Yep, that's the C64 stick. Anyway, based on the indication that people have forgiven Ironstone for their initial fumble, my current plan is to ask:
1. That I be given an agreement signed by System 3 and Ironstone that no action of any kind will be taken against me, my site or my host regarding IK+;
2. That I can continue to host my version of IK+ on my site;
3. That I retain the rights to my sourcecode and any material I generated during the creation of the game;
4. That I am credited in Ironstone's game.
In return, I will offer them:
1. Full access to the sourcecode, and permission to use and develop it as they see fit (they will have full copyrights on their modified version);
2. A signed guarantee that I will not ask for any monetary reimbursment, including an up-front fee or royalties;
3. All of the material I created whilst putting the game together (roughly 600MB of graphics, Flash sourcecode, SWF files and WAV samples);
4. A signed guarantee that I will cease development on the Flash version of IK+.
That should make both parties happy - I get to leave my site as it is, and Ironstone get a four month head-start on their own version. Whether they will go for that I do not know; they might decide that the presence of another IK+ game on the internet is not acceptible. However, there's not much they or I can do about that, as the game has spread all over the internet and is hosted by at least a dozen other sites. Many of those are based in Argentina, which has a famously lax attitude to copyright law.
What is the reasoning behind my plan? Well, I am solely interested in ensuring that my version stays on my site, that I retain control over it, that I host it legally, and that any forks from my code acknowledge their heritage. I have no interest in trying to sell the game.