February 8, 1999

Creative Artists Agency is locking horns with its founder, Michael Ovitz, and his new company, Artists Management Group; Creative Artists overcame what rivals saw as probable fatal blow--Ovitz's surprise departure four years ago--thanks to skills of its relentlessly ambitious agents and failure of competitors to step into breach; Creative Artists' battle to survive and its eventual clash with Ovitz has overtones of Greek drama, pitting young men against man whom they once considered fearful father-figure; photo; chart listing strengths and weaknesses of three top talent agencies in Hollywood: Creative Artists, International Creative Management and William Morris Agency (M)

Billions of dollars of Federal welfare money are piling up in Treasury, unused by state officials who won control of money in 1996; Federal and state officials say over half of states failed to use full amounts of Federal welfare grants last year; six states passed up chance to get extra Federal money from Labor Department to help move long-term welfare recipients into jobs; state officials say number of people on welfare dropped much faster than expected; some states have been slow to develop new programs; some are saving money for use in recession; West Virginia has unspent balance of $72 million, representing 65 percent of its annual grant (M)

Estimated 1,000 people stage angry rally in front of Bronx home of Amadou Diallo, unarmed man who died in hale of 41 bullets shot by four New York City police officers; in sign that killing could enflame racial tension throughout city, almost everyone interviewed said they believed police officers had judged Diallo as criminal because he was black; rally organizer, Rev Al Sharpton, comments; photo (M)

New York State Gov George Pataki, seeking to trump Legislature in constant struggle over control of state budget, significantly alters way his proposed budget is drafted; new approach will make it far more difficult for Legislature to make changes; many legislators express anger over Pataki's changes (M)

Uma Thurman is latest film actress to try the stage; she will appear in update of Moliere's Misanthrope at Classic Stage Company in East Village; photos (M)