Graham Priest discusses The Liar's Paradox for a NY Times blog. It seems that one way of solving the Liar's Paradox is defining dialethei, a true contradiction. Less Wrong, can you do what modern philosophers have failed to do and solve or successfully dissolve the Liar's Paradox? This doesn't seem nearly as hard as solving free will.
This post is a practice problem for what may become a sequence on unsolved problems in philosophy.
Any discussion of the Liar ought to mention the books of the late Jon Barwise The Liar and Vicious Circles. Also worth mentioning is Raymond Smulyan's lighter puzzle books based on this paradox.
I like the approach of 'paraconsistency' discussed here. But there are some prominent logicians (Girard, for example) who absolutely hate it.
As for "dissolving" the Liar, I would say that it has been dissolved many times, in multiple contradictory ways. Which only goes to show that everything, even logic, can profitably be looked at from divergent viewpoints.