I got this reply from Danskin today:

We are in receipt of your inquiry regarding the length of the 2008 BIKE COURSE for the Seattle / Danskin TRI

Our Local Race Director through her Bike Course Coordinator and Set up crew has confirmed with us that the course set was 11.8 miles in distance.

Based on this information – RACE results will be updated

Thanks for your support. We look forward to seeing you in 2009

Danskin Women's Triathlon Series

They have adjusted the mph, but it's not a big change--e.g., from 17.3 mph to 17.0.