Damage done, not least to AP's reputation. Not much they can do about it, either. Beside blackballing the stringer, but that's not something done publicly.
Time will tell just how long the Democrats will run with this lie on the campaign trail.
They've retracted, eh? Tell that to the Guardian. It's there at this moment:
http://www.guardian.co.uk/worldlatest/story/0,1280,-4472156,00.html
Where else in the world might this "story" be running that we haven't seen yet?
It's also still at the Boston Globe site, the screencap on post 39 which I made 11 hours ago.
Don't give those suckers an inch.