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UNIDENTIFIED MALE: With barely a look up at the cameras, Kate McCann emerged, officially now a suspect in the disappearance of her own daughter. She had been told at noon that she was no longer considered just a witness, vastly increasing the psychological pressure on her.

Kate had arrived here looking visibly exhausted and emotionally drained. There were some whistles from the crowd but also a few shouts of support. Those closest to her are adamant she is innocent, but they acknowledge the shocking possibility that the police may soon charge Kate with Madeleine`s death.

UNIDENTIFIED FEMALE: She`s horrified by it, absolutely horrified. And she hopes and prays that Madeleine`s still alive and she sincerely wants to be reunited -- you know, she wants her daughter back.

UNIDENTIFIED MALE: Outside the police station, a large crowd has gathered. Interest here is extraordinarily high, people expressing divided views. But some British tourists are here to offer support.

What did you shout as she went in?

UNIDENTIFIED MALE: We support you, Kate. All of Britain supports her, I think.

UNIDENTIFIED MALE: Then it was Gerry McCann`s turn to arrive for police questioning. He appeared astonishingly composed, given the pressure on both him and his wife. Kate, remember, had been questioned yesterday until 1:00 in the morning. It had lasted 11 grueling hours, and now we know what Kate had been confronted with. There were five people in the room, Kate McCann with her two lawyers, and opposite them, two Portuguese detectives. At one point, the detectives said Madeleine`s blood had been found in Gerry and Kate`s hire car. Kate expressed outrage. She swore at the investigators and said the implication was ludicrous, and she pointed out the car was rented 25 days after Madeleine`s disappearance.

A number of cars had been taken away and tested by forensic experts, including Renault Scenic (ph) the couple had rented in late May. For many weeks, Gerry and Kate have dealt with media rumors that they may have been involved. Under a month ago, I asked the McCanns if they`d always been honest with investigators.

GERRY MCCANN: We have left absolutely nothing out that we have known about at any point and...

KATE MCCANN: We just want Madeleine back. You know, we will do anything to cooperate with the police to get Madeleine back.

UNIDENTIFIED MALE: Now the McCanns are under scrutiny like never before, facing a personal and legal nightmare, and everyone here is left wondering about the strength of the forensic evidence that has produced such a stunning development in the case.

Robert More (ph), ITV News in Portimao.

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UNIDENTIFIED MALE: If Maddy was found today, one thing you can do is certainly try to identify injuries. And the identification of injuries is primarily going to be skeletal. You`re going to be interested in, say, fractures of bones, fractures of skull. And at this point, you would want to have a forensic anthropologist examine the skeletal structures to try to find injury. Now, another thing that you can do, certainly, is toxicology. You can obtain, say, some muscle and provide that to a toxicologist and get an idea of what drugs, if any, are present in Maddy`s system.

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GRACE: Three-year-old little baby Maddy reportedly snatched during a luxury resort vacation, little girl missing 150 days. That`s right: 1-5- 0. Then, a grainy photo emerges of a toddler girl, features eerily similar to baby Maddy. The snapshot taken a few hundred miles from the McCann`s luxury resort. But is the toddler girl baby Maddy?

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PAUL DAVIES, ITV NEWS CORRESPONDENT (voice-over): It all began when a Spanish tourist stopped to take this photograph of what appeared to be a family group on the road to Tangiers. It immediately struck the holidaymaker that the little light-skinned blonde girl being carried on a woman`s back looked out of place with the rest of the party. She even wondered, "Could it possibly be Madeleine McCann?"

Clara Torres say she and her partner asked each other, could they have found the missing British girl, and dismissed the idea as impossible. She told reporters it was only after returning from holiday she read about other possible sightings of Madeleine in Morocco and realized her camera might hold invaluable evidence. Her photographs have now been sent to Interpol. The latest technology will compare them with the most recent pictures of Madeleine.

