**Securities        and Exchange Commission**

**Washington,        D.C. 20549**

**FORM        10-QSB**

| x | Quarterly                  Report Pursuant To Section 13 Or 15(d) Of The Securities Exchange                  Act Of 1934 |
|---|---------------------------------------------------------------------------------------------------------------------------|

| o | Transition                  Report Under Section 13 Or 15(d) Of The Securities Exchange Act                  Of 1934 |
|---|----------------------------------------------------------------------------------------------------------------------|

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| DELAWARE                                         |   | 13-2614435                           |
|--------------------------------------------------|--------|--------------------------------------|
| (State                  or Other Jurisdiction of |   | (I.R.S.                  Employer    |
| Incorporation                  or Organization)  |   | Identification                  No.) |

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|                                                                                                                                                       |                                                                 |   | Page   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|--------|--------|
| **Part                  I**                                                                                                                                |                                                                 |   |   |
|                                                                                                                                                       |                                                                 |   |   |
| Item                  1.                                                                                                                                   | Financial                  Statements                                |   |   |
|                                                                                                                                                       |                                                                 |   |   |
| Balance                Sheet as of September 30, 1998 (Unaudited)                                                                                          |                                                                 | 1      |
|                                                                                                                                                       |                                                                 |   |   |
| Statements                of Operations for the three months ended September 30, 1998 and                1997(Unaudited)                                   |                                                                 | 1      |
|                                                                                                                                                       |                                                                 |   |   |
| Statements                of Cash Flows for the three months ended September 30, 1998 and 1997                (Unaudited)                                  |                                                                 | 1      |
|                                                                                                                                                       |                                                                 |   |   |
| Statements                of Stockholders Equity for the year Ended June 30, 1998 and the three                months ended September 30, 1998 (unaudited) |                                                                 | 2      |
|                                                                                                                                                       |                                                                 |   |   |
| Notes                To Financial Statements (Unaudited)                                                                                                   |                                                                 | 2      |
|                                                                                                                                                       |                                                                 |   |   |
| Item                  2.                                                                                                                                   | Management's                  Discussion and Analysis                |   | 3      |
|                                                                                                                                                       |                                                                 |   |   |
| Item                  3.                                                                                                                                   | Controls                  and Procedures                             |   | 3      |
|                                                                                                                                                       |                                                                 |   |   |
| **Part                  II – Other Information**                                                                                                |                                                                 |   |
|                                                                                                                                                       |                                                                 |   |   |
| Item                  1.                                                                                                                                   | Legal                  Proceedings                                   |   | 4      |
|                                                                                                                                                       |                                                                 |   |   |
| Item                  2.                                                                                                                                   | Change                  in Securities                                |   | 4      |
|                                                                                                                                                       |                                                                 |   |   |
| Item                  3.                                                                                                                                   | Defaults                  Upon Senior Notes                          |   | 4      |
|                                                                                                                                                       |                                                                 |   |   |
| Item                  4.                                                                                                                                   | Submission                  of Matters to a Vote of Security Holders |   | 4      |
|                                                                                                                                                       |                                                                 |   |   |
| Item                  5.                                                                                                                                   | Other                  Information                                   |   | 4      |
|                                                                                                                                                       |                                                                 |   |   |
| Item                  6.                                                                                                                                   | Exhibits                  and Reports on Form 8-K                    |   | 4      |
|                                                                                                                                                       |                                                                 |   |   |
| Signatures                                                                                                                                                 |                                                                 | 4      |

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**ITEM        1. FINANCIAL STATEMENTS**

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**CST        ENTERTAINMENT, INC.**

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| ASSETS                                                                                                                                          |   |   |             |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|
| Current                  assets                                                                                                                 |   | $      | -           |   |
| Total                  assets                                                                                                                   |   | $      | -           |   |
|                                                                                                                                            |   |   |             |   |
| LIABILITIES                  AND STOCKHOLDERS' DEFICIT                                                                                          |   |   |             |   |
|                                                                                                                                            |   |   |             |   |
| Current                  liabilities                                                                                                            |   | $      | -           |   |
| Total                  liabilities                                                                                                              |   |   | -           |   |
|                                                                                                                                            |   |   |             |   |
| Stockholders'                  Deficit:                                                                                                         |   |   |             |   |
| Common                  stock, par value $0.15; 40,000,000 authorized; issued and outstanding                  27,278,340 at September 30, 1998 |   |   | 4,091,752   |   |
| Additional                  paid in capital                                                                                                     |   |   | 56,115,740  |   |
| Accumulated                  deficit                                                                                                            |   |   | (60,207,492 | )      |
| Total                  stockholders' deficit                                                                                                    |   |   | -           |   |
| Total                  liabilities and stockholders' deficit                                                                                    |   | $      | -           |   |

