What she should not do is become a cable TV pundit. That's too predictable. Instead, she might follow Ronald Reagan's example and deliver a daily radio commentary. Radio takes the focus away from outward appearance and places it on the substance of what is said. She should write these commentaries herself, as Reagan did, and the outlets ought to include mainstream stations, as well as conservative and Christian ones.
Palin should hire a speech coach and follow that person's advice. She has a pleasant enough speaking voice, but the tone needs to be adjusted, as do her word choices. "You betcha" should be banned from her vocabulary. Such slang may resonate well with some people, but national candidates should have rhetoric that soars and gets attention.
Lastly, she needs a hair, makeup and wardrobe makeover. She is a beautiful woman, but appearance should not be the first thing one reacts to when people look at her.
There aren't many second acts in politics because the media tend to gobble people up and constantly search for the "new" and exciting. Sarah Palin can be "born again" in a political sense and excite beyond her base if she allows herself to be "baked" at the proper temperature and for the right amount of time. If she does that, she may emerge again and this time she'll rise, not fall.