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SHOWBIZ TONIGHT

Man Convicted for Cameron Diaz Nude Photo Scam; Clay Aiken Answers Questions About Charity; iPod Nation: Why Are They So Popular?

Aired July 25, 2005 - 19:00:00   ET

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


KARYN BRYANT, CO-HOST: I`m Karyn Bryant.
A.J. HAMMER, CO-HOST: I`m A.J. Hammer. TV`s only live entertainment news show starts right now.

(BEGIN VIDEOTAPE)

HAMMER (voice-over): On SHOWBIZ TONIGHT, a verdict in the Cameron Diaz trial. Did the man who took topless photos of the star win or lose? We have the verdict.

BRYANT (voice-over): Clay Aiken speaks out. For the first time, Clay`s talking about the accusations that his charity isn`t being all that charitable.

HAMMER: Tonight, our special series, "iPod Nation": everything you wanted to know about the iPod, what they can do, and their impact on how you get music, even if you don`t have one.

BRYANT: Meet Brian. No job, no money. Just one really big dream.

BRIAN HERZLINGER, DIRECTOR: I have 30 days to get one date with Drew Barrymore.

BRYANT: He`s turned a major crush into a major motion picture. But how did he do it without buying a camera? And did he ever get that date? Tonight, the man with the plan joins us live.

CARLY SIMON, MUSICIAN: Hi, it`s Carly Simon here. If it happened today, it`s on SHOWBIZ TONIGHT.

(END VIDEOTAPE)

BRYANT: Hello, I`m Karyn Bryant.

HAMMER: I`m A.J. Hammer.

BRYANT: Tonight Cameron Diaz is speaking out about her topless photos and the end of the trial of the man who tried to sell them back to her for millions of dollars.

HAMMER: Well, today, a California jury convicted the man of forgery, attempted grand theft and perjury, and tonight, one of Hollywood`s biggest stars is claiming vindication.

BRYANT: Joining us from Burbank with the very latest details, "Celebrity Justice`s" Harvey Levin. Now Harvey, if you can, please just give us the general overview, the details of the case.

HARVEY LEVIN, "CELEBRITY JUSTICE": Well, Karyn, it all started in `92 when these photographs were taken. They`re topless photos of Cameron Diaz, kinds of on the S&M side, before she became a big star.

John Rutter took -- got these pictures and, in 2002, allegedly went to Cameron Diaz and said, "Hey, guess what? I got these pictures of you. You`re a big star now. Pay me 3.5 million bucks or I`m going to sell them to somebody else."

He was ultimately tried for perjuring himself and also forging these documents that she supposedly signed, these release forms. Cameron Diaz says, "I never signed a release form." Rutter said she did. And ultimately, the jury had to decide was it a forgery?

BRYANT: Now she`s also said that she`s not ashamed of the pictures. It`s just that she simply never signed the release. Was she at the courthouse today? Can you paint a picture for us of what happened at the courthouse?

LEVIN: Yes, he was nailed. He got nailed, convicted on all three counts: grand theft, forgery and perjury. Cameron Diaz was not there. He now faces six years in prison. And in fact, the judge felt he was such a flight risk that his bail was revoked, so he`s in custody right now.

Cameron Diaz released a statement, saying it was an unfortunate situation, but she`s none too sad about this. She said justice has been served.

BRYANT: In fact, I`m going to read the statement that you`re mentioning, Cameron Diaz. It said today, quote, "Although I wish that this unfortunate situation hadn`t occurred in the first place, I am very gratified that justice has been served. I`d like to thank David Walgren, Brian Bennett and everyone in the prosecutor`s office, as well as my personal attorneys, for their hard work on this matter."

So Harvey, with this, what are the implications of this case?

LEVIN: Karyn, I think the implications, I think, are huge. This really shows the turn on paparazzis (sic) in our culture. And I`ve got to tell you, in L.A. County, people -- prosecutors are going after them now, and police, with a vengeance.

I think this really is just an extension of this feeling that photographers have crossed the line when it comes to celebrities and there isn`t a whole lot of tolerance left. And I have a feeling a lot of photogs and paparazzi in particular are going to start thinking twice before they invade the spaces of celebrities.

BRYANT: All right. Well, very much -- thank you very much for your insight. Harvey Levin from "Celebrity Justice."

And while John Rutter`s plan to make Cameron Diaz pay big bucks for her topless photos backfired, a British media mogul is going to do it the other way around. Richard Desmond -- he is known as "Dirty Des," in fact - - grabbed headlines today by announcing plans to launch an American version of his weekly star-studded tabloid, called "OK!" This time, he plans to pay celebrities for their photos and exclusives, and he`s writing a whopping $100 million check to kick things off.

HAMMER: Well, tonight, the nominees are in for the 22nd annual MTV Video Music Awards. This year`s host, P. Diddy, was on hand, along with nominees Kelly Clarkson and Kanye West today to announce this year`s nominations for the August 28th award show.

Topping the list with the most nominations, Green Day. They got eight, including best video for "Boulevard of Broken Dreams." Also in the running for best video are Coldplay, Kanye West, Snoop Dogg with Pharrell, and Gwen Stefani for "Hollaback Girl."

Last year`s big winner, Usher, got a couple of nominations, including best male video for "Caught Up." He`s up against 50 Cent`s "Candy Shop," Beck for "E-Pro," John Legend`s "Ordinary People" and Kanye West`s "Jesus Walks."

Gwen Stefani is another top nominee, getting six nominations, including best female video for "Hollaback Girl." Joining her are Mariah for "We Belong Together," Kelly Clarkson for "Since U Been Gone," Amerie`s "1 Thing" and Shakira`s Spanish hit, "La Tortura."

