OK, this is a non-issue, and has been explained several times. Doug Hoffman's hometown, Saranac Lake, is in the 23rd District. Hoffman's current residence is about a 15-minute drive away in Lake Placid, which was also in the 23rd District -- until the (then) GOP-controlled New York legislature gerrymandered the district!
Essentially, the corrupt Republican leadership in Albany were trying to make (then) Rep. John Sweeney's 20th District "safer" for the GOP incumbent. (Sweeney, a former state party staff lawyer, had himself carpetbagged into that district.) Sweeney was tainted by his Abramoff connection, had paid campaign cash to his wife, etc., was defeated in 2006. He alcohol problems landed him a DUI (he blew an 0.18!) in 2007, and another arrest in April of this year.
Class act, this Sweeney, then, the GOP hatchet-man for whom the districts were re-drawn in 2001, putting Hoffman's home in Lake Placid a few miles south of the 23rd District line. Hoffman has been up-front about this all along, and has promised to move into the re-drawn 23rd if he wins on Nov. 3.
So it's a total non-issue, and Dede Scozzafava won't raise it herself because it's a cheap shot and everybody knows it. Instead, she and the NY-GOP send surrogates out to spread this "doesn't-live-in-the-district" stuff against Hoffman.
To see Newt Gingrich playing errand boy for Dede on national TV is just astonishing. Meanwhile, a new press release from Hoffman HQ:
Congressman John Linder (GA-07), former Chairman of the National Republican Congressional Committee (1996-1998), issued the following statement regarding his endorsement of Doug Hoffman: "The biggest concern I have with the Republican candidate in this race is that her long held positions on unions, taxes and spending incline me to believe that she will give Nancy Pelosi a Republican vote so that these many outrageous grabs for power and control will be called 'bipartisan.' I am confident that Doug will not do that."Another Republican leader joins the conservative grassroots movement that's marching away from Newt.