coming so fast. i knew i was in trouble. megyn: just hours ago we saw emergency responders carrying out water rescues, in pennsylvania, meteorologist janice dean has been watching it all day, live at the fox weather center with the latest. >> reporter: millions of people are affected by this storm, megyn. that's why we're covering it today. let's take a look at these storm totals, really over the last several days, most of these coming in from the last 24 hours, but wilmington, they haven't seen rainfall like this since hurricane floyd in 1999, ten beach -- 10 inches in myrtle beach, 6 inches in our district capitol, washington, d.c., close to 6 inches in rich mon and up towards philadelphia, new york, close to or over 4 inches, albany, 5 inches and as you mentioned we're getting rained on across new england. this has been quite an event. we had the tropical choiceture -- moisture from what was nicole, a storm that lasted only six hours, megyn, then we had a frontal system that really enhanced all of that moisture and gave us the thunderstorms as well. flood advisories from the mid atlantic, all the way to new england. even though the rain may be out of the way it's going to take time for the rivers and streams to recede, i'm afraid we'll probably see more pictures out of pennsylvania, upstate new york, new england, where we're dealing with high waters and as you mentioned, do not pass over water you can't see the bottom of. very dangerous. also, wind gusts in excess of 30, 40 miles per hour for parts of new england. the wore -- worst of it is over but we're still dealing with winds across new england and delays, delays, delays, across the 23450e69 -- northeast, across the airports. megyn: if you don't have to travel, don't do it. thank you j.d. >> reporter: okay. megyn: up front in election head kwaerbgs we go to the campaign trail and new developments with what meg whitman is calling an ugly smear in california's governor race. we spent the morning looking at a letter, being offered now as proof that whitman knew her housekeeper was here in this country illegally, that is nancy diaz, she is claiming that whitman underpaid her and financially abused her during her time as her full-time housekeeper. whitman denies all of those accusations. the news, of course, couldn't come at a worse time for whitman in the race, with a little more than four weeks to election day, whitman is about tied with her opponent, jerry brown, but 21 percent of california voters are hispanic, and likely watching this one closely, given the allegations. trace gallagher is live in our west coast newsroom with the latest. hey trace. >> reporter: megyn, gloria allred called this letter a smoking gun or a smoking document, if you will, and in television it really was kind of one of those gotcha moment, you had gloria allred at this press conference holding up this life size letter, in fact, she needed an assistant to help her with this thing, and of course, this came just hours after meg whitman stood with her husband, the neurosurgeon, tkr-rbgs griffith hurt, and told the world that neither of them had either seen this letter. the letter in question was sent by the social security administration back in 2003. it's called a no match letter, which simply means the documents that the social security administration has do not match the employer's. well, at the bottom of the letter is a handwritten note, and it says, and i'm quoting, nicky, please check this. meg whitman says it sure looks like her husband's writing. dr. harsh then released a staoeuplt and it says and i'm quoting i can say it is possible that i would have scratched a followup note on a letter like this, since we believed her to be legal i would have no reason to suspect that she would not have filled it in and done what was need to secure her benefits, but keep in mind, it's very important to point out that this letter prevents employers from doing anything. this is from the letter. it says, quoting, any employer that uses the information in this letter to justify taking adverse action against an employee may violate state or federal law and be subject to legal consequences. so critics say well, meg whitman should have done more in the vetting process when she hired this woman. well, she got her driver's license and got her social security number, and by law, that's all she is allowed to do. i'll give you an example. in maricopa county in arizona, they went one step further. on top of the license and the social security numbers, they were asking employees to give them immigration papers and now, megyn, they are being sued by the obama administration for discrimination because federal law says you can only ask for a driver's license and social security number. megyn: uh-huh, meg whitman says that she's being manipulated, nicky diaz is, by gloria allred which she claims has an agenda, she donated considerably to jerry brown in the past, although she hasn't donated to him in the current race, as gloria points out. gloria allred is the attorney for ms. diaz -- and you may remember a couple of her cases over the past years, she represented amber frye, ex-girlfriend of scott peterson who took the stand in that trial and testified against him, rachel uch tell, one of tiger woods' many alleged mistresses, didn't she also have jocelyn jones? also paula jones' case who accused former president clinton of discrimination, an a suit against eddie murphy, and one involving arnold schwarzenegger, allred represented ron demilleer, right before his tphaouba -- gubernatorial election as well, and hunter, avs she was alleged of preparing pregnant. allred starred as a guest on mark levin's radio show. did you happen to catch that? the liberal and conservative were both fired up and we have that for you just ahead trust me, it's worth staying tuned in for. a big change at the white house today, not particularly surprising, but a big change. chief of staff rahm emanuel stepping down to launch his bid to become chicago's next mayor. president obama was on hand for a personal sendoff in the east room. >> this is a bittersweet day here at the white house. on the one hand, we are all very excited for rahm as he takes on a new challenge for which he is extraordinarily well qualified. but we're also lose losing an incomparable leader of our staff and one whom we are going to miss very much. megyn: emanuel will be replaced by pete rouse. he's well known outside the beltway but has been a long time trusted adviser to president obama ever since his time in the u.s. senate. backlash today over a costly plan to change new york city's street signs. get this. taxpayers are having to shell out $27 million in order to change the font on the new york street signs. they didn't like it all capitals, they wanted the capitals in the lower case. mayor bloomberg pleading ignorance saying i had no idea about the federal mandate! brian sullivan is with the fox business network and he's with me now. are you telling me they can't stand all caps on the street signs in new york which is mostly a grid system that uses numbers on the street signs, anyway? >> i got bad news for you, i know you have a huge audience all around this country and people probably making fun of new york right now, those typical new yorkers, dumb spend, it's coming to their town, too. this is a federal mandate, megyn. new york is just the first big place to do it. megyn: what does the mandate say? >> basically the all caps, it's harder to read, they want the clear view font. they like that, with a cap tap -- capital s, megyn: but look at broadway, who could read that, look at all the big caps with the o on columbus? >> that says columbus? i can't tell! >> megyn: we have to spend 27 million in manhattan alone, and as you say, more across the country to change it to lower case? >> maybe it's job stimulus. there are 250,000 street signs in new york city. megyn: aha! somebody has got to replace those. >> this is a federal mandate. all your viewers are saying dumb new york, typical stuff, big spending in a liberal city. it's coming. this is a federal mandate, all right? main street, u.s.a., is not going to be main street u.s.a. megyn: what is the argument? you can't -- there was something about how it's easy to read when it's upper and lower case. is that the logic behind this? >> it's a safety issue. >> oh, it's a safety issue. >> because it's the way you read this, the front, capital lower -- it's called clear view. who knew. megyn: so people running stop signs, it's like what is that, sto -- whoa! but now it's like oh, stop, i see t. upper and lower case, it makes sense to me now. >> 9 1/2% of this country is employed, double that is unemployed, we're heavily indebted, now spending 70 million in no, on this, probably hundreds across the country, everybody has to do it by 2018, so if your town hasn't done t. you got eight years left. megyn: who made this a federal mandate? >> transportation department, i assume. megyn: is this straight from the administration or how did this come about? >> congress didn't vote on something like this, this came from the transportation department, i'm sure, but who knows, all i know is nobody approved the budget because this is ridiculous. megyn: we would love to hear from you, department of transportation. come on now and