But what might be the most competitive category this year is the best new artist in a video category. Multiple nominee John Legend is right in there for his hit, "Ordinary People," joined by newcomer rock group The Killers, rapper The Game, Ciara for her dance hit "1, 2 Step" and another rock group, My Chemical Romance.

Well, tonight, one of "American Idol`s" biggest stars is setting the record straight on a charity controversy swirling around him. Clay Aiken is speaking about -- speaking out about reports that his charity is not so giving, and you`re hear it here on SHOWBIZ TONIGHT exclusively.

Our Sibila Vargas is live in Hollywood with the latest.

What`s the story with this, Sibila?

SIBILA VARGAS, CNN CORRESPONDENT: Well, it all started when Clay Aiken`s hometown station ran a report questioning how his nonprofit group was spending his donations. Now those headlines were picked up by national media outlets, and the story has gotten legs. Aiken says the station now backs him up, but he wants to clear the air once and for all.

(BEGIN VIDEOTAPE)

(MUSIC)

VARGAS (voice-over): Clay Aiken is hearing the sounds of criticism, and not for his music. Critics are saying his charity, the Bubel-Aiken Foundation, which was set up to benefit children with disabilities, could be, well, no charitable.

Aiken`s charity raised more than $1 million last year, but critics point out that less than a third of that money went towards grants to individuals or outside organizations.

For the first time on camera, Aiken is defending his charity, exclusively on SHOWBIZ TONIGHT. He said a distinction should be made between grants and direct services programs.

CLAY AIKEN, FOUNDER, BUBEL-AIKEN FOUNDATION: We`re not a grant giving organization, so we do spend less than one third on grants. It`s true. We do spend less than one third on grants. But over a half of our money, in addition to that, goes to programs like summer camps, able to serve programs, youth service programs.

VARGAS: Aiken told SHOWBIZ TONIGHT an independent accountant looked into their numbers and, according to Aiken, his organization charitably spends 85 cents of every dollar raised. He says that`s right in line with other nonprofits.

Aiken told SHOWBIZ TONIGHT the negative media reports were frustrating.

AIKEN: It`s just kind of a disappointing thing, because you hope that people would get the entire story and people would want the entire story, but it`s been a -- it`s been disappointing thing that I`ve learned in the past year. People are more interested in sensationalism than they are with getting the facts.

VARGAS: But the publicity was not all bad. Aiken told SHOWBIZ TONIGHT his charity is coming out on top.

AIKEN: After that story came out, we probably raised more money in the past five days than we did in the entire previous two months. So I think most people are understanding that we are, you know -- they realize that what we`re doing is appropriate and we have a good cause.

VARGAS: But Daniel Borochoff, president of the American Institute of Philanthropy, told SHOWBIZ TONIGHT be careful with celebrity charities.

DANIEL BOROCHOFF, AMERICAN INSTITUTE PHILANTHROPY: Too often it`s happened to me that we wasted too much dollars giving money to celebrity oriented organizations that really haven`t amounted to much. There`s a lot of hoopla, a lot of excitement at the beginning. But unfortunately, a lot of times they fizzle out, and this is not a good use of our charitable money.

(END VIDEOTAPE)

VARGAS: Well, Americans certainly love Clay Aiken. His juke box tour kicks off in New Jersey this Thursday. It`s his fifth tour since "American Idol" and has him singing some 70-odd songs from five decades, everything from Sam Cooke to Barry Manilow to the Bee Gees and the Goo Goo Dolls. His tour ends September 1.

A.J., back to you.

HAMMER: Thanks very much, Sibila. SHOWBIZ TONIGHT`s Sibila Vargas, live in Hollywood -- Karyn.

BRYANT: It was another sweet weekend for "Charlie and the Chocolate Factory." Johnny Depp and company took the top spot at the weekend box office for the second week in a row, according to final figures released this afternoon.

Owen Wilson and Vince Vaughn held onto the No. 2 spot with their comedy, "Wedding Crashers." "Fantastic Four" was No. 3, followed by the debut of the Michael Bay thriller, "The Island," which stars Ewan McGregor and Scarlett Johansson. And the remake of "The Bad News Bears," starring Billy Bob Thornton debuted in fifth place.

HAMMER: Well, Snoop Dogg spent the weekend hanging with the troops in Hawaii. Snoop headlined a concert in Hawaii on Saturday night to benefit the U.S. military. The concert followed a celebrity poker tournament. Stars including Wanda Sykes, Colin Quinn and Shannon Elizabeth played No Limit Texas Hold`em in a tournament against the troops.

The event raised money for Fisher House Foundation. That`s a group that donates temporary housing for family members of hospitalized troops.

BRYANT: Jessica Simpson on the tabloids and her abs. How she got in shape for "Dukes of Hazzard," coming up.

HAMMER: Plus, inside the iPod. Those white colored cords are everywhere. But whether you`re a newbie or obsessed, we have some information for you. Our series, "iPod Nation" begins tonight. That`s coming up.

BRYANT: And dreaming of Drew. We`ll see the man who set his sights on a date with Drew Barrymore. And hint, it is not the drummer for The Strokes. That is coming up.

Now, tonight`s "Entertainment Weekly Great American Pop Culture Quiz." Iggy Pop and David Bowie once shared an apartment in what European city? Was it Berlin, London, Frankfurt or Paris? We will be right back with the answer.

(COMMERCIAL BREAK)

BRYANT: So again, tonight`s "Entertainment Weekly Great American Pop Culture Quiz." Iggy Pop, the great Iggy Pop, and the great David Bowie once shared an apartment in what European city? Was it Berlin, London, Frankfurt or Paris? The even is, A, Berlin.

From the biggest stars in the world to the average person in the streets, there`s one thing that has become a national obsession, that little white music player that is turning us into an "iPod Nation.

