According to Real GM, Thomas & Skinner OR Corliss, Skinner and KMart for Magloire works under the cap.
I'm not quite sure why the Hornets would WANT to trade Magloire, but there's sure a lot of noise out there about a potential deal.
I have to believe the Kings could offer a more atttractive package than, say, the Raptors, who want Magloire because he's Canadian.
If the Kings could get Magloire without giving up K. Thomas, they'd have a nice three-man rotation at PF/C with Thomas, Miller and Magloire -- plus, I'd hope, Songaila.
All that being said, I'd wager a nickel that they somehow end up with Walker.