you tell us why. why? why? the font czar should be here to explain! you explain yourself! all right, brian. >> thank you megyn. >> megyn: thank you. you tell me what you think, kelly, fox news. a quick reminder, catch more of brian. >> all cap, brian sullivan, watch. megyn: at 2:00 p.m. eastern. fox business network. of course you need to watch our show, so you can tevo brian, and watch him after! but he's worth it, he's a good host. you saw this controversy over the housekeeper is threatening meg whitman's campaign but hold on, we are hearing warnings about how we could see a wave of october surprises like this one. karl rove has been on the receiving end of these 11th attacks. remember the dan rather story against president bush? he joins us next with what we should expect. parents upset that a former prostitute rips through the cracks in a major school district and right into the classroom as a teacher, but oh, it gets so much worse! and candidate for governor of new york, with an epic showdown, with a reporter on wednesday. that reporter shared his side of the story, and today, gop candidate carl pal paladino will be here -- carl paladino will be here live with his side. >> you're a stalking horse. you're a bird dog. you send another goon to my daughter's house, and i'll take you out, buddy. >> you'll take me out? how you gonna do that? >> watch. megyn: fox news alert, the associated press is now reporting that u.s. officials believe osama bin laden is involved in this plot targeting american tourists and western hotels in london, paris, and some other hot spots. that plot was uncovered early they are week. intel officials overseas reported the plan was still in its early stages and the suspected terrorist behind it will try to pull off another attack. we're going to have more on this developing story now and osama bin laden's alleged connection. back now to one of the top stories, republican meg whitman defending herself against claims she knowingly employed a housekeeper in the u.s. illegally, whitman calling the claims a coordinated political attack at the hands of her opponent, engineer oh brown and his supporters. if that's true, it would be right on schedule. october is the month known for big surprises that could plague a handful of campaigns across the country. karl rove is fox news contributor and former senior adviser to president george w. bush and he knows all about the october surprise. i mentioned before the break, carl, who could forget the dan rather piece with mary maits and 60 minutes and president bush's national guard service. >> which start september. we call it the october surprise but these things flow into the political blood stream in september and in some cases accelerate as we get into october and i think they're going to accelerate this year because these kind of things are either strategic strikes by one candidate against another or they're acts of desperation, sort of hail mary passes and this year there are going to be a lot of candidates disposed to do hail mary. megyn: allred donated to the tkpwaub natorial campaign in 2006, she was an open democrat and was a big supporter of the hillary clinton campaign. there's no question what her affill equation -- affiliation. having said that, she represents everybody. she had jocelyn james, tiger woods' former mistress, so it couldn't be just prosecuting, it could be i smell a victim, she loves an alleged victim. what do you make of it? >> what better thing than a high profile lawyer to get this publicity? look, she's an active democrat, it smells like something that is politically concocted, if not, it certainly -- it's gloria allred's self-promotion. in these kind of instances one of two things happen. either the charge sticks and real damage is done or there's a natural inclination, towards the end of a high profile campaign for the people to look a little skeptical at these kind of charges. i think meg whitman is going to have the latter, i think people are going to look at this rather skeptically. megyn: how bad is it for meg whitman that she came out yesterday and said we didn't get that letter and it's in the hands of gloria allred, and we didn't have that letter, then gloria came out with the letter that came from the social security administration with whitman's husband's handwriting on it and he came out and said later that might actually been my handwriting and i might have done that. gloria allred, saying she got caught in a lie. >> well, look, it was pretty straightforward. i thought he went further than that, but said look, i don't remember the letter but that's my handwriting. look, you're not going to remember all the details and if you're a political candidate you want to avoid trying to making misstatements but something like this, i don't remember receiving such letter and then you put it in the most sympathetic light possible, that i don't remember getting the letter and it's my handwriting and in essence he's trying to ask her will you please get to the bottom of this and obviously the woman was not forthcoming until much later and i think whitman's ultimate defense is as soon as i definitively knew she wasn't a u.s. citizen i did the appropriate thing and i fired her. megyn: how does this play with hispanic voters in california, right? here she did employ this woman for nine years and paid her $23 an hour, now she's claiming she was financially abused at that rate, which is three times the minimum wage, because she worked longer than the 15 hours a week that she was scheduled to work, and didn't get an additional paycheck or reimbursed from mile arpblgs that's what she's complaining about but nonetheless she claims she was essentially abused by whitman. that's the only example. abuse but you tell me -- tell mu, how ask that -- does that play with the hispanic vote stphers. >> it depends on the relative credibility of the people involved. getting paid $23 an hour, having a high profile lawyer working on your behalf, and you know, i think one of the most telling things was the difference in tone. meg whitman referred to her as nicky, talked about her with affection, i think that probably gives greater credibility to her point that she didn't know she was an illegal alien and that she acted appropriately when she found that out. these are complex, and so far this has sat on the sidelines, it will have a shelf life of a few more days, the -- i think at the end of this day this ends up chewing off a bunch of the clock, i'm not sure necessarily if they keep handling like they've been handling it necessary me hurts whitman. >> i have to tell you, if this was a political attack, you've got this, other people pointing to allan greyson's attack on the taliban jan ad, grossly taken out of context, his rival's statements about women and the bible. i mean, what are we to expect? it's october 1st now, right, we've got a month to go until the elections. what's going to happen over the next 30 days? >> look, you have just touched the surface of what's going around the country. i was in illinois yesterday, and this morning, and there you have bill foster, a democratic congressman up on chicago tv, trashing his republican opponent with a really, you know, sort of business practices, but really stretching the edge of the argument, and we're likely to see more of this, because this is the year in which you've got a lot of embattled incumbents who cannot defend themselves on the basis of record, they can't say i voted for health care, cap and trade, all these things were wonderful, i voted for the budget, for the decifit resolution calling for doubling the size of the decifit, they can't defend their record, yet they are faced being pressured by republicans who have made these arguments on the record, so they're going to respond with what most politicians ult -- ultimately end up doing, which is personal attacks, not based on the record, the issues, but upon anything they can find in the background of their opponent to stretch it, distort it, move it out of recognition and hopefully hope some of it's fixed. i was in ohio this week, there was a republican congressional candidate who joined 2000 other business oerpbs in protesting a retroactive state tax, who wrote a letter to the -- he basically wrote a letter saying i'm joining in this and here's the money to pay the tax but we're challenging it in court and now his opponents is accusing him of not take tax -- not taiing -- paying taxes. megyn: it's a dirty business, karl, i don't know how you live your life in it but do you and you've had a lot of success in it. we appreciate your insights as always, sir. >> you bet, thanks. megyn: fox news alert, we have just confirmed reports that u.s. intel now thinks bin laden is behind this terror threat we've seen in europe. new details from homeland security, moments away. don't go away. megyn: fox news alert, u.s. intel officials now confirming to fox news that they believe osama bin laden is behind a terror plot targeting americans and western hotels in europe. jennifer griffin has more, she's live from washington. what do we know? >> reporter: what we know, this is coming out on the same day that we've seen the first audiotape from osama bin laden in some time, and what we know from a u.s. intelligence source is that they do think that