MICHAEL BROMBY, FACE RECOGNITION EXPERT: My first thoughts are, it`s quite a poor image. The larger image that we see has lots of other people, large scenery in the background. And when the image is zoomed in to what`s suspected to be Madeleine, we found that the graininess and the very poor quality of the image, we can`t really see an awful lot of detail. So from an expert`s point of view, it`s difficult to see features such as the eyes, the nose and the mouth to be able to make any kind of measurements or any kind of observations of how unique that picture is.

DAVIES: Even before this latest possible sighting, Kate and Gerry McCann had traveled to Morocco searching for their daughter. There had been several alleged sightings there. On May the 9th, there were two apparent sightings in Marrakech, one at a petrol station, the other at a hotel. In late May, a woman claimed to have seen Madeleine in the north of the country in Zao (ph).

The latest picture was taken on August the 31st, just south of Tangiers in Zinat. The McCanns have been here before. They`ll be waiting to see where this latest development leads before responding to it and any impact it might have on their own status in the Portuguese police investigation.

Paul Davies, ITV News.

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GRACE: Is this picture baby Maddy? And not only that, is the police case against Maddy`s parents crumbling? The Portuguese police now backing off, back-paddling.

I want it go out to Jerry Lawton, chief reporter with the "Daily Star." Tell me about this photo, Jerry.

JERRY LAWTON, REPORTER: It`s quite dramatic, to be honest, Nancy. What happened, we`ve got a Spanish holiday maker, a tourist in Morocco. She`s taking some pictures on an isolated remote mountain trail in the north of the region, and when she looks at the photos, she sees a blonde, fair-skinned girl being carried on the back of an Arab woman among a group of Arab-looking family. She`s suspicious because she instantly looks at the girl and thinks that could be Madeleine McCann.

GRACE: We`re taking a look at it right now, Jerry. With us, Jerry Lawton from the "Daily Star." What have we learned so far?

LAWTON: Well, what we`ve learned so far, the development has been quite dramatic. Immediately, investigators dash to a remote mountain region called Zinat in the north of Morocco, very isolated, olive trees, very few TVs, radio, a remote region of transients, largely. Astonishingly, this family is tracked down, and the heartbreaking news for Madeleine McCann`s parents is that the daughter is, in fact, the daughter of an olive farmer. She`s a 5-year-old girl, and she does not bear the distinctive trait of a flaw in her right eye that Madeleine bears.

GRACE: What flaw is that?

LAWTON: She has a flaw in her right eye, which basically is a -- what is commonly known as a leaking iris or a cat eye syndrome. It`s quite distinctive, and it`s formed the basis, really, of the entire hunt for Madeleine McCann. They`ve built an entire poster network around it, on the basis that many, many girls of that age who are blonde can look the same, but this flaw is quite rare and is a distinctive flaw that you would notice when you looked directly into Madeleine`s eyes. And it`s on that basis that the identity has been proved.

GRACE: Out to a special guest joining us, Clarence Mitchell. This is the McCann family spokesperson.

Mr. Mitchell, thank you for being with us. What was the family reaction when they just -- when they first heard about this photo that looks startlingly similar to baby Maddy?

CLARENCE MITCHELL, MCCANN FAMILY SPOKESPERSON: Nancy, it`s good to be with you. Yes, unfortunately, we`ve been down this road several times before. There have been other sightings of Madeleine in Morocco and, indeed, in other countries.

Every time, Kate and Gerry are obviously extremely interested to get to the bottom of each sighting. They want to know more than anybody else in the world if it`s their daughter. But each time, hopes have been dashed. And, you know, they just have to pick themselves up and get on with it again and refocus their efforts into finding Madeleine and urging everybody around the world who`s aware of their case to keep their eyes open and report it to the authorities. Any sighting could be valuable. And they keep going through all of these emotional ups and downs that they suffer every time there`s a setback like this.

GRACE: I can`t even imagine what it would be like to think you`ve finally found your child only to learn that the photo may not be legit. With me, Clarence Mitchell, McCann family spokesperson.

