Personally, I think this is the "best" team at the moment:
GK. Dudek/Kirkland
RD. Finnan
LD. Riise
CD. Hyppya
CD. Henchoz
DM. Hamann
LM. Kewell
CM. Gerrard
RM. Diouf
CF. Owen
CF. Baros
In order to be a top-team, Liverpool needs replacing some of the players. The players that can be replaced (instead of "can", read "should") are, in my humble opinion, Henchoz, Diouf and Baros (I mean they are all good, but some better players are needed in order to win the Prem and to get far in the Champions League). Some possible replacements are:
for Henchoz: it is really hard to find a cheap and great defender today. Watch Radoi from Steaua tonight - he is absolutely excellent, and may be for sale for about 5M USD
for Diouf: Rosicky (best choice, I hope they are bringing him at Anfield; he is best in the middle, but Gerrard can play on the right side.
for Baros: Kluivert was a good idea, but is not coming to Liverpool; Kezman from PSV is also great, but he is probably quite expensive.