I guess the short answer would be DDR, but a longer one would be appreciated. As I see it the SPD & Grüne throws away an election victory for the left if they choose grand coalition over coalition with or support from Linke. But then again, I do not live in Germany. A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!
But if I may be so bold, I agree with the SPD in this particular case. The left party there has just been established. You first want to see if it can operate as a functional political unit. Policy differences aside. The left party in Bremen has already descended into petty infighting.
So, if the left party in Hessen can function as a good opposition party for four years, they can become a credible partner. Which, I think, is what they want to do themselves.