And also, Mr. Mitchell, we are hearing now the complete opposite of what we were told a couple of weeks ago. Now we`re hearing the police bore down on Mrs. McCann to try to get a confession because they`re basically out of ideas.

MITCHELL: Well, I can`t actually comment on the details of the investigation. It`s still an active case in Portugal. And Gerry and Kate are not allowed to speak out, and by extension nor am I. But essentially, yes, the investigation took that turn, and both parents were declared suspects, or arguido, as the Portuguese call it, which means they haven`t been charged, they`re not formally accused of a crime yet, but it means the police are suspicious of them.

But Kate and Gerry can wholly explain anything the police may have found, any evidence the police may have found in their apartment or their vehicle, and there are wholly innocent reasons, and they will defend themselves in court if it comes to charges. But I`m hopeful that it won`t.

GRACE: Mr. Mitchell, I pray that you are right. I pray that you are right, because when I look at Maddy`s parents, I do not want to believe they had anything to do with this.

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GRACE: After over 14 hours of intense police interrogation about their girl`s disappearance, Kate and Gerry McCann return to England, home, as suspects. Baby Maddy`s parents deny involvement and then re-launch a massive campaign to find their girl.

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EMILY CHANG, CNN CORRESPONDENT: Kate and Gerry McCann fight back, giving their first interview since being named as suspects in their daughter`s disappearance. They told select British newspapers DNA reportedly found in the trunk of their hired car can be easily explained. That`s where they threw a pair of Madeleine`s unwashed pajamas and the twins` dirty diapers when they moved apartments in Praia da Luz. And their spokesperson said there are a number of other possibilities.

MITCHELL: As many as 30, even more, people had contact with that vehicle during the period it was hired. Not just the McCanns, they were picking up family, friends, and members of the family from the airport, other campaign workers were in it. I drove around in it.

CHANG: The Portuguese police are said to have found at least two samples of DNA in the car that could be Madeleine`s.

PAUL MARTIN, NOTTINGHAM UNIVERSITY: Where you have mixing of samples, biological samples, by fluids or whatever between different family members, that makes the picture much more complicated. So, inevitably, even if Madeleine had not been in the car, if the twins had been in the car and you took a DNA sample, you would expect to get at least partial match because they`re genetically related.

CHANG: Dr. Paul Martin, a DNA expert who has no connection to this case, also says any samples collected could have easily been contaminated.

MARTIN: I think the evidence has to be treated extremely cautiously. And I think most people working in this area would say that conviction by DNA evidence alone is insufficient. So there has to be other evidence to support the case. DNA is just part of the process, of the investigation and conviction.

CHANG: And the investigation continues, as does media coverage around the clock.

Kate and Gerry McCann also told British newspapers they talk about Madeleine all the time. In fact, the twins often ask about her. They simply tell them she isn`t here at the moment, but they remain surrounded by her toys, her other belongings, and photographs as each day passes without her.

Emily Chang, CNN, in Rothley, England.

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GRACE: To Ed Miller, weigh in. Why did they claim they suspected the McCanns?

ED MILLER, REPORTER, "AMERICA`S MOST WANTED": Well, very good question, especially since it happened so very late after the investigation. You know this. In any investigation, you always look at the people who are closest first. So why would they look at them way after the fact? The only matter -- the only question that you can say is Portuguese police blew it from the very beginning and were just looking for someone to blame.

GRACE: Yes, parents have dig in. They`re always the first suspects. Very quickly, Jeff Gardere. What do you make -- your analysis of the parents` public pleas for help?

GARDERE: Well, I think that the parents are very genuine in what they`re doing, and this is the way that they have to keep their lives going, keep the hope going, by keeping everyone else involved, and keeping this child`s memory alive, even if something serious has happened to her that we may not know exactly what it is.

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RANDI KAYE, CNN CORRESPONDENT (voice-over): Before Madeleine McCann went missing, her family lived a quiet, ordinary life here, about 2 1/2 hours north of London. We came here to the village of Rothley, England, to learn more about Madeleine McCann`s parents. We wanted to know what life was like for them before they started making headlines around the world, before British celebrities started pleading for the safe return of their daughter, before they met with the pope.

