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The Red Sox have now completed one quarter of the season and although there have been a few heartbreaking losses and a couple of ominous signs, the Sox are in a decent position through 40 games. Boston's 26-14 record puts them only one game behind the Yankees, who looked unbeatable over the first two weeks of the season. The Sox are on pace for 105 wins by season's end, though this mark should be taken with a grain of salt because they have not yet played any games against the league's best three teams - New York, Seattle and Oakland. Derek Lowe and the bullpen are a concern, but the offense has been potent despite the fact that Johnny Damon, Nomar Garciaparra and Manny Ramirez have not hit to their capabilities as of yet. Here is a breakdown of the good news and concerns through 40 games:

The Good News:

Casey Fossum and Shea Hillenbrand

Theo Epstein gained my respect early in his tenure by resisting the temptation to trade Fossum and Hillenbrand. During my 25 years as a Red Sox fan, the philosophy of Sox Upper Management has always been to trade away young talent for aging veterans that can provide immediate help. Though some of these moves have helped the Sox in the short run, the long term impact on the Boston farm system has been disastrous. Most new General Managers have the tendency to look for instant gratification by way of proven veterans. The pressure is on to win right away, but Epstein has kept his cool and now both Fossum and Hillenbrand are paying large dividends. Hillenbrand has 30 RBI's and is batting .341 with runners in scoring position. He is also improving defensively. Shea has committed just two errors this season (he booted 23 last year). Casey Fossum is 4-1 and the Red Sox have won 7 of the 8 times he has taken the mound in 2003.

Patience at the Plate

Though I don't have opponent pitch statistics, it appears that the Sox have been a more patient team at the plate this season. Shea Hillenbrand is learning to be more selective, Nomar has been nearly impossible to strike out and Kevin Millar, needless to say, is a monumental improvement over the frustrating Jose Offerman. Bill Mueller has been a pleasure to watch as has often battled opposing hurlers for ten or more pitches, many times ending up with a base-hit. The increased discipline is helping the Red Sox "manufacture" more runs than they did last season.

Winning Close Games

For as long as I can remember, the Red Sox have been the foremost authority on losing one-run games. At one point last season, the Red Sox were 5-21 in one-run contests. By season's end, they were 13-23 in one-run affairs yet still managed to win 93 games. Had they been .500 in those games, they would have won 98 games and taken the Wild Card instead of Anaheim and the Monkey never would have rallied. Despite a shaky bullpen, the Sox are 10-3 in one-run contests this year, which is one of the main reasons why they are just one game behind New York.

The Runnin' Red Sox

I never thought I would see the day that the Red Sox would rank third in the American League in stolen bases. In fact, to see the Sox anywhere but last in the league in steals is a shock. Johnny Damon continues to steal at a solid pace and Damian Jackson has given the Red Sox their first legitimate pinch-running stolen base threat in ages. Even Manny has a stolen base to his credit.

The Double Factory

The Sox haven't shown the kind of homerun power that the Yankees and Rangers possess, but they have been doubling opposing pitchers to death this season. Mueller and Hillenbrand each have 15 doubles and Damon, Garciaparra and Ramirez are all in double-figures in two-baggers as well. In most cases, two doubles in a game will get you more runs that one homer.

The Concerns:

Derek Lowe

I don't think anyone expected Derek Lowe to repeat his near Cy Young performance of last season, but we also didn't expect the big righthander to struggle as much as he has in the early going. Strangely, Lowe has been spectacular at Fenway (2-0 with an 0.95 ERA) but can't get anyone out on the road (1-3, 11.57 ERA). At least part of the reason for Lowe's failures on the road has been that the sinker ball specialist has pitched three times on artificial turf. Still, there is no excuse for an 11.57 ERA away from home. Lowe was great in 2000 and 2002, but had some problems in 2001. Let's hope that this isn't some kind of odd-numbered year curse.

The Bullpen

After a horrendous start, the Sox bullpen has been very effective the past couple of weeks. The addition of veteran Robert Person should help stabilize the pen. Brandon Lyon has been excellent as the closer, but I'm not sure that the Red Sox will feel comfortable with a 23-year-old who has only pitched 144 career innings closing games in September and October. There is also good news in the fact that Alan Embree seems to be regaining his velocity. The Sox cannot win without a bona fide lefty out of the bullpen and Embree is the only option right now.

