The biggest thing Hillary has going for her is Bill. A lot of people long for the "good old days" before 9/11 and the war on terror when Bill was in the White House.
The right can yell all they want that the ground work was done on Clintons watch or point out all the bad things he did but it won't matter. 9/11 and the war happend while Bush was in office and the public perception is that the world was a better place during the Clinton years and they want a piece of that no matter how illogical it might be.
I think the conservatives dislike for Hillary blinds them to how popular she really is. I think she will win it in 08.