Discussion- What should we do with sex offenders?

I think that criminals who have been convicted of a sexual offense should be released back into the community slowly, if at all. These individuals are very sick! The situation with the girl that was held captive for 18 years is a perfect example. These peoples' parole officer was stopping by and never knew a thing. In my opinion, their parole officer should lose his/her job. They (the government's legal system) should be keeping a much better eye on these offenders and making sure there is nothing fishy going on, they should be checked on daily if necassary and if they need that much surveliance, then they should be locked up still, or in a mental institute.
I think that some sex offenders should be kept in a prison or a mental institute for life with no chances of parole. Most of them, in mine and many others opinions, are so sick they will never get better. Obviously, there should be a much better system to take care of this wrongful issue to prevent this kind of issue from happening. In a perfect world, there would be no sick people and everyone would know right from wrong, but sadly, that world is a long ways to come.