I think that's true nationwide, but certainly not in Florida. His support there is pretty strong, and it's there because there are a lot of ex-New Yorkers living in Florida who appreciate the job he did as mayor. These people are conservative on fiscal and law-and-order type issues, but don't care so much about the moral issues, so they don't really care about his stance on abortion, gay rights, his divorces, and the like.
Not only that - Gulliani’s strong performance after 9/11 bolsters his image on the overriding issue of the day, national security. That alone trumps everything else which is why he also leading in most Southern states.
The same is true in California. He is running a great grassroots campaign here, and California has a lot of delegates. Rudy should get most if not all of the California delegates.