Tonight, we begin a special series that looks at everything from how the iPod has created a music revolution to what you need to know about it and what are the alternatives.

Tonight, what is an iPod and who`s got those little white buds protruding from their ears?

(BEGIN VIDEOTAPE)

BRYANT (voice-over): Former "Friends" star Courteney Cox tells SHOWBIZ TONIGHT she can`t live without it.

COURTENEY COX, ACTRESS: I think it`s the greatest thing in the world.

BRYANT: The stars of the upcoming "Dukes of Hazzard" movie tell us they never roll without one.

JOHNNY KNOXVILLE, ACTOR: It doesn`t really get out of my sight.

SEANN WILLIAM SCOTT, ACTOR: It`s just amazing that you can put all this music on there.

BRYANT: What about Jessica Simpson?

JESSICA SIMPSON, SINGER/ACTRESS: Obsessed.

BRYANT: And if you look closely at President Bush when he suits up for a bike ride, you can see the tell-tale white headphones.

They, like the rest of the nation, are obsessed with the iPod: Apple`s line of portable digital music players that, depending on the model, can hold thousands and thousands of songs, can store thousands of pictures, even double as a hard drive. For millions of people, the iPod is not only something they must have but something that has become indispensable and addictive.

UNIDENTIFIED MALE: I get to put so much music on one platform.

UNIDENTIFIED MALE: It`s easy to use. It`s not complicated.

BRYANT: Yet there are plenty of people who, shall we say, are iPod challenged, like singer Carly Simon, who told SHOWBIZ TONIGHT she`s still trying to figure out hers.

SIMON: How do you find the songs?

BRYANT: Not a bad question, Carly. So we asked an expert to break it down for us.

SCOTT MCKENZIE, "BILLBOARD" RADIO MONITOR: They`re simple. The iPod still is one of the simplest devices out there. They have software that comes along with your iPod called iTunes. You chose the music from that if you`re buying it, and it dumps it right onto your device.

Or, if you`ve got your CD collection of the last 15 years, then go ahead and grab that and load that in, as well.

BRYANT: Just last week, I tunes sold it`s 500 millionth song. That`s half a billion. And a remarkable 20 million iPods have been sold since the original came out in 2001.

All of this has revolutionized not only the music industry but how people buy and listen to music.

MCKENZIE: They`re buying singles. They`re not buying albums. They`re buying one song at a time. They essentially become mini record label representatives all on their own, where they decide, really, what they like and, really, what they hate. And they`re paying for what they like. It`s a single at a time, no more albums.

BRYANT: And with another 15 to 17 million more iPods expect to be sold by the end of this year, you can bet that this will continue to be an iPod nation for a long time to come.

(END VIDEOTAPE)

BRYANT: And if you consider yourself iPod challenged, stay with SHOWBIZ TONIGHT. In just a few minutes, we`ll be joined by tech guru Leo Laporte as we go inside the iPod and we look at everything you need to know about the iPod, including a lot of stuff you may not have known. That is coming up a little later on in SHOWBIZ TONIGHT.

HAMMER: Well, now we`d like to hear from you. It`s our SHOWBIZ TONIGHT question of the day. Downloading music: is it better than buying a CD? You can vote by going to CNN.com/ShowbizTonight. Got more to say? Then e-mail us at ShowbizTonight@CNN.com. We`re going to read some of your thoughts a little later on in the show.

BRYANT: Well, we just heard that Jessica Simpson is obsessed with her iPod. And SHOWBIZ TONIGHT also learned that these days, she`s rather fond of working out, too.

The star of "Dukes of Hazzard" tells SHOWBIZ TONIGHT she spent two hours a day, sometimes more, at the gym, doing cardio and lifting weights to get in that Daisy Duke shape. And she says now she loves going to the gym.

And as for all the media attention she and her husband Nick Lachey get, Jessica says she keeps it all in perspective.

(BEGIN VIDEO CLIP)

SIMPSON: You know, the media attention is -- it helps everything. It helps record sales. It hopefully will help the movie. It kind of all goes together. It`s just a lifestyle. So you kind of go with the flow, roll with the punches and hope that your fans get through it all.

(END VIDEO CLIP)

BRYANT: "Dukes of Hazzard" is in theaters August 5. And Jessica tells us she is also finishing up a new album this summer.

HAMMER: So, have you ever had a crush on someone a little out of your league? Brian Herzlinger dreamed of getting a date with the woman of his dreams, Drew Barrymore. His quest has now become a documentary. It`s getting a lot of buzz around Hollywood.

Brian Herzlinger, the film`s star and director, joining us live here on SHOWBIZ TONIGHT.

Brian, why Drew Barrymore?

HERZLINGER: Drew Barrymore. She`s hot. No. You know, I`ve had a crush on Drew since I was 6 years old.

HAMMER: And you were a member of her fan club.

HERZLINGER: I was. It kept me single all through high school, you know. And -- and then, you know, just watching her go through her life and get through all the -- you know, the dark patches and come out with such an -- just an amazing outlook on life. That`s something amazing.

HAMMER: Well, I thought another good title for this movie would be "Nice Jewish Boy from Jersey Chases his Dream with $1,100"...

HERZLINGER: Yes.

HAMMER: "... Over 30 Days." That`s when you tried to get it done within and how much money.

HERZLINGER: Yes.

HAMMER: Why $110 and why 30 days?

HERZLINGER: Well, the $1,100 came from a game show I went on a little while back, and the winning answer on the game show was the name Drew Barrymore.

HAMMER: Really?

HERZLINGER: So took it as a sign. I said, "You know what? I could use it for rent, because I`m a filmmaker, have no money. Or I could use it to chase down a life-long dream of trying to meet Drew Barrymore.

