According to the Seattle Post-Intelligencer, Wizards VP of Basketball Operations Tommy Sheppard is one of two finalists for the Seattle GM job, along with San Antonio Spurs VP Sam Presti.
That's the bad news for the Wizards, because it seemed like he was never a serious candidate. The good news is that it appears the Sonics like Presti more. The article says that Presti "wowed" president Lenny Wilkins and owner Clay Bennett, and spends over half the article discussing his background, as opposed to just a couple graphs on Sheppard.
On the flip side, it's possible Presti won't leave San Antonio.
Again, I wish the best for Sheppard, and it's become clear that he's going to get his own job eventually. I just selfishly wish it won't happen in the next couple seasons, if only because the Wizards could use his expertise. Maybe he'll take a cue from Phoenix assistant Dave Griffith and stay as an assistant instead of advancing his own career.
Update [2007-6-5 15:8:20 by Pradamaster]: It's official: Presti's the new GM. Good news for the Wizards.