Being from just outside of Bloomington and hearing A LOT about this story...her is what I have heard lately...
1) IUs AD (Fred Glass) is new to the job...he is best known for recently getting the SuperBowl to come to Indy in 2012...and then hiring Tom Crean for BB coach.
2) IU (Fred Glass) is NOT interested in Leach...nor is Leach interested in IU. Glass stated that he wants someone of character with ties to the midwest and can recruit Big 10 country well...Leach has none of that.
3) There are a few names that are out front...
Brady Hoke...currently at San Diego State, last at Ball State, prior a Michigan assistant...has the ties to the Big 10 and midwest, would love to come back, proven to build a team up, right now the front running candidate...will have to wait and see what happens with Michigan and the RichRod thing, if Hoke could go back to Michigan, even as an assistant or OC, he will.
Scott Polian...currently an assistant at Stanford...son of Bill Polian (GM for the Colts), has strong ties to the midwest in family, friends, and contacts...not sure how well he could recruit the midwest...although, it has been suggested that IU is not that interested in someone with little or no head coach experience.
Gary Patterson...ot sure since TCU is now heading to the Big East (i.e. automatic BCS bid easy)
There are a couple of co-ords and such being bantered around, but as of now...that's about the pile.