And the reason why we have 30 days is because $1,100 bucks is not that much money.

HAMMER: Right.

HERZLINGER: So we wound up getting a camera from Circuit City and using their 30-day return policy.

HAMMER: They have a very generous return policy.

HERZLINGER: Yes, they did. They`ve changed it.

HAMMER: I imagine they would have after your little movie.

HERZLINGER: Yes. It`s now 14 days with a 15 percent restocking fee.

HAMMER: And among the ways you tried to go about contacting Drew, you basically contacted all the people you knew and had them reach out and sort of went after the six degrees thing.

HERZLINGER: Yes.

HAMMER: You even had a facial appointment with her Drew`s facialist.

HERZLINGER: Yes. Yes, I didn`t know I had so many blackheads in my life. That was a very modest experience and humbling.

But we also, you know, we did things -- for example, where once the possibility existed of me trying to get a date, you know, trying to get the actual date, around day 15, I started freaking on. So we went online and auditioned Drew Barrymore look-alikes so I could have a test date, just so I could be stupid and say all the stupid things I was going to say -- I was bound to say on the test date, just in case I got the real date.

HAMMER: And you also -- this was going on right around the time "Charlie`s Angels" was being released, and...

HERZLINGER: "Charlie`s Angels 2."

HAMMER: "Charlie`s Angels 2." And you printed up some counterfeit laminates to get into the party.

HERZLINGER: Well, we had no idea what was going to happen from day to day. But the one thing we knew for sure was that the "Charlie`s Angels" premier was going to happen during our 30 days. So I knew I had to try and sneak in with some fake passes, and that was my opportunity to ask her out in person.

HAMMER: Now, through the course of the movie, a couple of people said to you, "Brian, you`re acting a little bit like a stalker." I`m sure you`ve been hearing that a lot.

HERZLINGER: Yes.

HAMMER: But it did seem crazy. You`re trying to track her down.

HERZLINGER: You know what? From the very beginning, in the very beginning, deciding to do the movie and document this quest, I did not want to come off as a stalker. That was my biggest concern.

And I knew that it was a positive quest, trying to make a life-long dream that I`ve had since I was a boy in New Jersey, trying to make that come true. And everybody who`s seen the movies, people come up and inspire them to follow their own lifelong dreams. They get it. Everybody`s got this universal crush on somebody on the poster in the bedroom while growing up, you know?

HAMMER: And it`s amazing, because this ride has been going on, for you, for two years.

HERZLINGER: Yes. Made it.

HAMMER: Since you actually filmed it. And here you are now. You`re on "The Today Show." Your parents, featured in the movie, thinking you`re out of your mind. What do they think of you now?

HERZLINGER: They still want me to get a job. But...

HAMMER: Up until two weeks ago what were you doing?

HERZLINGER: It was temping. I`m still temping. You`ve got to open up in the box office first.

But they`ve been thrilled for me on the journey. They`re having a blast. They`re on it with me. And you know, it`s just amazing. It`s an amazing ride.

HAMMER: Well, as much as I would like to tell everybody what happened, I`m going to let them...

HERZLINGER: You`ve got to see the movie. Yes.

HAMMER: ... find out themselves when it comes into theaters. Brian, best of luck to you and thanks very much.

HERZLINGER: Thanks so much, man. I appreciate it.

HAMMER: All right. Brian Herzlinger from "My Date with Drew," and the movie`s going to open up in theaters on August 5 -- Karyn.

BRYANT: Well, it`s Willie, mon. Country super star Willie Nelson is trying out reggae on his new album. We`ll get a review, coming up.

HAMMER: But that`s not all. We`re also going to check out the new release from the Ying Yang Twins. You`ve been hearing their big summer hit. We`re going to do all that in "People" magazine`s "Picks and Pans."

Plus, he`s done it again. Lance Armstrong wheels to victory at the Tour De France. Tonight, a look at the mountains he`s climbed to get his seventh victory. That`s on the way on SHOWBIZ TONIGHT.

(COMMERCIAL BREAK)

HAMMER: Welcome back to SHOWBIZ TONIGHT. It`s time now for the "SHOWBIZ Guide" where throughout the week, we help you decide where to best spend your dollars on movies, music, DVDs and more. Tonight, "People`s Picks and Pans," new music.

Joining us live from "People" magazine, senior editor, Julie Dam.

Nice to see you, Julie.

JULIE DAM, SENIOR EDITOR, "PEOPLE" MAGAZINE: Hi.

HAMMER: Willie Nelson released "The Countryman" two weeks ago. It was supposed to come out, like, 10 years ago. Willie does reggae. Help me understand this.

DAM: People are, like, wondering, what does Willie and reggae music have in common other than certain banned substances? But he made this album, like, 10 years ago, and for some reason, a problem with his record company, he never released it until now.

And it actually debuted at No. 6 on the charts and No. 1 on the reggae charts. And it`s interesting. It`s kind of good when he brings reggae music to his own songs, like "Something to Think About," but when he starts trying to countrify Jimmy Cliff songs, not so good.

HAMMER: And "Something to Think About," that was the song we were just listening to there. Okay. Sort of a menza-menz review.

DAM: Yes.

HAMMER: Let`s move on to the Ying Yang Twins, who with "The Whistler Song," have one of this summer`s biggest hits.

DAM: Exactly. They`re sort of the court jesters of crunk, if Little John is the king of crunk. They bring the dirty to dirty south hip-hop. Obviously, "The Whisper Song" is a bit of an X-rated song. Not something to put on during your car pool. But it`s a fun, humorous album. And they even have Adam Levine from Maroon 5 singing on their also.

HAMMER: And this is on the album, "USA," which is the United States of Atlanta.

DAM: Exactly.

