This is a rush transcript from "On the Record ," July 30, 2008. This copy may not be in its final form and may be updated.

MEGYN KELLY, FOX NEWS HOST: Tonight, suspicion of Casey Anthony is growing. Right now, she is sitting in jail, a person of interest in her daughter, Caylee's, disappearance and possible homicide. Last night, exclusively, we showed you bombshell pictures of Casey partying at a club days after she says her daughter went missing.

Tonight, Casey's mother, Cindy, responds. Casey's lawyer defends his client. And you will hear Casey herself in a new jailhouse call we have just obtained. Plus, we have more pictures of Casey just in that were taken at that Orlando club called Fusian. Her lawyer told us last night that Casey worked there for months, but now a DJ at the club weighs in, casting doubt on that story. You'll hear from him. All that coming up.

But first, earlier today, Casey Anthony went before a judge. Casey's lawyers want her bond reduced from its current amount of half a million dollars. Today, an appeals court denying that request.

Joining us live with more is Rozzie Franco, reporter for WFLA radio and the Florida News Network. Rozzie, good evening to you. The bond reduction request was denied. And now what do the lawyers say is the next step for them?

ROZZIE FRANCO, WFLA: Good evening, Megyn. That's correct, Baez strikes out again. The 4th district court of appeals denied Anthony's request to lower her bond. As it stands, it's still at half a million dollars. The attorney general's office recapped the testimony that was presented during Anthony's bond hearing.

Now, this is the second time he's struck out. He was shot down again when he requested that all public records not be brought forward to the media. A judge dismissed that altogether. Right now, he feels that is unconstitutional, and he's going to appeal that once again. But his track record at this point doesn't look good.

KELLY: Rozzie, in the meantime, another bizarre circumstance unfolded at the jail, where a prisoner who was being held there came out and claimed that Casey had made some sort of a confession to him. First tell us -- first tell us what he was alleging.

Watch the interview

FRANCO: Megyn, this guy surfaced and claimed to be in a cell next to Casey Anthony. The name of him, Travis Nichols. He said that he asked Casey where her baby was, and then claims that Casey told him that her baby was with Tony Lazzaro, which was her boyfriend, which brings us back to her original story, where she said that the nanny took her baby and made her completely uncredible.

But this guy, according to the Orange County sheriff's office, said they were never in the same place long enough to exchange a word or two in passing that would (ph) have been within an earshot of guards. Now, it undermines that story once again that her nanny, Zenaida Fernandez- Gonzalez, took the story (ph). This guy, Nichols...

KELLY: All right. So the...

FRANCO: ... Says he claimed...

KELLY: The police don't think that this guy is credible. That's, I guess, the headline there. Let me ask you before I let you go...

FRANCO: Right, they completely debunked his story.

KELLY: Are they searching at all for little Caylee? Are the police or anyone connected to them searching for the child, at this point?

FRANCO: See, that's the biggest question right now. There is really no active search. And when I spoke to Deputy Carlos Padilla, he said they're just going on the leads that they're getting in right now.

So I took it a step further, and I called the special agent, the FBI agent that's involved in this case, Agent Dave Couvertier, who's in charge of this case. And he says they're standing by. They really can't do anything unless Casey Anthony's attorney requests that they talk to her, unless the Orange County sheriff's investigators say, you know, Support us. Come behind us. Let's start a grid pattern. look in lakes. Let's look in the woods. Let's put a helicopter out. Let's find this girl. There's really no active search for this girl, which really, really questions the Orange County investigators and what they're doing to find this girl.

KELLY: Rozzie, thanks.

And some shocking new accusations against Casey Anthony tonight. A DJ who worked at Fusian, that club, until early June watched our show last night and has a beef with some of Casey's claims, specifically that she was at this club because she worked there. That's what the lawyer said she was doing in those pictures. He gave -- the DJ -- "On the Record" this statement. The Tony he refers to in it is Casey's boyfriend. Take a listen.

Quote, "The co-counsel said" -- this is him complaining about last night's statement. He says, "The co-counsel said that she'd been working at Fusian on and off for a few months. That's not true. Listen, I'm Tony's best friend. She wasn't a promo girl. The only reason she was there was because she came with Tony. Her and Tony didn't meet until May 24, at a party we threw for one of our friends. She didn't start going to Fusian until after that."

And he continues, "I was staying at Tony's apartment from the end of May until the end of June when I waited to move into my new place. So I was there when he started dating Casey. The last two weeks of June, when Casey was at the apartment, Caylee wasn't with her. She kept telling us that she was with the nanny or her parents, acting like nothing was wrong. I talked to investigators as soon as the story broke." And that's the end of his statement.

Joining us live tonight is Michael Walsh. He is co-counsel for Casey Anthony. Michael, thanks for being here again with us tonight.


