[Kyra Phillips, Cnn Anchor:] What you say can and will be used against you, unless you work for Blackwater and took part in that allegedly unprovoked rampage last month in Baghdad.
[Don Lemon, Cnn Anchor:] Now the U.S. State Department is under fire for so-called limited immunity agreements with Blackwater contractors. We will get the Pentagon's take from our Jamie McIntyre this hour. Hello, everyone. I'm Don Lemon, live at the CNN world headquarters in Atlanta.
[Phillips:] And I'm Kyra Phillips. You're live in the CNN NEWSROOM. More on that F-18 fighter jet that was coming out of Oceana Naval Air Station Headed to Virginia Beach. We reported that a practice bomb had fell off the F-18. What I can tell you, it was a Mark 76, an inert practice bomb, make sure we make press that point, an inert practice bomb. No explosives inside this practice bomb. It's about 25 pounds of metal and a shotgun shell, so it gives enough for a spotting charge, a little white smoke when it is dropped. So no harm to anybody. But needless to say, folks that saw that practice bomb fall off that jet got a little worried. We found out about it. And indeed, we were able to confirm it was an inert practice bomb, Mark 76. The jet was flying out of Oceana Naval Air Station. That fake or that inert practice bomb fell into an industrial area, a warehouse actually in Virginia Beach. That's the latest on this. We wanted to bring it to you.
[Lemon:] It is a new gray area involving Blackwater. Some of the security contractor's guards are accused of killing 17 Iraqi civilians. Iraq can't legally prosecuted and it's unclear whether U.S. law applies. Now add to the mix some sort of immunity deal extended by State Department investigators. So, what's the view from the Pentagon? Our senior Pentagon correspondent, Jamie McIntyre, joins us now with the latest Jamie.
[Jamie Mcintyre, Cnn Senior Pentagon Correspondent:] Well, Don, there has been a high-level meeting between Defense Secretary Robert Gates and Secretary of State Condoleezza Rice about the future control of contractors in Iraq in the wake of that Blackwater controversy, the incident there. And, according to the Pentagon, there has been a general understanding that there will be a new agreement under which the U.S. military will have increased control over contractors in Iraq, although not necessarily a single entity in charge of all contracting matters. Pentagon spokesman Geoff Morrell today said that there were three key points that were addressed. One was standard rules for the use of force for both contractors working for the Defense Department and the Department of State. In addition, there would be the U.S. military would have the final say over the movement of contractors, and they would all have to be coordinated through the U.S. military. And, finally, there would be a standardization of training and procedures, with the U.S. military given more visibility over the training of contractors, not just for the Pentagon, the Pentagon, but also for the State Department. Here is how Pentagon spokesman Geoff Morrell explained how it might work.
[Geoff Morrell, Pentagon Spokesperson:] The secretary believes that so long as there is somebody ultimately who coordinates all the movements and has visibility of all the movements of armed contractors in Iraq, that that could suffice in terms of giving the commanders the knowledge of what is going on in the battle space, so they aren't blindsided by contractors running in and out their battle space and potentially causing problems.
[Mcintyre:] Now, one gray area that remains is, if the contractors do not abide by these new stricter guidelines, who is going to hold them accountable? Now, the Pentagon says it would hold its own contractors accountable. The State Department would have to hold its contractors accountable. And that comes in the wake of this controversy about whether the Blackwater employees involved in this controversial incident were given grants of immunity. What people say here is that they are not supposed to be given any immunity, but it appears that when they signed statements, they signed statements saying that they agreed that they would give the information so long as none of it was used against them in a criminal court of law. And that has opened up a whole 'nother can of worms Don.
[Lemon:] OK, Jamie. We have been following this developing news and reporting on this F-18 device that accidentally fell in Virginia Beach. What are you and your producers at the Pentagon hearing, if anything, about this?
[Mcintyre:] Well, my producer Mike Mount is actually the one who found out about this in the first place, how an F-18 took off with a practice warhead, a dummy bomb, and it accidentally released in an area where it fell, apparently, we are told, in a warehouse where it did not cause any damage or injuries. It is a practice bomb. It's inert, doesn't have explosives. But, still, obviously, something like this falls on your head, it could kill you and it can cause some severe property damage. But at this point they are investigating how this could happen. It was a training exercise, routine flight. Somehow, there was a release, an unauthorized release of this practice munition. And, believe me, that means somebody at the Oceana Naval Station is going to be having a really bad day.
