December 16, 2004

Experts predict that tens of thousands of soldiers returning from Iraq will need treatment for serious mental health problems brought on by stress and carnage of war; Army study shows about one in six soldiers in Iraq report symptoms of major depression, serious anxiety or post-traumatic stress disorder, proportion that could climb to one in three, rate ultimately found in Vietnam veterans; psychiatrists say kind of fighting seen in recent retaking of Falluja--impossibility of telling Iraqi friend from Iraqi foe and knowledge that every stretch of road may conceal explosive device--is tailored to produce adrenaline-gone-haywire reactions that leave lasting emotional scars; veterans say repeated extensions of duty in Iraq are emotionally battering as well, even for most stoical of warriors; military and Dept of Veterans Affairs officials note that many troops have not participated in ground combat, but duration and intensity of war have doctors at veterans hospitals across country worried about coming caseload; photos; chart (L)

Grupo TMM, Mexican transportation company, sells control of country's biggest railroad, Transportacion Ferroviaria Mexicana, to Kansas City Southern; Kansas City Southern, which already owns minority stake in railroad, will pay Ferroviaria Mexicana $200 million in cash and estimated $300 million in stock (S)

Video games ratings have been called inconsistent and insufficient, but mostly they are ineffective; they are overlooked by parents, who are already grappling with flood of conflicting information about games; self-regulatory ratings system by Entertainment Software Rating Board focuses on sex, violence and profanity; photo (M)

Important test of United States' fledgling missile defense system ends in failure when interceptor rocket fails to launch on cue from Marshall Islands; Pentagon says interceptor automoatically shut down because of 'unknown anomaly'; setback threatens to delay further initial step of activating basic missile defense; launching had been delayed several times because of bad weather or problems with equipment; last test of interceptor, two years ago, was also failure, as interceptor failed to separate from its booster rocket, missed its target by hundreds of miles and burned up in atmosphere; shortly after that Pres Bush ordered Pentagon to proceed with initial deployment of limited system, goal he campaigned on in 2004 election; in 2003, test of another part of system based on Navy ships also failed; before latest test, Missile Defense Agency had conducted eight tests with interceptor vehicles, scoring hits in five under carefully controlled conditions; critics say agency's entire test program is unrealistic and that tests have been scripted; overall missile defense program is to cost more than $50 billion over next five years (M)

Johnson & Johnson agrees to buy Guidant, one of nation's largest makers of devices to treat heart and circulatory illnesses, for $25.4 billion; merger must be approved by antitrust regulators, process that lawyers say could push closing into next fall and force Johnson & Johnson to sell off or license Guidant product lines; Johnson & Johnson will have to meld work forces and management teams from two decidedly different cultures if deal get regulatory approval; Johnson & Johnson chairman-chief executive William C Weldon comments (M)