At first the news called USC's loss the greatest college upset ever.
They picked USC to be the greatest college team ever in preseason.

http://sports.yahoo.com/ncaaf/news;_...v=ap&type=lgns

Now, after being victimized by one of the most startling upsets in college football history, USC (4-1, 2-1 Pac-10) is ranked 10th.
I guess someone remembered the Michigan loss to Appalachian "Who?" State.

"We lost. We've got to face that fact and move on," said Trojans quarterback John Booty, who passed for 364 yards but threw four interceptions including one that set up the go-ahead touchdown. "Now, we have to put it behind us."
The same might be said for USC's national championship hopes, although with all the upsets happening, it's possible there won't be one unbeaten team standing when the regular season ends, much less two.
I'm not sure if it would matter if there was another undefeated team. The ranking system still sucks.