with 32 of 39 counties reporting, Gregoire has picked up 184 votes and Rossi has picked up 248.
http://vote.wa.gov/general/recount_resultsbycounty.aspx
However, only 26.6% of the democratic ballots have been counted, while 36% of the GOP ballots have been counted. Extrapolating from that data, one can predict a total pickup of 691 ballots for Gregoire, and 689 for Rossi---leaving Gregoire 40 votes short of victory.
Of course, this does not include any of the 561 absentee ballots from King County that will be included in the final totals, so Gregoire looks to be in pretty good shape.