Michelle Malkin/Hot Air have been covering the Air Marshalls Service problems for awhile, most recently today. Go ahead an view a quick summary of the issues at the Hot Air Vlog.

I am not a covert guy or an undercover police guy or anything like that. The problems listed seem to have straightforward solutions to me:

1. Let each Marshall dress/groom as he deems necessary to maintain his cover. The Air Marshalls should have access to a Top Secret blog/wiki/message board to trade and document ideas. The Air Marshall has the incentive to not be recognized…put this on him or her (I hope there are female Air Marshalls…nobody is looking for them).
2. At the beginning of the month (or some other suitable time or use trigger), direct deposit into each Marshall's checking account an advance to purchase plane tickets, hotel rooms, transportation and food/paper at the airport. The Air Marshall can submit financial records showing when they validly used the money.
3. The Air Marshalls should pay for tickets, rooms, cabs, etc. with there own credit cards (not a US Government Credit Card) or cash. Alternatively, dummy companies, or friendly companies could be used for cover with appropriate company credit cards.
4. As far as checking in or passing through security, they need a covert weapon/badge (and seat/flight info) pass off: 1) The covert hand-off; 2) marshal goes through regular security and scanning; 3) covert pass back of weapon/badge

Updated with some more thoughts:

1. The Air Marshall should not sign in at a desk or interact with the flight crew in any atypical way.
2. A visible/identified security person should interact with the flight crew for each an every flight regardless if an Air Marshall will be on-board or not to avoid traffic analysis possibilities by bad guy surveillance.
3. The Air Marshall's ticket seat location should be kept sealed and be accessible only by the Captain unless he needs to be contacted.