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Clinton has been informed she will not be Obama's VP.

(CNN) – Presumptive Democratic presidential nominee Senator Barack Obama has ruled out Senator Hillary Clinton as his vice presidential running mate, a senior Democratic official told CNN on Friday night.

Clinton - Obama's main rival during the primary season - has been informed by Obama's campaign that she is not his choice to be his vice presidential candidate, the source said.

Bayh is 'cool' with Obama's decision, says a source.

(CNN) - A source close to Evan Bayh expressed disappointment with the decision. "We are all sad," the source tells CNN. "But Evan was cool with this, whatever happened. He understands what he's got - a family, and a life he's very happy in."

The Indiana senator, son of 1976 presidential candidate Senator Birch Bayh, has been a perennial VP contender.

Bayh will not be Obama's VP, CNN reports.

(CNN) - Two Democratic sources confirm that Indiana Senator Evan Bayh is out of the running for Barack Obama’s vice presidential pick.

Kaine will not be Obama's running mate, according to the AP.

Sources close to Governor Tim Kaine of Virginia says he has been informed he will not be Obama’s Vice President. One source tells CNN that Obama personally made the call to Governor Kaine. Another source tells CNN that Kaine left Richmond for Denver a few hours ago, and has now arrived in Denver for the convention.

(CNN) - CNN is told by senior Obama campaign officials the text message announcing the Illinois senator's running mate will be sent Saturday morning.

The Associated Press reported Friday, sourcing a Democratic official, that Virginia Gov. Kaine says he will not be Barack Obama's running mate.

Watch the VP stakeouts on CNN.com/live.

(CNN) - After hours staking out Joe Biden's Delaware home with no sign of the prospective VP candidate, reporters are now witnessing a flurry of activity.

Cars have recently pulled into the driveway - including a police car - and Biden's daughter, son, and wife are now believed to be inside.

Is the Delaware Democrat gathering his family ahead of a big announcement?

Stay tuned!

Catch the VP stakeouts on CNN.com/Live

Begala and Carville said some Clinton backers will be angry.

(CNN) - Two prominent Democrats close to Hillary Clinton expressed frustration Friday over a report Barack Obama’s campaign never formally vetted the New York senator for the vice presidential spot, and predicted the revelation could further rile some of her most fierce supporters just as the party is set to kick of its national convention in Denver.

Longtime Clinton loyalists Paul Begala and James Carville, who have endorsed Obama's White House bid, told CNN’s Wolf Blitzer Friday a Politico report claiming the Obama campaign did not officially consider Clinton for the coveted position would likely further anger some Democrats already wary of the Illinois senator. Both Carville and Begala are CNN contributors.

The matter is even made worse, Begala said, by the fact that Obama himself suggested to reporters earlier in the summer that he would consider Clinton, saying his one-time rival would be on "anybody's shortlist."

"There's two camps in Hillary land - there's the peacemakers and the PUMAs - Party Unity My Aunt Fannie," Begala said. "They're still not behind Obama. Some of them are stirring up a lot of trouble. I don't like it. I'm a peace maker. This story empowers the PUMA crowd because they see this, and I do too, as sort of disrespecting Senator Clinton and breaking Senator Obama's word.

"It's the one glitch in a beautiful process," Begala also said.

Carville, who along with Begala donated the maximum allowable amount to Obama's campaign immediately after Clinton exited the race, expressed particular frustration over reports Obama had not asked Clinton about her thoughts on who should fill the vice presidential slot on the ticket.

"I think we suffered a big blow today to the hard-liners," he said. "I don't think he's spoken to Senator Clinton about the vice presidency or even sought her counsel."

"We may be surprised if he picks her, but after that, it was pretty clear that not only were they not interested in had having her, they were not interested in her opinion," he added.

But former Clinton lawyer Greg Craig, who has supported Obama this election cycle, suggested Friday Clinton did not need to be formally vetted by the Obama campaign because of her lengthy stint in the public eye.

“I think that Senator Clinton is well known," he said. "Her service is well known. Her record is well known. And she herself said to the world that she's been vetted and ready to serve."

Meanwhile, appearing at the New York State Fair Friday, Clinton said she has never been interested in being Obama’s vice president.

I never said I [wanted the job],” she told reporters. “I have always said I will do whatever I can because I feel so strongly in making sure that we elect Senator Obama our next president.”

