For Fallon, the perception of a disagreement with Bush's policies on Iran rather than an actual rift was enough reason to step down.

"Recent press reports suggesting a disconnect between my views and the president's policy objectives have become a distraction at a critical time and hamper efforts in the Centcom region," Fallon said in a statement Tuesday in which he announced his resignation as head of U.S. Central Command, arguably the most important in the U.S. military.

Democrats seized on Fallon's resignation as an opportunity to criticize Bush.

"Over the last seven Bush years, we've seen those who toe the company line get rewarded and those who speak inconvenient truths get retired," Sen. John Kerry, D-Mass., said in a written statement.

More than 200 policemen with bomb detectors and five sniffer dogs were deployed around the court where some 400 of Thaksin's supporters waited, many holding portraits of the former leader over their heads.

"The defendant pleaded not guilty of the charges," chief judge Thongloh Chom-ngam told the court, which set the next hearing for April 29. It also excused Thaksin from having to appear at every hearing, as requested by his lawyer.

"We can prove our innocence," said Thaksin, who was ousted in a September 2006 military coup for alleged corruption and abuse of power.

When he emerged after the hearing, some of his supporters burst into tears while others cheered him, shouting "Thaksin, fight, fight."

"Never mind, everything will be OK," Thaksin told one female supporter who cried as she hugged him.

Thaksin's return has stirred the Thai political scene because of suspicions that he will seek a return to power and try to settle the score against those who deposed him.

He has insisted, though, that he has no interest in returning to politics and has said he plans to devote himself to charity work, sports and his family.

Benetta Buell-Wilson was driving on an interstate east of San Diego in January 2002 when she swerved to avoid a metal object and lost control of her 1997 Explorer, which rolled 4 1/2 times. The mother of two was paralyzed from the waist down when the roof collapsed on her neck, severing her spine.

A jury initially awarded Buell-Wilson $369 million, including $246 million in punitive damages but courts twice cut the size of the award.

The $82.6 million approved by the appeals court Monday includes punitive damages of $55 million.

The Supreme Court wanted the appeals court to determine if its ruling was in line with an earlier Supreme Court decision overturning a $79.5 million punitive damages award in a tobacco case.

The trial was suspended during jury selection in October because of problems funding Nichols' defense. Those problems have not been completely resolved, but Judge James Bodiford has sought to move the case along.

The case will resume with the same jury pool on a date roughly midway between what prosecutors and defense attorneys had sought. At the hearing Monday, prosecutors asked that the trial resume June 16 while the defense wanted a Sept. 8 date.

"This case needs a start date, a real start date," Bodiford said. Now, the question is where to hold the trial.

Up until now, the plan was to hold the trial in the Fulton County Courthouse complex, where the March 11, 2005, shooting spree began.

Defense lawyers had previously asked that the trial be moved to another location in the county, but that request was denied by the previous judge overseeing the case because no other courthouse was suitable or was willing to host the trial.

Spitzer was the initial target of the investigation and was tracked using court-ordered wiretaps that appear to have recorded him arranging for a prostitute to meet him at a Washington hotel in mid-February, the official said.

The official spoke to The Associated Press condition of anonymity because of the sensitivity of the investigation.

The scandal surrounding the man who built his political reputation on rooting out corruption stunned the state. Calls for Spitzer's resignation began immediately and intensified Tuesday with the New York Daily News, New York Post and Newsday all demanding that he step down.

Spitzer retreated from public view Monday afternoon, when he appeared glassy-eyed with his shellshocked wife, Silda, at his side and apologized to his family and the public, but did not directly acknowledge any involvement with the prostitute.

Scrambling to ease the strain on the credit market, the Federal Reserve announced a $200 billion program on Tuesday that would allow financial institutions, including the nation’s major investment banks, to borrow ultra-safe Treasury money by using some of their riskiest investments as collateral. Wall Street responded with a rally, with the Dow Jones industrials surging 150 points.

This was the central bank’s second effort in a week to unfreeze the nation’s panicky credit markets, where investors have become too frightened to finance even conservative debt offerings, which in turn has caused a cash squeeze at seemingly solid financial institutions.

Stock markets soared after the announcement, with the Dow Jones industrials gaining 260 points before falling back to 11,925.85, a 185-point gain, at 12:30 p.m. as brightened investors snapped a three-day losing streak. The Standard & Poor’s 500-stock index was up 1.4 percent, and the Nasdaq composite index gained 1.5 percent.

The Fed normally lends Treasury securities to banks for just a few hours. Under the new program, money will be lent for 28 days and the central bank will accept nongovernment mortgage-backed securities — the source of the current crisis in the credit markets — as collateral. The Fed will require that the assets, which are linked to soured home loans, have a premium credit rating.

The new program, dubbed the Term Securities Lending Facility, will effectively allow strapped financial institutions to hand over potentially damaged securities to the government in exchange for either cash or easily traded Treasury securities, some of the safest in the market.