The rumors, never denied by the Vatican, specifically accuse the Vatican Secretary of State, Cardinal Tarcisio Bertone, the Pope's number two, and the director of L'Osservatore Romano [the Vatican's semi-official newspaper], Giovanni Maria Vian, of hatching a Machiavellian plan to hit Boffo [the former and allegedly driven out director of the Italian bishops' newspaper], in order to attack his mentor, powerful Cardinal Camillo Ruini, former president of the Italian Episcopal Conference, and his successor, Cardinal Angelo Bagnasco, considered too independent. Everything in a dark and serious plot now under the observation of Benedict XVI [Rorate note: a report on the matter has been prepared for the Pope by his personal secretary, Mons. Gänswein, according to this Sunday's edition of La Repubblica]. A conspiracy that reflects the harsh internal struggles within the Italian Church.
According to the article excerpt, it was thought that the Boffo affair came about in the first place as a part of an ongoing conflict between the Church and the Italian PM, but the excerpt instead brings to light information that the dossier besmirching Boffo's reputation came from inside the Church.
That sums up the excerpt at Rorate, but it has more detail and the comments are always interesting and informative after some sifting.
As I stated in a comment at Rorate, the Holy Father missed his chance when Sodano stepped down to do it, but his chance is coming up again with the impending retirement of Cardinal Bertone (he's nearing/at the retirement age of 75): once the secretary of State is out of office, the Pope needs to exercise some serious authority and break up the secretariat once and for all.