February 24, 2003

US military begins ambitious assault on Iraq, using electronic and psychological weapons on information battlefield; cyber-warfare experts have waged e-mail assault on Iraq's political, military and economic leadership, urging them to break with Saddam Hussein; wave of calls have gone to private cellphone numbers of specially selected officials inside Iraq; more than eight million leaflets have been dropped on Iraq warning antiaircraft missile operators and ground troops that they face destruction; Air Force Special Operations planes are broadcasting directly to Iraqi people in Arabic with programs that mimic styles of local radio stations; US military planners are hoping to break Iraqi military's will to fight and to sway public opinion; maps; photos (M)

Pres Bush launches one of most ambitious efforts to reinvent Medicare and Medicaid since programs were created 38 years ago with proposals that mark shift away from notion that everyone should be in same government-managed system with same benefits; proposals would transform pillars of Great Society and their guarantee of health benefits to elderly, disabled and poor; would give states far more power to determine who receives what benefits in Medicaid program, and make elderly more reliant on private health plans; individuals would be given more choices, including option of picking private health plan; critics say proposals will mean less security, fewer guaranteed benefits and more financial risks for beneficiaries; argue that administration is retreating from goals of Great Society and New Deal, and promises government made across generations; say proposals are essentially effort to limit federal government's financial responsibilities and to cap open-ended guarantee of specific benefits in effort to move from defined benefit to defined contribution; administration officials and allies in Congress, including centrist Democrats, say changes are essential to modernize creaky government programs and to stem growth in entitlement spending; graphs (M)

Realism triumphs over escapism at 45th annual Grammy Awards ceremony; some examples cited, including numerous awards won by Norahy Jones's 'old-fashioned' album and performances by Coldplay and Bruce Springsteen and Elvis Costello; photos (M)

24 victims critically burned in fire in Station, West Warwick (RI) nightclub, that killed 97 people struggle for lives in intensive care unit at Rhode Island Hospital; 22 are on ventilators; doctors say many will need extensive psychological help with injuries, which in some cases will be disfiguring, and face long period of rehabilitation; photo (M)

British Businessman Seen In Formal Bid for Hotel Chain Hugh E. Osmond, a British businessman who made a fortune running pizza and pub chains, is planning to make a formal offer this week for Six Continents, the world's second-largest hotel chain, that values the company as high as $9 billion, people involved in the talks said. A formal offer from Mr. Osmond would likely flush out other interested parties. The Hilton Group, a British company that owns the rights to the Hilton brand outside the United States, is considering its options, including buying some hotels from Mr. Osmond should his bid succeed, a person close to the company said. Hilton could also team up with a private equity firm to start a counteroffer. [Page C3.]