Obama has yet to name his VP candidate.

(CNN) – Eager VP-watchers waiting for the text message announcement of Barack Obama’s choice of running mate have gotten their answer: It’s Hillary Clinton. And Tim Kaine. And Kathleen Sebelius.

Since declaring the Democratic vice presidential pick would first be announced over e-mail and text message, several hoax announcements of the Illinois senator's choice have circulated, purporting to be from the Obama campaign.

The latest came in e-mail Friday morning that hit the inboxes of many White House reporters, carrying the subject, "My Vice President."

The e-mail, from the address obama08campaign@aol.com, was purportedly from Barack Obama and read, "I said you would be the first to know, and you are - I have selected Virginia Gov. Tim Kaine as my running mate!”

No word on when the real e-mail will be sent.

CNN=Politics Daily is The Best Political Podcast from The Best Political Team.

(CNN)—When will Obama make the big vice presidential announcement? In the latest installment of CNN=Politics Daily, Senior Political Correspondent Candy Crowley and Senior Political Analyst Gloria Borger discuss the strategy behind the Illinois senator’s decision to wait as long as he has.

Meanwhile: The McCain campaign is actively preparing for Obama’s announcement as well. CNN’s Ed Henry reports on the plans the Arizona senator’s campaign has in place to offset Obama’s decision once it’s revealed.

Plus: there are new developments Friday in the debate over the Iraq War. President Bush and Iraqi Prime Minister Nuri Al-Maliki made progress with a new plan to withdraw U.S. troops from Iraq by 2011. CNN’s Brian Todd has the details.

Finally: CNN is your place to catch complete coverage of the Democratic and Republican conventions. Chief National Correspondent John King takes you to the magic wall for a preview of the Democratic convention in Denver next week.

Click here to subscribe to CNN=Politics Daily.

(CNN) – Democrats may be looking for a big bounce for Barack Obama’s White House bid from next week’s presidential nominating convention in Denver – but in the grand campaign tradition, nobody seems to have higher public expectations for the gathering’s success than Republican rival John McCain's campaign.

His campaign sent a memo to reporters Friday predicting a massive boost for Barack Obama’s poll numbers coming out of the convention. "We believe Obama will see a significant bump, and believe it is reasonable to expect nearly a 15-point bounce out of a convention in this political environment," said McCain Strategy Director Sarah Simmons.

A 15-point bounce would be the second-highest in the history of modern presidential conventions, trailing only former President Bill Clinton’s 16-point bump in 1992.

The convention effect may be hard to read this cycle - John McCain will steal the spotlight hours after Obama is slated to accept the nomination with a massive Ohio rally where he is expected to name his running mate. And the Republican convention kicks off just two days later.

In their response to the McCain memo, the Obama camp avoided making any predictions of their own. “Presidential races are close, and we expect this one to be no different. But they should figure out how to spin the fact that John McCain owns a dozen houses and thinks the fundamentals of our economy are strong before trying to spin our convention.”

(Full McCain campaign memo after the jump.)

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Watch footage of the protest in Virginia Friday.

ARLINGTON, Virginia (CNN) - Supporters of Democrat Barack Obama held a press conference outside John McCain's Arlington, Virginia home with signs reading, "Like Bush's economy? “Hire McCain" and "I have 1 house." Democrats have been attacking McCain as out of touch after he told an interviewer he was unsure of how many houses he owned.

A few blocks away from McCain's headquarters, a handful of the presumptive Republican nominee’s supporters came out to counter-protest, with signs that read "Obama's housing – shady deals" and "Obama buys houses from felons." The McCain campaign released an ad yesterday that highlights Obama’s past relationship with convicted Chicago developer Tony Rezko.

Camera crews gather outside Evan Bayh's Washington house, ready if Obama names him the next Democratic VP candidate. (AP PHOTO)

Watch live VP stakeouts on CNN.com Live!

Obama vetted Chet Edwards for the VP spot.

(CNN) - Texas Rep. Chet Edwards confirms to CNN Barack Obama's presidential campaign has vetted him for the No. 2. spot on the Democratic presidential ticket.

Watch: Rep. Chet Edwards on VP process

Edwards also told CNN Obama has not spoken to him in recent days about his VP choice.