[Lemon:] Oh, right on, on that. Thank you very much, Jamie McIntyre.
[Phillips:] The face and voice of accountability for a wounded department, that's what President Bush wants James Peake to be. He's nominated the decorated military veteran to be the next secretary of veterans affairs. The department has been backlogged with wounded troops coming back from Iraq and Afghanistan. And many people have complained that they are not getting benefits in a timely manner. A special panel has recommended major reforms.
[James Peake, Veteran Affairs Secretary Nominee:] Well, it is a high honor, indeed. I do understand that, though it is an honor, this is not an honorary position. And there is a lot of work to be done as we move forward on implementing the Dole-Shalala commission recommendations.
[Phillips:] Well, critics question whether Peake is the right man for the job, especially after allegations of shoddy treatment at the nation's premier Army hospital. We are talking about Walter Reed. Peake is a former Army surgeon general.
[Lemon:] South Floridians are keeping their eyes on the surf. It is kicking off, as Tropical Storm Noel, as it churns through the Caribbean. Reporter Rosh Lowe of CNN affiliate WSVN has a really good angle. And he joins us from Miami Beach Rosh.
[Rosh Lowe, Wsvn Reporter:] All right. Let me give you the tour of South Beach right now. Over my shoulder, you can see the rough surf here. The word of the day is windy in South Florida. And you know it has been a quiet tropical storm season so far. But the day before Halloween, we could have a Halloween hurricane off of South Florida's coast. And we will go to some of the video that we shot earlier today. Up and down Miami Beach, you can take a look at the seas out there. We spoke with several tourists who say that they were not deterred. They still wanted to get in some beach time. But even those tourists say, you know what, after a while, we want to leave. Now, forecasters are saying the winds could top about 39 miles per hour in South Florida. And we saw last year that, with those types of winds, it could lead to some power outages, power lines down. Already officials are warning people starting tonight and really going into tomorrow and then tomorrow night not to venture out to the beach, that, if you live down here in the South Florida area, you have loose things outside of your house, get those things in your home. They are also warning boaters that you look at that, that these seas are too rough to get on your boats and to tie up your boats. So, we will bring it back out here live to South Beach. South Florida is preparing for this tropical storm to be off of our coast. And, as we all know, with tropical storms and with hurricanes, they don't travel in a straight line. So, everyone is well aware that this tropical storm could even turn into a minimal hurricane there a little bit to the West and then South Florida would be right in the path. We are live in South Beach, Rosh Lowe back to you.
[Lemon:] All right, Rosh Lowe from CNN affiliate WSVN, we certainly appreciate that report, sir. And a deadly rainmaker weakens, but keeps turning in the Caribbean. We are talking about Noel, Chad Myers, right? That's it.
[Chad Myers, Cnn Meteorologist:] Yes, really, it is a Halloween storm named Noel that looks like Noel. Isn't that kind of odd that it could be Christmas and Halloween all at the same time?
[Lemon:] Is this the first Noel or Noel of the hurricane?
[Myers:] You know, I don't remember another Noel. So either we didn't get there six years ago they change the names if they retire one, obviously. There will never be another Andrew. Otherwise, they just recycle the names every six years. But either we didn't get to N last six years ago or 12 years ago. I just don't remember it ever being there. So, anyway, it is still churning. It is still over Cuba. I know it looks like it is over the Turks and Caicos. And it looks like, oh, no, look out. It's really going to get going. But the center is actually still over land. Kind of deceptive how the satellite makes it looks, just because all the convection is over the water. Forecast still is to miss Florida. But I'm worried about that left side right there. Look how close that gets, 60, 70 miles per hour right there along Miami Beach. And some now some of the computer models are taking it into Florida, not missing it by all that much. And, so, we could actually see at least some of these models turn a little bit farther to the West. If it does get a little even if it doesn't touch, there's still going to be some waterspouts come onshore, still going to be heavy rain. And you are still going to get winds 40 to 50 miles per hour. And we're seeing winds right now of 40 in some spots, gusts at least, and also this wind is blowing the water over the sandbars and on to the shore and then these rip currents come right off from those sandbars and you really can get yourself in trouble. There are some pretty decent wind gusts right there. That's Nassau, 33, Melbourne Beach at 29. That looks like Indialantic Beach as well somewhere around 30 miles per hour. The rest of the country is pretty good. There's a lot of sunshine through the Plains, a little bit of light snow up across Colorado. This is the only thing we have to worry about. And if you are living in South Florida, Central Florida, all the way up to Savannah, I know the forecast isn't for it to get to you. But I'm not convinced. Just pay attention to it because as we go through the week, really, not the end of week, it will be gone by Friday. But it will be very, very close, close enough that you need to pay attention Don.
