The CRISIS occurred when the press started reading off the Dem talking points about Lott's comment (please note that the comment didn't even get play in the media until several days later).
The FAILURE occurred when the Pubbies ran for the tall grass and left Lott to fend for himself, aiding and abetting his getting in deeper and deeper until he was promising them the moon.
NOW the Dems will claim that Lott was gotten rid of, NOT because of what he said at Thurmond's birthday party, but because AFTERWARD he was willing to pick up the Affirmative Action banner and hold it high.
THIS, they will say, is the REAL story, and "PROVES" the endemic racism of the Republicans.
The Republicans couldn't have handled it worse if James Carville had been scripting it.