From what I have read this situation causes problems for the Azzurri, but at the same time, helps them.
If Azerbaijan are indeed banned from Euro 2004, then this is how the Group 9 table should stand:
1. Wales 6 pts
2. Italy 4 pts
3. Serbia-Montenegro 4 pts
4. Finland 0 pts
The disadvantage in this scenario is that Serbia-Montenegro's surprise 2-2 draw against Azerbaijan is cancelled out, but at least we would only be 2 points against Wales who lose the 6 points that they collected against Azerbaijan.
Azerbaijan Federation was accused of corruption and also there have been problems with the clubs in the country because they boycotted the league :undecide:
Anyway I don't think this is helping Italy at all, because they already won the 1st leg and I'm sure they wouldn't have problems with the 2nd, but Serbia only drew them, which means that they would be (were) a point behind Italy. In the end we might need that point desperatly!