I'll have some video up from Keith Olbermann on this a little later this morning.

After the recount, and before another 700+ votes were counted from the largely democratic Seattle area (King County), Democrat Chris Gregoire is ahead by a slim margin.

Rossi (R) hasn't conceeded yet, but after the King County votes are in, he'll probably have to.

Here's an article on this from the Baltimore Sun:

Democrat is declared governor of Washington
3rd count gives Gregoire the victory by 130 votes

Democrat Christine Gregoire won the Washington governor's race by 130 votes out of 2.9 million ballots cast, according to final recount results announced yesterday from Seattle's King County, the last of the state's 39 counties to report.

Hundreds of belatedly discovered ballots helped extend what otherwise would have been just a 10-vote advantage for Gregoire in her race with Republican Dino Rossi. The first ballot count showed Rossi winning by 261 votes, and a subsequent machine recount had Rossi winning by 42. The latest recount was conducted by hand.

Here is the full text of the article in case the link goes bad:

http://www.baltimoresun.com/news/nationworld/bal-te.washgov24dec24,1,807444.story?coll=bal-nationworld-headlines

Democrat is declared governor of Washington
3rd count gives Gregoire the victory by 130 votes
Associated Press
Originally published December 24, 2004
SEATTLE - Democrat Christine Gregoire won the Washington governor's race by 130 votes out of 2.9 million ballots cast, according to final recount results announced yesterday from Seattle's King County, the last of the state's 39 counties to report.

Hundreds of belatedly discovered ballots helped extend what otherwise would have been just a 10-vote advantage for Gregoire in her race with Republican Dino Rossi. The first ballot count showed Rossi winning by 261 votes, and a subsequent machine recount had Rossi winning by 42. The latest recount was conducted by hand.

"Wooo-hooo!" exulted state Democratic Party spokeswoman Kirstin Brost moments after the results were announced. "We're very excited. We always believed she would win."

Secretary of State Sam Reed is scheduled to certify the election Dec. 30. After that, the election results probably will be challenged in court, or possibly the Legislature.

State law allows any registered voter to challenge election results. Republicans have begun asking elections officials to reconsider votes for Rossi that they say were wrongly rejected.

"We're going to be going across the state demanding they make every vote count," Rossi spokeswoman Mary Lane said earlier yesterday.

Since Election Day, Gregoire has gone from favorite to underdog and back to favorite.

A three-term state attorney general, Gregoire, 57, was widely viewed as the anointed successor to Democrat Gov. Gary Locke. Rossi, 45, a real estate agent and former state senator, jumped into the race only after the GOP's first three choices declined to run.

In Washington Democrats hold the majority in the Legislature, both U.S. senators are Democrats, and John Kerry won 53 percent of the statewide vote. But voters also flaunt a strong independent streak, and Rossi's sunny message of change caught on with swing voters.

Gregoire and Rossi spent $6 million each on the campaign, a state record, and outside groups spent millions more.

After Rossi won the first two counts, Democrats paid $730,000 for the hand recount. By law the state has to repay the party if the recount reverses the results.