The background is, Bush nominated for ambassador to Belgium a wealthy Republican donor who funded the Swift Boat ads against Kerry. The position requires confirmation by Congress. Not surprisingly, the nomination ran into Democratic opposition, and during the confirmation hearings Bush withdrew the nomination. Now Bush has appointed the guy, as a "recess appointment". This maneuver probably allows the guy to serve until the end of Bush's term, without pay but he likely doesn't need pay.
Two other controversial nominees were also withdrawn by the administration and then given recess appointments.
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/04/AR2007040402405.html?hpid=moreheadlines
This is the clearest sign possible that Bush is not going to try to find compromises with the Democratic-controlled Congress. And that means the Democratic Congress is not going to compromise with him.
I don't know how much attention this maneuver will get in the media but you can believe its going to get attention in Congress.
It's going to be open war between the Congress and the Executive. Bush can't get any laws passed w/o the Congress, and Congress can't override any veto by Bush. Prepare for almost 2 years of complete logjam in Washington. Bush will try to rule by executive order, and Congress will fight back with the power of the purse and subpeona.
And if you were hoping for a compromise that would allow the troops to stay in Iraq, sorry - the odds of a cut-off of funding for the war have just increased.
I'm not sure who Bush is listening to, but they're giving him bad advice.