Webb defeats Allen, the Democrats win the Senate, and so the Democrats win Congress.
In case it's not clear where this is coming from, the AP got some inside info from the Allen campaign:
The Associated Press contacted election officials in all 134 localities where voting occurred, obtaining updated numbers Wednesday. About half the localities said they had completed their postelection canvassing and nearly all had counted outstanding absentees. Most were expected to be finished by Friday.
The new AP count showed Webb with 1,172,538 votes and Allen with 1,165,302, a difference of 7,236. Virginia has had two statewide vote recounts in modern history, but both resulted in vote changes of no more than a few hundred votes.
An adviser to Allen, speaking on condition of anonymity because his boss had not formally decided to end the campaign, said the senator wanted to wait until most of canvassing was completed before announcing his decision, possibly as early as Thursday evening.
The adviser said that Allen was disinclined to request a recount if the final vote spread was similar to that of election night.
Clearly, the final tally is not going to result in the magical appearance of 8,000 votes, and Allen is disinclined to ask for a recount unless either the difference narrows dramatically or evidence of shenanigans at the polls is raised. In essence, this election is over. They just have to make the counts official.