Don't know.Not being a lawyer I know nothing about such things but I would suspect that she'd be required to file either in New York or in the state which she claims to be her legal residence (Alaska?).
Maybe a lawyer can weigh in on this.
My British friend tells me it was filed in New York. That would be the most likely place where jurisdiction lies, particularly if the individual defendants live in the Southern District of NY. Jurisdiction might be possible in other areas, as the Times is a national publication and its libel was directed at an Alaskan citizen. However, it would be subject to a motion to transfer venue that would probably be granted, so they just started in NY and are taking their chances.
As a result, the jury pool is a big concern. Palin’s lawyers should consider a motion that the forum be transferred to a venue that would be less biased against the plaintiff. They could point out that 80 percent or whatever of the population of NYC read the Times and might favor it over an out of stater. Could try to move it upstate. Since most judges in that district are full blown libs, the motion would likely fail, but would create a good issue for appeal.