The saga of ButtonGate II continues to evolve. For the neophytes, here is the story so far:

1. Jenson Button had an option contract with Williams for 2005. BAR also held a contract with Button for 2005.
2. In August 2004, Button signed a contract with Williams for 2006 and beyond. The contract stated that Button would be claimed by Williams unless he had scored 75% or more of the points of the drivers championship leader by the end of August 2005.
At the time Button claimed to not know that Honda were buying a stake in the BAR team and intended to be a strategic long-term engine and expertise partner with BAR. Button was apparently worried that Honda would terminate supplying engines to BAR, leaving him driving for a team without a "works" engine deal.
3. The Contract Recognition Board ruled in September 2004 that the BAR contract was valid for 2005.
4. BAR have had a poor 2005, relative to 2005. Button has scored a fraction of the points necessary for BAR to retain him under the terms of the Williams contract. Williams have therefore made clear their expectation that Button will drive for them in 2006.
5. Button has refused, pleaded etc. with Williams that he really wants to drive for BAR in 2006. He met with Williams in mid-August and told them that he did not want to drive for them in 2006. He has claimed that the contract was contingent on Williams having a partnership with a manufacturer such as BMW, and with the imminent termination of the BMW partnership, he should not have to drive for Williams. Williams are insistent that he will honor his contract.
6. BAR want to keep Button and have apparently already offered to buy his contract from Williams. At this time, they appear to have offered insufficient money to interest Williams, who are believed to be negotiating sponsorship deals contingent on Button driving for them in 2006 and beyond.

The latest developments are:

- Williams have lodged Button's 2006 contract with the Contract Recognition Board. This suggests that they expect that the CRB will need to meet to rule on the validity of Button's 2006 contract, and they are preparing for that eventuality.
- BAR have signed Rubens Barrichello to a multi-year deal. This gives them an alternative for 2006 and beyond if they lose Button.
- BAR have hinted strongly that they will not pay more than $20m to buy back Button from Williams. Nick Fry of BAR has made comments that that sum of money is more than Newcastle United just paid for Michael Owen, a top-flight goalscorer.

It looks like Jenson Button has (either on his own or in collaboration with his management) succeeded in digging himself into a monumental hole. Either he has been badly advised, or he is inept at self-management.
To be fair to Button, many great drivers have resorted to dramatic measures to put themselves in the best possible position to win. Alain Prost left McLaren after 1 season in 1980 to join Renault, using a contractual loophole. That allowed him to start winning races in 1981. Ayrton Senna triggered a buyout clause in his contract with Toleman to move to Lotus in 1985, which allowed him to start winning races. He then proceeded to use his #1 driver status to veto the arrival of Derek Warwick at Lotus for 1986, because he was convinced that Lotus could not run two equal cars. (History shows that he was almost certainly right). Michael Schumacher swiftly left Jordan after 1 race in 1991 to sign a long-term contract with Benetton.
The difference, however, is that in the examples outlined above, the drivers in question were able to use amibguous or exploitable contract language to escape from what they perceived to be less favourable driving situations.
Jenson is smart enough to have noticed that great drivers in F1 always start winning relatively quickly - Prost, Senna and Schumacher all won races in their second seasons. He, however, has been in F1 for 5 seasons and has yet to win a race. He has also had to watch newer arrivals such as Fernando Alonso and Kimi Raikkonen win races while has not.
Not surprisingly, Button does not want to find himself regarded as a driver who never fulfilled his potential. However, what he appears to lack is the adroitness of the previously-mentioned drivers. As a result, Button has dug himself into a contractual hole, but has no legal escape route. If he does not want to drive for Williams, he faces the prospect of sitting out at least the 2006 season, which will probably terminally impact his F1 career.
Begging and pleading to Frank Williams is more likely to result in a variation on the Cockney response of "you're breaking my 'eart" than it is to result in his release from the Williams contract. Right now, Williams needs Button desperately to get themselves onto a sound commercial footing following the imminent departure of BMW.
(Side Note for Button to consider: In 1984, Derek Warwick, then driving for Renault, was offered a drive with Williams in 1985. At the time, Williams was struggling with the new and unreliable Honda turbo engine. Warwick turned down the offer, electing to stay with Renault, who became uncompetitive in 1985 thanks to a bad car. The drive at Williams instead went to Nigel Mansell, who won 2 races in 1985, and we know the rest of the story...Mansell went on to become a world champion, Warwick retired without winning a race).
This saga will run and run. I expect that the CRB will rule at the end of September that the Williams contract is valid. BAR will then need to decide how much money they are prepared to pay for Button. Rumours are that up to $90m may be required to change Frank Williams' mind. I doubt if Honda are prepared to pay that much for Button right now.
Jenson Button strikes me as very gifted inside the cockpit, but a neophyte outside the cockpit. He needs to find himself a mentor outside of his family and management company who can sense-check his future decisions.