HAMMER: OK. Let`s move on then to another newcomer, the debut album from Keisha Cole, who`s getting a lot of buzz for "The Way It Is." That`s her big hit right now.

DAM: Right. She`s 23 years old, and she grew up idolizing Mary J. Blige. And she kind of follows in Mary J.`s footsteps. It`s kind of this raw emotion and street smart lyrics. So it`s a solid debut.

HAMMER: This is the video, "Salute -- Salute to Troops in Hawaii" we`re listening to right here.

(MUSIC)

HAMMER: And her debut CD, as I mentioned, "The Way It Is," in stores now.

All right. Julie Dam from "People" magazine, thank you very much for stopping by.

And for more "Picks and Pans," you can always grab your copy of "People" magazine, which is available on newsstands now.

BRYANT: Payola, it is radio`s not so secret dirty little secret. Tonight a multimillion settlement in a pay for play case. We`ve got that story coming up.

Plus, inside the iPod. Whether you`re clinging fiercely to your Walkman or you`ve joined the ranks of the iPod people, it`s everything you need to know. That is next in our series "iPod Nation."

And living strong. He has won his seventh Tour De France. Tonight, why Lance Armstrong says he`s grateful for the cancer that once made him wonder if he would live or die. That is coming up.

HAMMER: Some veterans were not at all amused by parts of "Wedding Crashers" and the movie`s official web site. And tonight, a congressman from Colorado is claiming victory against the studio. He says Newline Cinema has agreed to take down part of the web site, which offers a fake Purple Heart to print out as a way to get attention.

More SHOWBIZ TONIGHT coming up.

(COMMERCIAL BREAK)

SOPHIA CHOI, CNN HEADLINE NEWS ANCHOR: SHOWBIZ TONIGHT continues in just one minute. Right now, I`m Sophia Choi with your "Headline Prime Newsbreak."

Well, British police have named two suspects in Thursday`s attempted bombings in London. They`re among four men spotted on surveillance video from the locations where the botched bombings took place. Police also made two more arrests in the investigation.

The family of Natalee Holloway is offering one million dollars for her safe return. It`s an effort to find out if she`s still alive. A $100,000 reward has already been posted for information leading to her possible remains. The 18-year-old disappeared about two months ago while on a class trip to Aruba.

NASA says tomorrow morning`s space shuttle launch is right on track. That fuel sensor problem delayed the Discovery`s original launch date two weeks ago. NASA engineers say they`ve done lots of tests and don`t think the glitch poses a safety issue now. It`ll be the first launch since the Columbia tragedy in 2003.

That`s the news for now. I`m Sophia Choi. Now back to SHOWBIZ TONIGHT.

BRYANT: On SHOWBIZ TONIGHT, "iPod Nation." If you own one, we`ve got new tricks for you. And if you don`t, well, you should still pay attention, because we`ll show you how this music player to go is changing the way you listen to music. It`s a SHOWBIZ TONIGHT special series.

HAMMER: And Tour de Lance. Lance Armstrong breaks a record and goes out in style. But tonight, before this dream came true, hear how this champion rider had to endure the nightmare of his life.

(BEGIN VIDEO CLIP)

UNIDENTIFIED CHILDREN: Hi, we`re the "Bad News Bears." If it happened today, it`s on SHOWBIZ TONIGHT.

(END VIDEO CLIP)

HAMMER: Welcome back to SHOWBIZ TONIGHT, TV`s only live entertainment news show. It is 31 minutes past the hour. I`m A.J. Hammer.

BRYANT: And I`m Karyn Bryant. Here are tonight`s "Hot Headlines."

HAMMER: Guilty. Today, a photographer was convicted of trying to blackmail actress Cameron Diaz. A Los Angeles jury convicted John Rutter of forgery, attempted grand theft, and perjury. Rutter took pictures of Diaz when she was 19 and then tried to sell them back to her for $3.5 million in 2003. He could face up to six years in prison. Through her publicist, Diaz told SHOWBIZ TONIGHT today that she`s gratified justice has been served.

BRYANT: Jane`s anti-war tour. Tonight, actress Jane Fonda says she will take a cross-country bus tour to protest the Iraq war. The trip will begin in March and will use a bus that runs on vegetable oil. Fonda`s protest of the Vietnam War caused a lot of controversy 30 years ago.

HAMMER: And the nominees are -- the MTV Video Music Award nominations were announced today. Modern punk-rockers Green Day topping the list with eight nods, six of which are for "Boulevard of Broken Dreams." P. Diddy`s going to host the awards show. It goes down August 28th from Miami.

BRYANT: Well, music is the focus of our SHOWBIZ TONIGHT "Question of the Day." Here it is. Downloading music: Is it better than buying a CD?

I know I how I feel. I want to know how you feel. So please vote at CNN.com/SHOWBIZTONIGHT. You can also write to us at showbiztonight@cnn.com. Your e-mails will come your way at 54 past the hour.

HAMMER: Tonight, the record industry is being rocked by a payola scandal. One of the world`s largest music companies, Sony-BMG, today agreed to pay a $10 million fine for bribing radio stations to feature its artists.

Joining us live here in New York tonight, "Forbes" magazine senior editor Brett Pulley.

Brett, I appreciate you being with us. This is a suit that was brought about by New York State. What was Sony-BMG accused of here?

BRETT PULLEY, "FORBES" MAGAZINE: Well, basically, they`re accused of good, old-fashioned payola. And as you know, payola is -- the payola laws prohibit radio stations from anything of value in exchange for playing records. And that`s cash, that`s anything of value.

And these are laws that have been around for decades. This is a murky, murky business, when we talk about promoting business. We`re talking about scandals that have existed where people were paid with cash, drugs, prostitutes. And this, again, is old-fashioned payola.

