Benedict has made his offer; they have til the end of the month to decide.
Il Giornale says that the accord proposed by the Vatican has several stipulations, including two important provisions that the newspaper has learned: the SSPX would be required to recognize the authority of Vatican II teachings and to affirm the validity of the Novus Ordo Mass. The late Archbishop Marcel Lefebvre, the founder of the SSPX, had accepted both of those terms before his break with the Vatican in 1986.The Vatican proposes the erection of a traditionalist prelature, Il Giornale reports. This prelature would allow the SSPX to continue its work and to train its own seminarians.
In other words, kiss the ring and you get to go on as before. Refuse to do so, and you're facing a declaration of formal schism. Where Rome has already brought back the 1962 Missal, Benedict's hand is strong. The SSPX will potentially see its laity drift back to Rome if the laity believe that their leaders are heretics.
UPDATE: Looks like the SSPX is refusing the offer. At some point, the church is going to have to declare them heretics.