osama bin laden, in addition to al-qaeda's number three, a man by the name of mohammed iliad kashmiri, a pakistani based in the pakistan tribal areas, they were behind this plot to carry out a mumbai-style attack using telephones, mobile phones and kidnappings and attacks on american hotels and westerners in europe. it was a plot that spanned over at least three countries, it was england, france, germany, and i also had heard that they were worried about denmark. but essentially, they are linking bin laden to that plot. they think that they foiled the plot at this time, but one of the reasons that they came forward with the details of the plot earlier this week is they had a lot of chatter, a lot of information, including details from one of their sources who was held in a german jail that the plot was moving forward with dual national citizens who had pakistani passports, as well as european passports, and they were -- the design was to expose this plot as to disrupt it, but this is the first we've heard that bin laden was behind the planning of it. megyn: jennifer, we had heard reports not long ago that al-qaeda was going to target ow ow -- they were looking to target sort of a left, you know, news worth -- less news worthy sites, that they were going to stress smaller target, maybe with more frequency, not make such a big al-qaeda footprint, if you will, with sort of all the bells and whistles but be more narrow in their approach. is this part of that? >> absolutely. in fact we had heard from intelligence officials earlier this week that they'v'vnoted a marked change in strategy, that al-qaeda is not going for the big spectacular attacks of taking down a world trade center. they have opted now because it's become more difficult to move around and to carry out those kind of spectacular attacks which they were attracted to a decade ago, they are now moving towards the low impact use of low technology like they did in india with those attacks. they saw how they crippled india and mumbai for, you know, quite some time, using just simple low level attackers who have dual national citizenship megyn. megyn: jennifer, thank you. jennifer griffin, live in d.c. new claims today that big parts of the health care overhaul could already be unraveling. this are questions about plans covering more than a million woerbgs and concerns about coverage changes for millions more. a powerful debate in three minutes. plus we'll have the rest of the story in the epic faceoff between new york gubernatorial candidate carl paladino and a fivey reporter. paladino is my guest, live this hour. >> what evidence do you have when did you -- >> you bother my daughter -- >> come on. hey, stay away from me. >> don't touch me. >> who are you? >> who the hell are you? diabetes testing? it's all the same. nothing changes. [ man ] then try this. new and improved freestyle lite® blood glucose test strip. sure, but it's not gonna- [ bp ] wow. [ man ] yeah, that's the patented eestyle zipwik™ design. [ woman ] did it just -- ta the blood? target the blood? yeah, it drew it right in. the test starts fast. you need just a third the blood of onetouch®. that is different. so freestyle lite test strips make testing... [ man ] easy? easy. [ man ] greatcall or click -- we'll send you strips and a meter, free. fr is good. [ man ] fretyle lite te strs. call or click today. yeah. you must really care about him. what? no, no. you gave him fiber. no she didn't. this tastes way too good to be be they're delicio crunchy usters with sweet honey and half a day's worth of fiber. you care about my fiber? not really. i care about your fiber too. i have for a while. ok, carl. why don't you care about her fiber? hey carl. [ male announcer ] fiber one. cardboard no. delicious yes. i kn who works different than many other allergy medications. hoo? omnaris. [ men ] omnaris -- the nose! [ man ] did you know nasal symptoms like congestion can be caused by allergic inflammation? omnaris relieves your symptoms by fighting inflammation. side effects may include headache, nebleed, nd sore throat. [ inhales deeply ] i told my allergy sptoms to take a hike. omnaris. ask your doctor. battling nasal allergy symptoms? omnaris combats the cause. get omnaris for $11 at omnaris.com. megyn: welcome back, folks, 1:33 in the east. a couple of stories developing right now. experts are suggesting a cause of the deadly pipeline explosion in san bruno, california. it blew three weeks ago killing eight people and devastating an entire neighborhood. analysts are pointing to one section of pipe that was corroded. bmw may extend a recall to cover 350,000 vehicles around the world. they already recalled 300,000 cars in the u.s. for leaks in the power pwra*eubging -- braking system. new problems emerging in the wake of the democrat's healthcare overhaul. we saw a dramatic back and forth between the white house and mcdonald's over whether that company, mcdonald's will be forced to drop coverage for some 30,000 of its employees. as a result we're learning that the health and human services department may rewrite the rules for 1.4 million americans all covered by medical plans that do not meet a key regulation. critics say it doesn't bode well for the next couple of years. the thing hasn't even got even started yet. joining me now is dr. marseigl, and peter, and mark whitman a democratic strategist and pollster for president clinton. doctor, let me start with you for the medical perspective. we've seen a series of hits over the past weeks on the healthcare plan, the latest is the stuff with mcdonald's saying look, we may have to dump these 30,000 people off the rolls if we don't get the special exception to the new law. the government says okay we'll take care of you. then there is a big question, who else is going to get it is cvs, target, going to get it. we are being told no child policies by major insurers, they can't afford it. the government admits the costs will go up for some people on their premiums, president obama said i retkeubgted that and other people are saying no you don't. before it's going steam ahead what are your thoughts on it. >> it's obvious it's not a one size fits all. if they try to superimpose an 80, 85% medical loss ratio on top of insurers which is the whole problem going on with mcdonald's they'll find a lot of employers fleeing. megyn: let me tell the viewers what that is. the rule is #- 0 to 85% of the premiums that you -- that you basically spend on the coverage need to go toward providing benefits, right. >> right. megyn: mcdonald's says we can't comply with that, we have a bunch of employees and employ them on the cheap. >> and they are always changing. your administrative costs are high. if you're losing employees all the time and replacing them your administrative costs are high. there a -- from a doctor's point of view, the worse thing is the #- 0% that is supposed to go to services nobody tells the insurers how much they need to give to doctors. we see our reimbursements cut more and more and more as the insurance companies struggle to preserve profits by raising premiumsment so the patients don't do well because the premiums come up. doctors flee from the insurancess and we always have a problem with a doctor shortage. this is a total mess, the tip of the iceberg here and they say 2014 the calvery will run to the rescue. that means putting more and more people on the state exchanges, federal subsidies. megyn: let me ask you peter. the reports are that several companies will be in the same position as mcdonald's. home bee poe, cvs, disney, blockbuster and others, they are all going to get exceptions from the the red tpal government. what does this say about a how that you have major corporations having to opt out of part of it before it goes into full effect. >> the law did not deal with the fundamental problems in the healthcare sector. we pay 50% more for doctors, hospitals, health insurers and drugs than they do in germany with a private system that functions much better than ours. basically barack obama put a lot of requirements on health insurers, doctors and so forth including this 80 to 85% rule but never considered how anybody could manage to comply because they didn't want to take on the hard choices. now we are faced with a system we can't afford, implement or live with. megyn: bernard you actually have a different view on this. you say this whole situation actually proves that the healthcare law is working. >> that's right, megyn, this shows exactly that the healthcare law is working as intended. how? because tens of thousands of hard-working mcdonald's employees will now be able to get better benefits for less money than they would under the mcdonald's plan. in fact it shows that the government has flexibility in implementing the healthcare law as insurers seek to make the absolutely necessary changes they need to become more competitive. >> by getting an exam shopb? hold on a second. >> excuse me. megyn: i'll -- let bernard finish. >> the mcdonald's insurance for pretty bad coverage cost $32 a week. this plan will allow them to get better coverage for $21 a week. less money, better coverage for more americans in a more competitive insurance industry, that's exactly what this law was designed to engender. megyn: go ahead, doctor. i'm sorry to interrupt