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Sources: Washington Wizards and Houston Rockets still talking Tracy McGrady trade - ESPN

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Marc Stein reports that the Washington Wizards and the Houston Rockets are discussing a trade that would send Tracy McGrady to D.C. for Caron Butler and Brendan Haywood. No deal is imminent, however. A sticking point appears to be Washington's desire to acquire a key player from Houston in addition to McGrady, while the Rockets are only willing to offer the salary relief McGrady's expiring contract would afford Washington.