What to do now?    

Events have been deteriorating in Iraq.  It is becoming increasingly clear that those who launched this war and occupation did not and do not understand the mess they were creating.  I think that the mental model they were using was that of a hostile corporate takeover.  The new managers liquidate assets, close off unprofitable divisions eliminating employees, and get out with a nice profit for themselves.  That does not work for entire countries.

Now they have come back again to the UN to help them out of the disaster they have created.  But I do not see any willingness on the part of the Bush administration to really change direction or to relinquish control.  They still want to come out with their profit.  That is the essential part of the current problem.  More forces with an inherently flawed plan will not work.  

What has a much better chance of working is the removal of the foreign occupation forces and the return of Iraq and all its resources to the Iraqis.  Then the international community can help in the rebuilding of that devastated country.