Chicago Democrat Style Capitalism

Going once, going twice... SOLD! to the, as yet unnamed, candidate #5. Corruption, corruption everywhere and not a dime to steal. Duplicity seems to be the soup du jour in Chicago. From Mayor Daley (both of them) to Obama's questionable dealings with Tony Rezko and now to Illinois Governor Rod Blagojevich. Blagojevich has quite possibly beat them all by attempting to sell the Senate seat vacated by President-elect Barack Obama. He is reported to have said "[The Senate seat] is a f***ing valuable thing, you just don't give it away for nothing."
Um, yes you do Governor, that is precisely what you are supposed to do.
President-elect Obama is experiencing some very predictable lapses in memory regarding the issue. The Chicago Tribune reported Obama as saying "I was not aware of what was happening, I had no contact with the governor or his office and so I was not aware of what was happening." That's very Clintonesque of you Mr. President-elect.
I am quite certain this is only the beginning of his memory problems regarding Chicago politics. But I would like to know the extent of Obama's involvement with these shady dealings. Did he instigate the deal? Did he tell Blagojevich he would not offer him anything; after all, the Governor somehow knew that Obama was not going to offer him anything. He must have been speaking with someone. In short...
What did the President-elect know and when did he know it?