Diana Gagnon, 49, died on Tuesday, November 2,, 1999 ast Piedmont Hospital, Atlanta. She had been in failing health for 4 1/2 years. She had one son, Chad Palmer, and three stepsons. At one time she had been employed by Kraft Foods in Champaign, and Switchcraft and Sorenson in Paxton.  Donations were made tthe American Diabetes Association and the American Kidney Fund.