Well, it really sucks that that pulls her completely out of contention. Kwan is lucky indeed that she has the option to petition for a spot on the team. (Irina, too.)
That is sad news. I remember how Phaneuf was one of the brightest lights during the Fall 2004 G-P Season & I was hopin' that she'd be one of the great up-and-comers at Turin. Hopefully, she'll heal & stick-aroound for the next Olympic go-around (build-up to Vancouver 2010...in her home country).