The GOP will run a new ad 'Commitment v. Rhetoric' during the Democratic convention.

DENVER (CNN) – The Republican National Committee will air a new ad in Spanish next week in Denver promoting John McCain's work on immigration reform, while deriding Barack Obama on the issue.

The 60 second-ad will run during the week of the Democratic National Convention in the Mile High City as well as air on stations that reach reach Hispanic listeners in Colorado Springs, Pueblo, Aspen, Fort Collins and Greeley.

The ad will also run in New Mexico on stations that reach listeners in Albuquerque and Las Cruces as well as Las Vegas, Nevada and El Paso, Texas.

Full script after the jump

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Bayh's not talking.

(CNN) - He likely knows whether or not he will be the next Democratic vice presidential nominee, but Indiana Sen. Evan Bayh isn't talking.

Speaking briefly to reporters staked outside of his Washington, DC home, a casually-dressed Bayh revealed little information, and thanked reporters for being patient.

"You've been very patient, thank you for being here all night," Bayh, who said he had been taking his two 13-year-old sons to camp, told the gathered press corps without a hint of irony.

Asked if he had any news to report, Bayh replied flatly, "It's not mine to report."

CNN's Jessica Yellin reported earlier Friday Obama has informed those on his VP shortlist - which presumably includes Bayh - of his decision.

New Obama ad uses footage of McCain being driven in a golf cart by former President George H.W. Bush.

(CNN) - Barack Obama’s campaign continued to slam John McCain for his house-counting gaffe Friday with a new ad and a dozen events in nationwide – mainly in fall battleground states - designed to paint McCain as wealthy and insulated from the nation’s economic woes.

“Call it ‘Country Club Economics,’” says the announcer in the new ad. “How many houses does he own? John McCain says he can't even remember anymore.

Watch: Obama ad portrays McCain as 'out of touch'

“Well, it's seven. No wonder McCain just said the fundamentals $5 million a year is middle-class.” After a pause, the announcer continues: “Maybe McCain thinks this economy is working...for folks like him. But how're things goin'...for you?”

The closing screen reads: John McCain. We just can't afford more of the same.

Yesterday, Obama himself said that McCain’s remark revealed a “fundamental gap of understanding” between McCain’s world and “what people are going thru every single day here in America.”

The 30-second spot is Obama’s second to hit McCain on the remark in two days, and his sixth negative spot in the past three days. It is being launched as the campaign holds events designed to highlight McCain’s comment across the country, including Missouri, Minnesota, New Hampshire, Massachusetts, Michigan, Ohio, Pennsylvania and Montana.

August has not been a friendly month to Democrats.

(CNN) - That’s probably not the best way to put it, but in elections they have lost, Democrats often look back and view August as a wasted or just plain horrible month.

In 2004, for example, John Kerry led most national polls heading into August; his biggest lead was in the five-point range. But by early September, some surveys had President Bush up by as many as 10 points.

The Democratic collapse of 20 years ago is the stuff of legend. Michael Dukakis was up 17 points in some national polling after his July convention, but that lead started to fade in August and in the end Dukakis won just 10 states.

Full story from AC360 Blog

New McCain ad again hits Obama on taxes.

(CNN) - John McCain’s campaign released its second tax ad of the week that calls Barack Obama a spendthrift celebrity who does not have to worry about a family budget.

The spot comes a day after McCain grabbed headlines for his inability to immediately recall how many homes he owns.

“Celebrities don’t have to worry about family budgets, but we sure do,” says the announcer in the 30-second spot. “We’re paying more for food and gas, making it harder to save for college, retirement.

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Sen. Obama is leading in Michigan according to a new poll.

(CNN) - Sen. Barack Obama, the presumptive Democratic nominee, is leading in the battleground state of Michigan, according to a poll released Friday.

Obama leads Sen. John McCain, the presumptive Republican nominee, by 7 percentage points – 46 percent versus 39 percent. In the survey, 12 percent said they were unsure about their choice for president, 2 percent supported Ralph Nader, and 1 percent backed the Libertarian Party's Bob Barr.

The Detroit Free Press/Local 4 poll of 600 likely Michigan voters was conducted August 17-20 and has a margin of error of plus or minus 4 percentage points.

CNN considers Michigan a toss-up state. Click here to see CNN's Electoral Map.