According to Jayson Stark, there's a major sticking point in the proposed trade for Roy Oswalt. Oswalt, who has a $16 million option for 2012, won't waive his no-trade clause unless the Phillies (or any team he goes to) pick up the option. Right now, the Phillies are balking at that request.
The article also mentions that the Phils are still pursuing Dan Haren and Ben sheets. And they wouldn't be opposed to trading J.A. Happ either.
From the looks of it, Oswalt is the hold up in the trade. Ryan Lawrence of the Delco Times says that it could be another pre-deadline staring contest.
By pursuing a front line starter, the Phillies are essentially admitting their mistake in letting Cliff Lee go. If this trade is completed in some shape or form, Werth and Lee would basically be swapped for Oswalt and Domonic Brown on the 2010 roster. Not exactly an upgrade. But in 2011 and beyond, the Phils would retain Oswalt and perhaps some prospects, where they likely would have lost Lee and Werth. If it shakes out that way, this would be an overall win for Rube.