And what Sony has essentially done this time is compensated the programming directors at radio stations, the people who decide which music gets played, and they`ve compensated them with things of value. They`ve compensated...

HAMMER: Like, for instance, what would they be compensating them with to play songs?

PULLEY: Well, in this case, apparently some of the program directors have received compensation in the form of airplane tickets. There have been some phony contests where it appeared that listeners actually had a chance to win trips when, in fact, the trips went to the people at the radio stations. So clearly, things of value.

HAMMER: And we`re talking about some big-name artists here. Can you run a few of them down for me?

PULLEY: Well, some of the artists who have been involved in this, or some of the artists music that was put on playlists as a result of this illegal compensation, Jennifer Lopez, Jessica Simpson, Avril Lavigne. You`re absolutely right. We`re talking about some big artists.

HAMMER: An as you mentioned a few moments ago, laws were passed decades ago, back in the `60s, to prevent payola from taking place. So how is this that it was able to resurface and go by so long?

PULLEY: Well, you know, the fact is, some would say, did it resurface or has it been around a long time? It`s probably bee around -- it probably didn`t totally disappear. It`s existed in different forms.

You know, one thing that the radio stations and the record labels sort of came out against a few years ago was the use of independent promoters. And these were these sort of middleman who really took hold after the payola laws.

And what they did was, they essentially collected a fee from the record companies to have relationships at the radio stations. So it kind of washed the hands of the people on each sides, the programmers and the record companies. But there was still, to a very large extent, what was really still happening amounted to payola.

HAMMER: Well, hopefully, this is the beginning of putting an end to it once again. Brett Pulley, from "Forbes" magazine, thanks very much for joining us here tonight.

PULLEY: My pleasure.

BRYANT: The music industry has also been rocked in recent years by something else. But it has been a good thing. We`re talking about the iPod. A short time ago, in our special series this week, "iPod Nation," we showed you how and why the iPod has become an obsession.

Well, if you are a self-confessed iPod dummy and you don`t know the first thing about portable music, or even if you think you`re an iPod aficionado, listen up.

Joining us live from San Francisco is Leo Laporte. Leo is the author of "Leo Laporte`s Gadget Guide."

Welcome, Leo. Good to see you.

LEO LAPORTE, AUTHOR, "LEO LAPORTE`S GADGET GUIDE": Hi, Karyn. Good to see you.

BRYANT: Thank you. First and foremost, for those who have no idea how this little white machine works, just explain what an iPod is and how it works, basically.

LAPORTE: It`s just kind of like a simple, little computer, with a little hard drive in it, some memory, a microprocessor. But it only does one thing. It plays back music. That`s its job. You plug in headphones, and you listen to it.

BRYANT: OK, so here`s the thing. I got one for my first anniversary from my husband. He`s a computer guy. He knows I love music. But I don`t love computers.

Let`s talk about how you get the music on the iPod, because there is no button to press to put a little mini CD in there.

LAPORTE: No.

BRYANT: So let`s talk to the people about how you load it up with music.

LAPORTE: In a way, that`s what makes this better than a CD, because it has a hard drive in it. It can hold thousands of songs. You do need a computer in the first place to get the music onto there.

You`ll have your CDs, or you`ll buy music online. It`ll be sitting on the computer. You`ll connect the iPod through a cable to the computer and iTunes, which is the software that runs on Mac or Windows, will actually copy the music onto the little player, and there you have it.

BRYANT: So, basically, you go to the web site. You click to purchase. I know that these are pretty easy. I`m talking for those people who are afraid of computers. These are pretty easy programs to use. And it`s pretty self-explanatory how you click and buy a song, right?

LAPORTE: Well, it`s as easy as a computer program can be. I mean, still, if a lot of people are, you know, baffled by the whole idea -- conceptually, though, I think it`s pretty straightforward.

You`ve got to get the music onto the computer somehow. Either you have a CD, and you put it in the computer, and the program puts it on the computer`s hard drive, or you buy the music from a music store, you download it. Either way, it`s on the computer.

Once it`s on the computer, of course, you can listen on the computer, but you don`t want to lug this around wherever you go.

BRYANT: Right, you don`t lug that around.

LAPORTE: Right. So you copy it on -- exactly. You copy it onto this little thing.

BRYANT: OK. Now, I also see next to you you`ve got some of the accouterment. You`ve got a docking station, right?

LAPORTE: Yes. The accouterment really is maybe even faster growing than an iPod. Everyone who buys iPods might have one or two iPods, but they all have dozens of accessories. That`s very important.

One of the things people like to do is turn the iPod into a stereo. This is a little set of speakers that your iPod docks into. And then you can listen, instead of on the headphones, you`ll listen on the speakers. It becomes your personal stereo.

BRYANT: Because, Leo, I`m a campaign to end tinnitus. So I`m all about getting it out of my ears, I`ve got to tell you.

(LAUGHTER)

LAPORTE: Good for you.

BRYANT: Yes, now, what about the people who know a lot about iPods? You said it`s only for playing music. I think I may have caught you in a lie, Leo.

LAPORTE: You did. I lied to you. I simplified. Of course, it can play any audio, which means it also plays audio books. In fact, I fill my iPod up with books. I can get dozens of books on a single iPod.

It can play podcasts, which are a new form of talk radio that comes through your computer onto your iPod. So it really can be used for a lot more. In fact, people also use it for their calendar. They can put your date book on there, and your addresses, and your phone. So it`s actually a pretty flexible product.

BRYANT: So, because, basically, it`s -- let`s not forget here, people -- it`s a computer. So, you know, it has a hard drive. It can store all kind of data. Musically, though, it only plays MP3s, right?

LAPORTE: Well, not exactly. It plays a variety of digital formats. MP3 is one of them. Actually, Apple prefers a format called AAC. But you don`t have to get complicated about the formats.

