A Disgusting Discovery

Part 2: Police allegedly find lewd pictures on Josh Powell?s father's computer.
5:58 | 02/10/12

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Transcript for A Disgusting Discovery
August 2011. Susan Powell has been missing for over a year and a half. And so far every investigative -- has gone cold. -- -- coming -- passion over the case still runs hot as an angry confrontation between Powell and Cox families erupts outside a supermarket. And Puyallup Washington. I just want to get my daughter's picture out there I want help finding my daughter Alice you're standing -- power. Neighborhood market helping -- -- Saudi ideas my daughter of being promiscuous and everything else and you come out. Against might. Family that this ugly family feud is in part the result of Josh and Steve Powell's strategy of going on the attack against Susan. They claimed her childhood diary showed she was mentally unstable suicidal and fixated on sex -- really disconnect between. The Susan who. Was a faithful loving wife and the Susan who was the very flirtatious sexual being. In this interview with ABC's Steve Powell takes the allegations to a whole new level making -- shocking claim that he and Susan. Had a sexual relationship. -- season was very very sexual with me and she would bend over my. -- to let me smaller hair or she would come in and say I just waxed my legs feel my -- -- smooth there. Seriously this is the kind of thing that Susan seemed to enjoy doing and if -- freak out factor were high enough Powell says he returned his daughter in -- affections. Even recording a love song he wrote about Susan. And put on his website and can look you -- business. Those close to Susan are livid over Powell's lurid tale. Saying it was. The other way around. That Susan was fearful -- father in -- advances. Putting his hand up the pressure back pressure. And making it advances for kissing. I'm pitchers. Taking pictures. And she with Berry and comfortable around speaking now. The -- bizarre claims raise a lot of questions about whether there's something a little off. With father and son. Last August authorities searched Steve Powell's home and hit the jackpot. Thousands of lewd pictures of women and young children are found on Powell's computers and dvds. Exactly the creepy stuff that you would think of sex offender or somebody would do. On September 22 Steve Powell is arrested on charges of child pornography and -- terrorism. Pleads not guilty. Meanwhile Charlie and -- and Powell are immediately taken from the home and their father and temporarily placed in Foster care. Susan's parents sue for custody of the boys worried not just about the child porn allegations. But also that Josh Powell is still a person of interest in their mother's disappearance. How important was it to you to not let him get the kids back. We felt it was the difference of -- and being alive or not. We were concerned that. It's -- police were closing in on Josh that he would do something -- to charm the kids I had no knowledge. Any wrongdoing. Nor any indication that -- could have been any wrongdoing on my father's heart. At the custody hearing Josh Powell makes an emotional plea to keep her his son was -- I love my son's. Yesterday -- had a visit. With my sons. They ran and played -- and they repeatedly. Jumped on my lap. And came over to hug me but -- a devastating decision for -- the judge granted temporary custody to the grandparents. Powell is only allowed to see his children under supervised visitation. This is where Josh -- supervised visitation with his two sons began a secure facility where many families come to see their kids. But at some point this past November the situation changed and Josh Powell was now allowed to have access to his boys in his own home. What turned out to be a deadly decision. In a phone interview -- supervision officials said the move was made because Powell's notoriety was disruptive to other families at the facility. Was -- concern about giving this man this much access to the boys. We had already -- -- happy is that -- supervised visits. And there were no concerns parade during those visits. A new caseworkers assigned to supervise the at home visits Elizabeth Griffin hall high -- immediately develops a strong bond. Charlie and -- him. The boys I love the -- they called -- over me. He shattered with me and that key they had things to tell me he's the boy is. -- -- In over a dozen supervised visits Elizabeth says she saw no signs of trouble. Just too happy well adjusted kids who had a strong attachment to their father. How excited were they about visiting their dad. They -- very excited you are happy they wanted to see -- in fact. One of them said what he wanted for his birthday was to go home and live with daddy what did it mean to -- when they would come -- would you see him. I would see him -- that he was totally focused on -- Elizabeth says the boys being young and resilient had no problem adapting to their unusual new circumstances. And -- they got to the -- Stanley they were scrambling out his seat could have mining camp. They love their grandma and grandpa to use real happy to be in both places yes. That's what I. Elizabeth thought everything was going smoothly. But over the weekend at his rented house -- was setting his trap and lying in wait as the kids ran up to the front door for their final visit.

This transcript has been automatically generated and may not be 100% accurate.

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