I think her strategy has been to ignore him or even to offer reassuring words to other Chavez-influenced new Marxist governments down there in hopes of moderating them. Basically, this is an extension of the Carter "strategy," which left most of LatAm as prey of the wolves. It's not quite as bad as the Clinton "strategy," which actually encouraged the left down there by giving away large parts of Colombia, but it's bad enough, and the next Administration is going to have to face the results of this.
Sadly, I don't things have improved under Rice. I thought we had bottomed out with Colin Powell and his weak response, but Rice seems to be going him one better. Someday maybe we will learn that to a dictator (like Chavez), silence equals consent. And weakness.