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Friday November 17, 7:42 AM Democrats defy Pelosi, elect Hoyer House leader Photo: Reuters Click to enlarge WASHINGTON (Reuters) - Nancy Pelosi, set to become the first woman to head the U.S. House of Representatives, suffered an embarrassing defeat on Thursday when fellow Democrats rejected her choice of a key foe of the Iraq war as her deputy. Steny Hoyer, a moderate Maryland Democrat, easily defeated Pennsylvania's John Murtha, a leading proponent of a quick U.S. withdrawal from Iraq, to become the next House majority leader. A week after Democrats won control of Congress from President George W. Bush's Republicans, the leadership election raised new questions about the clout and hardball style of Pelosi, a California liberal. Emerging from closed-door balloting that capped a bruising intraparty fight, Pelosi tried to put the matter behind her. "We've had our differences in our party. We have come together," Pelosi told reporters. "And now that's over." While some Democrats voiced displeasure that she plunged into the leadership race, Pelosi offered no regrets. "I stand very, very proudly behind my endorsement of Mr. Murtha," Pelosi said. "As I said in my letter to members on Sunday -- I believe the biggest ethical challenge facing our country is the war in Iraq." "It must be stopped, and I thought that Mr. Murtha's elevation to a leadership position would serve that purpose," Pelosi said. Hoyer, who has been the No. 2 House Democrat behind Pelosi the past three years, defeated Murtha by a vote of 149-86. Standing shoulder-to-shoulder, Pelosi, Hoyer and Murtha vowed to work together to advance their party's agenda. At the top of the list is pushing for a phased withdrawal beginning within months of U.S. troops from Iraq. "Mr. President, we need to make a transition in Iraq; it is not working; we need to change the policy, not stay the course," Hoyer said. Said Murtha: "The military leaders know there's a limitation to military power. They know that it's time for us to redeploy." Paul Light of New York University's Center for the Study of Congress called rejection of Murtha as majority leader "an inauspicious start" for Pelosi. "What you want to do as speaker is win your first battle to create an aura of invincibility," Light said. "Clearly she has not done that.' "It will hurt in the short run, and raise questions about her pull with rank-and-file Democrats and if can she deliver votes," Light said. As expected, Pelosi was unanimously nominated by Democrats to become House speaker, which would put her second in the line of succession to the presidency behind the vice president. A vote on the speakership by the full House will be held when the 110th Congress convenes in January. She is certain to win. STRAINED RELATIONS Hoyer has had a somewhat strained relationship with Pelosi the past three years, while she served as House minority leader and he was her deputy. In 2001, Murtha managed Pelosi's successful leadership race in a showdown with Hoyer. While Democrats have appreciated Murtha's anti-war efforts, there have been complaints he has opposed efforts to toughen the ethical rules in Congress and used his position to help clients of his lobbyist brother. Rep. Barney Frank, a Massachusetts Democrat, predicted there would be no lasting fallout from the leadership battle. "A lot of people wished this hadn't happened," Frank said. "There's a sense that we had a little stumble ... (but) I think it will disappear." (Additional reporting by Susan Cornwell)