Hundreds of judges, jurors, employees and prisoners in the 23-story building were evacuated and surrounding streets were cordoned off Monday as dozens of police cars responded, jamming lunchtime traffic.

Officers could not tell that "what appeared to be a World War II-type of grenade" was inert until after the shooting, Police Chief Gil Kerlikowske said.

The man, dressed in camouflage, was identified as Perry Manley, 52, of Seattle.

The man had frequented the courthouse as well as the federal office building and often expressed "a disdain for the federal government as well as some of its policies," U.S. Marshal Eric Robertson said.

"I believe it's more of a global government frustration," Robertson said.

On Monday, the suspect arrived at the courthouse shortly before noon with a backpack that he later strapped to his chest. Witnesses said he tried to skirt security in the lobby and began shouting threats, police Detective Christie-Lynne Bonner said.

The backpack contained unspecified court documents and a living will, indicating he might have expected police to shoot him, as well as a cutting board which the man may have intended to use as a protective device, Kerlikowske said.

Security officers were unable to talk the man into putting down the grenade, police were called and after about 25 minutes of negotiations "the man made a furtive movement," Robertson said. "At that point the officers had no choice but to stop that threat."

An officer with a .223-caliber rifle and another with a shotgun each fired once at the man, who fell to the floor still holding the grenade. "It was very clear, immediately after the shots, that the individual was deceased," Robertson said.

Bomb squad members determined the grenade had been drilled out and was inactive. The man's body was removed several hours later, the police chief said.

Robertson said the man also had some court documents, but he didn't describe those papers in detail. But the man had filed complaints with the courts before, and was known to be dissatisfied with the federal government in general.

Kerlikowske said the two veteran officers who fired the shots were placed on paid administrative leave. They were not immediately identified.

Reached A Breaking Point

People who knew Manley say he was fighting for a cause, and had reached the breaking point. Manley's former wife and daughter live in the Seattle area.

Manley was paying child support and felt like he was not getting enough time with his daughter. And Manley felt a federal judge in Seattle was not giving him a fair hearing.

KOMO 4 News spoke with a man in Dallas who runs a Web site for non-custodial parents, and he had been talking with Manley for several months about the custody issue and child support.

"It had definitely affected his life and his livelihood and his ability to make an income," Richard Farr told KOMO 4 News. When asked: "And he felt he should have more time with his child - maybe have her live in his own home?" He replied, "That's exactly the way he felt and he felt he was losing out significantly there."

Farr added Father's Day is a difficult time for many parents who want custody of their kids, but don't have it, and he figures that's one of the reasons this happened.

FBI Investigated Him Before

Five years ago, the Seattle Post-Intelligencer reported, Manley paraded down a Bremerton street waving a flag and wearing little more than a sandwich board that read, "State Raped."

Manley came under investigation in April by the FBI after U.S. District Judge Thomas S. Zilly denied his attempts to bring a state lawsuit to the federal level. Cases brought by Manley also were rejected two years ago and in 2001.

In a letter filed in court in April, Manley accused Zilly of treason, adding that such a crime was punishable by death. Subsequently, on a fathers' rights Web site, he wrote that he was visited by two federal agents.

Belltown Home Searched

After the Monday afternoon shooting, the investigation moved to Belltown, as the FBI and the ATF started searching the man's apartment.

They took pictures and pulled out several items for evidence.

Many of the people who live there did not know the man, who lived alone in his apartment.

Police would not say what they recovered.

'Get Out Of Here Now'

Several people in the courthouse at the time of the shooting recounted their ordeal.

Chay Adams, 27, of Seattle, said she saw police shoot the man.

She was leaving the U.S. Marshals office on the ninth floor where her father is a deputy marshal. "There were a bunch of marshals running toward me with bulletproof vests and weapons ... saying it would be in my best interest to leave," she said.

Adams and about eight other women were evacuated to the fifth floor, where she said she could see down into the atrium lobby. She saw police confront the man, who had been sitting on a bench with a yellow backpack strapped to his chest.

He was nervous and kept clasping his hands, she said, but there was nothing unusual about him.

"If they wouldn't have known what happened, you wouldn't have paid any attention to him," Adams said.

She watched the man for a few minutes, then heard two shots.

"With one shot, the man slumped over, and with the second shot, he slumped all the way over and his head ended up in his lap," Adams said.

Kim Kingsborough told reporters she saw the man in the lobby before the standoff occurred.

"He just stood around for the longest time in the lobby, looking around," she said, then he tried to sneak by the pool.

As officers approached him, Kingsborough said, the man shouted: "Don't come near me!"

Jurors told KOMO 4 News that police came in during their lunch break and told them to leave their lunches behind and evacuate the building immediately, and to run, not walk.

"They just came running in and said, 'Get out of here now!' " juror Doug Cleveland told KOMO 4 News. "So we were just started walking, and they said, 'No, you're going to run, and you're going to run now.' So we ran."

Building Has New Security Measures

The new federal courthouse opened last August. Many of the major security features of the $171 million high-rise at Seventh Avenue and Stewart Street are disguised. Even glass walls that permit ample sunlight are blast-resistant.

The new courthouse houses the U.S. Marshals Service, judges, support staff and court clerks, as well as the U.S. Attorney's Office, bankruptcy courts, and probation and pretrial services.

It holds 13 district courtrooms, five bankruptcy courtrooms, and 22 suites for judges and their staff. Secure hallways lead from cell blocks into the courtrooms, so prisoners don't contact the public - unlike in the old building.