bernard, it's about an exemption, the more exemptions we need the more we show the law doesn't work. the draft regulations of the health reform law will put everything in a vice. they want lower co-pays, lower deductibles, that is going to cause higher premiums and a spiralling of healthcare costs. megyn: you hear that lower co-pays and lower deductibles, as an insured person you say, good i want that. then you hear if it's going to lead to higher premiums, bad i don't want that. >> many people are facing much higher premiums this year. these are almost minimum wage jobs, smaller employers that maybe pay 15, $20 an hour are faced with circumstances where they simply can't afford the health insurance requirements that will be imposed on them and they are likely to boot their employees into the federal program, into the exchanges, pay the fine, and the employees will be much worse off then because they won't have the benefit of the tax exam shopbs that an employer has and things of that nature. >> to say the health insurance law haw created an opportunity to have health insurance? wake up, they already did. this is causing them to perhaps lose the policy that they had. the new problem here may be how much mcdonald's is charging in overhead in running this thing. i'm having a little trouble understanding why the ins and outs of people cause them so much money to comply with they are dealing with $2,000 capped policies. >> this healthcare law has already changed the lives of millions of americans by not allowing kids to be kicked off their policies for preexisting conditions. parents can keep them on until they are 26. wellness visits are now covered. the medicare doughnut hole was filled, seniors are getting pre eupl burst -plts for prescription drug coverage. this law as more americans under the benefit is becoming increasingly more popular. voters are scared if the republicans do take control of the congress the healthcare system will get worse, according to a new poll. megyn: we are out of time. dr. seigl, peter, bernard thank huh. some of the scariest video we have seen in a pwhaoeul. -- while as a hirise apartment building catches fire. look at the pieces, people are run for their lives below as the fiery debris rains from above. we'll show you how the firefighters had to dole with this. we're told when new york schools hired this woman as a teacher they knew she had past work as a stripper. they claimed they didn't know she was a prostitute. then they gave her tenure. in three minutes the rest of the story. >> they should not let her walk around kids. >> fire her. >> i hope she keeps her job. >> i feel like if someone makes mistake in their lives and they rectify and correct their life i feel they deserve a chance. megyn: incredible video of a hirise on fire. take a look at these pictures out of south korea, people running for their lives. look at these two "little children" with their mom. they are ducking flaming debris as a fire engulfs a 38-story apartment building. firefighters had to rescue dozens of others from the roof of that building. they say the fire started in a garbage collection room on the fourth floor of the building. 600 firefighters ballistic link the flames for hours, incredibly no reports of any serious injuries. wow, a tip of a hat to them. well as president obama pushes for education reforms some public school critics are saying he can find great examples of what is wrong with the system right here in good old new york. a new york teacher gets tenure, then days later admits that she was a hooker, only now they may not be able to fire her thanks to the tenure. joey jackson is a criminal defense attorney he's here to break this one down for us. so they knew she was a stripper, apparently the good folks of the new york education system said not a problem, go ahead, just don't do it in front of the kids. do you know what grade she taught? >> no. megyn: i think she was elementary school. she takes the job, she is 30 years old, then she is up for tenure, she doesn't tell anybody she was a prostitute, gets tenure and then decides now is a tpw- time to admit i used to turn tricks. they can't get rid of her, joey? >> no this is tenure. it may be easier to get rid of the pope some way than to get rid of a tenured teacher. it depends on whether she misrepresented herself in the whole application process. megyn: do they ask, have you ever turned tricks. >> they usually say relevant employment history. megyn: is -- is it relevant whether you i committed a crime. >> in order to have be found guilty of a crime you have to have due process, adjudication. megyn: you have to be convicted. >> like you had a jury trial and you were acquitted. megyn: what if she came out three days after she got tenure and said i murdered somebody or molested a child, the worst thing you would ever want as your child's teacher, of course they could get rid of her. it's all a matter of degree. can't they get rid of her for admitting she was a prostitute as well? >> that would be a different story. there is a statute of limitations. new york's statute is 2 years. this happened between october 2006 and january of 2007. i think quite frankly, megyn she is reformed. what an example she is to come back from prostitution. people reform themselves from drugs, from alcohol, from gambling. megyn: how do you know. >> she is doing the right thing. megyn: what is so reformed pwa her. >> if she was doing her thing she would not have admitted that if she was out there lady of the night. megyn: what is she going to be talking about when they get to the health section? >> that would be a problem. look what it took for her to do this. she makes this admission and has come back from the darkest moments of her life megyn to be a teacher and to teach the bright minds of tomorrow, what is better than that. megyn: all right, listen -- >> a shining example. megyn: i am all for redemption and you have to credit her with turning her life around. it would be one thing if she came out of it before she applied for the tenure and said, i'm not proud of this, and asked for pre tkepl shopb and forgiveness and put all the cards on the table. it is quite another and say i have tenure, you can't fire me, and now the united federation of teachers is refusing to talk about it. >> spoken like the true judge you are. that's what the city is looking at, it's fraudulent misrepresentation. did she intentional lee hide this, now i'm tenured you can't touch me that is the legal remedies that the city is pursuing. i'm hopeful they are not successful. megyn: isn't that at the heart of so many educational problems. in so many instances there are serious problems with teachers and they are all but u.n. firable. >> the tenure is a very tough thin. once you get tenure you're untouchable, and after that it's over. she is reformed, redeemed, she is going to go onto do great things in her life. megyn: she has to work on the honesty reformation now that she worked on the hooking reformation. megyn: thanks. a high school coach finds out one of his players is homeless and gives him a place to live. didn't they make a movie about something like this? why is that coach now facing punishment and the school is facing fines for recruiting violations, you've got to be kidding me. a 12-year-old boy is shot. now he is facing charges. the granny who pulled the trigger is not. did she take self-defense too far? >> i think everybody has a right to protect themselves, i really do. i think everybody has that right. [ male announcer ] this is rachel, a busy mom. she starts at dawn and so does her back pain. that's two pills for a four hour drive. the drive is done. so it's a day of games and two more pills. the games are over, her pain is back, that's two more pills. and when she's finally home, but hang on, just two aleve can keep back pain away all day with fewer pills than tylenol. this is rachel, who chose aleve and two pills for a day free of pain. ♪ and get the all day pain relief of aleve in liquid gels. ♪ [ man ] then try this. new and improved freestyle lite® blood glucose test strip. sure, but it's not gonna- [ bp ] wow. [ man ] yeah, that's the patented eestyle zipwik™ design. [ woman ] did it just -- ta the blood? target the blood? yeah, it drew it right in. the test starts fast. you need just a third the blood of onetouch®. that is different. so freestyle lite test strips make testing... [ man ] easy? easy. [ man ] greatcall or click -- we'll send you strips and a meter, free. fr is good. [ man ] freestyle lite te strs. call or click today. megyn: a trial date is set for two american men being held in iran. shaun bauer and josh fattal set to go to trial in six weeks. a judge notorious for harsh sentences is set to hear the case. you may remember these men and sarah shourd were arrested for hiking along the iraq iran border. sarah shourd was released two weeks ago. a real life blind side. a florida high school football coach finds out one of his players is homeless, so instead of ignoring the problem he takes the boy into his home. now he's accused of violating recruiting policies and he and the school are in a bunch of trouble. trace gallagher is live in l.a. they did make a movie out of something like this and basically wanted to pin a medal on the couple, not in this