpacing its august 2008 sales numbers with a weekend still to go.

the for focus and crossover are among the top new vehicles purchased in exchange for trade ands. the entire automobile industry is seeing the first monthly sales increase in more than two years. the transportation department says that cash for clunkers cost more than $3 billion. let's get to south boston. senator kennedy is wrong -- is lying in proposed. after tomorrow's funeral, the senator will be buried alongside his brothers at arlington national cemetery. >> there is a lot to tell you about what is coming up this afternoon. as we watched a family coming out and speaking to people, you see the strong family resemblance that you see in all of the members. many of them, you recognize, but the faces of rose fitzgerald kennedy and her husband have extended through this family to such a great extent that you can just tell.

let me tell you about what is coming up tonight. from 7:00 until 9:00 is the memorial service. it is being called a celebration of life. it will have many familiar and important places. joe biden will speak tonight. john mccain will be here as well speaking tonight. one of the people to watch this evening is paul kirk, the man in charge of running the jfk library. he is a very close friend of ted kennedy. some people think that he is the person that ted kennedy wanted to see takeover. he wanted that person to agree that they would not run for office. paul kirk is said to be someone who might do that. we will hear from him as well. gov. deval patrick is going to speak tonight as well.

we will hear from caroline kennedy as well. all that takes place in a very big ceremony tonight from 7:00 until 9:00. we will be covering that as well throughout the evening. we will get into a little bit more of the details of tomorrow's funeral. basically 10:00 until 12:30. the proceedings will go on at 5:30 tomorrow evening at arlington where teddy kennedy will get his final resting place alongside his brothers, bobby kennedy and president john f. kennedy. trace: we will have much more on that later. in the meantime, will the death of senator kennedy help or hurt democrats and health care debate? the political wrangling over his senate seat began even before he died. the democrats want to change an important role, except it is the same rules they did not want to change back in 2004. mom vo: i can't do his history report for him.

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better mileage than honda cr-v. and chevy malibu has better mileage than accord. however, honda does make something that we just can't compete with. it's self-propelled. there's never been more reasons to look at chevy. martha: it has been said that teddy kennedy told a priest in the final months of his life that he wanted to make a good ending for myself. he has done that in the recent past, many would say. there was a rocky road for him in the 1970's and 1980's. there was lots of talk over what -- of womanizing and drinking.

i spoke with jesse jackson about that. i asked him what he thought about the transformation of the teddy kennedy in the middle-aged part of his life and the teddy kennedy that he became. here is what reverend jackson had to say earlier in >> when he fall -- when he fell down, he knew the ground was no place for a champion. because he had rain cancer detected over a year ago, he was able to get his last hours in order unlike his brothers who were killed suddenly, he was able to plan his last life. martha: if there is one thing that the family has been saying they cherishes the opportunity with his kennedy brother and his

son patrick has said this that they had a chance to say goodbye to them. they really relished his last moment. there is a story about his son taking him for a drive out to the boat yard where they kept their boats. he took him in a convertible a few days before he died. the people close to him said that it was one last ride to a place where he loved, the boat yard where the family kept their sailboats. americans love a comeback kid. they love the kind of story that teddy kennedy represented where we all watched him going through the rough times. to come back and keep committing to hanging in there was admirable. i think people on all sides of the aisle felt that way about him. trace: you have something that happens in the late 60's and then something happens again. and then again something in 1990.

you come back again and you have this kind of tribute paid to you at the end of it. it is a testament to what he achieved. in the meantime, senator kennedy's death, before he could see the bill that he most wanted to pass. he tried to good health care deal for more than three decades. asking massachusetts leaders to change the law governing succession to appoint a temporary replacement rather than waiting months for a special election. that law is only five years old. during the 2004 election, the state democrats changed the law. josh, it is a big illustration

to say that this is such a pivotal seat. all of a sudden, the democrats know how big this is and they want to change the rules a little bit. these are the same rules that they fought to get so vehemently back in 2004. republicans are crying hypocrisy. is it a proper assessment on republicans part? >> i did what matters here is the bigger picture. for the people in massachusetts, where should have representation for one of the biggest fights that is going to be coming up around health care. with his unfortunate passing, if we get anything to really happen in the short-run twists to live up to what he entry for for a long time, to get health care for all americans. i am not worried about massachusetts squabbling back- and-forth. what matters is the bigger picture. trace: the massachusetts

squabbling has to do it every man, woman, and child. whatever comes out of that debate affect all of us. >> in massachusetts, you have some sort of universal health care that mitt romney put in place. having said that, the people of massachusetts should have the right to do a special election. this just demonstrates the flip- flop of how desperate republicans have become dealing with this health-care issue. trace: polls show that america is against the public option here. you have. read saying, we're going to give this a couple of weeks. and a couple of weeks, we very well may try to push this through with 51 democrats. they are going to go with their reconciliation vote. are you just thumbing your nose of what the american people have said they want over the past three and a half weeks? >> not at all. i think the whole point -- in

five months, they will have a special election. this is to make sure that between now and when the vote's coming up that the people of massachusetts have representation. this is too important of a debate when health-care premiums have doubled over the past eight years -- >> we know that it will happen in five months. right now shows how desperate your party is. maxine waters has stated that -- maxine waters has stated that if you take the public option out, she will not vote for the bill. you have democrats dealing with the current legislation. >> i am just saying, i think are the problem is that instead of having some of rancor, we should all come together and do affect the some americans do not have health care.

half of americans last year could not get the medical treatment they needed because it was too expensive. trace: we have to go. thank you. thousands of you have voiced your outrage. with ziploc?

