From the Washington Post:

One of the arguments on the other side is not to do anything to complicate a confirmation process for Roberts that has gone smoothly. And Bush knew when he picked Roberts for associate justice that he probably would have a chance to name a chief justice, so he might already have someone else in mind.
If so, some Republican strategists believe it could be Gonzales, a longtime confidant from Texas who served as White House counsel in Bush’s first term and would be the first Hispanic to serve on the Supreme Court. Many conservatives howled last summer at the prospect of Gonzales replacing O’Connor because they view him as unreliable on abortion, affirmative action and other key issues, and they renewed the complaints within hours of Rehnquist’s death.
“I don’t know what they get by alienating the last remaining 35 percent of the country that’s really on his side,” said a conservative ally of the White House who would comment only if granted anonymity.

I suspect the president knows that last bit. I also suspect he nominates someone, and quickly, who will not make Chuck Schumer at all happy. And it won’t be Gonzales. We will soon see.