KELLY: So the DJ taking issue with your statement, which I know came from your client, not from you, that she worked at Fusian, saying that's not -- that's not true.

WALSH: All right. Well, how would he know who's working promotions, since he's busy spinning the records? Hopefully, he's doing what he's paid to do, especially since he's living on Casey's boyfriend's couch.

KELLY: Well, he -- but he says that Tony, the boyfriend, is his best friend and that the only reason Caylee went to -- or Casey went to that club is because she was with Tony and that she was there as a party goer, as a -- as a, you know, patron.

WALSH: How does he know that she wasn't doing promotions for various companies? That's what she does. That's what promotions do. You don't work there 9:00 to 5:00 when you're doing promotions. Different liquor companies, different sponsors send you in there on different theme nights to promote different products.

KELLY: Did she get a paycheck?

WALSH: She was working there. Different times, yes.

KELLY: OK, so she got a paycheck from a promotions company?

WALSH: Different times, yes.

KELLY: But during this time, during the relevant time of these photos in June?

WALSH: I'm not going to talk about that. From the months leading up to that.

KELLY: OK. So you can't state for a fact that when these photos were take in June, she was on the payroll.

WALSH: No, I -- well, no I can't. I don't know who took these photos. I mean, I heard for the first time that these photos existed from the individuals who took them last night.

KELLY: Right.

WALSH: You know, one of the things that's happened is we're not getting this information until we go to the media. Nobody's giving it to us. So tell whoever has photos, tell whoever has information to come see us so we can get to the bottom of it.

KELLY: Right. Well, and we found those two -- those two guys who took those photos ourselves here at "On the Record," so in defense of them and the investigators, I think we were the ones who unearthed those on a national level first.

But let me ask you -- I want to get into the second part of the DJ's statement. He says the last two weeks of June, he was -- he was -- that Casey was staying with Tony at the apartment and that Caylee was not with her. So according to this DJ, for at least the last weeks of June, putting it around June 15 forward, there was no Caylee. Do you dispute that timeline?

WALSH: I don't know what he saw. I don't know if he saw Caylee or not.

KELLY: But do you dispute that for the last two weeks of June, Caylee was not with Casey?

WALSH: I'm not going to give an exact timeline, but during portions of the last part of June, yes, Caylee was not with Casey.

KELLY: OK. And you -- I mean, you won't put the date closer to the end of June, closer to the middle of June?

WALSH: I will to law enforcement. I sure will.

KELLY: OK. And you know, you heard Rozzie, our reporter down there, talking about how there was frustration that they were saying they're not going to look for little Caylee until Casey starts talking. Is your client willing to talk directly to investigators in, the presence of counsel?

WALSH: Yes, as long as the scope is the search for her daughter, not the prosecution of Casey herself.

KELLY: What does that mean, Michael?

WALSH: Well, when you come out there and the questions are all geared towards Casey's guilt, rather than the location of her daughter, it tends to have a clear effect that they're not looking for your daughter, they're just looking for your prosecution. That's not helpful to anybody, least of all little Caylee out there.

KELLY: You know, I wanted to follow up with you on something you said last night. You said that you have spoken with people who claim to have known this babysitter who Casey says took Caylee. Who are these people?

WALSH: I'm giving that to law enforcement, Megyn. And I want to give that to them, and we've tried to forward that to them and to let them do whatever they can. So I'm not trying to dodge the question, but I really need to give it to the proper authorities on that.

KELLY: OK. And can you tell me, are those are people who have actually laid eyes on the babysitter or actually spoken with the babysitter?

WALSH: Both. Both.

KELLY: Since the time Caylee went missing?

WALSH: From whenever the babysitter came into the lives up until, yes, right up until Caylee became missing.

KELLY: And can they vouch for the fact that that woman was, in fact, babysitting little Caylee?

WALSH: Sure. Sure.

KELLY: OK. And as far as you know -- I want to -- well, forget that. Let me ask it this way. Casey said that she got a phone call from the babysitter who allegedly has Caylee on the day that her mother called 911, which was July 15. She said she got a call from her and that it came from a private number. Do you know whether they have tracked down that phone record?

WALSH: We are in the process of getting it. I'm not sure that we have the exact phone records for that call. We're in the process of gathering all the phone records to try to locate that call. In other words, we're taking the steps necessary, but I cannot tell you that it was this date, this time, this number, at this point.

KELLY: OK. Michael, before I let you go, the state today in its papers described Casey's mental health as a quote, "difficult to describe." Can you describe it?

WALSH: Who described it as that?

KELLY: The state reportedly described her mental state as "difficult to describe."

WALSH: At certain times, yes, in the sense that, think about the pressure she's operating under. There's nothing psychotic about Casey. In other words, there's no latent psychological defects. She's just a young lady who's under a lot of pressure.

KELLY: Michael, thanks so much.

WALSH: Thank you, Megyn.

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