My bold prediction: Republicans keep the White House in 2008
If that happens, the democratic party will basically collapse. I mean, if they cannot win now, what is their purpose?
But let's be frank... the only reason to make this sort of prediction is that a wartime environment (not necessarily the war) does give an edge to Republicans. Minus the scandals, not too many people really miss the Clinton '90s.
I personally give Clinton the advantage, but I will almost certainly be voting Republican (definitely if it's Giuliani or McCain) and the main reason remains the (larger) war.