A panel of seven men and five women spent eight hours considering murder, robbery and kidnapping charges against McKinney before recessing Tuesday night without reaching a verdict. They were to return to court today.

Prosecutors say McKinney and an accomplice lured Shepard out of a bar and drove him to a remote site near Laramie, robbed him of $20 and pistol-whipped him into a coma, leaving him to die.

Defense attorneys have argued that McKinney, 22, was in a drug-induced rage when he lost control after Shepard made an unwanted sexual advance that triggered memories of McKinney's childhood homosexual encounters.

McKinney could face the death penalty if convicted of murder. The jury also has the option of convicting McKinney of second-degree murder or manslaughter, in addition to acquittal.

During closing arguments earlier in the day, prosecutor Cal Rerucha said a calculating McKinney murdered the slightly built college freshman.

``Matthew Shepard is lashed against a fence; his hands are tied behind in a manner so he cannot defend himself in any way, shape or manner. Aaron McKinney holds Matthew Shepard's life in his hands. Will Matthew Shepard live or will Matthew Shepard die?'' Rerucha asked.

Defense attorney Dion Custis portrayed McKinney as a chronic drug abuser who lost control during an emotional rage after Shepard grabbed his crotch. ``He hit him too many times. The question is why,'' Custis said.

``(He) is not a cold-blooded murderer, ladies and gentlemen, he reacted,'' Custis said. ``There was no thought process.''

He said Shepard, 21, was openly gay and forward, ``and people reacted to that.''

Earlier this week, District Judge Barton Voigt barred the lawyers from using a so-called ``gay panic defense,'' ruling it was akin to temporary insanity or a diminished-capacity defense -- both prohibited under Wyoming law.

A ``gay panic'' defense is built on the theory that a person with latent gay tendencies will have an uncontrollable, violent reaction when propositioned by a homosexual.

An acquaintance of McKinney's, Russell Henderson, 22, pleaded guilty in April to kidnapping and murder, and is serving a life sentence.

The verdict of two counts of felony murder makes Aaron McKinney eligible for the death penalty.

He was also convicted of second-degree murder, aggravated robbery and kidnapping. The jury of seven men and five women returned the verdicts after about 10 hours of deliberation.

The sentencing phase, in which jurors will consider whether to sentence McKinney to death, was set to begin Thursday.

As the jury prepared to announce its verdict, McKinney, 22, stood next to his two attorneys, looking impassive, arms crossed in front of him. When the first verdict was read -- guilty of kidnapping -- his arms dropped to his sides. His father, William, looked straight ahead with no emotion.

The verdict of two counts of felony murder makes Aaron McKinney eligible for the death penalty.

He was also convicted of second-degree murder, aggravated robbery and kidnapping. The jury of seven men and five women returned the verdicts after about 10 hours of deliberation.

The sentencing phase, in which jurors will consider whether to sentence McKinney to death, was set to begin Thursday.

As the jury prepared to announce its verdict, McKinney, 22, stood next to his two attorneys, looking impassive, arms crossed in front of him. When the first verdict was read -- guilty of kidnapping -- his arms dropped to his sides. His father, William, looked straight ahead with no emotion.

Shepard, 21, a University of Wyoming freshman majoring in political science, met McKinney and Russell Henderson at a Laramie bar on Oct. 6, 1998.

Prosecutors said McKinney and Russell Henderson lured Shepard from the bar and drove him to a remote spot on the prairie, where they tied him to a wooden rail fence, robbed him of $20 and pistol-whipped him into a coma.

Eighteen hours later, Shepard, bruised and bleeding, was found still lashed to the fence. He died five days later at a Fort Collins, Colo., hospital without regaining consciousness.

Authorities said robbery was the primary motive but that the slightly-built Shepard also was singled out because he was gay.

McKinney and Henderson were charged with kidnapping, robbery and murder. Henderson pleaded guilty in April to kidnapping and murder, and is serving two life sentences.

In closing arguments Tuesday, prosecutor Cal Rerucha paused for 60 seconds to let the jury reflect in silence on the beating inflicted on Shepard.

``Think what 60 seconds was to Matthew Shepard,'' Rerucha said. ``It's a short time if you're eating an ice cream cone. It's a long time if you're descending into hell not knowing what fate will meet you there.''

Defense attorneys argued that McKinney, in a drug-induced rage, lost control after Shepard made an unwanted sexual advance.

They were barred from using a ``gay panic'' strategy, which is based on the theory that a person with latent gay tendencies will have an uncontrollable, violent reaction when propositioned by a homosexual.

District Judge Barton Voigt ruled that the strategy was akin to temporary insanity or a diminished-capacity defense -- both prohibited under Wyoming law. The ruling essentially let the defense argue the beating was a crime of passion but not present the theory that the passion was caused by a specific mental condition.

In his closing argument, public defender Dion Custis told the jury that McKinney was in an ``emotional rage.''

``(He) is not a cold-blooded murderer, ladies and gentlemen, he reacted,'' Custis said. ``There was no thought process.''

Shepard's death sparked vigils denouncing the murder as a hate crime and renewed efforts for laws protecting homosexuals from such crimes.

In Wyoming's Legislature, however, proposed hate-crime bills failed. Opponents complained that gays and other protected groups would get special treatment and argued that existing laws are enough. President Clinton's push to expand federal hate crime legislation to protect gays also fell short.

Shepard went to high school in Switzerland, spoke three languages and had traveled the world before returning to his native Wyoming to attend the university. He was raised in a close, loving family made comfortable by his father's job in a multinational oil company.

McKinney and his friend Henderson came from the poor side of town. Both were from broken homes and as teen-agers had had run-ins with the law. They lived in trailer parks and scratched out a living working at fast-food restaurants and fixing roofs.

The seven-man, five-woman jury at Albany County Court, found Aaron James McKinney, 22, guilty of first degree felony murder and kidnap, and first degree felony murder and robbery in the killing of Matthew Shepard in 1998.

However the jury did not find him guilty of premeditated murder, but of second degree murder overall.

McKinney now faces the death sentence, as the jury prepares to enter the sentencing stage of the case on Thursday.

Both defense and prosecuting attorneys requested Wednesday afternoon free while a penalty phase is put together.

The killing -- apparently targeting Shepard because he was gay -- drew national headlines and condemnation from President Bill Clinton.

The sentencing phase of the case begins Thursday , during which the jury will decide if McKinney is to be given the death sentence or not.

McKinney met Shepard in a bar, took him to a secluded spot, beat him with a heavy pistol and the left him for dead tied to a fence.

McKinney's accomplice, Russell Henderson, pleaded guilty earlier this year and is serving a life sentence.

Jury selection and opening statements concluded Monday, with the defense suggesting it would acknowledge that McKinney killed Shepard, but that the killing was in reaction to an unwanted sexual advance and under the influence of drugs and alcohol.

The defense attorney argued that McKinney be found guilty of the lesser crime of manslaughter.

The 12 jurors and four alternates are sequestered for the duration of the trial.