The Sarah Palin lawsuit has been dismissed "with prejudice", although she can appeal that decision.
A .pdf of the opinion is here.
Background at the WaPo and NY Post. It will be interesting to see how the judge balances the right to pursue defamation suits with the Times defense of "How could there be malice when we had no idea what the facts were?". Reckless disregard of the truth used to be a criteria, but maybe not.
FOR THE NON-LAWYERS: From the "with prejudice" link above:
An involuntary dismissal with prejudice may be ordered for any number of reasons, which the judge will specify. Such a dismissal can be appealed to a higher court, but it is not possible to simply start over by re-filing the case with a few changes.
UPDATE: NY Times coverage. No comment received from Ms. Palin's lawyers.