Oregon state Republican party elected officials being the most conservative of any state? I don't think so.
They were passing some conservative legislation in the 1990s/early 2000s when they controlled the state legislature and had lots of their bills vetoed by the then (and current) Democratic Governor who got nicknamed Dr. No as a result but it's been a downhill slide for them from there in terms of winning elections.
And while they were bad in killing some good bills in the current legislative session where the state house is split 30-30 (they are very likely to lose at least a few seats in the 2012 elections), it wasn't teabagger I'm gonna shut down the government bad like the Minnesota GOP and they did vote to pass some centrist-ish legislation (approved the state health insurance exchange for example).
They do still have Jim DeMints in their legislative caucuses and would arguable vote to pass legislation to the right of the state (much like the national GOP and the country) but I'd say there is more conservative (minority and majority control) Republican parties in other states and Republicans are going to have to move to the left (fiscally and socially) in the next few decades to stay electable. Not to say that they're not a right-wing party or have given up running more conservative members as the previous GOP House majority leader is trying to primary one of the current Republican state senators who did cast some centrist votes in the last few sessions (
http://news.opb.org/article/bend-race-pits-former-house-majority-leader-against-incumbent/ We'll see how this plays out.), but I think they realize they can't be that conservative and win.
The Oregon Republican electorate being the most conservative in the country? I'd say probably not. It might have been closer in the past and there are definitely still areas like SE Oregon that are very conservative in terms of what they would approve/ban and width (70% of the vote goes to the Republicans in some of these counties) but these are small in population. I did want to see how Santorum would have fared here in our primary to get some more recent data but we all know what happened with that
P.S. - Walden is much like the current crop of "moderate" Republicans who have this pundit aura of centrism but vote lock in step with most of the reactionary agenda.
Also relevant:
http://research.bshor.com/2010/02/11/abel-maldonado-is-a-liberal-republican-but-only-in-california/