I don't know about Arnold delivering CA to a Republican candidate, but the line about Rudy delivering NY is perfectly accurate. If the party nominates Rudy, the electoral "game" is over - a Republican who takes NY state would really have to eff things up elsewhere to lose the election. This makes him an exceedingly dangerous candidate for the Dems, because not only will they likely lose NY state, they'll have to spend money there too.
Rudy's very popular in NJ as well and could put that state back into play as well. Everyone from the tri-state area who saw the transformation of NYC knows what kind of guy he is.