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trace: 25 minutes past the hour, the top box, you can see senator kennedy lying in reposed. in the main screen, you can see the people lining up to pay their respects. in the middle hotbox, countdown to launch at the kennedy space center. that is a live look. the space shuttle discovery is sitting on the launch pad at cape canaveral. the launch has already been scrapped several times because of technical problems and weather. right now nasa says that there is a 60% chance of favorable conditions. in the bottom box, iran slowing its atomic fuel production. that is coming in from the united nations' nuclear watchdog. the islamic productive -- republic has reduced its scale of uranium enrichment and honored demands for better monitoring. the growing outrage over a

planned u.s. visit by the libyan president -- he is expected to stay in new jersey when he addresses the u.n. general assembly. and mayor is actually going to go to court to try to stop him from setting up house in his town. his trip will come weeks after the dictator gave this hero's welcome to the only man convicted in the bombing of pan am flight 103 back in 1988. we're learning more about what the white house knew about the release and when. james rosen is live in washington, d.c. >> sources tell fox news that the obama administration knew months in advance that the british and the scottish were considering releasing him so that he could die of terminal prostate cancer in libya. national security officials said that the state department, the

white house attorney general and john brown and tried to persuade the scots to reverse their decision. scotland is part of the united kingdom, but it runs its own justice system. there are questions about what exactly british prime minister gordon brown knew and when he knew it. he says that he was repulsed by the heroes' welcome that he received. trace: some breaking news on the ground in new jersey. we could see the courts get involved? >> that is right. fox news has confirmed that the inglewood city attorney will file papers this afternoon to try to stop the renovation work that has been under way at the property where qaddafi is expected to stay. this property has been the

secondary residence -- residents for the libyan ambassador since the early 1980's. the property has remained libya's. colonel qaddafi likes to set up bedouin tent wherever he goes. trace: as you can imagine, sentiments in new jersey are running very high. 38 people in new jersey were killed on board that flight. some apparently trying to take this in stride. >> that is true. here's a sampling of what we have heard from some of the residents in this community. >> i do not think i would want him in the neighborhood, but i think he will be a diplomat and i'm sure he will be reasonable. >> it makes me ripping mad that he thinks he is going to come and pop a tent in my neighborhood.

>> that is some of the sentiment on the ground in new jersey. trace: james, thank you. martha: we have just heard and we can confirm that they have now cut off the line. the viewing ends at 3:00 this afternoon. they are anticipating that the people who will be able to get an and circulate through where senator kennedy is lying in propose, but that is it. they need to prepare for the service tonight which begins at 7:00. i also want to mention that we have a very special guest coming up. senator john warner, very long time colleague of senator kennedy, has a story that i guarantee you have not heard about senator kennedy. that is after this. i never thought i would have a heart attack,

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a new terror tape from al qaeda's #2. let's get to catherine herridge on that. >> according to a senior counter-terrorism official, it is a visible sign that al qaeda is under stress because of the becausepredator drovne campaign. the fear is that a fracturing of the taliban will lead to a fracturing of al qaeda. trace: the anti-tax tea party movement is going on the road. >> the tea party express rolls into sacramento on federally built roads and will encircle the capital. farmers in their tractors, truckers and their big rigs, united in their discontent of too much regulation and what they see as higher taxes for the future. farmers are complaining that their water has been cut off to save the fish.

it ends on september 12. trace: let's get to the weather center. the east coast feeling the effects of danny. >> certainly in terms of the possibility of dangerous rip currents. there is danny. just a couple hundred miles off the coast line. we will see the affect and especially along the coastline. it is going to be an incredibly wet one across the northeast. trace: and that is brand new information in the bottom of the hour. the northeast, specifically dorchester, mass. is where martha is right now. >martha: it is really sunny here. we have a live shot right now. vicki kennedy who is credited

for turning around with and the latter part of his life, she just came out. we have also seen some family members, pass where our cameras are here berlin they are turning over the shift of family members. they always want to have a group of family sitting there with senator kennedy every moment in toll and burial. they are all taking turns. i can see robert kennedy jr. is about to walk by esper did meade we can get a shot of him info he has become a famous environmentalist. he is the son of robert kennedy jr.. he is coming in to pay his respects. these are some of his children with him. robert kennedy jr. is one of the 11 children that were born to senator robert kennedy and his wife ethel kennedy.

it is easy to get into the big picture here. this is a very personal moment for this family that has lost a patriarch of the family. i wanted to have a it's joined by senator john warner. he has known tennillle can -- teddy kennedy for many years. they were colleagues for many years in the senate. i am very pleased to have him with us. thank you and welcome. >> i am very pleased and honored to join americans coast-to- coast and indeed people all over the world in this quiet reflection on a great man. martha: talk to me a little bit about -- some of the difference is that you had in the senate over the years and also how your friendship was able to supercede those differences as well. >> let's start with the latter. several things we enjoy a few people know it.