We came here to ask a very simple question: What can you tell us about Kate and Gerry McCann?

NICKY GILL, KATE MCCANN`S BEST FRIEND: They`re extremely good for each other. They bounce off each other. They`re excellent parents. They`ve formed a really good family unit. They balance each other really well, actually. They`re the two sides of a coin. They really are.

KAYE: Nicky Gill and Linda McQueen grew up with Kate McCann. Nikki is her best friend.

What is it that you think that people should know about Kate and Gerry McCann?

GILL: For me, it`s that the two special people who love the children dearly. They would not harm a single hair on their heads. They just want them back.

KAYE: Both women say Kate wanted five children but needed in-vitro fertilization.

GILL: Whatever they needed to do, they were prepared to go the whole way to have a baby and to have a family. And it was just crucial to them.

KAYE (voice-over): Much of the storm around this story began when tabloid newspapers published what they say are bits and pieces of Kate`s diary, painting a very different picture of Kate. CNN has not independently confirmed these reports. The papers say Kate was a frustrated mother who described her children as "hysterical," "hyperactive," "difficult to control," adding Madeleine`s excessive energy "exhausts" her.

(on screen): Was Kate overwhelmed by the children, as this report about the diary suggests?

LINDA MCQUEEN, FRIEND OF THE MCCANN FAMILY: Overwhelmed by the children? No.

GILL: No. She just loves the children. And like I said before, she`s a mom that goes and takes it all in stride. She`s not -- to listen to her with them, she`s so calm and, "Yes, it`s fine." There`s no air of anything negative about her.

KAYE (voice-over): "Flash," a Portuguese magazine, says Kate McCann told them the first six months of Maddy`s life were very difficult. "She cried practically for 18 hours a day. I had to permanently carry her around."

The magazine reports, after the twins were born, Kate says Madeleine started to demand lots of attention. "She`d run up and down screaming in the background shouting for my attention." A spokesperson for the McCanns confirms Kate was interviewed by the magazine, but denies she complained about Madeleine being colicky or demanding attention.

(on screen): Are Kate and Gerry McCann negligent when it comes to their children?

MCQUEEN: Not at all. No. Not at all. It couldn`t be further from the truth. It really couldn`t. They`re really strong, caring parents.

KAYE: Kate and Gerry met studying medicine in Glasgow, where Gerry grew up. When Kate took a job in New Zealand, Gerry followed.

MCQUEEN: I think he went to the pub one night and said, "I`ve met the girl of my dreams."

KAYE: The couple married in Kate`s hometown of Liverpool at this church in 1998. In 2003, Madeleine was born. Then came the twins. The family settled in Rothley. Kate worked part-time as a general practitioner so she could be home more.

DR. DOUG SKEHAN, GERRY MCCANN`S BOSS: One has to say they have everything that you would want for, and suddenly everything has turned into a nightmare.

KAYE: Madeleine`s great uncle says this is not the first time the couple has dealt with hard times. Both come from working-class families.

BRIAN KENNEDY, MADELEINE`S GREAT UNCLE: Sometimes people automatically assume, because you have two doctors, they must be quite well-off and wealthy. It`s been a long struggle for them to get where they are now. And just as life was looking good, this sort of thing happens.

KAYE: Their home in Rothley is a fortress now. Police block the street. Reporters wait on their every move. All Kate and Gerry want, those closest to them say, is for the focus to return to finding Madeleine.

GILL: They are heartbroken. Their little girl is gone, and we`ve still got no answers as to where she is.

KAYE: No answers as to what happened to her either, until somebody starts talking.

Randi Kaye, CNN, Rothley, England.

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GRACE: Marc Klaas, you have been in this spot before, but unlike many people, Marc Klaas, when his daughter, Polly, went missing, he said, "Here I am. Question me, polygraph me, take my blood, take my hair, check my apartment, check my car, please, and then go find the real perpetrator." You know, there may be a million reasons why she would not want to take a plea, if, in fact, she`s responsible, Marc.

