Guiliani in the Ring?

The Washington Post is reporting the Guiliani is becoming more vocal about a possible 2008 run. While he could stand to make history as the first local official to be elected to the Presidency, what chance does he really have for success in the GOP primary? He's too libral socially, and his cozying up to conservatives will eat away at his base and come off as phony to those he is pandering to.