Assuming he’s not powder, what are his options?
1) He can fight with all he’s got, and lose. Doing this, he will basically show the world he’s in violation of UN Resolutions. As Bubba points out, there is some uncertainty as to whether the missiles fired were in fact scuds (which violate UN resolutions). This of course would discredit any of his claims. He may do this as he is delusional enough to believe that he can win.
2) Refuse to use scuds while prolonging the war however he can, and still lose. This option would serve to discredit the US, particularly if Saddam destroyed his missiles (assuming he has them). He could essentially attempt to discredit the claims of the US. In addition, by prolonging the war, he will increase the likelihood of civilian casualties and collateral damage. This again makes the US look like a bunch of bullies. He could do this in an effort to further the hatred of the US among the Arab world.
3) Run and hide.
The ball is clearly in his court. I hope for everyone’s sake that the war does not draw out. Some good news is the reports that essentially the command infrastructure of Iraq has been wiped out.