KLAAS: Well, that`s very true. And I think what I`d like to point out here is that this investigation was so bungled, they not only had no protocols, but they apparently had no clue as to how to investigate a kidnapping case, because they seemed to pay very little attention to the family until many months later. And in the United States, 78 percent of all abductions are family abductions, so that`s where they should have looked. They should have done their questioning. They should have done their polygraphy. They should have been able to deal with this and not have to go back and engage in all of this nonsense right now.

Mrs. McCann is in a situation where she is not going to admit guilt. The entire world is looking at her. And if she had done something, the time would have been at the beginning.

GRACE: Excellent thought, Marc Klaas. But if that DNA really has turned up in the trunk, they`re in a lot of hot water.

Out to Emily Chang in Rothley, England. None of these guests that had dinner with the McCanns can place Maddy at any time that evening. Nobody saw Maddy alive? What time was the last time Maddy was seen alive by anybody other than the parents?

CHANG: Well, the last time Maddy was seen alive was about 2 1/2 hours before the McCanns went to dinner. And their account of what happened hangs on the accounts of about seven friends that they were having dinner with. And all of those friends have come out publicly supporting them, the McCanns, proclaiming their innocence. However, not all of them have -- we don`t know exactly what they`ve said to police.

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UNIDENTIFIED MALE: Over the last 100 days has been trying to increase the chances of finding Madeleine, and we don`t know of any specific evidence which has changed the belief that we had that there was a reasonable chance Madeleine is still alive.

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UNIDENTIFIED MALE: If the Portuguese police are wanting them back, then Kate and Gerry McCann have said they will go back. That is a guarantee they gave before leaving Portugal. And they remain -- make no mistake about it -- in a very, very precarious legal situation. They could be charged within days. It`s just not at all clear, and the ball is now very firmly in the court of the Portuguese detectives.

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GRACE: A beautiful 4-year-old baby girl goes missing from a luxury resort hotel while her parents are at a dinner party. Where is baby Maddy?

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UNIDENTIFIED MALE: If the search for Madeleine in the area surrounding her disappearance is being scaled down, then where is its emphasis now?

UNIDENTIFIED MALE: Up here you`re reminded of how easy it would be for an abductor to hide away a little girl amongst the apartments and the holiday home and how difficult it would be to find her. The search would have to be fast-moving and methodical. Now, if the hunt for Madeleine has been like that, it`s been far from obvious.

UNIDENTIFIED MALE: Police may have theories about what happened, but they need more evidence. And, you know, I think we have to assume that one possibility is that there won`t be charges at all.

UNIDENTIFIED MALE: Is this baby girl Madeleine McCann or just another false alarm?

UNIDENTIFIED FEMALE: We saw this group of people. We took some photos, but as soon as we took them, we saw a blonde, blonde girl who caught our eye. We both looked at each other; we thought of Madeleine.

UNIDENTIFIED MALE: The case of mistaken identity raises the hopes of a nation. But just as quickly as the photo surfaces, hope may be fleeting.

GERRY MCCANN, FATHER OF MISSING CHILD: A little girl called Maddy was taken from a family hotel room. As I`m sure you understand, we need to do everything possible to help the police with their inquiries in finding her. If you have seen this little girl, please could you go to your local authorities or police and give any information that you have, any genuine information that you have. Please, please help us. Thank you.

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GRACE: Tonight, let`s stop to remember Army Corporal Javier Paredes, just 24, San Antonio, Texas, killed, Iraq. An Army medic receiving the Bronze Star and Purple Heart, remembered for his sense of humor, always wearing a smile, leaves behind grieving aunt, Maria, dad, Austino, and four brothers. Javier Paredes, American hero.

Thank you to our guests, but our biggest thank you to you for being with us, inviting us into your homes. See you tomorrow night, 8:00 sharp Eastern. And until then, good night, friend.

END