I'm sure that everyone on the internet who reads blogs is keeping up with this. If you don't, Rathergate collects the links you need to stay informed.
To a certain extent, what Dan Rather is going through reminds me of the emotional fallout from an abortion. Someone, I don't remember who, once described the emotional impact of an abortion by saying, "It's like a nuclear bomb going off in your soul."
As soon as I saw the Microsoft Word overlay on the forged documents, less than a day after the initial 60 Minutes II show, it was obvious that CBS and Dan Rather would one day have to admit that the documents were fake. Today's statement takes some baby steps in that direction.
I'm sure that Dan Rather fervently wishes he could take back that broadcast, even though he is still in a certain amount of denial about how massively this single event will forever alter his reputation. It's what he'll be known for, now and whenever his name is mentioned.
One mistake = permanent fallout.