How crucial is Iowa in the primaries?

I talked to a liberal woman from Iowa this week. Everyone else in her family are hard core republicans. However, they have had it with the Bush administration and will vote for a dem in '08 but they are having serious issues with Hillary. Although they claim they would support a woman for president, this woman told me that people from Iowa make up their minds when they are in the voting booth and may succumb to voting for Ghouliani or Romney even tho they are disgusted with the republicans.

I wonder if the rest of the country feels the same way...especially if terra terra terra occurs just before the election. Is America really ready for a woman or black man as president?

So...how crucial is Iowa and, in fact, does it even matter?

when Kerry won the Iowa Caucuses and then he pretty much won everything else afterward--despite for the longest time trailing nationally in the polls and in NH in the polls. Iowa changed that.