The Pirates are apparently ready to cut bait with Xavier Nady, and are looking to trade him before the deadline for offering arbitration, with the intent to non-tender him if they can't work out a deal.
Put him in the category of guys I'd be interested in if you could get him without giving up much. If you could work out a deal similar to the Ricardo Rodriguez for Vicente Padilla deal -- giving up a fringe guy who doesn't appear to have much of a future with the Rangers -- then I'd do it. I wouldn't give up a real prospect, though.
Nady is 2 years away from free agency, will probably make about $3.25 million in 2008 (if he isn't non-tendered), and would give you about league-average production or a little less from first base or right field (although he's not a good defensive outfielder).
As a short-term solution, he's a viable option. If you can get him from the Pirates for, say, a Chad Tracy or a Tim Hulett, I think you do that. But if it costs you more than that, pass.