I read the big reason the Dem didnt win is because there are a lot of Jewish voters in the area that do not support Obama's stance on Israel. Also a lot of people were upset the Dem supported the building of the mosque near groud zero.
It had everything to do with the current administration and the democrats talking points.
Obama has no chance of winning in 2012 if he loses the Jewish vote.
http://www.jewishvirtuallibrary.org/...l/jewvote.html
(78% Obama in 2008. right now 22% approve of Obama)