The decisions underscore the ever-changing legal landscape governing the city's X-rated businesses.

I was known in the X-rated business, and it was the right time.

Mr. Giuliani said the X-rated businesses would have to "substantially change the nature of what they're all about."

City officials said they would look for ways around the ruling, so they could continue to reduce the number of X-rated businesses.

Instead, the city argued that the law was meant to curb dangerous activity that it said X-rated businesses attracted, like prostitution and drug dealing.

In fact, the law has been effective in closing or substantially changing X-rated businesses while protecting everyone's free-speech and constitutional rights.

Steve Kramer, a bartender, wanted a vote to reverse the new law restricting X-rated businesses.

Lawyers representing some of the X-rated businesses that brought the suit said they found the ruling gratifying.

Mayor Giuliani has justified his crusade against X-rated businesses as a way of protecting neighborhoods.

The regulations will forbid X-rated businesses from operating within 500 feet of residential districts, schools, houses of worship and one another.