In its report last month, the grand jury summarized McQueary's testimony as saying he "saw a naked boy ... with his hands up against the wall, being subjected to anal intercourse by a naked Sandusky."

McQueary said he peeked into the shower three times - the first via a mirror, the other two times directly. The last time he looked in, Sandusky and the boy had separated, he said. He said he didn't say anything, but "I know they saw me. They looked directly in my eye, both of them."

McQueary said the entire encounter - from when he first entered the locker room to when he retreated to his office - lasted about 45 seconds.

Slideshow   Joe Paterno (1926-2012) A look at the career of legendary Penn State coach Joe Paterno NBCSports.com

Curley told the grand jury that he couldn't recall his specific conversation with McQueary, but McQueary never reported seeing anal intercourse or other sexual conduct. He said he spoke to Sandusky about it, who first denied having been in the shower with a boy, but later changed his story.

Schultz said he remembered McQueary and Paterno describing what the younger coach saw only in a very general way.

"I had the impression it was inappropriate," Schultz told the grand jury. "I had the feeling it was some kind of wrestling activity and maybe Jerry might have grabbed a young boy's genitals."

Under cross-examination, McQueary said he considered what he saw a crime but didn't call police because "it was delicate in nature."

"I tried to use my best judgment," he said. "I was sure the act was over." He said he never tried to find the boy.

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Paterno, Schultz and Curley didn't testify, but District Judge William C. Wenner read their grand jury testimony from January at the Dauphin County hearing.

Curley's attorney, Caroline Roberto, said prosecutors "will never be able to reach their burden of proof at a trial."

Schultz's attorney, Tom Farrell, predicted his client would be acquitted.

He also took a shot at Paterno, saying, "I'm an Italian from Brooklyn, and he may not have called the police but he may have done what I would have done, which is get the boys in the car with a few baseball bats and crowbars and take it to the fellow."

Sandusky says he is innocent of 52 criminal charges stemming from what authorities say were sexual assaults over 12 years on 10 boys in his home, on Penn State property and elsewhere.

Curley, 57, was placed on leave by the university after his arrest. Schultz, 62, returned to retirement after spending about four decades at the school, most recently as senior vice president for business and finance, and treasurer.