Were it not for living her first 4-years in Canada, Granholm of Michigan would be the best candidate the Dems could put forward in 2008, IMO.
She's attractive (former model), a great communicator, smiles a lot, has a very outgoing personality, and doesn't have a lot of the baggage other dems have.
Of course, were it possible "forners" could run, the Repubs would likely counter with "Ahnold" and make it very interesting.