Starting off in Virginia, Rasmussen Reports provides some data that shows the Democrats just might have a shot at picking up a Senate seat -- if the right candidate is brought in.

Senator George Allen will face a major re-election battle if Governor Mark Warner decides to challenge him in 2006. The latest Rasmussen Reports Election 2006 survey finds the Democratic Governor leading by four percentage points in that match-up.

Warner currently attracts 48% of the vote to 44% for Allen. Many people consider it unlikely that Warner will challenge Allen. It would be difficult for other Democrats to match Warner's numbers at this time.

Three months ago, Allen was ahead by four points. Both Warner and Allen are considered prospects for their party's Presidential nomination in 2008.

Out in the Grand Canyon state, Democrats are closer to fielding their favored candidate, report Chip Scutari and Robbie Sherwood for The Arizona Republic:

Shopping mall developer Jim Pederson, who pumped nearly $7 million of his own money to reinvigorate Arizona Democrats, resigned as party chairman Tuesday, paving the way for a likely run against U.S. Sen. Jon Kyl in 2006.

Pederson remained coy about his plans, saying he'll decide by mid-September.

"It's time for some fresh blood in the party," he said. "But I know there are a lot of Democrats who would like to see me run against Kyl, including the governor. If I do this, I'll get a lot of Republican votes."

This is the third move in recent months that suggests Pederson may take the plunge against Kyl, R-Ariz.

Just a few weeks ago Pederson was in Nantucket, Mass., schmoozing with incumbent Democratic senators and top-level party operatives on the upscale island. Pederson announced a few months ago he was stepping down as president of his development company and would serve only as his company's chairman.

While Pederson remains mum on his future, Democratic strategists close to him predict he will run against Kyl. Fred DuVal, a former aid to President Clinton, said it's a smart move for the party to run its best candidates, and that means Pederson must step out from behind the scenes.

Lastly, new polling indicates that the former first lady will be very difficult to beat in New York state. The AP's Marc Humbert reports:

Sen. Hillary Rodham Clinton continues to sport a hefty lead over potential Republican challenger Jeanine Pirro in the 2006 Senate race, a statewide poll reported Wednesday.

The Siena College Research Institute Poll also found that Gov. George Pataki's favorable rating among New York voters has climbed to its highest level of the year — 52 percent.

The poll had the former first lady leading Pirro, the Westchester County district attorney, 57 percent to 31 percent. A June poll from the Albany-area institute had Clinton leading Pirro, 59 percent to 29 percent.

Pirro has said she will run for statewide office next year, but has not announced whether that will be for Senate or state attorney general, or less likely, governor if Pataki doesn't run again.

Sixty percent of voters surveyed by Siena for the new poll said Clinton should be re-elected and 60 percent said they have a favorable opinion of her. National polls have her as the front-runner for the party's 2008 presidential nomination.