Yes, the mainstream media is presenting this as a smear job, but more people than not, are realizing that this story does have legs and teeth. The polls of likely undecided likely voters are showing that about 60% of them are leaninging towards voting for President Bush in November because they believe the the Swiftboat Vets story and disbelieve the mainstream media and Senator Kerry's side of the story.
"people are seeing that the media has been in cahoots with Kerry and has worked to cover his tracks."
Well conservatives are seeing that because we already know the media is biased. I'm not sure that the broader american public is seeing this though. I hope you're right, but it may just be wishful thinking.