http://michigan.rivals.com/
According to Rivals, Ferentz is no longer an option for the Wolverines and will not be the next coach. I'm not a subscriber to Rivals, but the article was reposted in various places and you can get th gist of it by checking out the various Michigan fan sites/blogs.
So big sigh of relief here if it's true he's no longer a candidate. Teh intraweb and its many tubes are bad for my health.