A gift pack has been mailed and a sit-down conversation has been scheduled. In the meantime, Indiana Pacers president Donnie Walsh can only remain optimistic about his chances of re-signing free agent Jermaine O'Neal.

"I'm always optimistic because I think we have a good product and Jermaine fits here," Walsh said Monday. "I also believe in what we're willing to do to keep him here."

Walsh has not met with O'Neal since the free agency negotiating period began July 1, but he said a meeting has been scheduled in his office on a date he would not reveal.

Walsh said he also has been in contact with representatives for the Pacers' other two primary free agents, Reggie Miller and Brad Miller.

Negotiations with those two likely will hinge on O'Neal's decision, which theoretically became more complicated last week when Miami joined San Antonio, Denver, Utah and the Los Angeles Clippers as teams with enough room under the salary cap to make a legitimate offer to a premier free agent.

The Heat now have about $10 million available for free agency thanks to an oversight by guard Anthony Carter, who failed to exercise his option on a $4.1 million contract for next season before the July 1 deadline.

O'Neal, however, doesn't have strong interest in the Heat, according to his representative, Deddrick Faison, because he doesn't want to join a rebuilding situation after seven years in the NBA.