Rossi is going to have a much harder time in 2008 compared to 2004. Gregoire has the advantage of incumbency and she is a Democratic Governor in a Democratic leaning state. The political environment has become toxic for Republicans. Probably Rossi will accuse Gregoire of overspending but I suspect she will recast it as important investments in education, health care and the environment. The local economy has been solid which robs Rossi of his potentially most potent issue and his social views are simply out of step with the majority of Washington voters. Gregoire will not fail to point that out this time.
That must be why Rudy is tied with Hillary in Washington, according to SUSA, if I recall correctly.