they might finish 2nd in the AFC East. But I doubt they contend for a playoff spot. Remember their defense was 8th in points allowed in 2004 (5th in 2003...)
The Bills are gonna be a tough out for anyone facing them but they are far from a playoff contender. They'll probably win seven or eight games this year.
Look out for them next year though!
So far Losman has yet to cost them a game. As long as he does that, the defense plays well and if McGahee runs well the Bills could be a little bit better than expected. I still think that Miami will clean up their act though.