Well, if I understood the BCS show correctly, should Houston win, the Sugar is down to Michigan and KSU, should Michigan become eligible.
Also, there are really only two games of relevance that probably impact Michigan's ability to get in: Big Ten Championship, SEC Championship.
With Michigan State sitting at 13, Georgia at 14, and Whisky at 15, it looks like Michigan is banking on sneaking up two spots with losses to two of those teams. But, the problem is that if Whisky wins, they'll leapfrog Michigan, and Michigan lost to MSU, so that may hurt their computer poll numbers.
I think the chances are high Michigan gets into the Top 14, but it's probably going to be pretty close.
Another thing to consider is Baylor sitting out there at #17. If Baylor can beat Texas, there is a chance Baylor can leapfrog Michigan in the human polls, and that would kill Michigan's chances at the BCS.