The Palestinian Authority, under Chairman Yasser Arafat, "is not the kind of leadership that can lead to the Palestinian state that we need," National Security adviser Condoleezza Rice told "Fox News Sunday." Her comments come as President Bush is due to meet this week with Israeli Prime Minister Ariel Sharon and Jordan's King Abdullah II, about a proposed Middle East peace conference this summer. Israel opposes allowing Arafat to attend. During her appearance, Rice also said the "status quo is not acceptable" in Iraq. But she said Bush had not decided on a course of action against its leader, Saddam Hussein. (Related stories, pages 1, 6; editorial, page 10.)

The Postal Service advised Midwesterners to use caution opening mailboxes after pipe bombs were found inside them in three states. Explosions injured six people in Iowa and Illinois Friday. A typewritten antigovernment message that accompanied several of the bombs warned of further "attention getters." Above, a bomb technician (top, center) signals all clear after disposing of a device in Ohiowa, Neb., one of six devices discovered in rural parts of the state Saturday. (Story, page 2.)

After pulling out of a multimillion-dollar settlement on sex abuse claims against one former priest, Boston's Roman Catholic Archdiocese was dealing with the fallout. The archdiocese's chief financial officer told The Boston Globe it may have to mortgage church real estate to raise funds for a larger settlement. Meanwhile, the attorney who negotiated the deal, worth between $15 million and $30 million, said he may sue for breach of contract. The archdiocese's finance council said the settlement would have left too little money for possible future claims.

Insisting he knew nothing of a controversial software purchase, California Gov. Gray Davis (D) said he was "as mad as anyone else" and was working to rescind it. A state audit released last month found that a six-year, $95 million contract for Oracle Corp. to provide software for most state agencies would end up costing $41 million more than if it was purchased separately from previous suppliers. Oracle made a $25,000 contribution to Davis's reelection campaign shortly after the deal was signed, but aides to the governor denied there was any connection.

Flooding from heavy rains in the Appalachian region left at least six people dead. Crews were working Sunday to clear mud and debris that closed roads in parts of southern West Virginia, western Virginia, and eastern Kentucky.

War Emblem won this year's Kentucky Derby, finishing Saturday at Churchill Downs in Louisville, Ky., in 2 minutes, 1 second. War Emblem's trainer, Bob Baffert, now has seven wins to his credit in races that make up the sport's coveted Triple Crown.

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