Despite everything that's gone wrong with the Michigan football program this season, something has inherently given the Wolverines confidence -- and has Penn State reason to be leery.

"With Michigan, you can never count us out," Wolverines defensive tackle Terrance Taylor said yesterday.

Despite a string of embarrassing early losses, the Wolverines (1-2) have apparently retained all the confidence with which they entered the season. Michigan suffered losses to Appalachian State and Oregon but rebounded with a resounding win against Notre Dame last Saturday.

"We expect more than that [win]," Taylor said. "The University of Michigan, everything is held so high and we believe in that."

Michigan has so far been pedestrian nationally in total offense (56th) and defense (63rd). But those statistics haven't comforted the No. 10 Nittany Lions.

Penn State hasn't beaten Michigan since 1996 and has lost the last eight meetings. In the past three games, the Lions have lost by a combined 12 points.

"I think they're a giant. I don't know whether they're sleeping or not," Penn State offensive coordinator Galen Hall said after the Buffalo game. "Michigan is Michigan, and they're a Big Ten opponent. What's happened the first two weeks is not going to change our opinion of them."

In fact, despite early losses, Michigan can still earn a trip to the Bowl Championship Series by winning a Big Ten title. This Saturday's game against Penn State signifies a pivotal point for Michigan.

If Michigan wins out in the Big Ten, the non-conference losses become irrelevant. A national title is out of the question, but a spot in the Rose Bowl is not.

"We know we're going to have to bring our best game," linebacker Sean Lee said. "They may be 0-2 but they beat us since I've been here and in years past."

Penn State's defense will have to contend with running back Mike Hart, who rushed for 187 yards and two touchdowns against Notre Dame on Saturday. The running back was confident enough to guarantee a victory against the Fighting Irish instead of labeling the season a wash.

Yesterday, Michigan head coach Lloyd Carr emphasized the rest of his team wouldn't give up on the season, either.

"There's a Michigan football family," Carr said. "Those guys have played the game. They know what it's like. They know what it's like when things are good. They know what it's like when things are bad."