Is there a story here? Yes, because Democrats would be all over a Republican former KKK member. Democrats have made David Duke a household name even though he's a very minor political figure only elected to a single term in the Lousiana legislature. This story demonstrates how Democrats are full of hypocrisy.
Actually, I've never mentioned Condi until today, but maybe that's because I'm a libertarian and not a "right-wing Republican."
Did her being a black woman have anything to do with Bush picking her? Possibly. Bush is always trying to out-liberal the liberals. It's a waste of time because he's not going to pick up any votes even if every single member of his cabinet is black.
But the race issue is always a big deal to Democrats because you can be sure that, if Bush's cabinet were made up entirely of white men, the Democrats would be saying, "look Bush is racist for only picking white men."