I’ve been a big fan of Condi running in 2008 for some time now. The issue has been popping up everywhere since Sunday and has never really gone away at all (Condi's rather lengthy, and tortured denial didn't help).
Condi has some negatives for a Republican—she’s pro-choice and supposedly supports affirmative action—but the positives outweigh that by a great deal. Foreign policy is a great starting point and I’ve seen no indication that she would be all that different than most free-market Republicans.
On the abortion issue, which is usually a deal killer for most Republicans in the primary, Condi isn’t nearly as far out as many Democrats, which usually involves abortions on demand up until the baby crowns. Also, she won’t get elected in a vacuum and will have to pay attention to the pro-lifers. When it comes down to it, Republicans are far more reasonable than the Democrats on the issue and I hope the Republicans aren’t marginalized in the same way the Democrats have been due to their hard-headedness on the issue.
Outside of Condi, the Republicans have a very shallow bench for 2008. In fact, the best candidate outside of Condi seems to be Jeb Bush. If Hillary runs, that will do away with a lot of the nepotism charges and make a run for Jeb easier.
As for Hillary, Condi could whip her with a corn stalk.