I think they expected the "Nazi dad" story, the "anti-gay" story, the "sex fiend" story, and the "nude photos by Mapplethorpe" story to do the heavy lifting. Just shows how badly they misread Arnold's popularity, which may have actually been boosted by showing his wild past.
They probably have a nasty little hit piece scheduled for election eve, but that was probably just expected to seal the deal and keep the pre-election focus vaguely hinting at scandal, just like the Gore team and the "Bush DWI" story on just prior to that election. Their problem with this is that a story like that is not going to come close to eliminating a 15 point gap.