From sources around the world, some in print, some by phone, some by Speckled Jim.
Argentine organizer of the Kasparov-Ponomariov match, GM Miguel Quinteros, has been back in the news saying that the match is back on for June. He has also been quoted as saying he was contacted by someone from the organization of the Kramnik-Leko match about hosting it in Buenos Aires. This has been denied by Einstein.
This makes me assume that the manager of both Leko and Kramnik, Carsten Hensel, has been fishing in Rio de la Plata. He has said that he will give Einstein every chance to organize the match, but it would make sense to keep his eyes open. He may believe he can find a sponsor without Einstein's overhead. Kramnik has a contract with Einstein, but I don't know what it would be worth if they can't put a match together.
The Moscow News says something about Einstein turning down Budapest because they don't want to spend money in Eastern Europe, and that they have sought Dubai as a host. Their casting a wide net is to be expected. But I doubt they are turning anyone down if the money is right.
One of the curious things about this latest round of rumors is how much FIDE is talking about the Kramnik-Leko match. I'm not sure what to think about this apparent change of heart. I had thought they would be happy to let it die if Einstein couldn't put it together, but several FIDE people have talked about hosting the match together with the Kasparov-Ponomariov match. I guess that would be a coup of sorts, and two matches aren't much more expensive than one, other than the prize funds, which are probably dropping daily.
I think part of this is Kasparov wanting a shot another shot at Kramnik. The politicians find it easy to ignore the past, but a man who is releasing a series of books called "My Great Predecessors" (Everyman Chess) and who majored in history cannot. Although Kasparov has stated he believes Kramnik's title has expired since he was obliged to defend it in 2002, he badly wants to beat Kramnik in a match. Of course he'll take Leko if the Hungarian manages to beat Kramnik. Kasparov thinks often of his legacy and it would be Hollywood Goes to Baku if the 40-year-old recaptured the unified title he was the last man to hold.