Yes Minnesota has been trending to the right since the 80's. Clinton's margins of victory wasn't much bigger than Dukakis's. Bush almost won that state both times. I'd call it a democratic battleground state and if not a toss up.
Minnesota was closer to the national average in 2000 than it was in 2008...
Now, I will agree the state is more Republican than it was in the 80's, and did trend Republican. However, the idea that the state is still trending Republican is flat out false. In fact when looking at Minnesota and comparing its results to the national average, the state has not trended Republican in consecutive elections since 84-88 and 88-92 (and 84 had Mondale). Taking out the home state factor with Mondale in 84, and taking a look at the last several election cycles compared to the national average.
88-92 Republican
92-96 Democratic
96-00 Republican
00-04 Democratic
04-08 Republican
That isn't exactly much of a Republican trend.....