A day after entering the race to become governor, actor Arnold Schwarzenegger showed political muscle on Thursday as a Republican rival tearfully withdrew and a prominent Democrat entered amid predictions that embattled Gov. Gray Davis could not beat the movie Terminator.

Actor Arnold Schwarzenegger shakes hands with supporters after he pulled papers at the Los Angeles Registrar's office in Norwalk, California, August 7, 2003 to file to be a candidate for governor of California in the October 7, 2003 recall election. [Reuters]

Republican Congressman Darrell Issa, a wealthy conservative Republican who spent $1.7 million to fuel the petition drive leading to the recall election, tearfully dropped out of the race after generating little enthusiasm for his own candidacy.

The congressman from the San Diego area had gone to register his candidacy, but with supporters surrounding him, he changed his mind following the swift political changes brought by Schwarzenegger's surprise announcement.

With his voice breaking and tears in his eyes, the Lebanese-American millionaire said he thought his best bet was to remain in Congress and work for peace in the Middle East.

Actor Arnold Schwarzenegger shakes hands with a young boy after he pulled papers at the Los Angeles Registrar's office in Norwalk, California, August 7, 2003. [Reuters]

"I was elected to work on issues of national importance, and it's my desire ..." he said, starting to cry. "It's my desire, it's my desire .. to see that the recall continues, that Gray Davis is recalled and that California has a brighter day."

His departure was in stark contrast to Schwarzenegger entry when he showed up to pick up the petition papers needed to enter the race.

As Schwarzenegger emerged from a black sport utility vehicle at the entrance of the county Registrar Recorder's Office, an exuberant crowd of several hundreds people greeted the "Terminator" actor, holding makeshift signs that said "Arnold for Governor," and shouting support for him.

The actor, wearing a blue blazer and tie, waded through a gauntlet of well wishers, shaking hands and signing autographs. When one woman asked what he would do as governor, he replied: "Clean house! Clean house!" pumping his fist in the air.

"Everything I ever did showed great leadership," he said later. "They said these are things that can never be done -- that an Austrian farmboy can come from Austria and make it in the movies. They said we can't pronounce your name and you can't speak English well and your body is overdeveloped ... and now I am highest paid entertainer in the world."

His candidacy became the talk of the nation on Thursday with many commentators saying he had revolutionized the battle overnight. "The race is for Schwarzenegger to win or lose," said veteran political reporter Lou Cannon, a respected biographer of Ronald Reagan's.

BUSTAMANTE ENTERS

Meanwhile. Lt. Gov. Cruz Bustamante, ostensibly Davis's deputy and the No. 2 state official, cited poor polls for Davis as a reason to run and said he hoped to raise up to $15 million to campaign.

"I think it is important that we have a serious Democrat on the ballot," he told reporters. "I am here to tell everyone to vote no on the recall and yes to Bustamante."

The news broke the dam of Democratic unity which many see as essential for Davis to keep the job to which he was reelected in November

For days, several Democratic members of Congress from California have urged other party members to get on the Oct. 7 ballot to offer an alternative should the unpopular Davis lose. The ballot will ask voters if they want to recall Davis and then list alternative candidates for the job. "If it weren't so sad it would be laughable," Sen. Dianne Feinstein, who said on Wednesday she would not run, told CNN. "It is a carnival and it is going to end up being extremely factious."

Bustamante's plans follow Schwarzenegger's surprise decision on Wednesday evening. Widely expected to bow out and endorse former Los Angeles Mayor Richard Riordan, the actor instead said he was ready to lead.

Analysts say that although Schwarzenegger has never held public office, he has the charisma and personal funds to make a credible run. A tough campaign looms with Democratic operatives already dredging up information about his past lifestyle.

"I would advise parents in California to turn off the TV for the next 60 days," Democratic official Bob Mulholland said. "If they are firing at you, we will certainly fire back."

On Wednesday, Schwarzenegger said he entered the race expecting a battle.

"I know they're going to throw everything at me, and they're going to say that I have no experience and that I'm a womanizer and I'm a terrible guy," he said on NBC's "The Tonight Show with Jay Leno." "You all know that Gray Davis knows how to run a dirty campaign better than anyone, but he doesn't know how to run a state."

Bustamante's breaking of the taboo on a run now opens the way for other Democrats. The state's Insurance Commissioner John Garamendi, a Democrat, also said he would run.

The lieutenant governor joked about his stocky, balding appearance in contrast to Schwarzenegger's action figure. "Ever see the movie 'Twins'? I guess I'm Danny DeVito," he said.

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