Palin's choice for Attorney General was rejected by the Alaska legislature
Palin's appointee, Wayne Ross, was rejected by the state legislature 35 to 23. The rejection was especially painful because the Republicans control the legislature so the defeat was not foisted on her by Democrats trying to damage her 2012 run, but by her own party.
Ross, a well-known figure in Alaska politics and a current director of the NRA, has made some controversial remarks in the past, including calling gays "degenerates" and saying it is all right for a man to rape his wife. If she runs for President in 2012, Palin's primary opponents are going to bring this up over and over, saying that she is a terrible judge of people and would make horrible appointments as President