Here is video of Gov. Mitt Romney talking with CNN's Wolf Blitzer where he was asked if Gov. Sarah Palin is "qualified to be President." Romney said clearly that "she is." Blitzer asked why, and Romney cited the fact she has been a mayor, a governor, and a vice-presidential candidate.
Blitzer also asked Romney if he see's Palin as his chief rival should he decide to run for President again in 2012. Romney said he has not decided to run again, but said "all things are possible in this great land of ours."
I don't think there is much doubt that Romney is going to run for the nomination. His new book is tailor-made to prepare for such a run, and he looks and sounds like a candidate. I'm not as sure about Palin. It would not surprise me if she decides to wait for another election cycle or two to throw her hat in the ring. We should know about a year from now.