It's actually not so difficult to come up with a few names. Terrorists are, by and large, simply politicians who have chosen violent methods to pursue their aims. Quite often, they have done so because they see no other avenue. Sometimes, they have done so because they like blowing shit up. And sometimes, they are not anti-government rebels, or shadowy independence groups - they actually are the government.
Once a terrorist is able to use legitimate, constitutional means to resolve their grievances, they quite often choose to do so. And once a terrorist chooses - or is allowed - to come in from the cold, they can become peaceful, regular politicians. We all know that there is a fine line between terrorism, and fighting for what to many is a noble cause; just as there is a fine line between fighting a war for good reasons, and fighting one for crappy reasons.
So, anyway, leaving aside people who are terrorists and in government (eg. Dubya), here's my Top Ten (alright, Nine) of Transformed Terrorists. Feel free to comment on them...
1. Nelson Mandela
Yep, the man himself. Today he is the embodiment of all that is noble and good about politics. He is kind, tolerant, inclusive, noble, and just. Since being released from prison, he has become a nobel peace laureate, and the global statesman without equal. Yet, this guy was only knocked off the US Terrorism watch list last month. Why? Because he used to be regarded (in South Africa at least) as a bloodthirsty insurgent. Mandela, short of legal options for pursuing true democracy in his homeland, resorted to violent means. He headed the armed wing of the ANC and was imprisoned for 27 years for charges inclduing sabotage.
2. Yasser Arafat.
OK. This list isn't in any particular order. And some people wouldn't include ol' Crackerfat. But few would disagree that Yasser made the move from internationally reviled terror chief, to legitimate negotiating partner on the issue of Palestine. True, he died without his dream being realised, after being trapped in his compound by the Israelis for the last few years of his life, but he kept the dream of an independent Palestine alive for decades. He even used to shape his headscarf into the rough outline of his nation every day. In the early 80s, he was almost picked off by Ariel Sharon in Beirut, before being offered last-minute asylum in Tunisia, yet he bounced back and became a quasi-national leader.

3. Menachem Begin.
In the interests of balance, I've now got my favourite former Israeli terror chief. In the 1940s, Begin headed Irgun, a terrorist group which perpetrated hundreds of violent acts against the British administration in Palestine. Thirty years later, he was Prime Minister! Proof that, whatever your race, religion, or creed in the Middle East, bombing people is no obstacle to a respectable career in constitutional politics.
4. Prachanda.
A contemporary one. In 1996, Prachanda ("the fierce one") initiated a Marxist insurrection against the Nepalese government. 13,000 people died during the conflict. Now, Prachanda is part of the interim government, and a favourite for future President. And he has managed to engineer the end of the Nepalese monarchy! So, kids, there you go: violent Maoism does pay.

Apparently, there are at least 32 ways to spell Qadaffy's name. There, I've used two already. Back in the mid-80s, he was 'Mad Dog' himself, rogue leader of a rogue state, so vile that the Yanks bombed him. And now? He has renounced terrorism and is being courted by the great powers of Europe, especially the French. Why? Because he has lots of oil and money and he wants to buy guns. And if you renouce terrorism you're allowed to buy guns and be violent. Don't you just love the way international politics works?
6. Xanana Gusmao.
1990s - public enemy number one in Indonesia, arrested for separatism and arms possession.
2008 - Universally adored President of a free East Timor. But probably still not loved by the Indos.
7. Tito.
I guess this one depends on your politics. Tito went from gun-totin' thorn in the Nazis' side in the Balkans, to suit-wearin' thorn in the Russians' side as President of Yugoslavia. The Partisan leader was prepared to piss off anyone who tried to step on his nation, again showing us that 'terrorism' is a purely relative term.
8. Daniel Cohn-Bendit.
In 1968, DCB was a firebrand French student, who led the violent, dramatic riots in Paris which nearl toppled French democracy. He was passionate, angry, uncompromising. No way would he become a part of the rotten, corrupt institutions of stagnant old Europe!
And now? DCB is a respectable, law-abiding Member of the European Parliament. Stick it to the man, Danny!!
9. Fidel Castro.
One day he's a communist revolutionary insurgent hiding out in the hills of southern Cuba. The next, he's a communist revolutionary insurgent swigging Bacardi in his palace in Havana. And still a terrorist, according to the Yanks.
10. Er..that's it.