There's an article about six ways the GOP can save itself here: http://www.politico.com/news/stories/0508/10370_Page2.html
The first one has promise -- "Get a Clue" but they go downhill from there.
Here's my suggestions for how the GOP can rescue itself without becoming liberals or Dems-lite.
1. Get a Clue. That's good advice. It means recognizing that the party has strayed badly off track and that it needs to jettison Bush and his baggage.
2. Renounce torture. It taints everything else, directly or indirectly. A government that tortures and a party that supports torture can never win over the American people, who are, at heart very decent.
3. Rediscover the virtues of limiting government. Not just the government's ability to harass businesses but also the government's ability to bother private citizens, snoop into their affairs and abuse their rights. Tort reform and torture reform are not opposing principles.
4. Don't cut taxes without cutting spending. Don't spend for things we're not willing to pay taxes for. Borrowing to pay for routine government activities in nonsense.
5. War. End this one and don't look for any new ones.
6. Remember that American values are accessible to all ethnic groups, all races, both genders, any age, an income and any sexual orientation. Any party that identifies itself primarily with affluent white males has no future. Adjust your message until it starts to make sense to everybody.