ted kennedy was a very good artist. he loved oil painting, as do i.. he used to issue to his friends -- i say issue to friends or issued to friends a calendar on which he would have his scenes, usually his sailboat, scenes around cape cod. he loved everything to do with the say. he was a very nautical man. the other thing that we enjoy it was dogs. i have always had dogs and my family. his office was just two floors above him. he would go down with an old broken tennis racket and cross over into a park alongside the russell building and bounds balls with his dog. he said that was the best form of relaxation that he got. things like that were what i think we should think about this man.

martha: we're looking at some pictures of his portuguese water dogs. there they are. that love continued until the very end. it will continue on with the obama family. >> another thing that i found very moving today is that his casket was carried by men and women of the armed forces. we served together for 30 years on the are services committee. while he differed with me and many others on issues of policy, there was one thing that he was steadfast about. that was caring for the men and women of the armed forces and their families. whether it was pay raises or educational benefits, when i was chairman of that committee, i

always knew that i had his support to help the men and women of the armed forces. those themes of where they are standing, silent reflection on one of the men that really love them and cared for them. martha: talk to me -- i know there was one story about a base closing in boston that he was fighting hard against. that was a time when the two of you went head-to-head. >> we really went head to head. i think it was around 1971. i was secretary of the navy. we still had some much of an infrastructure serving a reduced armed force at that time that we had to close bases. i had to make the tough decision to close the historic boston naval shipyard. he set up a hearing to get with other senators from the northeast corridor. they took on the chief of naval operations for four or 5 hours,

trying to turn us around on that decision. we stood our ground. martha: talk to be a little bit -- i know that you said you had dinner with the family on intelsat and that was -- on hyannis. >> i visited him at the compound many times. at one time, i had just become very. you mentioned vicki -- what a wonderful woman. she touched my life to. we were bachelors for a while. he tried that. i said it was about time that i found a wonderful wife. she gave a little dinner party for the new wife and my children. i remember we would all come in

and it was a warm day and we had the typical grubstake that he liked so much and fresh corn on the cob. i watched him slip a little food to his dog on the table, something that i tried to get by my wife. she will not allow it either those are the days that i remember. i will miss him and the country will miss him and the senate will miss him. he was one of the hardest working, best prepared senators that i have ever served under. i have served with over 250 centers in my 30 years. martha: you have had a remarkable career, sir. we thank you very much for sharing that with us. thank you, senator warner. back to you. trace: there is breaking news out of virginia. a man hunt underway for the killer of two virginia tech sophomores. >> i have been in touch with the

montgomery county's terrace -- shares department. both of the students were found in a park in the jefferson national forest. their names are david mexler and heidi child. today, the entire campus community is mourning their losses. they cannot tell whether or not there are suspects. they are waiting for calls to come in. they are waiting for the public's helped. they were both found inside his ford or toyota camry. the question is where they were before they went into that popular spot. they were both found shot. the autopsies are ongoing right now. the medical examiner would not give me any information when i called. they were shot multiple times. they were doing the autopsy to see if they could retrieve any evidence or information.

they are also examining the car. heidi childs is the daughter of a virginia state trooper. trace: thank you. martha: they have been concerned about tropical storm danny. it is already churning out in the atlantic. that is where we find jonathan standing by. hello. what are you seeing out there? >> and absolutely beautiful summer day. the storm is not keeping people away from the beach. it looks like a typical day, but the waves are higher than usual you can see some surfers heading out there trying to take advantage of the heavier than usual waves. there was a lifeguard here. there was a sign warning of dangerous currents. there is a havel -- a heavy

potential for dangerous rip currents out there. they are encouraging people to exercise caution. you will see a few kids in the water. they are saying very close to the shore playing it safe. ordinarily is a bigger storm was approaching, you would see homes and businesses boarded up. we have not seen any of that driving out here. most of the visitors are taking this relatively weak storm in stride. martha: thank you very much. trace, back to you. trace: as the administration weighs its options on how to handle the war in afghanistan, sobering numbers on the growing taliban threat in the region. august is the deadliest month for u.s. troops in afghanistan with 45 deaths. more than 60,000 u.s. troops are serving their. part of a new strategy to fight the insurgency. with us right now to take a look

at the ground war is a former iraqi veteran. just to boil it down for the audience, the two major objectives in afghanistan are to make sure that al qaeda does not have a base of operations and make sure that taliban does not grow strong enough to destabilize both afghanistan and nuclear pakistan. are we achieving the goals on the ground? >> right now, it is ambiguous the taliban with help from al qaeda have been on the offensive. they have been stronger in the last couple of years. we have not have the resources nor the strategy to adequately respond to that. you have a colleague of general petraeus. he is in the process of instituting a new counterinsurgency strategy to protect the population we have not have the resources to do. when you push into neighborhoods on the offensive is that casualties are unfortunately going to go up. just as we saw them go up during the surge.

provided that we have the right strategy -- if we increase troops, casualties will initially go up, but they should dramatically fall in the months and years to follow. trace: i want to put up this interview. the chairman of the joint chiefs did this interview with "joynt force quarterly." our efforts to communicate with the muslim world are not very good. we talk a mean game and we're not playing a mean game most of them are not even in caves. the taliban and al qaeda live largely among the people. they intimidate and control and communicate from within, not from the sidelines. are we losing the pr war over there? >> at that is an important quote absolutely right. the taliban and by ex -- by extension al qaeda feed on the people.

