Greg Logan breaks the story a little more than an hour ago. Ted Nolan is no longer Islanders head coach, as Garth Snow and Nolan "agree to part ways". The article mentions nothing about a buyout, so it would appear that since Nolan still needs to be paid for the final year of his contract, this was essentially a firing by Snow.
I'm sure Ken will be in with more details and opinion later today; perhaps I will expound more later when I have the time. Early candidates according to Logan include John Tortorella, Bob Hartley and Paul Maurice; Bryan Trottier is not considered to be a candidate as of right now.
Never a dull moment with this franchise.