I think Hillary has waited too long.
No, this is a good time. I think Obama's third major "non-denunciation" of TUCC, wierdly delivered on a Saturday night, was in response to the Dem delegates' meeting -- a message sent to Obama that his supporters are getting jittery.
If that's the case, hit him while he's down, and keep hitting before the media can smooth it all out, or come up with some other earth-shaking non-story to drown out the Phleger buzz.