They say Charley will be a Category 2 once it hits Orlando in a few hours, and by the time it reaches the Atlantic, it'll be a Category 1. Are the waters warm enough there to restrengthen Charley?
Beyond the shadow of a doubt. It's happened before more often than not, IIRC. nwctwx is the expert; I just have memory to go by.
WTF is happening in Arcadia? A shelter getting ripped up?
The waters are plenty warm enough in that area of the Atlantic for regeneration. The question is exactly where it moves. Indications now are that he will go into SC/NC. If it does that, probably back up to Cat 2 or so. If it manages to stay out in the water long enough and ride the Gulf Stream it could be much stronger.
Explosive redevelopment is not likely because the storm will continue to accelerate as it moves along.