Facing a battery of TV cameras, arc lights, and flash bulbs in a Dallas conference room, Jones broke down almost as soon as she began to speak, but recovered with the comforting presence of her husband by her side as she expressed her ``shock'' at the lower court's decision, a fortnight after the setback. It was the first time she was reacting directly to the verdict.

``I have not come this far to see the law let men who have done such things dodge their responsibility. I believe what Mr Clinton did to me was wrong, and the law protects women who are subjected to that kind of abuse of power,'' Jones said in a trembling, high-pitched voice in a twangy southern accent as she struggled to master her emotions.

Jones' decisionmeans the battle will move to the US Circuit Court of Appeals, and if rejected there could make its way again to the Supreme Court, once again bothering and smothering the remaining two-and-a-half years of the Clinton presidency. It could haunt Clinton even beyond.

But legal experts said Jones and her team would have a tougher battle this time, even as public attention in the case has begun to wane. Many felt the appeals court definition of sexual harassment was consonant with the federal judge's ruling. Jones and her backers, mainly conservative types, will also have to find the money -- perhaps up to a million dollars -- for their cause. They have already spent about $ 300,000.

``From now on, the Jones case will be more of a low-grade fever for the President than a raging tropical disease,'' one commentator wrote last night. Clinton's aides made light of the announcement, saying the people had already given their verdict in the case. ``Politically, it's over. I don't want to speak ill of the dead andthis case is dead,'' Presidential counsellor Paul Begala said.

Clinton's attorney Robert Bennett said he was confident the appellate court will not permit Jones and her supporters to pursue the case but raged that ``it is unfortunate that our legal system can nonetheless continue to be abused by Jones' political and financial supporters who wish to harm the President.''

District Judge Susan Webber Wright threw out Jones' case earlier this month, saying that Clinton's alleged behaviour may have been ``boorish and offensive'' but did not constitute sexual harassment. Wright also said the encounter was a single incident -- ``a mere sexual proposition'' -- that fell far below the legal standard needed to establish a ``hostile workplace'' in a harassment case.

Jones' attorney Donovan Campbell challenged that ruling today saying, ``We do not think the law permits a male supervisor to expose himself to his female subordinates and ask for sexual favours. There is no `one free flash' rule recognised in thelaw.''

President Clinton who is in Santiago, Chile, for an international summit did not react directly to the development, telling accompanying reporters, ``I spent my day with people who are interested in human problems and not so interested in politics.''

Jones' lawyers indicated that they are still open to an out of court settlement. ``There haven't been any rational settlement offers... If some adult in control of the other side of this case would like to come forward and make an offer, or even agree to engage in a rational settlement discussion. . . . we will certainly be open to that,'' Campbell said.