According to Insight Magazine (being Drudged as of 4:45) Vice President Cheney will be stepping down after the midterm elections.
If Cheney retires, the President would be able to nominate a replacement who would then serve as Vice President upon confirmation by majority vote of both houses.
It would be a bold political move to let Cheney step out and have Condi serve. It would avoid the “open seat” problem – the 2008 race would be the first since 1952 with no sitting president or vice president seeking the office. She would get two years of experience (albeit lame duck), but she would be in a strong position for the election.
This would be a particularly effective strategy if Hillary is the choice. To give Condi a higher office (VP) than Hillary (Senator) would elevate Rice over Clinton in the public eye and make her appear as the stronger woman in a two woman field.
In the event the Dems pick a man, it would erase the gender issue – according to a Marist poll, 30% of voters feel women aren’t up to the job. Since Condi would be the sitting Veep, that’s a harder argument to make.