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CBS 2 Political Editor Mike Flannery, Mike Parker and the Associated Press contributed to this report.
CHICAGO (CBS) ― A federal appeals court has ruled that Former Governor George Ryan can remain free on bond while he appeals the court's decision Tuesday to uphold his conviction on corruption charges.

Under a previous ruling from the court, Ryan was required to report to prison by Friday morning, but his attorneys went to court Tuesday asking for a stay. Late Tuesday, the U.S.Court of Appeals issued a motion to stay the court order requiring Ryan to report to prison within 72 hours of the original ruling on his appeal.

Former Governor Jim Thompson is acting as Ryan's lawyer. During a news conference Tuesday, he talked about Ryan's response to the court's decision upholding his conviction.

"Governor Ryan obviously is disappointed in this result, but he has faith in the judicial system, as he has told you all these years, and he has faith in his lawyers," Thompson said.

"George is a strong guy. He's been through a lot. I worry about he and Mrs. Ryan," Thompson added.

The three-judge panel, in a 2-1 split decision, turned down Ryan's request for a new trial on the grounds that jury deliberations were flawed.

The Appellate Court majority wrote that the evidence of Ryan's guilt was overwhelming.

"The fact that the trial may not have been picture perfect is, in itself, nothing unusual," Judge Diane Wood wrote in the majority opinion, joined by Judge Daniel Manion.

Lead prosecutor Patrick Collins applauded the majority's ultimate conclusion that justice was done at Ryan's six-month-long trial. "I believe in my heart of hearts, this was a fair trial," Collins said.

Judge Michael Kanne dissented and said Ryan and his co-defendant, businessman-lobbyist Larry Warner, should get a new trial, calling the concession that the trial wasn't picture perfect "a whopping understatement by any measure."

"The basis for my dissent lies… in the dysfunctional jury deliberations. The flood of errors... and other factors are totally astounding," he added.

Noting that at least three jurors retained their own lawyers and may have had conflicts of interest that stemmed from fear of being prosecuted themselves for having lied to the court about their personal background, the Appeals Court dissenter wrote, "When the U.S. Attorney is issuing immunity grants to jurors... these circumstances are not 'usual' and far from the way our criminal justice system should work."

Ryan's appeal was largely based on the dismissal and replacement of two jurors during Ryan's trial. Two jurors lied on jury information sheets they filled out before the trial and U.S. District Judge Rebecca R. Pallmeyer, who presided at the trial, dismissed them and replaced them with alternates after the jury had begun deliberations.

The majority opinion found that Pallmeyer handled the situation as well as possible and preserved the ultimate fairness of Ryan's trial.

Pallmeyer said at the time of the trial that some of her rulings were "difficult" or "close calls." But the two judges voting to affirm the convictions brushed aside those concerns.

"The impression that they give is that this is some kind of signal that the court knew it was wrong," the appeals decision said. "We draw no such inference."

"A District Court's acknowledgment of the difficulty of an issue, if anything is a sign that the court has given it full consideration," the majority opinion said.

Kanne said in his dissent, "The majority has taken great pains -- in 29 pages -- to declare the flood of errors regarding the jury deliberations to be merely harmless," but he said the deliberations were fatally flawed.

"Judge Pallmeyer is, in my humble opinion, one of the most fair jurists in the building and I think the majority concluded that she did in fact give George Ryan a fair trial," said chief prosecutor Patrick Collins.

Don't tell that to Thompson.

"No court anywhere has ever deprived a defendant of his life and liberty under these circumstances," Thompson said.

The opinion came down after the court had granted Ryan an appeal bond, something that politicians convicted of wrongdoing almost never get in Illinois.

In granting the bond, the appeals court had said that once it reached its decision Ryan would have to immediately go to prison to serve his time.

Thompson, whose law firm defended Ryan at no charge, says comments by the dissenting judge give him hope. It may be, he thinks, that the next Ryan appeal – this one to all 11 members of the court – might work.

Ryan was convicted in April 2006 of racketeering, tax fraud and other offenses. Prosecutors claimed he had steered big-money state contracts to Warner and other political associates.

They also said he had conspired to kill an investigation of drivers license corruption and used state sources to fuel his campaigns.

Ryan and Warner denied they had done anything illegal.

One of the dismissed jurors, who was bounced for refusing to deliberate, continued to support the former governor.

"If I were George Ryan I would continue to fight. I mean, to me it's an injustice," said Evelyn Ezell.

The trial judge could set new conditions Wednesday for Ryan's freedom on bond. After that his lawyers will ask all 11 members of the federal appeals court to grant him a new trial.

If that fails, they'll try to get the U.S. Supreme Court to take the case. All this could take months, even years.

License For Bribes Scandal

The eight-year federal investigation of corruption while Ryan was secretary of state and governor from 1991 until 2003 gave rise to the biggest political scandal in Illinois in decades.

It began as an investigation of bribes paid in exchange for commercial driver's licenses required for truck drivers. Scott and Janet Willis lost six children in a crash connected to the scandal.

A trucker who did not speak English caused the fiery crash in Wisconsin, because he did not understand the warnings of other truckers who radioed him about his defective rig. The trucker got his license illegally in the "licenses for bribes" scandal while Ryan was the Illinois Secretary of State.

In a phone interview Tuesday, Scott Willis said of the appeals court ruling: "I was thankful that the waiting is over. I was thankful for the decision that was made. I wasn't happy and joyful. It doesn't bring that kind of feeling or sense, but grateful that what was decided."

"It was encouraging that the justice system works. So often, some of us get discouraged because we hear some crazy things that happen," Willis added. "We had a chance to hear the closing arguments on both sides. We think that what was decided here is right and we're thankful."


The Appeal Process

Ryan is now allowed to stay free on bond until the 7th Circuit Court of Appeals rules on his appeal of the decision of the 3-judge panel. If the 7th Circuit rules against Ryan, Thompson says Ryan's attorneys are prepared to take the case to the U.S. Supreme Court.

CBS 2 Legal Analyst Irv Miller said the split decision Tuesday gives Ryan's attorneys a good chance of taking the case to the nation's highest court.

"This gives him additional ammunition for his attorneys to go before the United States Supreme Court and say he didn't get a fair trial here in Chicago. Give him a fair trial," Miller said.

Asked what he thought of the possibility of an appeal to the Supreme Court, Willis said, "We don't hang on this and live for a decision on this day by day or week by week even. If he has a legal right to do that and if they so decide, we have no objection to that, that's only right. It does add a little bit longer. The door isn't quite closed on that issue, but that's OK. This was encouraging."

(© 2007 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)