"2) Build a stable base in the Americans of hispanic hertiage. This group, which is largely Catholic and morally conservative, could be a goldmine for the Republicans."
This will be much easier than the Silicon Valley route considering that Bush picked up major percentages among hispanics nationwide. That is, if they are legal residents/citizens. I don't think the illegals will ever vote Republican.
My point about the Silcon Valley area is that the econmy there is still quite depressed. The are lots of former six-figure software folks now selling shoes at Sears these days, and they are not happy about it. It is an area, geographically, that can swing back to the Republicans.