In a conference call with lawyers, U.S. District Judge Marsha Pechman denied the GOP's request for a temporary restraining order barring King County from hand-counting ballots that optical scanning machines reject because they can't be read electronically.

Republican state Chairman Chris Vance, noting that the lawsuit continues, said Pechman's decision dealt with only one aspect of the case. He said the decision was based on King County's assurance that all ballots in question were being kept separate from the others so they can be reviewed if any mistakes are made.

"We don't believe King County," Vance said. "Our observers have watched. Ballots are being altered. And we don't believe they are being set aside."

State Democratic Party chairman Paul Berendt praised the judge's ruling as "a good decision."

"It's good for voters because it's consistent with the standard we would like to see - that every vote be counted," Berendt said.

After all counties reported their tallies last Wednesday, Republican Dino Rossi led Democrat Christine Gregoire for governor by only 261 votes out of some 2.8 million ballots cast. State law requires a machine recount when the margin is less than 2,000 votes.

The recount began in a handful of counties Saturday, continued Sunday and was expected to wrap up by Wednesday. So far, Klickitat County in southwest Washington has been the only one to post results, giving Rossi one more vote in results released Saturday.

Republicans sued Secretary of State Sam Reed and the King County's election division on Saturday, arguing that ballots the machines can't count should be excluded from the recount because they have to be checked by hand.

"This constitutes a clear violation of hundreds of thousands of Washington voters' right to equal protection under the United States and Washington State Constitutions," the lawsuit stated.

King County voters use paper ballots that are optically scanned. The Republicans' lawsuit said most of the state's 39 counties use optical scanners while 14 use the punchcard system. Rossi got a majority of votes in 11 of those punchcard counties, while Gregoire led in King County, the lawsuit said.

King County Elections Superintendent Bill Huennekens said the recount is being handled scrupulously, with observers from each party watching closely.

"In an election this close, each side has an interest in pressuring and advancing their issues and concerns, and we have a duty ... to conduct the recount according to law and our long-standing established policies and procedures," Huennekens said.

Republicans complained Sunday that Huennekens refused to send at least one ballot to a canvassing board for review, even though the bubble next to Rossi's name was clearly filled in, with only a small mark next to Gregoire's name. Huennekens said the mark actually was made in the Gregoire bubble, which made it an "overvote" that can't be counted toward either candidate's total.

A former Democratic precinct committee officer in Mason County, Huennekens scoffed at Republicans' suggestion that he was letting politics taint the process. "I'm not a PCO anymore and I conduct elections in a nonpartisan manner according to state law," he said.

Among other complaints, Republicans said a box of ballots that was supposed to be sealed was found unsealed and had 201 ballots - two more than a receipt on the box said it should have had.

Dean Logan, King County's elections director, said such discrepancies occur occasionally, and that in any such case, the box is set aside and counted again to make sure it has the right number of ballots.

Another problem Republicans pointed out: precincts where fewer ballots were on hand when the recount started than on Election Day. At one point as the county prepared for the recount, it appeared 88 ballots were missing from one precinct, Vance said.

The ballots were later found in a bag, which Logan said a poll worker used on Election Night because the ballots wouldn't fit into the box.

Republicans weren't comforted.

"It's case after case like this," Vance fumed. "We have observers in every county ... and we're not hearing about these kinds of problems anywhere else."

This lawsuit is the second one filed over the counting of votes in King County. Earlier this month, the GOP made a failed attempt to prevent King County from releasing the names of 929 voters who cast provisional ballots that were questionable.

King County Superior Court Judge Dean S. Lum ordered that the names be released, clearing the way for either party to contact voters and help them clear up any problems.

Pechman agreed to rule on the lawsuit filed Saturday on an emergency basis, and the case was expected to be assigned to another judge on Monday, said Janine Joly, a senior deputy prosecutor representing King County.