It will play most forms of music. The real problem is that music you buy in music stores is copy-protected. And so, if you buy it from the iTunes music store, it will play on an iPod. If you buy it from another music store, like say Napster, it will not, because Napster and copy protection from Napster doesn`t work with the iPod.

BRYANT: OK. All right, Leo. A good briefer on this for this first edition of our "iPod Nation." Thanks for joining us.

LAPORTE: Anytime.

BRYANT: And, of course, Leo Laporte, a very smart man. All this week, SHOWBIZ TONIGHT has got you iPod fanatics and iPod newbies covered. It`s our "iPod Nation" series.

Tomorrow, how the iPod has changed the music industry. Wednesday, we`re going to take a look at some iPod alternatives, other portable music players. And Thursday, we`re going to gaze into our crystal iPod -- that would be a crystal ball, A.J. -- with what`s next for the iPod, on the future of portable music is what I`m talking about here.

Well, Jessica Biel as Mrs. Potato Head. That is coming up in "Laughter Dark."

HAMMER: And he just finished ahead of the pack for a record seventh- straight time. Tonight, Tour de France winner Lance Armstrong tells us how he almost didn`t make it to the finish line. That`s coming up next.

(BEGIN VIDEO CLIP)

JESSICA SIMPSON, SINGER/ACTRESS: Hi, I`m Jessica Simpson. And I`m watching "Entourage," because it`s a show my husband and I can watch together.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

BRYANT: Welcome back to SHOWBIZ TONIGHT. I`m Karyn Bryant.

Tonight, "People in the News." Lance Armstrong, his seventh-straight victory at the Tour de France this weekend is amazing in itself. Now, that is considered the most difficult and grueling bicycle race in the world. But what may be even more astonishing is that, in order to win the bike battle, Armstrong had to overcome a very personal battle, one where he nearly lost his life.

Here`s CNN`s Paula Zahn for SHOWBIZ TONIGHT.

(BEGIN VIDEOTAPE)

PAULA ZAHN, CNN CORRESPONDENT (voice-over): Imagine being an elite athlete, capable of pushing a bicycle, pushing your body to nearly superhuman levels. Then imagine finding out you`re very human, indeed.

LANCE ARMSTRONG, PROFESSIONAL BICYCLIST: Naturally, my first question was, to myself and to the doctors, well, am I going to die?

ZAHN: Twenty-five-year-old Lance Armstrong was entering the prime of his career when he was diagnosed of cancer. Surgery removed his cancerous testicle. Armstrong vowed to beat the disease.

ARMSTRONG: I`m entering this battle in probably the best shape of my life. This isn`t going to stop me. I might have a bald head and I might not be as fast as I used to go, but I`m going to be out there.

ZAHN: However, doctors soon discovered Armstrong`s battle was bigger than he previously thought.

DR. CRAIG NICHOLS, ARMSTRONG`S ONCOLOGIST: He had presented with a mass in his testes. And at that time when it was discovered, had spread to his abdomen and lungs and to two small areas in his brain. Literally, this is something that, untreated or undetected, would have swept over him in a matter of weeks.

ZAHN: In fact, Armstrong`s chances of surviving were at best 50-50.

LINDA ARMSTRONG KELLY, ARMSTRONG`S MOTHER: What did I said to Lance, was that, "I love you, and we`re going to beat this." There`s nothing worse than someone getting sick and to have it be your only child. That wasn`t going to happen. That just wasn`t going to happen.

ZAHN: Armstrong underwent additional surgery to remove the tumors in his brain and began intense chemotherapy. The hours of pain he had experienced on a bike paled in comparison to the ravages of the disease.

ARMSTRONG: It doesn`t compare to cancer, to the anguish, to the depression, to the confusion, to the torture of 12 weeks of chemotherapy. It`s small.

KELLY: And he had lost all of his hair. He had big dark circles under his eyes.

UNIDENTIFIED MALE: He never lost his fighting spirit, his attitude. But his voice would shake. He lost a lot of weight. He was bald. He had scars on his head. He looked like a cancer patient that was going to die.

ZAHN: But Armstrong didn`t give up. In February 1997, after undergoing four rounds of chemotherapy and months of anguish, Armstrong`s cancer was declared to be in remission.

UNIDENTIFIED FEMALE: Lance didn`t beat cancer. He kicked it to death. He didn`t just survive it; he stomped that bastard into the ground.

He has no idea why he survived, nor does anyone else, really. What part was science, what part was something bigger than science, what part was self-will and self-determination, he can`t tell you what that mysterious calculus was. Not only that, he doesn`t want to. He enjoys the mystery of it.

ARMSTRONG: I feel humbler now, more vulnerable.

ZAHN: Just a few months after finishing chemotherapy, Lance Armstrong could be found relaxing at his waterfront home in Austin, Texas.

ARMSTRONG: He survives cancer and dies from pneumonia.

ZAHN: He was healthy and strong enough to water ski, uncertain about his future as an athlete.

ARMSTRONG: I don`t think I can win the Tour de France. I thought I could. A year ago, I certainly thought I could win the Tour de France. Not that year, but in years to come, but not now.

ZAHN: But Armstrong`s attitude would change. After a year off, he began a comeback.

UNIDENTIFIED FEMALE: What cancer did for Lance was give him a reason and an excuse to finally settle down and really become everything he should have been.

ARMSTRONG: Psychologically, it was a good thing for me to be so scared and so fearful, to be given another chance.

ZAHN: After months of rigorous training, Armstrong entered the 1999 Tour de France. He was considered to be beyond a long shot. But those who knew what he had been through knew better.

KELLY: I said, "You know, you`re so sick in that bed, there is nothing that will keep you from going up that mountain when you think about how sick you were."

