ubhock..errr Mr. Clutch: If the Right were to throw out the Republican version of John Kerry, then yes Hillary would beat him. If that situation were to occur, then the Libertarians would probably gain some votes. Not enough to win, unless they start making some changes, but they would continue their ascent.
There are some definite changes that can be done to third parties to make them more viable, but it all depends on whether they are willing to make those changes.