Assemblyman Guy Gregg appears to be getting closer to an announcement that he will challenge veteran State Senator Robert Littell in the 2007 Republican primary. Gregg has been meeting with consultants and staff and Republican insiders in Northwestern New Jersey say he has decided to run. The conventional wisdom is that Littell wants his daughter, Assemblywoman Alison McHose, to suceed him in the Senate seat his father held from 1943 to 1954. Some insiders say that Littell could decide not to run next year, setting up a primary between the 41-year-old McHose, a former aide to Lynne Cheney, and Gregg. The 70-year-old Littell, who has had major health issues in recent years, has been in the Legislature since 1967; he moved up to the Senate in 1990. Gregg, 57, one the Legislature’s leading conservatives, has served in the Assembly since 1994.