Regarding the idea of reclaiming the word 'liberal', here's a line I just heard in Bob Dylan's song I Shall Be Free No. 10:
Now, I'm liberal, but to a degree
I want ev'rybody to be free
But if you think that I'll let Barry Goldwater
Move in next door and marry my daughter
You must think I'm crazy!
The complaint about Barry Goldwater was to be expected (this was 1964, after all), but the assumption is that a true liberal wants everyone to be free, which sounds rather libertarian to me. Yes, "I am a liberal". :-)