I have confirmed that the prosecution will be able to use Dianne Ogden's testimony at the first trial, in the retrial. Prosecutor Alan Jackson has been in contact with Ogen's family to express their condolences. The DA's office believes the law is clear in this instance. According to a report by Linda Deutsch, Chris Plourd agrees that the testimony of a deceased witness can be used. The big debate that will probably be made via motions before Judge Fidler is whether or not her testimony will be read to the jury or a video tape of her testimony can be shown.
Linda Deutsch report in the Monterey Herald.com
Archived CTV report at CNN.CRIME