I always thought this was BS, and so it is. Unfortunately the major news media outlets forget to report it. And of course the original supporters of this allegation are strangely silent.
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cbs2.com/california/CA--SchwarzeneggerLaw-kn/resources_news_html

Stuntwoman's appeal dropped against Schwarzenegger
Friday September 10, 2004

LOS ANGELES (AP) A former stuntwoman is dropping her appeal of a defamation case against Gov. Arnold Schwarzenegger and a campaign aide to avoid paying $100,000 or more in legal fees, her attorney said.

Rhonda Miller wanted to appeal a Los Angeles County judge's dismissal of her case in July. But her attorney, Paul Hoffman, said she settled for a guarantee from Schwarzenegger that she won't have to pay the governor's legal costs.

Miller called a news conference a day before October's recall election to allege that Schwarzenegger groped her while the then-movie star was filming ``Terminator 2'' and ``True Lies.''

Schwarzenegger's campaign denied the allegations, and campaign aide Sean Walsh suggested in e-mails to reporters that Miller had a record of prostitution, theft and drug-related crimes.

The records were for a different woman of the same name, and Miller sued, alleging she had been defamed.

The suit was dismissed in July when the judge ruled there was not enough evidence Walsh deliberately misled reporters or that Schwarzenegger knew about Walsh's e-mail. With the dismissal, Miller could have been forced to pay Schwarzenegger's legal costs that Hoffman estimated could top $100,000.

``She decided she didn't want to face that prospect, even though she felt the decision was terribly wrong,'' Hoffman told the Sacramento Bee.

(Copyright 2004 by The Associated Press. All Rights Reserved.)