In my department, this move removes Sarah Palin from my list of serious candidates for president in 2012. It wouldn't matter what news organization she joined, either. One does not pursue statesmanship by lowering oneself in this way.
And perhaps that's what she is trying to tell everyone: that she's packing it in.
Jim Rutenberg for The New York Times breaks the story "Sarah Palin to Contribute to Fox News":
Former Gov. Sarah Palin of Alaska has signed on as a contributor to the Fox News Channel.
The network confirmed that Ms. Palin would appear on the network’s programming on a regular basis as part of a multiyear deal. Financial terms were not disclosed.
Ms. Palin will not have her own regular program, one person with knowledge of the deal said, though she will host a series that will run on the network from time to time.
More at the link.