TIm Challies has an insightful and thought-provoking post on the topic of Ted Haggard's recent "fall from grace". It's interesting to see in the comments that follow the post that while most folks are responding with sadness and forgiveness, some still insist on a more "legalistic" response based on a theology of good works. Some folks continue to cling to the idea that they are better than others - that their sins are more acceptable and minor than the offenses of others. Some continue to cling the view that we get to decide who is "saved" and who is not. Some continue to grasp the belief that we are in control of either our circumstances or the direction and destiny of the church - worrying about God's provence instead of our own.
Challies is right: the only biblical response to an openly repentent believer is grace, mercy and forgiveness - with a large dose of self-awareness of our own sinfulness and pride thrown in.