There seems to be some confusion about the delegate selection process for Democratic delegates to the National convention. Although Republicans have a winner take all system, Democratic rules state that delegates are chosen proportionately. There is a 15% threshold however.
Keep this in mind when you think about second or third place.
A strong second or third in both Iowa and New Hampshire could set up someone really well on the Feb. 3rd round of primaries ( a lot more delegates chosen than in NH and IOWA )
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Here are two pages with some information:
The Democrats’ delegate selection rules, which run 18 pages, set out not only the timing of delegate selection but the process. The rules require proportional representation (as opposed, for example, to a winner-take-all process) and establish a 15% threshold for obtaining delegates. They also require state parties to produce affirmative action plans so as to encourage participation and representation of African Americans, Hispanics, Native Americans and Asian Pacific Americans in the delegate selection process.
http://www.gwu.edu/~action/dncrb111001.htmland
this older page which gives a timeline of the rules changes that started in 1972 with McGovern.
Beginning with reforms proposed by the McGovern panel, the Democratic party "democratized" the presidential selection process through a succession of commissions between 1968 and 1992. This series of changes succeeded in 1) crafting rules to guarantee better representation for women, young people and minorities; 2) secured PROPORTIONAL ALLOCATION of delegates, based on state primary or caucus results (eliminating winner-take-all allocation of delegates); and 3) gave convention votes to party leaders and elected officials (they are nicknamed SUPERDELEGATES and are allowed to remain uncommitted until the convention).
http://www.cnn.com/ALLPOLITICS/1996/conventions/chicago/facts/rules/index.shtml