Not doubting y'all but have to wonder how Romney came out ahead there.
Short answer: the same way he came out ahead everywhere else. Money, media, party establishment, etc...
I agree with Keith's analysis. To put it politely, the campaign in NH had it's weaknesses (despite everyone's best intentions) and got the short end of the stick compared to Iowa. While Romney was locking in the movers and shakers, Ron Paul was campaigning at nursing homes! The grassroots put forth an admirable effort to try to fill in the gaps, but I don't think I have to tell anyone here how hard it is to buck the establishment. Again, Ron Paul did better in NH than virtually any other state.
This brings up an important point, though: New Hampshire is awesome but it is NOT a libertarian utopia (yet!) If such place existed, there would be no need for a Free State Project. New Hampshire IS a great starting point, though, as it's arguably already the most liberty-friendly state in the country, and for a variety of reasons (size, political system, etc) is conducive to positive change.
I do not blame anyone for doubting the viability of the FSP, if I was not here and seeing what was going on, I might be doing the same thing. But, as someone on the ground here, I can assure you it is the real deal, and outside of the Ron Paul movement is the best hope for liberty we have in the US right now.
If you have any interest, I encourage you to attend one of the two awesome events the FSP hosts every year: NH Liberty Forum in February/March, and the Porcupine Freedom Festival in June. Can't tell you how many people have attended one of those events and within a week gone from "interested" to "pack our bags, we're moving to NH". FSP is not for everyone but it really is an exciting thing with great people (and I think that last part is what really makes people want to move once they come visit). Check it out.