Here is a run-down of what I feel should be the ground rules for negotiation.
What we concede; 1) Make sure this is done in Spanish 2) Ask them what we need to do in order to get them back into the Wikipedia community. 3) Promise that we will never have any ads. 4) We will strive to make Wikipedia as non-U.S./English-centric as possible and ask them what we should do in order to accomplish this. 5) Explain the benefits of being part of the more general Wikipedia community (inter-language links that work both ways, funding, publicity, cross-traffic and cross-collaboration and contributions) 6) State that we have no intention of ever removing es.wikipedia.com but we could point that URL to the Seville server is they wish to stay on that server.
What we want; 1) Have them formally rejoin our project by changing their primary name back to Wikipedia or a convenient Spanish version of that word ("Huiquipedia" maybe). 2) For them to use Phase III software. 3) Provide inter-language links to all Wikipedia language projects. 4) For them to use Intl-wiki-L. 5) Update their about page to remove misleading statements about Wikipedia, especially the English Wikipedia.
What would be nice; 1) For them to return to our server.
If negotiations break-down; We set-up es.wikipedia.org with Phase III and ignore EL. OR We set-up es.wikipedia.org with Phase III and provide el: inter-language links to their project.
-- Daniel Mayer (aka mav)