The following report is courtesy of lordsofpain.net ...
Pyro goes off as Smackdown is now underway. First match was a U.S. title match with Chris Benoit vs. Finlay. Benoit wins after Finlay looks under the ring for "Little Bastard." Surprisingly, little bastard doesn't want to come out. After several attempts by Finlay to pull him out, lights go out, and Boogieman comes out. He distracts Finlay as he carries "Little Bastrd" to the back and Benoit retains the title. Good opening match with lots of action.
Second match saw Paul London and Kendrick lose to Deuce and Domino in a non title match.
Batista was shown on the screen talking to Teddy Long. He says he wants a decision tonight from Taker on who he wants to fight at Wrestlemania 23.
Third match saw Kennedy defeat Vito. Mostly Kennedy in this match, and after the victory he proceeded to choke Vito with the dress. The mic came down and he proceeded to talk trash his foe.
After the match, Teddy Long books Kennedy that his post match actions weren't necessary - and he's facing the Undertaker next wee.
Next up was a WWE Diva bikini contest between Kristal, Ashley, and Jillian; JBL was on commentary. Both Ashley and Kristal looked good, but when it came time for Jillian to strip down, she was wearing sweat shorts and a shirt.
She told JBL her talent is singing, and started to horribly sing "Baby one more time." JBL said it was horrible, and the fans cheared loudest for Ashley, the winner. After the decision, Jillian started trash talking, and Ashley and her started going at it.
Up next, The Miz defeat Matt Hardy after an attack on Hardy by Joey Mercury when the ref was distracted.
King Booker and Sharmell make their way to the ring with a thrown and podium in it. Booker talks about how it's about damn time someone like him from Houston succeeds. He says the Rockets are no longer good (with Dikembe Mutombo and Luther Head in the audience), and he approaches ZZ Top, who is also in the crowd and tells him to kiss his feet.
Pyro goes off and the lights go out, as Kane's music hits. Kane comes in the ring and beats down security. He then kicks down the thrown and podium, and starts beating on the former champ. Kane clears the ring, and does his thing with the pyro.
Up next Batista comes out and says he wants an answer. John Cena makes a surprise appearance, and says it can be him or Batista. Undertaker comes out and says nothing. Shawn Michaels then hits the ring and gets in Taker's face, saying he wants to finish off what happaned at the Rumble.
Vince comes out, and announces the main event at No Way Out will be Cena and Michaels vs. Taker and Batista.