It depends who you ask, but Tom DeFrank's sources are good ones; and some are despondent. Money quote:
"We'll lose the House," one of the party's most prominent officials flatly predicted, "and the President will be dead in the water for two years." Even a perennially optimistic senior Bush strategist conceded, "I'm pretty worried about it. The House is not looking good."
Gerry-mandering and a good ground-game could help the GOP, of course. And one should never under-estimate the Democrats' gift for losing. But still ...