Initially the calculation came in as Dino Rossi (R) ahead by a handful of votes. The first two recounts, as I understand, showed a victory for him, also by a narrow margin, and the final recount (the most in-depth of all recounts, and the final recount permitted in an election) showed a victory for Christine Gregoire (D). The Republicans are now up in arms, while the Democrats have claimed victory. The Republicans have made many claims as to how Gregoire "stole" the election, but I would like to point out that Gregoire DEMANDED a full and complete recount of all ballots. If that were not to be granted, she would concede to Dino Rossi. Such a recount was granted, and it turned out a victory for her.

EDIT: By "narrow margin" I mean "less than 100 votes".