I promised you all more transfer news when I got it, and I have some more!
According to wearethenorthbank (the same blog that broke the Downing story), we have reopened talks with Southampton over winger Alex Oxlade-Chamberlain. For me, it's good news - the only two players we have that can play on the wing are Arshavin and Nasri. Walcott isn't a winger, and neither is Bendtner.
The article above says that the sticking point of the deal the last time the clubs were negotiating was the sell-on clause; Southampton wanted more than we were willing to give them. Sell-on clauses have been used very cleverly by Arsenal in the past - David Bentley got us something like £5 million when he moved to Tottenham for £17 million. I'm sure we'll be able to strike out a deal, and I hope we do.
As usual, any more concrete news will be up as and when I hear it.