U.S. Spies on Iraqi army, officials say: Satellites track troop movements as part of expanded surveillence after breakdowns in trust and coordination. By Greg Miller

COLUMN ONE: Interrogation, then revenge: Police told a gang member a girl he knew had identified him as a killer. Soon she was dead. By Joel Rubin and Ari B. Bloomenkatz

Migrant snafus bedevil S.F. : The 'sanctuary city' can no longer escort juvenile immigrants back home — or ship them to Inland Empire: By Maria L. LaGanga, David Kelly and Anna Gorman

Headed for a showdown: Venus Williams and her sister Serena advanced to the semifinals at Wimbledon and could face each other in Saturday's final. Sports, D1

CAMPAIGN '08: Obama focuses on faith: He says he'd expand Bush's program to aid religious charities. By Peter Wallstein and Peter Nicholas

Little avatars behaving badly: Parents find it takes a village to keep kids from preying on one another in virtual worlds: By Alana Semuels

Soaring gas prices put auto sales in the ditch: By Ken Bensinger

Inside the Times

Magazine pioneer Felker dead at 82: The founding editor of New York magazine was a key figure in the birth of New Journalism. Obituaris, B6

600 Starbucks stores to close: People aren't buying fancy coffee like they used to. About 12,000 jobs will be lost in the move. Business, C1

A top-notch twisty thriller: Be glad "Tell No One" is here, says Kenneth Turan. Calendar, E1

Weather: Mostly sunny and warmer. Downtown: 85/66. Page B10