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scottyT - I wouldn't give up hope yet. I'm kind of in the same boat; after a lifetime of living CO, I spent last year doing a graduate program in Illinois and now I'm working in Georgia to be with my girlfriend. I have kept my CO driver's license, car registration and voted in CO this entire time, but now I'm worried about the "physical presence" part of the domicile requirement.
Reading their 2007 tuition requirements, though, it looks to me that establishing "physical presence" doesn't necessarily mean that your feet have to be on CO soil for 12 months. It seems that they evaluate each student on a case-by-case basis, and while there are lots of important guidelines for establishing "physical presence" it's clear that they don't have an absolute formula for doing so. You just need to make a series of pursuasive arguments on your behalf.
The most important factor, it seems, is filing CO state tax returns. It hurts you that you haven't filed a CO return for a couple years, and likewise it also hurts that I assume you did file CA returns. However, their tuition forms states that you do have the right to back file CO returns. Additionally, it states that for back filed returns you "will receive a credit for taxes withheld by or paid to another state." So it sounds like it might not cost you much (if anything) to back file a couple CO returns, and I think that might be worth a shot.
The bottom line is that while it is difficult to establish CO residency, it is also difficult for them to take it away. Simply living and working in another state for a relatively short period of time does not necessarily demonstrate your intent to permanently adopt residency elsewhere.
Or perhaps that's just wishful thinking on my part...
Seems like it would be worth a shot. . .