they need the people to protect them and to sustain them. what we have been trying to do is go after them in the caves and the mountains. like we did in iraq, we need to protect the population first. we need to have enough troops going into the villages, counter the propaganda that the taliban sends them. when you do that, you shift the sympathies of the local population. you have an opportunity to pick apart the networks of the taliban and al qaeda. that is exactly what he wants to do. our brave troops are out there doing it every single day. trace: just crossing, we have some brand new pictures. we were talking about jaycee dugard. she has now been found alive. we have some brand new pictures into fox news turning these around. we're going to have them for you in three minutes. remember there were tense in the backyard set up? that is where jaycee and her two

daughters were held. exclusive pictures are next. .

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trace: brand new and exclusive pictures in the backyard of the man accused of kidnapping jacee dugard 18 years ago. in the backyard, there was a shed, and a swing set. this is where police say that jaycee dugard held 18 years. she never went to school or saw a doctor, and she apparently had two daughters in this backyard. as you look at the pictures,

know that over the years a sheriff's deputy came out to be a house and never went to the scene and found her. april officer went in and never was let on or learned about this scene in the backyard. these pictures, by the way, were taken from the neighbor's yard. in the next hour, we will talk to that neighbor and find out how in 18 years she never successfully suspected that three people were being held in the backyard. breaking news coming up. the national transportation safety board is holding air- traffic controllers accountable for fatal mistakes. new information coming out after nine people died in a collision over the hudson river, and the ntsb is not pulling punches.

it sounds like the chair person wrote a very strong letter. >> yes, and way ahead of their final report, which will not come for the better part of a year. the chairman asked to the faa to establish regulations to allow planes and choppers to fly at different altitudes in that area. and he was critical of the unprofessional actions of the two dobro controller and tower supervisor. -- the teterboro controller and tower supervisor. trace: we keep looking at horrifying pictures. any new information out about what was actually happening in the control tower that day? >> some has been out for a while.

the controller was on the phone for two minutes before the crash, and the supervisor that they left the tower on a personal errand. the supervisor could not be found immediately after the crash. they believe that the conversation would not have happened had the supervisor been in the tower. the ntsb says that both of the more on break. it sounds like they had one person in the tower paying attention to their job. trace: what is the faa adopts these changes? >> they probably will, and they can point to the fact that the existing rules have been in effect for years without problems. sometimes they take the advice, and sometimes they say, duly

noted, thank you for the advice, and no changes are made. it seems now that it will make a close note of the recommendations. trace: thank you. the media desk keeps giving us new video. this is the backyard of philip garrido, the man accused of kidnapping and molesting jaycee dugard over 18 years. we will give you video and also talk to the next-door neighbor, telling you what she suspected, what she saw, and if anything was an apparent ( whooshing )

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[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- trace: back live in the newsroom. martha: i am inside the jfk library, where senator edward kennedy is in repose. we have family members all around us. we saw robert kennedy jr., reggie kennedy, and tonight's

memorial is called a celebration of life, to include a huge cast of important characters to teddy kennedy. trace: brand new information on two stories. mike emanuel is following the health care debate in the dc news room, right across from the capitol. >> they're emphasizing preventive medicine and test as part of health-care reform. president obama says these are common-sense measures that will save billions in future medical costs. the cbo, which has challenged the price tag of the reform, is also skeptical of the benefits of preventive medicine, saying that prevention seems to exceed the savings. trace: the cia will now feet pay legal fees of agents -- will now pay legal fees for its agents.

>> this is in view of the enhanced interrogations program, considering whether some officers or contractors will face charges. this move is seen as more evidence of resistance to the attorney general's decision. trace: here comes danny. >> new information from the hurricane center. the hurricane is a stationary. we are expecting a move shortly which could change the track. circulation is well to the west of were showers and thunderstorms are located, and the storm is still a tropical storm, suspected to continue to be one as it rushes have arrest tonight, boston tomorrow, and nova scotia -- tonight, cape hatteras, tomorrow, boston, then nova scotia. trace: breaking news and new

video. first images of the backyard where jaycee dugard was held for the past 18 years, and we have brand new information, along with the video. claudia is talking with one of the neighbors. claudia? >> yes, in just a couple of hours, phillip and nancy garrido will be arraigned on multiple charges for this crime which took place in south lake tahoe. we know that atrocities were happening every day, and they went unnoticed by law enforcement officials that made regular visits to the home in accordance with phillip garrido 's paroled. and pauly -- with phillip garrido parole.

