By Anne C. Mulkern

Denver Post Staff Writer

Denver -- Democratic presidential hopeful Barack Obama acknowledged today that he has lost ground against Republican rival John McCain.

But Obama plans to win through telling his story, talking about his plans for the country, and connecting with people, Obama allies said as the Democratic National Convention opens.

"He loves basketball you know, and plays it," said Democratic Sen. Dick Durbin, the senior Illinois senator and Senate Majority Whip. "We talked about the game today and we realized that over the last week or 10 days, John McCain has had a 12-0 run in this basketball game."

McCain gained ground because Obama took a five-day vacation, and Russia invaded Georgia, Durbin said.

"But we know the momentum can shift," Durbin added, "and it's going to shift soon. We think this a good time for Barack to show his strength."

At a breakfast with reporters, Obama surrogates discussed the campaign, the convention, and their views about why Obama is a strong candidate.

The Obama camp discounted polls that show him trailing McCain, saying the election is still more than two months away

Obama is counting on his ground operation and voter turnout to pull him ahead, the surrogates said.

"What Barack has on the ground in all 50 states is an unbelievable grassroots campaign,'' said Obama senior advisor and family friend Valerie Jarrett. "We feel we have the infrastructure in place to make sure folks actually do come out and vote."

The allies rejected reports that large number of Sen. Hillary Rodham Clinton supporters will refuse to back Obama. If someone is saying there's a plan to do so, Jarrett said, "they are clearly not inside the conversations,'' between the Clinton and Obama camps.

"The people who are actually at the table have a very good working relationship,'' Jarrett said. "Senator Clinton has done absolutely everything Sen. Obama has asked of her...there is no stronger surrogate with Sen. Clinton supporters than Sen. Clinton."

Durbin and Jarrett said, however, that "it might take a little longer for some people to come around."

Asked about President Clinton's support, Jarrett said that he and Obama have spoken, but she did not give more specifics.

Obama will speak Thursday night at Invesco Field at Mile High. Asked what he would say in that speech, Jarrett said it was still "a work in progress.''

"He will outline his vision for America, the kind of president he will be, his approach to leading our country and the key issues that we will face as a country going forward."

The Obama surrogates also were asked about the issue of race in the campaign. They said his ability to talk about what unites people will heal wounds.

There are some people for whom race will be an issue, Durbin said. But Obama's success in Illinois and Iowa, he said, prove that for most people it will not matter.

Jarrett declined to talk about what Obama would do in his cabinet if elected, saying the focus right now was on the election.