Handcuffed and shackled, Najibullah Zazi, wearing jeans and a light brown button-up shirt, and his father Mohammed Wali Zazi, clad in a T-shirt and sweat pants, were led into a packed courtroom at the Arraj United States Courthouse in Denver on Monday. It came shortly after Zazi's attorney, Arthur Folsom, walked in and shook hands with U.S. Attorney David Gaouette. Gaouette was flanked by Assistant U.S. Attorneys Tim Neff and Greg Halloway.

Most of those in attendance on Monday looked to be members of the media and no members of the Zazi family appeared to be there.

As the hearing got under way, Folsom made a request for a public defender to represent the elder, 53-year-old Zazi. The younger, 24-year-old Zazi told the court he planned to continue to have Folsom represent him rather than a court-appointed attorney.

The two Arapahoe County men were arrested on Saturday night after Najibullah Zazi broke off voluntary talks with agents from the FBI.

The FBI arrested the Zazis for making a false statement in a matter involving international or domestic terrorism. The charge carries a maximum of eight years in prison and a $250,000 fine. They also arrested a 37-year-old acquaintance, Ahmad Afzali, in New York on the same charge.

As the judge began to advise the men of the charges against them, he told them they were both presumed not guilty.

"The government alleges each of you made a false statement in a matter involving domestic or international terrorism," U.S. Magistrate Judge Craig B. Shaffer said.

The judge set a preliminary hearing and a detention hearing for Najibullah Zazi for Thursday. Prosecutors told the court they wanted to keep Najibullah Zazi behind bars, but that they were not seeking to detain the elder Zazi.

The judge, however, imposed conditions by which Mohammed Zazi had to abide in order to be released. The judge said the elder Zazi would be set up on electronic monitoring and a $50,000 bond, which he would not have to post, but would forfeit the money if any conditions were violated. Furthermore, the judge says Mohammed Zazi will have to stay in Colorado, surrender his passport and not get any new travel documents. He was also forbidden from acting as an informant for law enforcement and could not possess any guns or firearms.

"I cannot release you today because your residence has not been set up for electronic monitoring," Shaffer told Mohammed Zazi.

Shaffer did say Mohammed Zazi would be confined to his home, but could leave for religious services, medical care, court appearances and meetings with his lawyer.

The two were still both in custody on Monday night.

The judge went on to set a status conference for Mohammed Zazi for Thursday. A preliminary hearing for the elder Zazi could be set for 20 days from Thursday.

9Wants to Know learned late Monday afternoon that Mohammed Zazi has been subpoenaed to testify before a grand jury in New York.

While he is only being held on charges of lying to investigators in a terrorism investigation, a grand jury could hear evidence on more serious charges.

It's unclear who else might be called to testify before a grand jury or whether Najibullah Zazi could be called too.

The government says it is still collecting evidence and interviewing witnesses in connection to the case.

Afzali appeared in federal court Monday in Brooklyn and was ordered held without bail. His attorney, Ron Kuby, said he would seek bail for him on Thursday.

Former federal prosecutor William Taylor says the charge of lying to an investigator could be just a way to get Zazi in custody to continue working the case.

"They are talking to witnesses," he said, "following up on connections that they are finding from interviews that they've conducted."

Taylor also says Zazi's computer, which was seized from his rental car in New York, could be a "treasure trove of information."

He says it's possible the entire case against Zazi could move from Colorado to New York.

According to NBC News, federal agents say the men were linked to a terror plot targeting New York City which aimed at attacking public places like sports arenas or train stations. Authorities say they do not know the exact time or location of the attack.

According to an arrest affidavit released Saturday night, Najibullah Zazi drove a rental car from Colorado on Sept. 9, arriving in New York on Sept. 10. Federal agents searched the rental car the following day and say they found Najibullah Zazi's laptop computer, which contained a "jpeg image of nine-pages of handwritten notes." The notes contained "formulations and instructions regarding the manufacture and handling of initiating explosives, main explosives charges, explosives detonators and components of a fuzing system."

After Najibullah Zazi's trip, investigators searched several New York apartments in connection to his visit. Investigators tell NBC News during the searches of four apartments they found pictures and references to public places in New York. Officials also seized nine backpacks, according to NBC News.

Najibullah Zazi flew back to Colorado and learned about the raids in New York after friends called him and shortly before his own apartment was searched. He has said he drove to New York in September to resolve issues with a coffee cart he owns in Manhattan.

Last week, Najibullah Zazi voluntarily met with authorities on three occasions. During those meetings, the younger Zazi told investigators he had never seen the document found on the laptop in the rental car and that he must have unintentionally downloaded the document as part of a religious book, which he says he later deleted because it contained talk of jihad.

Federal handwriting analysts say there were characteristics in common between the notes and with samples submitted by Najibullah Zazi, however the final conclusion had not yet been made.

The affidavit also says the document was sent between three e-mail accounts in early Dec. 2008. The FBI believes Najibullah Zazi had control over all three e-mail accounts because two of the accounts had the same nine-digit password, and the third had a six-digit password matching the first six digits of the nine-digit password.

Mohammed Zazi and Afzali are accused of lying to FBI agents about calls between Denver and New York. An affidavit accuses Afzali of lying about a call in which he told Najibullah Zazi that he had spoken with authorities.

Zazi's father is accused of lying when he told authorities he didn't know anyone by the name of Afzali. The FBI said it recorded a conversation between Mohammed Zazi and Afzali.