I should have been more specific then. We never tried sitting down and acting as moderators between Ghadaffi and the National Transitional Council. Instead we supported a coup. We negotiated with Ghadaffi in the context of Libya's foreign policy, his actions in Chad, and his support of militants in other countires, but we never sat down with Ghadaffi in the context of Libya's future. That's what we should have done differently.
The talking and fighting has not been nonstop since Reagan. Bush normalized relations from 2003 until around 2006. During that period the Bush administration was involved with a rendition program to torture detainees in Libyan prisons:
Source:
https://www.hrw.org/news/2012/09/05/us-torture-and-rendition-gaddafis-libya
And for what it's worth, the National Transition Council ended up dissolving and reforming into various Islamist parties.
Just like Saddam. We negotiated with him when it came to Kuwait in '91, but when the false allegations of WMDs went out we had no plans to negotiate. Saddam let weapons inspectors in who found nothing and we still went and invaded.