First from MLBTR, The Yanks avoided going to arbitration with Xavier Nady by settling with him for $6.55M. PeteAbe points out that he nearly doubled up his salary. It's a little higher than most of the estimates I heard before, but no so much that it will affect his trade value.
Good for you, X. You rode that extremely high BABIP you had last year into the best season of your career. Your .305 batting average was .25 higher than your next closest season. Your OPS+ was 128, 19 points greater than any other year. Unfortunately for the team you end up playing for, you're probably coming back down to earth in 2009.
[Update: 6:45] Melky Cabrera has also settled with the Yanks for $1.4M. Only Brian Bruney remains.