First Base

David Ortiz and Jason Giambi have failed to live up to even Brian Daubach expectations at first base. The Red Sox offense isn't in bad shape but first base is a power position and you hate to stick with a combo that is batting in the low .200's with five homers. David Ortiz, who has hit a combined 38 homeruns in 715 at bats over the past two seasons has only one round-tripper this year. When the season started, I wondered if the Royals might part with 29-year-old Mike Sweeney by midseason, figuring that they would be about 50 games out of first place by then. Now that the Royals appear to be a contender, acquiring Sweeney is very unlikely.

The Notes:

The Trot Nixon Enigma

For years, Sox fans have been waiting for Trot Nixon to have the breakout season that everyone has been expecting since he was drafted 7th overall by the Sox in 1993. In 2001 and 2002, Trot bulked up his production, averaging 26 homers and 91 RBIs. Unfortunately, his average fell to .256 last season after a .239 second half. Of course, he drove in 57 runs after the All Star Game. This year, Trot has rattled off a .321 average, but has only 3 homers and 11 extra base hits. It always seems like you get batting average or power from Trot, never both at the same time. Moreover, Trot continues to struggle against lefthanders as he is batting only .160 in limited at bats against southpaws. Nixon is a .212 career hitter against lefthanders.

Green Monster Seats

I love the Green Monster seats. Unlike the hideous coke bottles, the Monster seats seem to fit in well with the character of the ballpark. If the team can earn some extra money in the process, that's even better. It amuses me that so many observers complained about the seats. I can appreciate that people are interested in maintaining the historical character of the park, but mourning the passing of a giant net is just plain silly.

The Eck

I love Dennis Eckersley's commentary on the NESN Red Sox postgame show, but someone needs to convince the Eck to get a new look. Hey Dennis, The Eck from 1978 called and he wants his hairstyle back.

The Yankees

For the other top teams in the American League, finishing ahead of the Yankees in the regular season will be a tall order mainly because of New York's 4th and 5th starters. The top three starters for each of the potential American League playoff teams can stand toe to toe with the Yankees, but with starters 4/5 the Yankees have a distinct advantage. The Yankees can follow Mussina, Clemens and Petitte with David Wells and Jeff Weaver. The other teams counter with John Burkett and Casey Fossum (Red Sox), Ryan Franklin and Gil Meche (Mariners), John Halama and Ted Lilly (A's), John Lackey and Aaron Sele (Angels) and Kenny Rogers and Kyle Lohse (Twins). The good news is that in postseason play the rotations can shrink to three starters and New York's advantage disappears. The rest of the league is also happy to see that Jeff Weaver is still struggling. Nothing personal, Jeff.

Crazy Carl Everett

Can we please stop with the "Carl Everett is misunderstood / Carl Everett is a great guy" nonsense. We heard this when Carl was with the Mets, with Houston and with Boston. There is a reason why a guy with talents as great as Everett continues to be traded for players of lesser value. Texas may be happy now, but it is only a matter of time before Carl once again turns into baseball's version of the Incredible Hulk.

The Luxury Tax

It is far too early to make judgements about the impact of the new luxury tax / increased revenue sharing system on major league baseball, but here is what I expect:

Increased revenue sharing will have a positive effect on teams at the bottom of the revenue pyramid. A few extra million dollars should allow the Pittsburghs and Kansas Citys of the world to keep one or two rising stars that they may otherwise have been forced to let go. This should make these teams a little more competitive, which can only help to make Major League Baseball more interesting. It is great to see the Kansas City Royals and Montreal/San Juan/Washington DC/Portland Expos building a solid foundation. Increased revenue sharing may help them maintain that momentum, at least for a few years.

I am much more skeptical of the luxury tax. It was argued by some that the luxury tax was put in place to put the brakes on the out-of-control spending of the Yankees. In reality, the luxury tax should cost the Yankees some dough but will help them win more games. George Steinbrenner has already shown that he has no qualms at all about raising his payroll and paying the tax. The luxury tax is more likely to hurt teams on the second financial tier (the Yankees being alone in the first tier) like the Mets, Red Sox, Dodgers and Braves, who are not so willing to pay the tax. The only way to bring the Yankees back to reality is to have a hard salary cap, but it doesn't appear that Major League Baseball is willing to take that necessary step.