I took out approximately $10,000 from my 401k for a down payment to get in my house. Do I have to claim it all on 2008 taxes, or can I break in up into several years?
Thanks.

The withdrawal is fully taxable in the year you take it. You should have received a form 1099-R from the plan adinistartor that details the amount to report as income, as well as withholding. If you don't qualify for an exception, don't forget to include the 10% early withdrawal penalty on line 60 of your 1040.