http://news.bbc.co.uk/2/hi/middle_east/6274147.stm
I think it was a huge mistake for the Bush administration to have rejected this proposal from Iran, given that all the reports detailing the alleged Iranian proposal are accurate. Now we're trying to get Iran to concede roughly the same issues that they had allegedly offered to concede in 2003.
That said, I find it surprising that the mullahs, who have thus far built their images around being anti-Israel, pro-Palestine (a "cause" which has helped Iran so much...j/k), etc... willing to let go of those issues. I hope there will be some sort of turnaround soon that will allow us to go back to the negotiating table with Iran.