My guess is that negotiations have been interesting, but they will evntually get it done. I say interesting, because where where their own RFAs are concerned, under Sather, the Rangers have operated cloer to NJ's style than people realize. They have not been particularly generous, things have gotten done, but they haven't given out huge contracts because, well, they haven't faced a situation where they have had to yet. In fact, in a few cases in the last few years, Sather has pulled deals for his RFAs off the table if they haven't taken what he is offering. They haven't been particularly important players, but he simply hasn't been all that generous, and he hasn't been patient.
I would guess that the Rangers probably tried to open negotiations using the Kiprusoff contract as a benchmark, I believe he's making an average of $3.33M a year, he's been to a Cup Final, won a Vezina and been nominated for another. It's what I'd do and it's not an unfair benchmark to use. He doesn't play in NY but it really doesn't matter, by his resume he's accomplished more than Lundqvist. I would also guess that didn't go over particularly well, especially after the UFA contracts were signed, even though the situation for an RFA and the situation for a UFA are completely different.
In the end it may come down to the agent. Who is his agent? If the agent decides to advise Lundqvist to hold out for more $$ because the Rangers are being 'unfair' then what could have worked out easily could deteriorate into something ugly...no matter what the team and the player originally intended.