Highlights: Day Two

President Bush's wife and daughters may have capped the second night of the Republican National Convention but it was California Gov. Arnold Schwarzenegger who really wowed the crowd.

Schwarzenegger, a moderate Republican who is more well-known for his work as a movie action hero, bashed "economic girlie men" as he sang the praises not only of Bush but of Republican Party ideals. Read a transcript of his speech.

Laura Bush was the last speaker of the night, offering a personal testimonial to her husband. It was the end to a busy day, one that started with a tour of the television talk show circuit, and ended with her daughters and her famous in-laws by her side. Read a transcript of her Tuesday night speech.

Leading up to the first lady on the RNC podium were her two daughters, Jenna and Barbara, who were making a public debut of sorts.

The theme of the day two was "People of Compassion" and convention planners mixed the night with both social conservatives and those whose views were closer to the middle of the road. Moderates like Schwarzenegger didn't point out their differences with those further to the right, but conservatives spoke out about their beliefs. There was also a closed-door rally for religious conservatives.

Sen. Elizabeth Dole, R-N.C., talked about the importance of marriage between a man and a woman. Sen. Sam Brownback, R-Kan., discussed the AIDS crisis and Bush's emphasis on abstinence as a way to prevent the disease.

The president continued his journey to New York with stops in Tennessee, where he sought to explain his remark that the War on Terror may never be won.

Looking ahead to Wednesday night and Vice President Cheney's speech, some Republicans hope Bush's No. 2 gets a public perception makeover.

Speaking of the vice president, activists mocked Cheney for his previous employment with Halliburton and one man was arrested for coming within 10 feet of him.

The FOXNews.com crew was in and around Madison Square Garden. Here's some of what they came up with:

— How would a second Bush term look? Read what some Republicans and political experts predict.

— Convention officials say 17 percent of the delegates come from minority groups, a 70 percent increase from four years ago. We caught up with some black Republicans and found out why they break with most African-Americans on political affiliation.

— Republicans love charter schools. To show how much, some took a field trip to the Bronx to check out one such school they say shows how compassionate they are.

— Also, check out the second FOXNews.com reporter's notebook from the Republican convention.

Tuesday may have been day two for the convention but it was Day Three for the protests. Republicans and the convention weren't the only targets — a collection of protesters chanted and yelled outside of FOX News' headquarters.

New York's a long way from the Mekong Delta but swift boats have a way of moving pretty fast. Democrats cried foul after some delegates mocked Kerry's Purple Hearts and GOP officials asked Republican activists to cool it.

Also, the Swift Boat Veterans for Truth made an offer to the Kerry camp. A side note: Cheney was asked about the swift boat flap and he said he couldn't say much about it because he didn't serve in Vietnam.

Now to the Democrats:

Kerry, who is breaking from tradition and hitting the campaign trail before the Republicans end their convention, plans to respond to Bush's closing night speech from the battleground state of Ohio.

Kerry's running mate, John Edwards, was in West Virginia to tout Kerry's domestic agenda and to emphasize his health-care plan.

And a final note: Remember how delegates booed Michael Moore on Monday night? Well, Moore said Tuesday he would return to Madison Square Garden.