This goes to show the extent to which Tony Blair's discredited policies have hurt the Labour Party, but it also shows that Tory conservatives have been completely unable to capitalize on it.
Despite efforts of Blair to scare the public and foment distrust of Liberal Democrat candidates, the truth of the matter is that their warnings of the repercussion's of Blair's policies have come to pass. At a certain point, it becomes hard to disagree with the people who are telling you the truth.
Rather than trying to target Labour, however, Charles Kennedy and the Liberal Democrats are squarely targetting the Tories, with the goal of establishing themselves as the primary opposition party to Labour.
As a result, Tory leadership is desperately trying to backpedal in their carte blanche support of Blair's policies on Iraq. Too little, too late.
In other words:
1> Labour has been trying for years to be Tory. (i.e. "New Labour") They've been so successful at this that they have become totalitarian demogogues -- unable to tolerate dissent within their own ranks, uninclusive, and ultimately uninspiring.
2> Tories are trying to become "New New Labour"... slavishly pro-business, but peace-lovin' -- at least until they get voted into office. Nobody believes a word they say.
3> Liberal Democrats are being themselves... perhaps even a bit quieter than normal, really. They are happily watching the other parties self-destruct, and will gladly let the voters come around to their way of thinking.
This is a lesson that the Green Party in the US could learn from. Their slogan should be "When you're tired of being lied to by these guys, take a look at us. We'll still be here...."