Current policy is to stabilise Iraq, search for WMD and neutralise future and cureent terroist including the fedayeen Saddam and remnants of the Ba'athist military.
The solution is?
The solution is very simple and very fair. Facilitate the formation of Iraqi government of national unity by including the representation of all faction in a balanced way (Sunni, Shiites, tribes, regions, Christians, Kurds and even moderate clean Baathists.) Make sure they can function on their own and establish constructive cooperation and get out. One can leave a few well trained troops to protect the stability of the new government. So long as the new government is a real (spontaneous and not pre-made), inclusive representation the population will see it as its own.