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In an article this past Sunday, the Buffalo News talked about accusations by Reynolds against Davis' nonprofit group (an anti-free-trade organization). In this article, the BuffNews referred to Davis as Reynolds' presumptive 2006 challenger. A good sign, hopefully. I only had time to skim it, but it seemed like a good article for the most part. Davis stated that he was going to look into the matter (political campaigning by a 503c group), though a spokesman for the non-profit basically said that Reynolds was muckraking, and talking out his ass. Not in those words, of course. If Reynolds considers Davis to be still a threat, then presumably he's not out of the running.
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