Paddy Ashdown: hard act to follow

Things weren't helped when leadership contender Simon Hughes claimed his new boss was not a great policy man.

But it should be quite different at this year's conference in Bournemouth.

Mr Kennedy has managed to retain much of his relaxed, inclusive style while gradually establishing a reputation for himself as a serious leader.

He may still have to make the breakthrough with the general public, but his question time performances in the Commons have become increasingly authoritative and he has pretty much abandoned the TV circuit.

Members appear to have warmed further to him and put many of their early worries aside.

Sensational election victory

As a result, it is unlikely there will be any serious criticisms of his leadership at this year's conference.

He has also been buoyed up by his party's sensational by-election victory in Romsey which has further boosted the party's presence in the Commons, where it now has 47 MPs - the most since Lloyd George.

But he still faces trouble over the key issue of voting reform and the loose alliance with the Labour government.

Last year he was given the clearest possible message from grassroots members that they did not want any closer co-operation with Labour.

He was also told to keep up the pressure on Tony Blair for the government to meet its election manifesto commitment and introduce PR voting for general elections.

In turn, he told his conference that under him the Lib Dems would be "nobody's poodle".

And the relationship with Labour, through a special cabinet committee, has been far less intimate than it was under Mr Ashdown - who came close to being given a seat in the cabinet itself.

But some party members are angry that it has continued at all, and Mr Kennedy may face some flak on that front.

Labour lite

With the election approaching, it is not in the party's interests to be seen as too close to a government voters may well want to kick.

Mr Kennedy's job is to ensure those protest votes go to his party rather than the Tories. The last thing he wants is to be seen as "Labour lite".

So this year's conference is likely to see a good deal of Labour baiting, with Mr Kennedy leading the charge.

At the same time, he will not want to walk out completely of Tony Blair's big tent - in the hope things might change after the general election.

So he will certainly not rule out future cooperation with Mr Blair. In the event of a drastically reduced Labour majority after the next election he could be in an extremely powerful position to twist the prime minister's arm.

Party members may give Kennedy a hard time

And the key issue he will have to do some arm twisting on is the hugely controversial one of electoral reform.

In the immediate aftermath of the last election there were high hopes among some Lib Dems that they would finally achieve their goal of PR for Westminster.

If such a voting system was introduced it would massively increase their showing in the Commons so it is, inevitably, top of the party's wish list.

Labour not trusted

But Mr Blair failed to deliver, first by delaying things with the creation of the Jenkins commission then by making it plain there would be no referendum on PR this side of the election.

That was a severe disappointment to the Lib Dems and many saw it as a sign that New Labour could not be trusted.

There will be powerful calls at the conference to use every ounce of influence to ensure Tony Blair not only keeps his word, but personally comes out in favour of change.

That may see Mr Kennedy forced into some sort of compromise, short of the full-blown PR he is demanding.

Finally, Mr Kennedy will want to use the conference - probably the last before the next election - to map out some key differences between his party and New Labour.

In the past, he has demanded extra spending ahead of tax cuts. But in the wake of Chancellor Gordon Brown's spending commitments that will prove more difficult this year.

And Mr Kennedy may struggle to carve out a distinct identity for his party to maximise its appeal to voters and stop it sliding back to its dark days.