The right has lost its way and a lot of people are starting to recognize this. Books are being written (The Death of Conservatism, Republican Gomorrah: Inside the Movement that Shattered the Party, etc.) Here are my thougths on what is wrong and what needs to be done about it.
Discredit those who are not helpful
Sarah Palin, Mike Huckabee, etc. have said a lot of downright crazy and dumb things (people with AIDS should be quarantined, etc.) and are far too tied to Christianity. They should be called out for that and pushed to the side so that true leaders on the right can rise to the top and give the right a real chance at regaining credibility and the minds of those who are undecided or in the center. Those who espose hate, and anger should also be discredited and pushed to the side (Rush Limbaugh, Sean Hannity, etc.). It is long past time for Conservative talk radio to become more academic, constructive, and hopeful sounding, and cater to the best in us (love, hope, unity, civics, etc.), rather than the worst (fear, anger, race, etc.).
Stop catering to the Christian right
Christianity has nothing to do with conservative ideas and theory on money, foreign policy, etc. There is also supposed to be a strong seperation of church and state. Our country was formed partially for freedom of religion, and if our government is run by someone who wants to impose their religion through laws and perspective, then we lose that. In addition, America is not a Christian nation; though nearly 80% are Christian, there is still another 20% that are not.
Stop simply opposing every idea President Obama has and propose alternative solutions
The right has really been a thorn in our Presidents side instead of working with him to solve the problems in America. The way to gain credibility and get some conservative ideas into law is to honestly work with the left to create good policy, and also proactively propose laws to solve some of our problems before the left takes up the problem.
Stop supporting causes that have nothing to do with Conservative ideology
The right should disassociate itself with such issues as abortion, and other things that are outside of the ideas of conservatism. Abortion is an issue thats argument against it is primarily based in religion. The same applies to marriage equality for gays; the argument against it can only be made from a religious standpoint. Because of this, and because no party should be tied to any religion, just as our government should not be tied to any religion, the right as a whole and Republicans as a party should disassociate theirselves with abortion and start supporting equal rights for gays. These two issues alone keep some of those in the center and on the left from ever supporting a Republican candidate. It might cause a lot of those on the Christian right to be upset, but then they can choose the party that best conforms to what their idea of government should do on all other issues, or form a new 3rd party that is tightly tied to Christianity.
Stop being inconsistent
Right now many on the right are opposing government run health care on the idea that even though it may save a lot of lives, it isn't proper for the government or taxpayers to help others. Yet, many of those same people are in support of the war in Iraq to give people in another country freedom and save their lives. Why should we spend taxpayer dollars to police the world yet not spend taxpayer dollars to save those within our own borders? Either we shouldn't spend money to help others, or we should and if we should then we should definitely want to help those within our own borders before those who are not within our borders.
Stop being hawks
The right has become a group of hawks and this is contrary to conservative ideas on foreign policy. Conservative ideas on foreign policy are as spelled out by the Cato Institute:
Cato's foreign policy vision is guided by the idea of our national defense and security strategy being appropriate for a constitutional republic, not an empire. Cato's foreign policy scholars question the presumption that an interventionist foreign policy enhances the security of Americans in the post-Cold War world, and maintain instead that interventionism has consequences, including the formation of countervailing alliances, the proliferation of weapons of mass destruction, and even terrorism. The use of U.S. military force should be limited to those occasions when the territorial integrity, national sovereignty, or liberty of the United States is at risk.
Conservatives need to re-embrace those ideas. They are the ideas that our nations founders had in mind, and they are the ideas that are the most ethical and that might also allow some on the left to consider the rest of our ideas.
Have a well thought out income tax policy
There either should not be an income tax as Libertarians would like, or there should be an income tax that works to support Conservative values. A tax that is progressive helps strengthen families at the lower incomes and therefore helps literacy rates, etc. which helps to preserve conservative values of strong families, an educated populace, etc. Right now the government has taken on far too much responsibility and therefore spends too much and our national debt is growing because of it. It is time to start cutting back on spending, but at the same time increasing revenue and the only realistic way to increase revenue is through a progressive income tax because those in the middle and lower class cannot support any higher tax burden.
Start supporting alternative energy and embrace that global warming is real and might be caused by us
The science is in, global warming is real and it is probably caused by our actions (and can we afford to gamble that it is not?). Most of the oil that is easily available is in countries with citizens that do not like us. Because of these two things, it is long past time to start looking into energy sources that do not emit CO2, and that do not require us to work with countries that are not friendly to us.
Stop catering to Israel
We give far too much money and support to Israel and it hurts our credibilty around the world and doesn't help to reduce the hatred towards us in the Muslim world. It is time to treat Israel as we would any other country that is a friend and ally of ours. We should work with them, and be friends with them, but we should point out when they are doing something that works against peace in the middle east and use our monetary aid as a tool to help control their actions rather than blindly supporting them at all times.
Start rethinking drug policy
The war on drugs does not work, and will never work so long as it is punitive rather than based in medicine. It only makes organized crime stronger, and leads to a larger role of government and often leads to violations of our constitutional rights. The punitive war on drugs was originally based on racism, and is now based in morality that is derived from religion. For these reasons, it is time for the federal government to take a non punitive role and start considering policy that would put organized crime out of business, make drug use safer and less damaging to society, and help those who are ready to reform their lives through cessation of drug abuse.