At the 2007 federal election the australian democrats lost all their representation in the senate. throughout the states they continue to loose seats.

with the rise of the greens in australia can anyone see the democrats making a comeback to have even a few MP's in federal and state parliaments throughout australia?

I doubt the Democrats will ever make a comeback. In their prime they were a small-l liberal party, but as they gradually drifted towards the left, they lost their traditional support base and came into competition with the Greens, who were much better at getting the left wing vote.

who are the Australian Democrats? I have never heard of them.

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Ignorance is mans greatest flaw

The Democrats were formed by a disgruntled ex-Liberal in the 1970s. Their bubble is now shrinking as their founder is long gone.
The Nationals are also an ever shrinking party and unless Australia starts investing in the country (and in railways) again they are likely to disappear once we again become an island with a just few major cities and sadly nothing more.