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As I have understood from California state law, once those signatures were submitted (which they have been) or something to that effect, the recall is locked in. Gray Davis can still resign, making Bustamante Acting Governor. However, in what would be only a 1-question recall ("Who should be the new governor?"), the replacement will STILL be elected and Bustamante will go BACK to being Lt. Gov. the day after the election.

In other words, the nightmare scenario of Davis resigning for Bustamante had it's chance, and the window is closed on that. Possibly the only thing resignation could do is prop Bustamante up in a recall election but I don't see it as having much effect.

As I have understood from California state law, once those signatures were submitted (which they have been) or something to that effect, the recall is locked in.

I suspect that you're right about that, tho I'm not sure exactly what the cut off point for a resignation to preclude a recall election would be. I'm going to have to check on this, but right now I suspect that that window would close about the time the SecOfState validates the petition counts and sets a date for the vote to take place. If Davis is going to go the resignation route, he's going to have to make up his mind very soon.