The rules for filling a Senate vacancy are controlled at the State level, yes?
I cite Arizona ARS 16-222, section C:
For a vacancy in the office of United States senator, the governor shall appoint a person to fill the vacancy. That appointee shall be of the same political party as the person vacating the office and shall serve until the person elected at the next general election is qualified and assumes office.
If Arizona has such a section, then that means that Illinois has a similar section of law.
How, then, does Harry Reid get away with this?
Reid cites "legal authority" to bar Illinois Pick
http://news.yahoo.com/s/nm/20090104/pl_nm/us_blagojevich_senatesnip
Under the Constitution, Reid said, "We determine who sits in the Senate. And the House (of Representatives) determines who sits in the House. So there's clearly legal authority for us to do whatever we want to do. This goes back for generations."
/snip
How on Earth is this possibly a Federal issue that Congress is permitted to meddle in at all?
Seems to me this is best remedied by:
1. Impeachment proceedings of the good Governor of Illinois
2. Illinois recall of the appointed Senator
3. Re-appointment by Lieutenant Governor of a new choice
4. General Election to actually choose a Senator.
No reason at all to muddy the waters of State autonomy by having the Senate choose their own colleagues.