Could be spun as a win-win for the Tories, really. If Labour gets its majority pared down by almost half, that could be seen as anger at the left wing, but Tony Blair returning as PM could be a reward for a staunch Iraq War ally, regardless of what the European press thinks.
JMHO.
I've taken a look at some of the more marginal Labour seats, and it is entirely possible that a Lib Dem surge would allow the Conservatives to come up the middle in several races. With any luck, they can crack 200 seats tonight but we'll have to wait and see.
Short of winning the election, what would be good for the Tories is a hung parliament, or a Labour majority of 60 seats or less.
That is because if the majority gets down to that level, it makes Blair vulnerable in votes in the House of Commons to the Socialist Campaign Group of far-left MPs and other leftists in his parliamentary party. He would not be able to get his "radical" (by Labour standards) agenda through, and he would be paralyzed. That would set the stage for a Conservative win in 2009/2010, possibly even a landslide if things got really bad for Labour.
Greg Hands, Conservative Candidate for Hammersmith & Fulham
If he wins tonight, there's a chance he could catapult to the leadership in fairly short order - I've met him, he's intelligent, articulate and is not afraid to take on the Socialists.
Regards, Ivan