case. >> reporter: they say student athletes can't live with coaches or teachers for a couple of reasons, one is favoritism and two so they don't have recruit violations. it's pretty simple to figure out if you have a kid that is a star athlete living in a different school district he didn't live in -- move in with a coach to play on that team. this is in central florida. this is the coach. he let the player live with him because the kid was about to be homeless and he may have dropped out of school. here is the thing, the school actually selfreported this to the athletic association. they said this kid is going to live with the coach because he has no place else to live and now the coach is being investigated. he had to sit out a game last week and not only that, the athlete in question, now everybody knows his name, we are not going to say his name, but everybody in central florida knows who this kid is who was about to be homeless. the coach could also lose his pay, megyn, his coach's pay the enormous amount of $3,850 a year and the school, the school may have to forfeit some of their football victories. megyn: oh, come on. >> reporter: to take care of this. it's a true thing. the athletic association says they can intervene and make kpepbgss -- exceptions. i think now would be a good time to follow-up on that policy. megyn: don't you? no good deed goes unpunished. classic. trace, thanks. stunning new polls not looking too good for president obama and his 2012 campaign. we'll take a look at the numbers, and alan colmes weighs in. also -- sa this couple threateng legal action because of a nickname. anybody who calls them party crashers is going to get slapped with a lawsuit. party crashers, part see crashers, party crashers, that's in "kelly's court." carl paldino gets in a screaming match, we've heard from the man on the other end, now we'll hear from the candidate with his part of the story. >> you brought it out. >> stay away from me. >> what evidence do you this? >> listen -- @k@k@k@k@k@k@k megyn: new details on osama bin laden's alleged involvement in an alleged terror plot in london, paris and other hotpots where americans go. officials say he may have worked with al qaeda's number three in charge to carry out attacks similar to those in mumbai. intel officials reported that the plan was in its early stages and the suspected terrorist behind it would try to pull off another attack. osama bin laden said to be behind all of this. as you know, he is still at large. break in a connecticut courtroom. closing arguments are underway in a horrific criminal trial. a brand-new hour of "america live" on a friday. i'm megyn kelly. jennifer hawke petit and her two daughters were murdered during an invasion of their home. the mother was strangled and molested and her daughters died of snow inhalation after the house was set on fire. they say the youngest child was also molested. we check in with david lee miller. the nation is watching this case now as it finally goes to closing arguments. >> reporter: it is a difficult case to watch. this afternoon the defense just concluded its closing arguments for the defendant on trial. his name is steven hayes. a good part of their clothing argument says the other defendant in this home invasion case is the real bad guy. the defense for steven hayes says the original plan was to break into the home and commit a robbery and he concedes his client is guilty of four counts of kidnapping. he says things got out of control but they got out of control because of the other defendant who will be tried next year. that's going to be a difficult case to make considering the defense attorney admitted his client hayes admitted to killing and strangling jennifer petit. he said his client had no intention to kill the two children in that home. hayes is facing 17 different charges here and his own defense attorney said his client is guilty of many of them, by not all of them. he said that hayes is not an angel, but other defendant here is the real psycho path. earlier today the prosecution presented its clothing arguments. they compressed eight days of chilling testimony and 200 exhibits, some of them grueling, into an hour and 15-minute presentation, a presentation that at times left family members weeping in the courtroom. it's expected this case will go to the jury early next week. the defendant here, steven hayes if convicted possibly facing execution here in the state of connecticut. megyn: this is so hard on the petit family and dr. bill petit who sat there through the entire testimony. but had to leave when they shot autopsy photos much his daughters and wife. the other news out of the trial involves the loss of another juror. they have lost several jurors during the course of this trial, and if you lose too many you have a mistrial. are we in danger of this in this case. >> reporter: that appears he can really unlikely. the juror who was let go had a serious medical condition. she was an alter senate juror. i would say it's highly likely this will go to the jury early next week. possibly monday. based on the 8-day trial itself sit would not be surprising if the deliberations take place quickly even though there are 17 counts. the defense remember megyn presented its case in less than 30 minutes' time comprised of only two witnesses. megyn: you have to ask yourself what else could the defense have said? david lee miller, thank you. another fox news alert. two astonishing surveys on slipping support for president obama. these are brand-new fox opinion dynamics poll. only 39% of the country favors a second term for president obama. 39%. that's down 13% from april 2009. 54% of the country now say they would vote for someone other than president obama. the numbers among democrats also eye raising. just 41% of democrats say they would definite live reef elect the president -- ree re-elect. we'll have more with alan colmes in just a bit. we are expecting to get the other side of the story after a firive clash of the titans caught on camera. carl paladino, new york's candidate for governor, joining me live, speaking out for the first time since this heated exchange with fred dicker. >> you should think twice about trying to characterize me. >> you are a lawyer. i'm also a lawyer. >> what evidence do you have? most people would consider it smear. >> i want to know why you isn't your goons after my daughter. >> do you have the evidence against cuomo? >> how can you say that -- >> i have a daughter, too. >> i have a daughter. >> you brought it out. >> stay away from me [bleep] >> what evidence do you have? >> you go after my daughter -- >> come on, stay away from me. don't touch me. who the hell are you? >> do you have any evidence for the charge you made? it's a simple question. >> you are not even titled to it. at the appropriate time i will get it. megyn: yesterday fred dicker came on fox news and spoke with bill hemmer on america's newsroom. right now carl paladino joins me live. thanks so much for being here. i appreciate it and i know our viewers appreciate it as well. let me start with that dust-up with fred dicker of the "new york post" which is owned about it same favorite company as fox news channel. you made an allegation asking why so many reporters were interested in your marital history and not so isn't ited in that of your opponent andrew cuomo. he was in your face asking where is your proof of may have had extramarital affairs. you said at the appropriate time you will get it. you told politico.com you knew of three of the four women andrew cuomo had allegedly cheated with on his wife. then last night you reversed yourself and said i have no proof, and that apparently you are reversing yourself on that. which is it? >> in the context of the conversation that i had with maggie haberman we were talking about people constantly asking me about my personal life and never asking andrew about his personal life. she asked me in a number of different ways what i knew about his personal life. and i told her very clearly that i just thought it was an afront to the people of the state of new york that she -- the press refused to go and question him about the same things. repeatedly. they are going on and on and on. from my person prospective, i just found it very unusual that i get treated this way by press, by bird dogs like mr. dickers who is out there doing his work. mr. dickers is part of that same establishment that i have been criticizing right along. the government, the bad guys, the sheldon silvers. i have talked about -- i have talked about taking them out. and i have talked about taking them out of government and getting rid of them and getting them out of the hair of the people of the state of new york. megyn: i understand that. and i understand emotions were running high in that exchange with fred on both sides. i'm not sure where his anger and emotion was coming from. >> he was sticking the microknown my face. megyn: i want to try to get and answer to my first question. he was in your face saying where is th the proof of these affair. you didn't say i don't have proof, i'm just asking why nobody looks into his history as they look into mine. you said at the appropriate time you will hear it. at the appropriate time you will get it. you told politico you claimed you knew of three