>> i was in the backyard, and a little red-haired girl peaked around it may and i tried to talk to her, ask her her name. she was very vague and she ran away. she was very shy, talking to strangers. >> she did not look abused or malnourished in any way? >> no, normal, perfectly normal. >> now, you and neighbors were aware that phillip garrido was a registered sex offender. you just found out recently on the database? >> yes, i just checked at a few months ago, and there he was. >> can you sum up the neighborhood reaction? >> add. very sad, very bizarre. flabbergasted. >> in all the time you were in your backyard, you had no idea

that there were any children just feet away? >> there was nothing. no indication, no clue, no nothing. nothing at all. >> all right. thank you for your time and for letting us take those pictures from your backyard. you saw blue tarps, a couple of tents, a swing set, children's toys. but there was no visible indication to neighbors or parole agents that there were any children living here. a lot of questions about that. now we're starting to hear equally disturbing statements coming from the defendant himself, the accused, phillip garrido. he granted a telephone interview to a sacramento television station in which he claims that the public has got him all wrong here. he said, you are going to find the most powerful start coming from the victim. if you take this one step at a time, you will find you will

fall over backwards, and in the end, you will find the most powerful, heartwarming story. it is hard to believe anything heart warming could come out of this, beyond the recovery of jaycee dugard, coors has been reappointed with her mother. her mother is getting -- who has been reappointed with her mother. her mother is getting to meet her two granddaughters. trace: thank you. more breaking news coming in. this is a sunday exclusive. former vice president cheney speaking out on the justice department's decision to investigate allegations of mistreatment of terror suspects by the cia. here is the former vice president. listen. >> we had a track record of eight years defending the nation against any further mass casualty attacks from al qaeda. the approach of the obama

administration should be to come to those people involved in that policy and say, "how did you do it? what were the keys to keeping the country stable?" instead, they are out there, threatening to disbar lawyers, threatening to go out and investigate cia personnel who carried out those investigation. -- investigations. trace: you can see this full interview sunday with chris wallace on the fox network. check your local listings for times. let's go up to dorchester, mass. martha: just a few moments ago, senator john kerry of massachusetts walked in to the jfk library. it is a veritable picture of history as you look at this group. health care reform, many say, lost its biggest champion in the

passing of senator ted kennedy. he was more than just a crucial vote. probably no other lawmaker fought the fight for health care coverage like he did. but will his death bring democrats and republicans together? that is one of the biggest issues at the negotiating table. can they even reached a deal that leaves out the government- run option? after all, one of kennedy's greatest legacies was a knack for reaching across the hour. it is said that his brothers, john kennedy and bobby kennedy, used the senate as a stepping stone. but ted kennedy, once he got there, he loved the senate in a way that may be his brothers did not really embrace. so he is not there to continue the process. major garrett has been travelling with the president this week in martha's vineyard and joins me now. the courts have been decided -- the senate has been divided on

the health care bill, and now they are divided on whether they will have the gop vote to get through. >> john kerry just showed up at the jfk library. he epitomizes relations with senator kennedy. when he first arrived in the senate, he was very much overshadowed by edward kennedy, and for a while, it was fair to say he resented it. senator kerrey always did so much more constituent work. for a while, there was tension, but it does salt. i am told that senator kennedy's death hit him hard. he said it is not the most devastating death he has had to experience since the death of his party. so we will have to see that grief on his face, because the two became very close, a testament to the friendliness senator kennedy showed to him and others.

both in his close circle of friends and in the larger circles of the senate. before kennedy died, democrats were beginning to make an argument that was going on this summer was obstructionism, and that was the real problem. clemens paschal -- claire macaskill and chris dodd has put out different messages, and they have collided a bit, and democrats are trying to get back to arguments. yet the kennedy mistake -- mystique collides with that a little bit. it might be beside the point, because as the country watches the observances, they will basically absorb that as something happening to one senator with a long, storied career. but they will probably make their own judgments about

whether they want health care or not and what they will do when they get back to town in early september. martha: one interesting thing about teddy kennedy was that one thing helping him reach across the aisle was that he had a real passion for things he believed in and believed in more expansive government, thinking it was the best thing for people. some have suggested -- i think steve forbes suggested that even barack obama does not have the passion or is not able to communicate that passion in a way that has gathered everyone along with them. >> i spoke to a member of the center for american progress, asking him with the indispensable figure is. in the minds of many democrats, is president obama. he has to join this debate, not just in town halls, but he has

to define the point of direction for his party in the house and senate. he has to tell them what he will and won't accept. let's take a quick lesson. >> it is up to the president after he comes back from his vacation to take a stand, to take ownership of this bill, to define what he wants. this one a public option, an employer mandate -- does he want a public option, an employer mandate? >> many democrats believe it is critical and have asked the president to be more specific about what he wants and lead the way forward. many democrats believe that the white house has to relaunched this debate with specifics come september. martha: it will be interesting to see if they do that. thank you very much. back to you in new york. trace: a deepening tug of war

between the cia and justice department. what leon panetta is now doing to show america's spies that he has their backs. and some say the fight over harsh interrogation techniques could put us all in danger. martha: and we continue live coverage from the jfk library in dorchester, mass., where mourners from all over the country have been flocking to remember senator edward kennedy. take a look. to silence headaches...

