"Allen's real raw deal, he is a good guy but now has this stigma to haunt him."
Frankly there is not much stigma... he made small mistakes that the biased media, especially the WashPost magnified into big mistakes.
Yes, he should have won by 10 points, but Webb is an odd duck - called a 'neo-confederate' by some - who couldn't be pegged as liberal ... and the Democrat liberals were willing to vote anybody in their zeal to beat Bush.
Allen can and should try to go after the Senate seat in 2008. He is good and he is popular, and it may well be a different environment in 2008 after 2 years of Democrats screwing up things.