of the four women who andrew cuomo allegedly had an affair with and then you tell the buffalo news you have no proof. which is it, sir? >> we will at the appropriate time say whatever we have in our box at the appropriate time. megyn: you are not back off that allegation. you believe andrew cuomo did have extramarital affairs. >> what i believe and what is factual out there we will at the appropriate time put out, yes. megyn: he was in your face. he was obviously upset for some reason that you put this out there. can we lower the south on that? he was in your face about it. why were you have so upset? >> he interrupted me talking to another reporter. and he stuck his microphone in my face. he started poking at me with it. megyn: what was the dust-up about your 10-year-old daughter. we can hear you have saying i have a daughter, i have a daughter, too. >> fred dicker is the editorial editor -- senior editorial editor of the "new york post." a couple days before a reporter named amber from the "new york post" was at my daughter's house. i went there and asked her kindly to leave. thereafter we had a conversation with her and her photographer telling them it's inappropriate for them to put my daughter in danger, to put my daughter at risk in any way and we would not tolerate that. subsequently i was in new york city on i believe it was sunday and sitting with a "new york post" reporter when i got a phone call that they were back. even after we had had that conversation and they had promised me, they were back and they were taking pictures in the window of the house and intimidating my daughter and bringing her to cry. i thought it was improper that they were doing that. i felt mr. dicker,ing about the senior political editor of the "new york post" was responsible for it. megyn: the "post" denies it was their photographer. the editor-in-chief says mr. paladino should not be surprised in the media's interest in his family. he says he has invited public scrutiny of his personal life by running for governor and speaking openly about his mistress and love child, end quote. your reaction, sir. >> what does that mean? the children are combatants -- the children are open game? is that what we have evolved to? is that what the new york supposed * has evolved to? who does this man think he is? that's not proper and i think the people of the state of new york agree with me. megyn: you have been open about the fact that while you were married you had an extramarital relationship and conceived a daughter and this other woman gave birth to that daughter who is now 10 and you have been open with the public about it and you have since become open with your wife and family. she is parts of your family now. what do you say to those who say that makes her somehow fair game and people who repeatedly refer to her at your "love child" which has a significan has a sto it. >> i think it's disgusting. she is a 10-year-old daughter. i'm a father. i won't stand for it. i don't back off. this man attacked me. he attacked me with his microphone, and i went right back at him. i confronted him on that issue. and he's wrong, and so is that other fella that spoke from the ne"new york post." they are wrong. children are not combatants. mr. cuomo doesn't have the dignity to step down from his high horse and answer the questions. megyn: you have been forthcoming about the relationship you had outside of your marriage. is it tonight of our business whether you have did that, he has been divorced for quite some time. is it our business whether he cheated on her? is this what we need to know? >> i think you are asking a proper question there. my daughter is 10 years old. 10 years later. seriously. what are they doing? what are they doing to her and her mom? it's highly improper. megyn: why fight fire with fire. why go after andrew cuomo about his alleged affairs. why go there? >> that's what i was saying to maggie haberman. where do i continuously get attacked by the press over my personal life when we have issues at hand. cuomo has been involved in scandals. the man took a bribe. the man was the extorter or the bribeee and as attorney general of the new york he let steve ratner take a walk. they convicted the brother-in-law who took the bribe. but they let steve ratner walk base's the largest fundraiser for the democratic party in new york. megyn: i have got to ask you this. according to latest polls. question mow * is 51%, you are at 39%. rasmussen, como 54%, you are 38%. you are facing a major battle. how does this dust-up play into that and how do you have convince the voters to vote for you. >> the voters of new york state as soon as they hear our message are rallying to our side. we were down 0-somethin -- we wn 30-something points, and we are surging right now. andrew feels it and that's why he's sending his dogs outs. enough is enough. it's time for him to come down and answer to the people on the issues. we want to know how you feels about obama-care. we want to know what his position is because it will be debilitating to the people of new york. they want answers from andrew that andrew is not ready to give them. is he afraid of me or the people. he's afraid of the people web's afraid to speak to the issues. megyn: he has an open invitation to come on this program and speak to the issues. carl paladino, you did not have to be here. it's been quite a week for you. because around standup guy you did. thank you very much. megyn: what do you think? let me know, kelly@foxnews.com. we'll read some of those as the hour progresses. what you think of the dust-up and the politics in general. these past two hours have shown you way it's like as it gets down to the wire. back to one of our top stories in just a moment. powerful new poll numbers just released by fox news less than 15 minutes ago. we asked americans about reelecting the president compared to a year ago. up next alan colmes will comment on those results. the salahis issuing a warning, if you bring up that party crasher thing, you could end up in court. we'll take them to "kelly's court" today. gloria allred says she has proof meg whitman knew her nanny what is an illegal. >> why did you file the lawsuit? she had to drive a car. how awful. mmmmmm. mmmmmm. wow! you have got to be kidding me. 80 calories? light & fit has 80 calories versus 100 in the other leading brand. light & fit. irresistible taste. fewer calories. i love light & fit. [ animals calling ] ♪ [ pop ] [ man ] ♪ well, we get along ♪ yeah, we really do - ♪ and there's nothing wrong - [ bird squawks ] ♪ with what i feel for you ♪ i could hanaround ti the leaves are brown and the summer's gone ♪ [ announcer ] when you're not worried about potential dangers, the world can be a far less threatening pla. take the scary out of life with travelers insurance... and see the world in a different light. you struggle to control your blood sugar. you exercise and eat right, but your blood sugar may still be high, and you need extra help. ask your doctor about onglyza, a once daily medicine used with diet and exercise to control high blood sugar in adults with type 2 diabetes. adding onglyza to your current oral medicine may help reduce after meal blood sugar spikes and may help reduce high morning blood sugar. [ male announcer ] onglyza should not be used to treat type 1 diabetes or diabetic ketoacidosis. tell your doctor if you have a history or risk of diabetic ketoacidosis. onglyza has not been studied with insulin. using onglyza with medicines such as sulfonylureas may cause low blood sugar. some symptoms of low blood sugar are shaking, sweating and rapid heartbeat. call your doctor if you have an allergic reaction like rash, hives or swelling of the face, mouth or throat. ask your doctor if you also take a tzd as swelling in the hands, feet or ankles may worsen. blood tests will check for kidney problems. you may need a lower dose of onglyza if your kidneys are not working well or if you take certain medicines. [ male announcer ] ask your doctor about adding onglyza. extra help. extra control. you may be eligible to pay $10 a month with the onglyza value card program. megyn: some significant poll numbers concerning president obama. only 39% of the country favor a second term for the president. 54% say they would vote for someone else. alan colmes is host of "the alan colmes" show. >> neither are they. it means nothing in a vacuum. it depend on who he runs against. that poll doesn't mean a lot before the mid-term elections before we know who obama may be running against. in a vacuum that number is meaningless. you know what? we are going to take a look at this live at the supreme court. this is kay began's formal ceremony. they will walk down the steps moments away and we'll see -- are they at the supreme court? yes, they are. we never see a close-up shot of it. somebody who covered the high court for three years, you would think i would know that. above the door is the insiption "equal justice under law." the justice is responsible for the swearing in and the welcome. it was done for chief justice roberts by justice stevens who was the most senior justice at the time after william rehnquist passed away. they walked down the steps of the supreme court and it's a moment of celebration for kay began elena kagan. sheer, this is a big day for her and we give her a moment to celebrate. now, back to you, alan. here is what i wanted to show you. so you can see that number. we asked democrats. look how the democrats answered. i'm think can it's the independents and republicans who don't want president obama. only 41% say they would definitely vote to he elect. 