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martha: you are looking at live pictures from inside the jfk library right now. just moments ago, we saw the john kerry -- john kerry and his wife. they put their hands on the casket. major garrett telling us moments ago that this has been very difficult emotionally, according to sources close to the senator. the most difficult since the loss of his own father. they had a complicated but close relationship in recent years.

geraldine ferraro joins us now. good to have you with us right now. >> thank you. martha: talk to me about your personal relationship with senator kennedy. >> believe it or not, i went to high school with their cousin. at their graduation, there was this gorgeous senator, john f. kennedy. i met ted kennedy when we were representatives at a convention in maybe 1958, 1959. he did not remember me, but i knew exactly who he was. when i got to congress, it was a wonderful experience to work with him on so many policy issues. he was in the senate, i was in the house, but he was a leader. it was fascinating to watch him. i have been watching people in boston, and truly i would be there if i did not have an injury last week to my back and could not make the trip. but i will be in touch with

them. he was a leader in the senate and had tens of thousands of friends. look at the people who have come to visit with him, with the family, and to pay their respects. but you know what? everybody talks about how he was bipartisan in the senate. it was more than that. he was a very powerful man. he was chairman of the committee. he knew how to use power to reach out to both sides of the aisle. i have been watching the debate, the health-care debate. orrin hatch -- if ted kennedy was on the hill, he would not be doing the things that he is doing now. he would work with the chairman. i guess that orrin hatch thinks the only thing he has to do is go with republicans. it would be different if ted kennedy was there. we would not have these debates.

martha: how would it have been different? what would he be fighting for? >> he truly believed in health care. you have heard in speech after speech after speech. in 1984, he spoke at my convention, as dedicated and as he was when -- as dedicated as he was when he got up before the speaker at the barack obama convention. i have to tell you. this man is -- martha: single payer health care? >> not necessarily. that is not the option on the table. he was for a bill that covers everybody. it is universal. he felt there were people -- health care was a responsibility of government and the right of the people, that nobody should be denied. to watch people up there saying,

"he is one of us," yes, he is one of them, he was one of them, but here is a man from a wealthy family who could have done nothing. what his mother always told him is you have been given a lot, it is up to you to give back. and he gave back. his legacy will be that he will continue to give back. i dystopias replaced by someone in the senate who can get in there -- i just hope he is replaced in the senate by someone who can get in there and carry on his memory for the benefit of all of us. martha: senator john kerry and his wife are there. their relationship was complicated in massachusetts. talk about their history, if you can. >> we are all politicians. i should suspect that people in massachusetts are no different from new york. down deep, when it comes to issues that people care about,

these two were friends, close friends. so when john kerry says this is a glossy has not experienced since his father died, i can imagine -- when senator john kerry says this is a loss that he has not experienced since the death of his father, i can imagine what he is feeling. ted kennedy played with my grandchildren. he was wonderful, and his wife was a partner of mine. in any event, i will send my regards for the rest of the family. the nation will miss ted kennedy, and i personally will met him -- miss him.

martha: so happy to hear your thoughts on this. geraldine ferraro, thank you. trace: they have scared some of the worst terror suspects in the world. now are they being investigated? what leon panetta is doing to help cia agents. next. - ( rock music playing ) - ♪ oh! what do you say to a spin around the color wheel? - to paint with primer already mixed in? - ♪ yeah yeah yeah... - test samples instead of can commitments? - ♪ whoo! - what do you say we dip into our wallets less... - ♪ are you feeling it? - ...and grab ahold of the latest tools out there... - ♪ oh! ...so we can quit all that messing around with extra steps - and get busy turning our doing dials up a notch? - ♪ whoo! ♪ oh! more saving. more doing. - that's the power of the home depot. - ♪ yeah yeah yeah. a day on the days that you have arthritis pain, you could end up taking 4 times the number... of pills compared to aleve.

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trace: ayman al-zawahiri leading a crusade to urged pakistan is to join the hyd -- urge pakistanis to join jihad. saying that the approach in the obama administration should be to review how the country was kept a safe. -- kept safe. with me now is peter brooks, a former cia officer and former assistant secretary of defense, now senior fellow with the heritage foundation. this is going back to the 9/11

commission report saying that one of the major problems was a breakdown in communication between the fbi, under the umbrella of the justice department, and intelligence. now there is a vivid turf war between the justice department and cia. >> yes, it is being moved from the cia to fbi, and i'm worried about a return to before 9/11. the commission points out that that mentality could have led to the course of 9/11. after 9/11, they went out aggressively after the terrorists using whatever means were necessary to develop legal cases against them. so i am worried about it. besides that, the fbi is not known for its expertise in

foreign intelligence, which is what the cia does. the cia specializes in foreign intelligence and counter terrorism. trace: they are saying that the situation in afghanistan is deteriorating, and you would think that now would be a critical time to gather intelligence. >> we are not connecting the dots. isn't that what people were trying to do, prevent another attack? intelligence is our first line of defense. it is important for commanders in the field running operations with our brave young men and women. so it is critically important, another slap that apple's the agency is more and m battles its director -- another slap that bothers the agency even more and in battles -- and battles -- embattles it's director, leon

panetta. trace: so now he says they will find the legal fees for investigated agents. if you are leon panetta, what is your next move? >> anything after this may lead to him leaving. there is an irony here that we have u.s. government employees being defended by u.s. taxpayer dollars because they might be prosecuted by the u.s. government. think about it. it seems like we have better things to do, including panetta , fighting the wars in afghanistan and iraq. and you have field officers trying to keep us safe at home. are they more concerned with getting terrorists or getting a lawyer? with the cia with. -- trace: with the cia, did you believe they had your back

>> remember, leon panetta is an appointee of the obama registration. the white house is not really helping him. trace: america was reunion after 18 years. a brand new video that comes into fox news. that girl right there, jaycee dugard, taken for her family -- from her family at 11 years old. now she is home, 18 years old. a mother who is hoping for the same outcome joins us next. at wal-mart, their prices are unbeatable. over 300 prescriptions are just four dollars. four dollars. imagine that.