ZAHN: Over three weeks, Armstrong rode more than 2,200 miles over grueling terrain, overpowering competitors like he had overpowered cancer. At the race`s end, Lance Armstrong wore a yellow jersey. He had won the Tour de France.

CHRIS CARMICHAEL, ARMSTRONG`S COACH: I remember watching him come down the Champs Elysees, and crying, and just being like, "This is just a miracle."

KELLY: Lance Armstrong puts his mind to something, and that`s all it takes.

ZAHN: Four consecutive Tour de France victories followed. But Lance would face challenges in his personal life. In 2003, Lance divorced his wife of five years.

UNIDENTIFIED FEMALE: I was surprised they hadn`t had more problems, to be frank. You know, as a friend of theirs, and as an observer watching what they were trying to do, the amount of work both of them were taking on, and the amount of travel, and the amount of training, and the intensity of their lives.

ZAHN: 2004 brought a new romance with musician Sheryl Crow. The couple met at a Las Vegas charity benefit and moved into Armstrong`s house in Spain. She helped cheer Lance on as he won his sixth and ultimately his seventh record-setting Tour de France title.

But for Armstrong, those victories meant more than one man beating the competition or one man overcoming cancer. They were victories for an entire community of which he was now a lifetime member.

ARMSTRONG: If the people can see one of their own, that was given not-such-a-good chance of survival, see him return, and thrive, and be better than he was before, I think that`s the most powerful message, and perhaps the one that they can get the most hope from.

(END VIDEO CLIP)

BRYANT: That was CNN`s Paula Zahn for SHOWBIZ TONIGHT. "PEOPLE IN THE NEWS" airs Saturday at 5:00 p.m. and Sunday at 7:00 p.m. Eastern on CNN. And you can pick up a copy of "People" magazine on newsstands now.

HAMMER: And there is still some time for to you sound off in our SHOWBIZ TONIGHT "Question of the Day." Downloading music: Is it better than buying a CD? Still want to vote? You still can, at CNN.com/showbiztonight. You can also write to us at showbiztonight@CNN.com. We`re going to read some of your e-mails live, coming up next.

(COMMERCIAL BREAK)

BRYANT: Throughout the show on SHOWBIZ TONIGHT, we`ve been asking you to vote online on our "Question of the Day." Downloading music: Is it better than buying a CD?

Let`s take a look at how the vote is going so far. Fifty-five percent of you say yes, downloading is better; 45 percent of you say no, it isn`t. Very close race tonight, A.J.

HAMMER: Yes, it is, Karyn.

BRYANT: Zachary from Toronto, Canada likes album artwork. He says, "CDs are far better. I think real music lovers appreciate the package of an album."

But Patricia from Puerto Rico says, "Downloading songs is better. I only download the songs I like and save money."

And you, of course, can keep voting at CNN.com/Showbiztonight.

HAMMER: And I know you like to go out and actually buy the hard copies.

BRYANT: I buy the records, and then I upload them.

HAMMER: I like the downloading.

BRYANT: See, well...

HAMMER: Saves me a little time.

BRYANT: ... a little country, a little rock and roll. You know what I`m saying?

HAMMER: I do. It`s good to have you back tonight. I know you missed me, Karyn, but I know you really missed how we find out what`s happening on SHOWBIZ TONIGHT tomorrow.

BRYANT: You`re right. You`re right. So can we please take a look at the "Showbiz Marquee" with the Marquee Guy?

HAMMER: Please.

MARQUEE GUY: Tomorrow on SHOWBIZ TONIGHT, the guy behind "L.A. Law" and "NYPD Blue" is taking us "Over There." It`s Steven Bochco`s new series about the war in Iraq, as the war is going on. Hear all about "Over There," over here on SHOWBIZ TONIGHT tomorrow.

Also, tomorrow, more on the "iPod Nation." Has the music in our ears been music to the music industry`s ears? What effect the iPod has had on the Marquee Guy`s ears and on the music business. Our SHOWBIZ TONIGHT special series continues tomorrow.

This is the Marquee Guy. And now I leave you with this deep, deep thought. "iPod, therefore I am."

HAMMER: I am one of the original Pod people.

BRYANT: Me, too.

HAMMER: I was an early adopter, had the original five gig. The battery not lasting as long as it once did, but I still use it.

BRYANT: Yes, I can`t get a docking station for mine, because mine`s old school.

HAMMER: That`s right. Got to go on the eBay for that.

(CROSSTALK)

BRYANT: Well, that is it for SHOWBIZ TONIGHT. I`m Karyn Bryant.

HAMMER: I`m A.J. Hammer. Stay tuned for the latest from CNN Headline News.

SOPHIA CHOI, CNN HEADLINE NEWS ANCHOR: Hi, there. I`m Sophia Choi. Let`s get to your "Headline Prime Newsbreak."

Egyptian police have exchanged gunfire with suspects in the mountains above the Red Sea today. They`re searching for militants responsible for Saturday`s deadly bombings in Sharm el-Sheik that left 84 people dead. Police are also circulating photos of six Pakistani men who disappeared after the attack. The State Department is urging Americans now to avoid the south Sinai peninsula and crowded areas of Cairo.

A national guardsman charged with the murder of an Iraqi police officer has pleaded to a lesser charge of negligent homicide. Corporal Dustin Birch of Indiana testified today that he, quote, "misread the situation and acted harshly." The 22-year-old admitted shooting the officer in 2003, and then shooting himself in the stomach to give the impression there was a gun fight.

Well, with scorching temperatures across the Midwest, Chicago city workers are now fanning out to check on the elderly and to help people into cooling centers. The fire department says three deaths may be heart- related.

That`s the news for now. I`m Sophia Choi.

END

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