From Luke Decock of the News & Observer:
The Canes have talked to O'Neill and Jeff Taffe, Rutherford said, but both are holding out for one-way contracts.
O'Neill sat out last season after the Maple Leafs decided not to re-sign him. Carolina traded him to Toronto in August 2005, only a few months after O'Neill's brother Donny died in a car crash. The loss left O'Neill a mess and he seriously considered retiring then. After scoring 19 and 20 goals for the Maple Leafs, he did.
Read the entire story here.
If the Canes are deciding between O'Neill and Jeff Taffe, I see them siding with O'Neill. Not only are they familiar with him, but he has far more offensive upside, even though he sat out last season. However, I wouldn't expect him to sign a two-way contract unless there is some kind of agreement in place so if he didn't make the team, he'd be released.