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>> officials in new jersey have headed to court to try to halt the renovation work done at the residence where the leader is expected to stay next month. many of the victims of the pan am 103 bombing came from new jersey. meanwhile, the decision to release the pan am bomber is suspected of having connection to oil deals with libya. trace: this is the deadliest month in afghanistan, the death toll rising to 45. jennifer griffin is falling out from the pentagon. >> strict nato rules about handing over prisoners over 96 hours has marines crying foul, saying that they do not have enough time to interrogate prisoners, a key part of winning any counterinsurgency. and they say when they do hand them over to authorities, they are simply released. trace: let's go to the

carolinas. waiting on danny. pretty nice there, johnson. >> yes, but these dark clouds just came in an hour ago. we will see this more and more as the storm approaches. there are surfers taking advantage of the heavy water now, but the life guards warn inexperienced swimmers to stay away from the shore. trace: brands' new information at the bottom of the hour. now, back to outside of the jfk library -- brand new information at the bottom of the hour. martha: you started your career with senator kennedy back in 1980 when he was running for president. and this might be like an old home week for all of you who worked on the campaigns. what was it like for you

personally? >> very sad and painful. but the fact that i grew up in massachusetts, found out about him running for president, filled by name out on a card and was able to travel the country and work at the boiler room in the convention and be on the floor when he gave a tremendous speech, and be on the floor again in denver last year to watch the speech -- locking me. -- lucky me. martha: everyone is wondering, will it be a kennedy taking over his role? it feels like it should be. our whole lives, and he has been the senator from massachusetts. >> massachusetts has had a kennedy in the senate since the 1952, so it would be the first time we did not. there was speculation about the kennedy and joe kennedy. but it became clear last week

that vickie did not want the appointment, did not want to run. and maybe in the last 24 hours, you get the sense it is something that joe kennedy is considering. martha: this is joe kennedy, the oldest of bodies children, a former congressperson from massachusetts. he has been influential in getting heating oil for people who could not heat their homes. that is his latest cause. >> yes. i think you get the sense that a kennedy should run, and you are perhaps starting to see little signs. standing next to him in the receiving line -- you are starting to hear buzz from people who might suggest he is seriously considering it. what are the pros and cons. martha: watching the compound in hyannis port yesterday, my mind went to the things you read over the years where big political decisions were made. the house is going to be a

museum, which is fitting, but where do they go to have the sort of -- does it mean there is a splintering of the family, that they do not have a central, physical place to be together? >> the compound was always the one constant in people's lives. no matter where they went, where they travel, you always came back to the compound. rose kennedy wanted to make it into a convent, but ted kennedy talked her out of it, saying they needed to make a vocational center. i think watching senator kennedy leave the compound for the final time yesterday it was poignant and painful, and you could see it etched on everybody's face. the compound will never be the same. i have been fortunate to be there a few times. it is a remarkable place. martha: thank you very much for your insights, for being so close to the situation.

trace, back to you. trace: a gun salute, folded american flag, and "taps." traditions to honor fallen soldiers. but many veterans are getting a recorded version. what one veteran is doing to change this. >> i want every family to have life "taps" at the going away presentation of their veteran. it tells the marines guarding the gates in heaven, we are going to let them in. he ran off with his secretary! she's 23 years old! - oh, come on. - enough! you get half and you get half. ( chirp ) team three, boathouse?

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trace: that is a live look from these sheriff's office just outside a san francisco, where they are holding a press conference concerning jaycee dugard, the 11-year-old adopted

18 years ago. they are holding it because their contact with the person who was a suspect in the case, phillip garrido, they had contact because they investigated a claim by neighbors. they want to understand how it transpired, because they are getting a lot of heat in the case. much more on that coming up. breaking news as we continue to cover this case. with us now are people who know this nightmare all too well. ernie allen is the president of the national center for missing and exploited children, and patty's son was kidnapped in 1989. she is a missing children advocate. you see this case of jaycee dugard, and it must give you hope. >> absolutely. we live on hope, and the national center for missing and exploited children knows this better than anyone else. kids to come home. it is all of us doing what we

need to do to find them. trace: i look at the number and amount of time that the sex offenders to serve -- 79 cents is the average sentence, 59 months the average time served. but there are four times as likely to repeat offender as other criminals. these are horrifying -- they are four times as likely to repeat offend than other criminals. these are horrifying figures. >> two-thirds of them are in our communities, not in prison. the system for monitoring and following them is overwhelmed. it is a really serious problem. trace: it is. the suspect here, phillip garrido, was convicted. he was supposed to serve a long time but got out early. now we believe he reoffended. give us an idea of why is that we have so much trouble locating

these kids. if we had a database today or 18 years ago that we had, would we have captured him a lot sooner? >> that is hard to answer, but in this case, the sex offender registry worked. they ran his name and pursued it with law enforcement work using the tools they had at the registry. what it is is the mindfulness of everyday people to report something they find unusual or suspicious involving children, and it certainly sounds like there were some of those instances. trace: on the left-hand side of the screen, we see the beginning a news conference. we do know that a sheriff's deputy went to the property,

along with a parole officer. we are going to keep talking here. they went to the phillip garrido property phillip -- they went to the property of phillip garrido and never, ever saw anything suspicious or went into the backyard. >> well, we know that law enforcement took this case very seriously from 1991 on, but clearly, there needs to be greater scrutiny of these guys. so many of them hide in plain sight. there is a lot more that needs to be done. trace: and we should note, what claudia brought up was that phillip garrido was handing out religious pamphlets. someone was suspicious and brought him in. he brought his wife, jaycee dugard, and her two children with them. they must have believed after 18 years that they were in the clear.