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**CST        ENTERTAINMENT, INC.**

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|                                                        |   | For the Three Months Ended |       |
|-------------------------------------------------------------|--------|------------------------------------------------|------------|
|                                                        |   | September 30,                             |       |
|                                                        |   | 1998                                           |       | 1997 |   |
| Revenue                                                     |   | $                                              | -          |   | $ | - |   |
| Operating                  expenses                         |   |                                           | -          |   |   | - |   |
| Net                  loss                                   |   | $                                              | -          |   | $ | - |   |
|                                                        |   |                                           |            |   |   |  |   |
| Weighted                  average common shares outstanding |   |                                           |            |   |   |  |   |
| Basic                  and fully diluted                    |   |                                           | 27,278,340 |   |   | 27,278,340 |   |
|                                                        |   |                                           |            |   |   |  |   |
| Net                  income (loss) per share common         |   | $                                              | -          |   | $ | - |   |

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**CST        ENTERTAINMENT, INC.**

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|                                                  |   | For the Three Months Ended |   |
|-------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                  |   | September 30,                             |   |
|                                                  |   | 1998                                           |   | 1997 |   |
| Cash                  flows from operating activities |   | $                                              | -      |   | $ | - |   |
| Cash                  flows from investing activities |   |                                           | -      |   |   | - |   |
| Cash                  flows from financing activities |   |                                           | -      |   |   | - |   |
| Net                  increase (decrease) in cash      |   |                                           | -      |   |   | - |   |
| Cash                  at beginning of year            |   |                                           | -      |   |   | - |   |
| Cash                  at end of year                  |   | $                                              | -      |   | $ | - |   |

**SEE        ACCOMPANYING NOTES TO FINANCIAL STATEMENTS**

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**CST        ENTERTAINMENT, INC.**

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|                                          |   |              |       |    |   | Additional |   |          |       | Total  |   |
|-----------------------------------------------|--------|-------------------|------------|---------|--------|------------|--------|---------------|------------|--------|--------|
|                                          |   | Common Stock |       | Paid-In |   | Deficit    |   | Stockholders' |       |
|                                          |   | Shares            |       | Amount  |   | Capital    |   | Accumulated   |       | Equity |   |
| Balances,                  June 30, 1997      |   |              | 27,278,340 |    | $      | 4,091,752  |   | $             | 56,115,740 |   | $      | (60,207,492 | ) | $ | - |   |
| Balances,                  June 30, 1998      |   |              | 27,278,340 |    | $      | 4,091,752  |   | $             | 56,115,740 |   | $      | (60,207,492 | ) | $ | - |   |
| Balances,                  September 30, 1998 |   |              | 27,278,340 |    | $      | 4,091,752  |   | $             | 56,115,740 |   | $      | (60,207,492 | ) | $ | - |   |

**SEE        ACCOMPANYING NOTES TO FINANCIAL STATEMENTS**

**CST        ENTERTAINMENT, INC.**

**NOTE        A – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING        POLICIES**

*Net        Loss Per Share*

*Accounting        Estimates*

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**NOTE        B – BANKRUPTCY**

**NOTE        C - SUBSEQUENT EVENT**

**ITEM        2. MANAGEMENT'S DISCUSSION AND ANALYSIS**

**Results        of Operations**

**Liquidity        and Capital Resources**

**ITEM        3. CONTROLS AND PROCEDURES**

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**PART        II - OTHER INFORMATION**

| Item                1. | Legal                  Proceedings. None. |
|------------------------|-------------------------------------------|

| Item                2. | Change                  in Securities. None. |
|------------------------|----------------------------------------------|

| Item                3. | Defaults                  Upon Senior Securities. None. |
|------------------------|---------------------------------------------------------|

| Item                4. | Submission                  of Matters to a Vote of Security Holders.                  None. |
|------------------------|----------------------------------------------------------------------------------------------|

| Item                5. | Other                  Information. None. |
|------------------------|-------------------------------------------|

| Item                6 | Exhibits |
|-----------------------|----------|

| Exhibit Number |   | Title                  of Document                                                                                                                                                                                                                     |
|---------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1                |   | Certification                  of Principal Executive Officer and Principal Accounting Officer                  Pursuant                  to Rule 13a-14                                                                                               |
| 32.1                |   | Certification                  of Chief Executive Officer and Principle Accounting Officer Pursuant                  to 18                  U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002 |

**SIGNATURES**

| LEGACY                  HOLDINGS, INC.                                                     |
|--------------------------------------------------------------------------------------------|
|                                                                                       |
| /s/                  Robert Matthews                                                       |  |
| Robert                  Matthews                                                           |
| Chief                  Executive Officer and Principle Accounting                  Officer |

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