The ITT suits Cadel more than Conti as it is dead flat and straight. If they have to push into a headwind in particular, Cadel should be able to better him. Conti's big TT performances, including last years tour, all included a substantial climb in the course. Though the final TT will come down to who's in better shape after the Mt's rather than who's the better TT'er.
Cadel needs to be super aggressive on the downhill finishes - of which there are a number this year - a-la ONCE all those years ago. He should be able to rejoin is he's been dropped in the last km, or more importantly gain time if he reaches the top with the likes of Conti/Basso. He's a better downhiller. Hopefully he hooks up with Sammy Sanchez for some DH heroics.
That said, Conti remains the best rider in the tour and still short priced favourite for the top step I would think.