>> they thought they were home free. they had been undisturbed for 18 years. jaycee dugard, 29 years old. this is something he thought was behind him. >> now they are free. now they are free to build a life again. >> absolutely. trace: it goes back to the whole point, where, man, it is incredible that kids are being taken in broad daylight like this. >> yes, but with good tools and help we can bring them home. now three lives have been forever changed and they have a chance of building a life again. trace: indeed. patty, ernie, thank you both. with just 24 notes echoing from a brass bugle, it conveys a deep sense of pride, service, and honor.

no service is associated more with funerals in america that "taps," but only a small percentage of soldiers have a live musician playing the song. one veteran is doing what he can to change that. it is a story that first aired on "fox news sunday." post chris wallace has more. >> is only 24 -- it is only 24 notes. buddied means so much. >> he should know. he is the founder and president of an organization called " bugles' across america." >> how many funerals have you done since you started? >> 200,000. in 10 years. >> it started in 2000, when congress gave every that a right to a funeral with military honors, including a eight --

every veteran a right to a military funeral, including a live bugle player and flagged paris. but they started using an electronic device. he did not like it. >> i call it stolen dignity that these veterans cannot get live "taps" and we are out there ready to perform it. >> so he started his organization, recording for -- recruiting for hundred horn players. >> now we have 6000 horn players and are doing 2200 funerals a month. >> it runs out of his basement in chicago. families can go all the website to ask for a bugle player. a message is sent for every form player within 100 miles of the funeral. he gives away bugles and helps

with uniforms, while they get sent support from foundations. they make a deficit every year. >> how do you make up for it? >> myself. probably $10,000 a year. you finish the notes come up with a torn down, and the flight has been presented, and the family comes over. the handshakes from the families. there is nothing. nothing can provide a feeling i get from the families when i finish the notes. >> he says he wants to keep going until he dies. that leaves his organization in solid shape to carry on. >> it tells the marines who are

guarding the gates in heaven, live "taps," we're going to let this veteran right in. trace: since that piece aired on sunday in may, a few hours donated more than $100,000 to continue the -- viewers donated more than $100,000 to continue the program. if you would like to contribute, go to bugle'sacrossamerica.org. and sunday, chris wallace sits down for an exclusive interview with dick cheney, nearly one week after documents were released detailing the use of advanced interrogation tactics. check your local listings for that. and breaking news coming in concerning the death of michael jackson. the l.a. county coroner has now

released parts of the autopsy saying that michael jackson died and the cause of death was established as acute intoxication. other conditions contributing to the debt were benzodiazepine effects. the matter of death has been ruled a homicide. it does not change the scope of the investigation, but it does show that michael jackson was riddled with drugs at the time of his death. benzodiazepine has been confirmed, and it is now a homicide in the death of michael jackson. if you're like a lot of people, you have high blood pressure... and you have high cholesterol. you've taken steps to try and lower both your numbers. but how close are you to your goals? there may be more you can do. only caduet combines two proven medicines...

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trace: the sheriff here in contra costa, calif., talking about the case of jaycee dugard. he is talking about the fact that in 2006, the sheriff's office 7911 call from a neighbor saying that they were observing children and tenths in the backyard, and that phillip garrido was a sexual addict. so a deputy went to the scene, but he did not pick up on or investigate the situation. now he is saying it was a missed opportunity. he went on to say that he is not pointing fingers, but there is a lot of focus on why this was not fully investigated. the car was also found on that property that abducted jaycee dugard. more breaking news on that case as it comes in. more breaking news out of southern california on the death

of michael jackson. his death was in fact caused by an overdose of drugs. the cause of death has been ruled a homicide. it does not change the scope of the investigation. it's simply confirms what has been in the media for a while. michael jackson did die from an overdose of drugs. it was ruled a homicide, michael jackson dead at 50 in june. let's go back to the jfk library, and martha. martha: as you see over my shoulder, bobby kennedy, jr., the active environmentalist, is a speaking there. -- is speaking there. he has worked closely with bono

on his charitable work. a huge stream of people coming out right now. senator kerry was there a moment ago with his wife. it feels that things are wrapping up at least for now, but there is a very special ceremony and memorial service taking place called "a celebration of life and." -- "a celebration of life." there will also be a special video by ken burns, who made a wonderful civil war documentary and other documentary on baseball and jazz. ken burns has put together a special memorial video which is sure to tug at some heart strings tonight.

and finally tonight, the burial service. we will start coverage at 10:00, and the service is 10:30 to 12:30, so we will be there. trace: the urgent bulletin's continue across the wires now. we're keeping you updated on breaking news as we walked there. -- watch their. breaking news also on michael jackson coming out of california. continuing coverage now. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- shepard: brand new information in on tpi