Allen lost by a few thousand votes. It wasn't a "disaster", and 2006 was a good year for Democrats because they masqueraded around as Conservatives. It was that year that the Democrat Senators who won elections in red states running as Conservatives are up for re-election in 2012 are running, Jim Webb being one of them.
Kent Conrad of North Dakota, for example, is retiring because the Tea Party in that state are busy exposing his voting record. If the Tea Party in Virginia was doing that same thing right now, Jim Webb will be tossed out in 2012. It won't matter one whit who he's running against because he's a fraud.
Erickson has expressed a preference for the Tea Party endorsed Senate candidate Jamie Radtke from Richmond, so its hard to see how the RINO label fits unless you consider Radtke a RINO also.