The offerings from Houston, sources said, weren't as plentiful as previously believed either. In both the two-team talks with Houston and three-team discussions that involved the Lakers and would have sent center Andrew Bynum to the Rockets, sources said Houston was offering only two first-round picks. From Houston's perspective, however, the comparative value of the picks far outweighed anything available to the Magic elsewhere and it had been made clear that a third pick could be added "if it got the deal done."One of the picks, which would have come via Toronto as part of Houston's recent trade of point guard Kyle Lowry, has protections that make it likely to land in the lottery. The other being offered, by way of Dallas, had an outside chance at becoming completely unprotected in 2018 if the Mavericks didn't finish the regular season in the league's top 10 in the five years prior.
Many assumed that the Rockets' three first-round picks from this year's draft -- guard Jeremy Lamb and forwards Royce White and Terrence Jones -- would be made available in a Howard deal. But sources close to the Magic said Lamb was the only such prospect offered, and that he was off the table by the time the talks involved the Lakers and Lamb had impressed at the Las Vegas summer league in July (he averaged 20 points in five games). Meanwhile, unwanted players like Gary Forbes, Jon Brockman and Marcus Morris were made available (along with shooting guard Kevin Martin, whose expiring $12.9 million contract was a must to make the money work).
On the Rockets' side, meanwhile, sources said the message had been sent that the Magic could have one or possibly two prospects from a pool that included Morris, Patrick Patterson, Lamb, Jones, White and Donatas Motiejunas. Houston offered significant salary-cap relief, but, as had been the case on the topic of young players, never in the form that the Magic wanted.
"I enjoyed working with Rob on a potential deal," Rockets general manager Daryl Morey told SI.com via text message. "He went with what was best for Orlando and over time people will see that he has made a good decision. He has a plan for Orlando and he has proved his ability to execute a plan to make franchises great from his time in San Antonio and Oklahoma City."
Source: http://sportsillustrated.cnn.com/2012/writers/sam_amick/08/15/dwight-howard-rob-hennigan-orlando-magic/index.html
This guy Morey is killing me. I thought he was going places when he started but he has been a momumental failure.
Seems to be the type to always want to "win" a trade on paper and lose in real life. Flash back to the Knicks trade. We dumped our garbage and low picks on him for Amare.
Did he think Orlando was going to give him Howard for his under performing lottery picks. 
Like the title says.