Paxon is currently making a considerable amount of money as a consultant. He has also had problems with members of the NY State GOP machine (ironic, since he is married to the daughter of Guy Molinari, a machine boss par excellance). When he stepped down from Congress in '98, these reasons were cited in the press.
So, he didn't choose to run, and I believe this is why she had no other competition. If she couldn't win honestly, there is always vote fraud to rely on. ;-)
I give Lazio credit for going up against her. In fact, Rush mentioned today about the debate in which Lazio walked toward "her" to ask her to sign a pledge--the man was crucified as giving the appearance he was threatening her.
So help me, I can't see a Dem losing a race unless there is a glitch why they can't count dead, twice, and otherwise stuff the ballot boxes.