8:26pm: Adam Kilgore of The Washington Post clears things up. He says Villone was re-signed to a minor league and assigned to Extended Spring Training, presumably for conditioning purposes.
3:06pm: The Nationals have apparently retained lefty reliever Ron Villone, based on this tweet from MLB.com's Bill Ladson. Ladson says Villone is "back in the Nats organization, working out in Viera, Florida right now." The Nationals had released Villone in March after three spring appearances. Ladson notes that Villone had a leg injury prior to the release, which probably explains why they were unable to let him go.
Villone, 40, posted a 6.66 K/9 and 4.81 BB/9 in 24.3 innings against lefties last year. Control was a problem in '08 as well, through he had a better strikeout rate. Villone has pitched for a dozen different teams in his 15 seasons.