LARRY KING, HOST: Good evening. Welcome to a special midnight edition of LARRY KING LIVE.

The president's first 100 days in office are behind him. How will he be tested now, by the economy, or war, or the immediate challenge of a flu pandemic?

We will talk about it all with our great guests coming up tonight.

And we begin with President Obama's senior adviser, David Axelrod.

And I asked him if there's room for improvement as President Obama moves ahead.

(BEGIN VIDEOTAPE)

DAVID AXELROD, SENIOR WHITE HOUSE ADVISER: And if you think -- if you're so satisfied that you think you have done everything perfectly, and you have completed your work, then you shouldn't be president of the United States.

So, I think the president would have graded himself the same way.

KING: Is he doing about as well as you expected, or better?

AXELROD: Well, Larry, you know, you're asking the wrong guy, because I'm -- you know, he's my friend. I admire him.

But I have to say, you know, when we started the campaign for president, it wasn't an easy transition for him. There were months of adjustment, as he got used to the -- the rigors of -- of being under the klieg lights at all time and the demands of a presidential campaign.

I haven't seen that this time. It's almost as if he was born to do this job. He's comfortable. He's -- he's in command. And, you know, there isn't a day that goes by when I don't leave that office and look back and think, man, I'm glad he's there.

So, I think he's -- he's -- he's doing very well. And he's probably exceeded my very high expectations.

But that's just me. I'm -- I'm a much looser grader than Gibbs. But...

(LAUGHTER)

KING: Of course, he entered under unusual circumstances. And we haven't checked records like this, but would you guess, has he made more public appearances in these hundred days than any other president ever made in their first hundred days?

AXELROD: You know, I don't know the answer to that, Larry, but he's made a lot.

And there's a reason for it. One of the things that he -- he promised to do was bring transparency to the government, to share with the American people the nature of the problems we're facing and the things he's putting in place to deal with them, so that they know and are -- what's going on and they're part of their own government.

And, so, this is an important part of the process as far as he's concerned. And I think it's one of the reasons the American people are so engaged right now.

KING: Among the many topics covered tonight, David, was water- boarding and whether the previous administration had sanctioned torture.

Here's some of what he said. And I will ask you to comment.

AXELROD: Sure.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: What I have said -- and I will repeat -- is that waterboarding violates our ideals and our values. I do believe that it is torture. I don't think that's just my opinion; that's the opinion of many who've examined the topic. And that's why I put an end to these practices.

I am absolutely convinced it was the right thing to do.

(END VIDEO CLIP)

KING: Privately, was he angry, David, when former Vice President Cheney said that this administration leaves the country more vulnerable?

AXELROD: Well, I don't think the word is angry. And I don't think he spends a whole lot of time worrying about what the vice president had to say.

We have had an -- we had an election last November. A lot of these issues were litigated during that campaign, although this particular issue was not, because John McCain had the same position as Barack Obama on many of these issues.

KING: Right.

AXELROD: So, he wasn't angry about it. But, he's -- as he has said, and as he truly believes, he is looking forward, and not back. He's not looking -- he's not looking to rerun old debates. He's looking to move the country forward. So, it's not productive to spend a whole lot of time worrying about that.

KING: Newt Gingrich, writing in "USA Today," says, "In just 100 days, President Obama has been devastatingly effective in swiftly moving forward the most radical government-expanding agenda in American history."

Would you share that view, whether you agree or disagree with Gingrich philosophically?

AXELROD: Well, I disagree with him. I think most of the American people disagree with him.

I think Speaker Gingrich is playing to a segment of his own party. But I think most Americans understand that this president is not an ideologue. He's -- he's a pragmatist. He's looking for ideas to move this country forward. He understands -- he -- he came to office with an enormous plate of economic problems handed to him.

And I think the American people expected him to act. And he's acting, not just to solve them in the short term, but to lay a foundation, a solid foundation, for future growth.

What the speaker would like, and what some of those in that wing of that party would like, is simply to replicate the policies that we have had for the last eight years. Well, we gave that a try, and it was a dismal failure. And I don't think the American people are going to sign up for a repeat.

KING: A couple of other things, David. Take us a little behind the scenes. The Obama we see, is that the Obama you see inside the White House?

AXELROD: Larry, that's the remarkable thing.

I mean, there is such a consistency to this guy, as long as I have known him, and I have known him for 17 years. I mean, that's the thing that struck me. He is who he is. And it never changes. He's as -- he's the same guy privately as he is publicly.

He's got penetrating intelligence, great intellectual curiosity, but, also, there's a humor and a solicit -- solicitousness, a solicitude, for others that he -- that you see in private meetings, as well as in public.

The Barack Obama you see in public is the same guy I see every day in the Oval Office.

KING: And I know you're very close to Mrs. Obama, Michelle Obama.

How is she -- frankly, how is she doing?

AXELROD: I think she's doing very well.

You know, her principal concern during this period has been to get her family adjusted, and particularly her girls, to make sure that they made a good adjustment to school and that they were happy. And -- and that's gone very, very well, even before the dog.

(LAUGHTER)

AXELROD: So -- so, she -- you know, she -- I think she's very pleased.

I -- as time goes on, she's going to shape her role around the panoply of things that interest her, national service, the military families and some other issues. But, right now, adjusting the family was her (AUDIO GAP) about where -- where they are.

KING: And, finally, David, we don't see a lot of him. How is the relationship between the president and Vice President Biden?

AXELROD: It's really -- Larry, it's really very good. It's very close.

You know, when Senator Obama chose Senator Biden as his running mate, he was looking for someone who could be a wise counselor to him, someone who had a real feel for the middle class in this country, but also understood this town, understood the world, who had a broad knowledge and a wisdom. And that has come into play time and again.

Joe Biden sits in the inner councils on the major decisions that this administration makes. And he always has something valuable to add. They -- they get to -- they spend time alone once a week at lunch. And it's -- it's -- the relationship is exactly what the president had hoped for. And I think it's something that it benefits the country.

KING: And are you enjoying it?

AXELROD: I have to say, Larry, you know, it was an adjustment for me the first few weeks, because I was a journalist for 10 years.

KING: Right.

AXELROD: And then I was a consultant. And, you know, the notion of showing up somewhere at 7:00 in the morning in a suit and tie was a whole new experience for me.

(LAUGHTER)

AXELROD: But, once I got over that, and once I got over the fact that, you know, you work very, very, very long hours, I -- I have to say, I feel like the most privileged guy in the world.

I'm working for a wonderful person, doing important work. And, every day, you learn something interesting. Every day, you're challenged. And you're doing things of consequence. I can't think of a better job. So, yes, I'm doing very, very well. KING: Thanks, David. Always good seeing you.

AXELROD: OK, Larry. Nice to see you.