34% say probably. >> they are not going to vote for a palin or gingrich or huckabee ticket. i don't see them ideologically lining up. this is a snapshot of a moment in time. if you were taking a shot of the new york mayor thousand wouldn't look at the bridge runsers and say that's how it will line up. four years ago at this time nobody knew who barack obama was. megyn: yeah, they did. you say it's just a snapshot and they won't go for a huckabee or a palin. >> the democrats won't. megyn: is that true now when the country is in such dire economic straits. maybe people put aside their ideology and say i'm going to go -- >> the people who disagree with obama the most are the more progressive democrats. when you have see the healthcare numbers. 2-1 disagree with it because it was not progressive enough. those are the people with the biggest problem. they are the least likely to move over to the right. megyn: when you have see the poll that say 17% will vote for somebody else, up from 4% back in april you are saying those are the true progressives. >> i what say if it's a green party candidate it's conceivable they would go to the left, but not the right. megyn: does that matter? if they are not going to vote for him, they are not going to vote for him. >> these numbers are fluid. these numbers -- before they leave the mid-term election cannot be a predictor. megyn: what does it tell us when you look that snapshot. whats is it telling us? >> it many no better or worse for ronald reagan at this point in this presidency. their detractors will do a tap dance and say isn't this great, he's not doing well. reagan was down at 35% at one point. the race hasn't even started yet. sew i wouldn't get too smug about it. i wouldn't get too smug about it if i were a obama detractor at this point. all right, alan. thank you. more on our breaking news involving osama bin laden. a student taking his own life after being victimized by a cruel prank. prosecutors say invasion of privacy charges are not stiff enough. new charges and the governor of new jersey is very emotional over this. plus attorney gloria allred says she has the smoking gun. a letter to california's republican candidate for governor neglect whitman informing her there were questions about her maid's immigration and social security papers. but that smoking gun may prove whitman's point. >> she was not paid for the extra hours she worked. >> where can i find this lawsuit. >> i'm answer your question. >> where can i find the lawsuit. >> she also was asked to drive a car to the grocery store, take the kids -- >> woe is me. boss: and now i'll turn it over to the gecko. gecko: ah, thank you, sir. as we all know, geico has been saving people money on rv, camper and trailer insurance... ...as well as motorcycle insurance... gecko: oh...sorry, technical difficulties. boss: uh...what about this? gecko: what's this one do? gecko: um...maybe that one. ♪ dance music boss: ok, let's keep rolling. we're on motorcycle insurance. vo: take fifteen minutes to see how much you can save on motorcycle, rv, and camper insurance. megyn: a new development on what california gubernatorial candidate meg whitman is calling an ugly smear. we spent the morning looking at a letter that is said to prove her housekeeper was here illegally. allred called the letter a smoking gun. it got her an invitation to talk with mark levin. >> for what purpose do you represent her? >> why do i need to represent her? >> for what purpose do you represent her? >> i'm having trouble hearing you. the reason is she needs an advocate. she needs an attorney to give her legal advice. >> on what? >> i'm telling i filed a claim with the division of labor standards enforcement in reference to her employment. >> when? >> where she alleged that she worked beyond the 15 hours she was paid for, and she was not paid for the extra hours she worked. >> where can i find this lawsuit? >> i'm answering your question. >> where can i find lawsuit? >> she also was asked to drive her car to the grocery store. >> so, my god, w woe is me, she had to drive the car. i asked you when did you file this lawsuit? >> you also asked me what does she need an attorney for and you didn't want to hear the answer. >> when did you file the lawsuit? >> why do you say woe is me. >> she had to drive a car, how awful. what a sweat shop. >> she needs mileage. have a little courtesy, mark. >> when did you file the lawsuit. >> it's not a lawsuit, i never said i filed a lawsuit. megyn: if you thought that was good, tune in monday, gloria allred is my guest here on "america live." prosecutors are pushing for stiffer charges after a college student kills himself in the wake of a cruel prank. cops say two of tyler clementi's classmates set up a video camera streaming live as he had a romantic encounter with another student. he then jumped off a bridge in new york. governor chris christie getting choked up about this story. >> as the father of a 17-year-old, i can't imagine what his parents are feeling today. i can't. and there might be some people that take that type of treatment and deal with it and others as this man obviously was much more greatly affected by it. i don't know how these two folks are going to sleep at night. megyn: we have a consumer advocate for american online. and sandra smith, an anchor with the fox business network. sandra, now the prosecutors are considering filin filing a biase because tyler clementi was gay and they were filming a gay interlude. >> to call this a prank is an insult to the family. a prank is teepeeing someone's home. it's not taping an intimate moment with another man and airing this for other students to see. this is not a prank. this will be declared a hate crime. for these two students -- 18-year-old students. you are old enough to know what severe consequences could result. megyn: that's the question. were they to foresee he would throw himself off the bridge? >> i don't think they can see it. one of the big issues is how depressed clementi might have been. even though this is a horrible thing the children did to him. most would not judge' off a bridge after this. what are parents doing and what are the schools doing to realize their child might be depressed enough to do something like that. megyn: we don't know if he was gay or if he was out. but a lot of gay kids are struggling with being bullied. there was a case where a similar thing happened. and it's dicey for the school system to offer a gay education and acceptance program. what's suppose to be done? >> people don't have the same regard for cyber bullying as they do for drunk driving. you take a drink, get behind the wheel, you know it's wrong. you hide behind your computer screen, you bully someone. universally it's not accepted that it's wrong. megyn: if these two people knew they would be plastered all or national news and they would be held up for ridicule. megyn: this was the kid's roommate. this was his roommate. megyn: i have to ask this. i have got a 1-year-old. what do you do? you send your kids off to college, now you have to worry their roommate is going to broadcast their private sexual encounters to the world? >> he did what a college would tell a student to do. he went to the resident assistant. he went to them. he went into the room, unplugged the computer. searched for the cameras. then he was shedderred to go online to a gay web site to ask what he should do because he didn't have an avenue. megyn: david beckham suing a prostitute and "in touch" who claim she had an interest lied wit -- had an interludewith him. >> i think where there is smoke there is fire. it's hard to believe -- >> he doesn't want to become the next tiger woods. he's trying to head this off at the pass. you go out first with the lawsuit. there are allegation you don't like and somehow we'll forget about it. megyn: may i remind the panel about eva longoria and tony parker. the woman had text messages. it was all a lie. it's proven a lie. >> i don't buy it. unless these women are able to produce -- i don't think the journalists should have van with this. the parent company -- he's worried. he knows he's in trouble. what's back up the story other than the girl coming forward. megyn: the madame is confirming she sent a second prosecutor city cute. >> the damage is already done. it's already out there. i have had my own problems with the goss eu7 pages. i read things that aren't true. megyn: if you sue you are calling more attention to it. i don't know what the truth is. we get to the third topic next week. thank you panel, i appreciate you being here. all the best. they became infamous for showing up at a white house state dinner. we believe they were not invited. but are we wrong? they say we are and they say don't call us party crashers or else. a threatened lawsuit. during the break you can go to foxnews.com/americalive. read up on the case before the gavel drops next. ♪ [ male announcer ] ever have morning pain slow you down? introducing bayer am, an extra