From the Business Journal:
The head of Republican national congressional election efforts hopes the GOP can retain embattled Flagstaff Congressman Rick Renzi’s seat despite the incumbent’s legal troubles, as well as mount strong bids to regain two Arizona seats that jumped to the Democrats in 2006
National Republican Congressional Committee chairman Tom Cole, R-Okla., pointed to Congress’ poor approval ratings and the fact President Bush carried the three Arizona congressional districts in 2000 and 2004.
Cole said U.S. Rep. Rick Renzi, R-Flagstaff/Florence., will probably need to decide before the end of the year whether he is seeking a fourth term.

I really can’t see Renzi winning this time if he runs, so if he opts to do so I would expect him to face a strong primary challenge from someone the party feels would have a better chance of holding the seat in the general.
The fact of the matter is that CD1 is going to go blue. The DCCC is already marshalling huge resources to make sure of that. The RNCC has all but ceded the race.
The GOP can provide as much rhetoric and bluster that it wants but due to the rapidly changing demographic of the district and national sentiment the district will be in Democratic hands in ‘08.
However, if Ann Kirkpatrick is the best that the Dems can do, there might be a chance that the GOP can pull it off.