Another trainwreck for the Democrats.
I don't know about that. By 2008 there is a good chance that voters will be fed up with the current leadership. Nostalgia for the 1990s will be strong. Hillary will run with Bill at her side every step of the way and outside of the confines of Free Republic, Bill Clinton remains a very well-liked figure.
Hillary only needs to run a "2 for the price of 1" ticket (remember 1992?) and put forth the image that a vote for her is a de facto vote for a 3rd term for her husband. If Bill Clinton could run again in 2008, he would win in a landslide.