strength pain reliever with alertness aid to fight fatigue. so get up and get goin'! with new bayer am. the morning pain reliever. you get the blood, hope it's enough, it's -- what's this? [ man ] new and improved freestyle lite® blood glucose test strip. sure, i'll try it, but -- [ beep ] wow. [ man ] yeah, that's the patented freestyle zipwik™ design. [ man #1 ] it's like it -- targetthe blood. targets the bld. yeah, it draws it ght in. the test starts fast. you need just a third the blood of onetouch®. oy. freestyle test strips. i'll take 'em. [ man #2 ] sure. call or click -- we'll send you strips and a meter, free. can't i just have these? [ man #2 ] freestyle lite tetrips. call or click today. megyn: "kelly's court" is back in court. on the docket the duo dubbed white house party crashers firing a warning shots at d.c. tareq and michaele salahi seen at a presidential state dinner. now almost a year after their 15 minutes of fame, they are headlining reality television on that program "new housewives" but not warming up to their infamous nickname. they are threatening legal action their lawyer is issuing a warning to the show and to everyone not to call them that. does she have a point? joining me now fox news legal analyst kimberly guilfoyle and former prosecutor jonna spilbor. now their lawyer who is lisa bloom how should point out is the daughter of gloria allred is firing off a letter to the real housewives show saying why, why can't the real housewives, why can't we call them party crashers? >> lisa is a friend of mine. i think technically the party crashers do have a case, if they can show that the term "party crashers" is defamiliar torry and it damaged -- that it's defamat ory and it damaged them. but before they attended the party no one knew who they were. megyn: the evidentiary a bloom cites in her letter is diane diamond, who is an independent investigative journalist interviewed 70 people, she has written a book on the salahis and she concludes they did not crash the white house dinner. >> these are my form colleagues at court tv. i'm friends with them as well. they are great journalists and lisa is a great attorney. but this is why these people are known, white house party crashers. they should trademark it. turn it around to their advantage. get t-shirts made. this is a money making machine for them. they are on the real house wives of d.c. because of it it's not like they are going to go to jail if they were found to be party crashers and put behind bars. in terms of their actual damages, give me a break. megyn: i'm still back at i don't understand why just because diane diamond says they didn't party crash, i have to accept that. i have seen them there win read the news reports at the time, i have yet to hear the couple. who by all accounts from people who met them are very nice people. the reviews of them here at fox were very, very nice. but i had yet to hear them spell it all out and convince me they didn't crash the party. i don't have some rely on diane diamond for my conclusions. >> lisa can spilt out. if you google her, she does spell it out. they are announced by their true names. somebody knew of they were there and knew who they were. that's one of the elements lisa relies on in make this statement. but i think they are shooting themselves in the foot. they should embrace their party crashing event. megyn: she says they were invited. they weren't on one list but they were on two other lists at the white house that night. why weren't they on that list and why if they were invited didn't they stay for the dinner? they cut out early and ran home to post the pictures on facebook and have been silent to offer an explanation who specifically invited them or presented the hard copy of the invitation. where is that? >> it doesn't exist. they got an email from a white house staffer and they wrote back, we love it, we attended. that's great, i'm glad you had a great time. there is circumstantial they received some sort of invitation. but as for an official invitation issued by the white house by the protocol office, that doesn't seem to have materialized. it's much ado about nothing. they went there under ambiguous circumstances. diane diamond has concluded and lisa bloom has conclude, they are walking around, they have a reality show. you can ask politely they nod be referred to. it's saying it's a false statement. but maybe other people have a different interpretation. it's not legally viable. megyn: you can make an argument that's an opinion. we are all willing to hear them spell out what happened. it has yet the happen. evenly a bloom hasn't gone that far. i guess they want us to buy the book. who are you? kimberly and jonna, thank you so much. i appreciate you both being here. one final word for our viewers. this couple has yet to produce proof positive they are not party crashers. why don't they spell out what happened? just because diane diamond thinks they are invited does not make it so. they are public figures and recovering for defamation when you are a public figure is virtually impossible. this election season is stirring up concerns for both sides of the aisle. what about american voter voter? >> adding more taxes would not be the best idea. >> we should keep the tax cuts in place. >> maybe raise the tax on the rich. megyn: fox news is your front row seat for politics. we have heard all the issues. but now it's time to take the political debate outside of the beltway. what do real average everyday american voters think and feel about this about a month out? william lajeunesse hit the road to find out in the series listening to america. what a novel idea, william. >> reporter: voters firmly believe washington is broken but they are not giving up. we found them more informed, more tuned into the mid-term election than many give them credit for on tax cuts, tax rates and the death tax. >> for all the progress we made we are not there yet. >> i have had enough and i believe the american people have had enough. >> reporter: we asked voters in denver, miami and san francisco, should the president extend the bush tax cuts to all taxpayers? >> we should keep the tax cuts in place and maybe raise the taxes on the rich. >> let the tax cuts expire. >> we are in a tough economic times. >> the economy is not that great, so adding more taxes would not be the best idea. >> reporter: what is a fair tax to pay uncle sam. >> i pay 24% and that seems fair to me. >> 10% or less would be good. >> shouldn't have to pay that much. >> i only want to pay a 10% tax, but i must correlate that with the level of services i'm willing to live with. i don't think it's meaningful. >> i would like to see a flat rate. >> if you can afford more you should pay more. >> reporter: in january the death tax jumps from zero to 55%. should you pay the federal government a tax after you die? >> it's something people worked for their whole lives to earn and it should go to their beneficiaries. >> can't we just give them a farewell without taxing them in the grave? >> it's wrong. if my mom left me money it should be just my money. >> totally not. i think that's unfair. >> reporter: we spoke to two dozen people asking questions. only two things they agreed. washington wastes too much money and opposition to the death tax some people didn't even know existed. megyn: after this break, nana turns 95, and you will meet her. plus the u.s. thinks he's involved in a terror plot against europe. officials are focusing on osama bin laden and his top lieutenant. the latest upcoming. ready to try something new? campbell's has made changes. adding lower sodium sea salt to more soups. plus five dollars in coupons to get you started. campbell's condensed soup. pass it on. campbell's.® it's amazing what soup can do.™ you struggle to control your blood sugar. you exercise and eat right, but your blood sugar may still be high, and you need extra help. ask your doctor about onglyza, a once daily medicine used with diet and exercise to control high blood sugar in adults with type 2 diabetes. adding onglyza to your current oral medicine may help reduce after meal blood sugar spikes and may help reduce high morning blood sugar. [ male announcer ] onglyza should not be used to treat type 1 diabetes or diabetic ketoacidosis. tell your doctor if you have a history or risk of diabetic ketoacidosis. onglyza has not been studied with insulin. using onglyza with medicines such as sulfonylureas may cause low blood sugar. some symptoms of low blood sugar are shaking, sweating and rapid heartbeat. call your doctor if you have an allergic reaction like rash, hives or swelling of the face, mouth or throat. ask your doctor if you also take a tzd as swelling in the hands, feet or ankles may worsen. blood tests will check for kidney problems. you may need a lower dose of onglyza if your kidneys are not working well or if you take certain medicines. [ male announcer ] ask your doctor about adding onglyza. extra help. extra control. you may be eligible to pay $10 a month with the onglyza value card program. >>megyn: today is october 1, a special day, for many reasons including nanna turns 95. here is nanna, we made a video with my son and his great grandmother, my nan born october 1st, 1915. she was 30 when world war ii ended. can you put your arms around