The Knicks and Rockets are still haggling over draft picks in their talks regarding Tracy McGrady. The Knicks have not yet agreed to give Houston two first-round picks (2011, 2012). Houston not only wants the two picks but wants one of the picks to be unprotected (with the other pick, the Rockets would have the right to swap). If the Knicks agree to give both picks, the level of protection will still be an issue.
Sources say the Bulls' chances of getting McGrady are slim, but not yet completely dead.
Houston is trying to charge the Knicks a steep price for taking on Jared Jeffries.