``Terrorism and terrorism alone is the path to liberation,'' declared the cleric, Fawaz Damra, during a 1989 panel discussion moderated by Sami Al-Arian.

Abd Al Aziz Awda, the Islamic Jihad's spiritual leader, didn't like the word. ``There are acts of aggression against us and we want these acts of aggression to stop,'' he said. ``We categorically refuse the label of terrorism for those protective measures in which we have taken part.''

``My intent was that, if what they mean by jihad is terrorism, then we are terrorists!'' Damra persisted.

Awda backed down. ``Never mind,'' he said. ``What is important is that we agree with the notion that brothers from Afghanistan and other places should come, that all Muslims head for Palestine.''

Damra is described in Al-Arian's indictment as unindicted co-conspirator No. 1. Awda is named as a defendant but has not been extradited from overseas.

Al-Arian is on trial along with Sameeh Hammoudeh, Hatim Naji Fariz and Ghassan Zayed Ballut on charges alleging they helped organize and finance the Palestinian Islamic Jihad, which has claimed responsibility for numerous suicide bombings in Israel and the occupied territories.

On Tuesday, the lead investigator in the case, FBI Special Agent Kerry Myers, took the witness stand, and Assistant U.S. Attorney Walter E. Furr played three videos of events in the late 1980s and early 1990s organized by the Islamic Committee For Palestine. The 1989 panel discussion was among events depicted in the videos.

The committee, founded by Al-Arian, had the stated purpose of bringing various Palestinian organizations together. The government alleges, however, that it was a front for the Islamic Jihad.

It was not illegal in the United States at the time of the videos to belong to the Islamic Jihad, which was not outlawed until January 1995, evidence of the defendants' activities is being presented to document what the government alleges was a continuing conspiracy.

The videos depict a number of inflammatory incidents, including scenes of schoolgirls shouting in Arabic, ``Death to Israel!'' and Al-Arian and Damra referring to Jews as ``sons of monkeys and pigs.''

After conferring with attorneys, U.S. District Judge James Moody cautioned jurors not to convict the defendants for exercising their right to free speech. ``People have the right in this country to say things that might make other people angry or emotional,'' the judge said. ``Saying something is not a crime. It's got to be more than that, but you can use speech to determine intent and knowledge.''

Among the videos shown was one of a Sept. 29, 1991, Islamic Committee for Palestine rally in a Chicago high school. Posters shown at the beginning of the video had sayings such as, ``God is great! Islamic Jihad Movement in Palestine.''

Ballut was introduced by Sheik Suleiman Odeh, Awda's brother, as the ``Islamic Committee for Palestine representative'' in Chicago. Although his attorney has denied he was involved with the committee, Ballut welcomed the audience ``on behalf of the Islamic Committee of Palestine in Chicago.''

Ballut also referred to Fathi Shikaki, the general secretary of Islamic Jihad, as ``the mujahid intellectual'' and ``the Islamic Jihad intellectual who continues to bear witness to the ugliness of Israel's countenance.''

Myers, the FBI agent, is likely to spend a long time on the witness stand, to the consternation of the defense. Before the trial, Al-Arian's attorneys filed a motion seeking to bar his testimony ``because it is unreliable, because it will not assist the jury, and because its probative value is far outweighed by the danger of unfair prejudice. Indeed, Agent Myers is being offered as the government's `guilt expert.' ''

The prosecution responded in court papers that Myers is an expert ``on codes and the structure of the PIJ Shura Council'' and would be a ``summary witness'' who will help jurors understand the hundreds of wiretapped telephone conversations and faxes offered into evidence.

After Myers took the witness stand, defense attorneys objected at sidebar conferences. Moody told jurors the prosecution was trying to establish Myers' credentials as an expert. He warned them to beware of the fact that the agent is a government employee.

``You can understand how that would give heartburn to any defendant in any case if they have an FBI agent testifying as an expert,'' he said.