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HOT SPRINGS -- Still smarting from the defeat of their most visible leader, Virginia Republicans gathered at The Homestead resort this weekend to regroup and begin mapping a plan to maintain their status as the state's majority party.

Party activists elected a new chairman and heard emerging leaders call for new approaches to win votes in a changing statewide political landscape. They also heard a spirited rallying cry from U.S. Sen. George Allen, making his first political appearance since his stunning Nov. 7 election defeat.

"We were facing some political winds in this last election," Allen said in a luncheon speech to 550 cheering Republicans at the party's annual winter meeting.

Allen had come to the event a year ago to rally the faithful behind a re-election bid that some considered a warm-up for a 2008 presidential bid. He returned Saturday in defeat, having lost to Democrat James Webb by a mere 9,329 votes out of more than 2.37 million cast. Allen conceded the race to Webb even though he could have requested a taxpayer-funded recount.

"Last month the people of Virginia, who I always said are the owners of the government, they spoke in mostly divided voices," Allen said. "But even so they made a choice. And I respect that choice, as should we all."

Many Republicans have attributed Allen's defeat to a combination of factors that include public disapproval of President Bush and the war in Iraq and Allen's own campaign missteps. But some GOP leaders also have pointed to a failure to respond to demographic changes and lapses in the party's grass-roots organization, problems that also contributed to Republican Jerry Kilgore's defeat in last year's governor's race.

Republican activists turned to an experienced hand to attack those problems, electing prominent Republican strategist Ed Gillespie of McLean as their new chairman. Gillespie replaces Kate Obenshain Griffin, who resigned last month after more than three years in the post.

Gillespie is a lobbyist and former chairman of the Republican National Committee who served as an adviser to Allen's Senate campaign. Republican leaders said they expect Gillespie to bring fundraising prowess and organizational expertise to the party as it gears up for the 2007 General Assembly races.

Gillespie also faces the challenge of navigating a philosophical rift among Republicans in the General Assembly. House and Senate Republicans have often feuded over tax and spending issues over the past five years, and nearly failed to pass a new state budget before the current fiscal year began.

Gillespie told Republicans that unity will be essential for the party as it prepares for next year's legislative elections, the 2008 presidential race and the 2009 elections for governor and other statewide offices.

"In the Republican Party, we can live with differences but can't live with divisions," he said.

Intraparty philosophical clashes could spawn nominating fights for some legislative seats next year. State Sen. Brandon Bell, R-Roanoke County, said he already is preparing for a primary fight, and many expect former Roanoke Mayor Ralph Smith, who now lives in Botetourt County, to challenge Bell.

Friends of Smith were handing out jelly beans with a note from the "Draft Ralph Smith -- VA Senate Committee." Smith would only say that he will announce his political plans soon.

Gillespie said the party also must bridge geographical divides and reject the idea that Northern Virginia and the rest of the state are "two Virginias."

"Buying into the 'NoVa versus RoVa' notion is a recipe for electing Democrats to statewide office," Gillespie said.

House Majority Leader Morgan Griffith, R-Salem, said he hopes Gillespie can help Republicans in fast-growing Northern Virginia, where Republicans struggled in the last two statewide elections.

"I'm excited that he lives up in that area," said Griffith, a member of the GOP state central committee that chose Gillespie.

U.S. Rep. Tom Davis, R-Fairfax County, said Republicans must make greater efforts to appeal to the increasingly diverse populations in Northern Virginia, saying "the old ways of winning are running out of gas."

"Our state is changing and it is growing," Davis said in a breakfast speech. "What some might call a Northern Virginia problem is in fact just the leading edge of a wave of change that is both a threat and an opportunity."

Lt. Gov. Bill Bolling sounded a similar note, saying, "We've got to reconnect with voters in the Northern Virginia suburbs."

"The truth is the other side is doing a better job of going after them than we have," Bolling said in an interview last week.

But Bolling said the party also must hold its ground on core issues such as taxes, saying, "We can't be the majority party in Virginia by being the party of higher taxes."

Attorney General Bob McDonnell said Virginia "remains very receptive to the Republican philosophy of governing."

McDonnell said Republicans face the challenge of translating "conservative principles into policy proposals that attract the suburban and independent voter." That means taking the lead on issues such as transportation, crime and the environment.

"Virginians want proof that we can govern and effectively solve problems," McDonnell said.

Republicans attending the weekend meeting made no attempt to hide their disappointment over Allen's defeat, but many appeared upbeat.

"I think our party is alive and strong, I really do," said Trixie Averill of Vinton, who formally nominated Gillespie for the chairmanship. "Everybody has an off year and, sadly, this wasn't the right year for us."

Gillespie conveyed the same sentiment in his luncheon remarks.

"I have met a lot of people who are disappointed by the election," Gillespie said. "But I have met no one who is defeated."

Allen compared the election to a strong wind that takes down leaves and branches. But, perhaps alluding to himself, he said: "A deep-rooted tree will remain strong and grow again in the new season."