Workplace Incompetence

How should we deal with people at work who lack competency in their supposed field of expertise, or even worse, who have been given roles outside their specialty or ability?

Examples abound at work, past and present. A database administrator attempts to function as a business analyst. A business analyst lacks English grammar skills (and yet it is their native tongue and they're always jabbering away on the phone). And worse, a system administrator who does more harm than good when doing work on the server, which itself is a rare occurrence.

There are two basic tacks; we could be constructive or we could be destructive. At work, being a rather cliquish group, we lean towards the later. Because working with people outside our core team (or at least offloading work onto others and not having to do it all over again ourselves later) is an important skill for us to develop I will attempt to outline a course of action for dealing with those who lack the skill to do their jobs. That said, if they lack either the ability or the desire to succeed then there isn't much we can do. We take pride in our work, if someone doesn't they can be replaced.

1. Point out the problems in their work to them. If they don't know our expectations how can they meet them?
2. Give them the resources with which to fill the gaps in their skillset. For example: In Plain English, Designing with Web Standards or the book I borrowed to get up to speed when I first joined the team: Cascading Style Sheets 2.0 Programmer's Reference.
3. Discuss problems regarding their working habits or communication differences. We work as a team, people who don't openly communicate when they have questions don't last very long.
4. It almost goes without saying that we will talk shit about them behind their backs. Ummm, what I meant was we compare notes to make sure that it isn't an individual personality issue.
5. At this point there is enough of a communication gap that it is time to raise the problem with the project manager.
6. Next we bring the issue up with the person in charge of hiring as a serious concern with the performance of their job.
7. Lastly we begin to actively try to replace the person.

Please fill in anything I missed, or clarify anything that I didn't get quite right in the comments.