The New York Times [1]: The Nassau special election has officially surpassed all records for a state legislative race, with a price tag now above $5,000,000.
Underscoring the importance of the race: both the republican and Democratic Presidential frontrunners campaigned in-district yesterday:

Hillary...

...and Rudy, sans Bernie Kerik (all images NYT).
Newsday [2] reports remarks by Senator Malcolm Smith that winning this race, with some party-switchers, could wrest the Senate from the enfeebled republican clutches. He mentions a 'zone of potential agreement', 'ZOPA', on which we'll have a few things to say when the time comes.
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Links:
[1] http://www.nytimes.com/2007/02/06/nyregion/06senate.html
[2] http://www.newsday.com/news/local/longisland/politics/ny-lisena055081227feb05,0,401386.story?coll=ny-lipolitics-headlines
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