As of right now, according to this website:
the Nittany Lions are 3 point favorites at Michigan.
On one hand, I think that's a bit low. Michigan's defense sucks big time, and PSU is averaging over 40 points per game. Even the shutout of Notre Dame was FAR more ND offensive ineptitude than Michigan defensive expertise. Michigan's offense consists of Michael Hart and....that's it. PSU is only giving up around 18 yards per game on the ground. It's easy to say, "I see neither how Michigan will score on PSU or how Michigan will stop Penn State."
On the other hand, the PSU offense is very different than those that dominated the Wolverines: PSU does not run anything close to a spread option attack. PSU hasn't won at Michigan Stadium since 1996 (though one could easily argue that PSU was robbed in 2002 and 2005). Michigan is PSU's first road game and easily the best team PSU has played so far. 3 points seems entirely reasonable from that perspective.
So, basically, what does everyone think about the point spread for the Michigan game? (Hey, at least we're not underdogs like we were in '05)