[Lemon:] Pay attention. You heard it from the weather expert, Mr. Chad Myers.
[Myers:] You're welcome.
[Lemon:] Thank you, sir.
[Myers:] Sure.
[Lemon:] When the weather becomes the news, count on CNN to bring it to you first. If you see severe weather happening in your area, please send us an I-Report. Go to CNN.com and click on I-Report or type ireport@CNN.com right into your cell phone and share your photos or your video.
[Phillips:] House Number One Scotland Street home to a tragedy, an address that witnesses will never forget. Now, for the fist time we are hearing 911 calls from people who saw this North Carolina beach house go up in flames early Sunday morning, killing seven college students from South Carolina, calls like this one filled with confusion and frustration.
[Dispatcher:] Brunswick County 911. What is your emergency?
[Caller:] Yes, I'm looking for the address, Scotland Street. Let me see if I can help these people.
[Dispatcher:] OK.
[Unidentified Male:] Can you get the fire department here?
[Dispatcher:] Sure. What's the address, sir?
[Unidentified Male:] I'm not sure. Scotland Street. They will see it.
[Dispatcher:] Where is that?
[Unidentified Male:] Ocean Isle Beach.
[Dispatcher:] OK.
[Unidentified Male:] Thank you.
[Dispatcher:] Oh, no, wait a minute. I need something better than that. I'm not familiar with the area.
[Unidentified Male:] OK, I'm looking for an address.
[Dispatcher:] OK. What's wrong?
[Unidentified Male:] A house fire.
[Dispatcher:] Oh, I didn't know that, sir. You didn't tell me.
[Unidentified Male:] It would be Unit 1, Ocean Isle Beach. House Number One Scotland Street.
[Dispatcher:] Scotland?
[Unidentified Male:] Yes.
[Dispatcher:] Is anybody there, sir?
[Unidentified Male:] There are people here.
[Dispatcher:] Could you ask anybody if they can give me an address?
[Unidentified Male:] They're trapped in the house, lady.
[Dispatcher:] I know, sir. I mean you're telling me. But how can I send somebody if I don't know where to go?
[Unidentified Male:] Well, I told you, the address is Number One Scotland Street, Ocean Isle Beach.
[Phillips:] Well, the names of the victims have not been officially released. But we have been able to confirm some of them through family and friends. Sophomore Allison Walden was 19, A premed major. Her dad in Ohio says she was always cheerful, positive, and had a good future in front of her, as did 19-year-old freshman Cassidy Pendley. She was in high school. She attended an academic program for the best and brightest students. She was also junior homecoming queen. One of the victims was 19-year-old South Carolina freshman Cassidy Pendley. That's her on the left. Again, her best friend, Melyssa Cramer, next to her. Melyssa remembered her friend in a series of I-Reports to CNN. She says Cassidy's heart and her smile filled people with happiness. She says Cassidy made an imprint on her heart forever. Melyssa ended her I-Report with the words: "I love you and miss you. You will always be my best friend." Thank you, Melyssa, for your I-Report. And we are very sorry for your loss.
[Lemon:] Designed to intimidate and terrorize, a symbol of racism and oppression. Why are so many nooses showing up around the country? Well, CNN investigates. And you will get a preview straight ahead in the CNN NEWSROOM. And two months and counting down to the start of primary season and the Democrats have another chance to jockey for position. Our Candy Crowley handicaps tonight's debate in Philly. That's coming up.