The reports have Shockey being traded to the Saints for second and fifth round draft picks in 2009.
As far as impacting the Eagles, I think the trade makes the Saints a top contender in the NFC. Their offense, already dominant, will be greatly improved with the addition of Shockey. Just one more quality target for Drew Brees. Prior off-season additions have already addressed the Saints' defensive weaknesses.
The Giants managed last season's playoff run without Shockey, showing they can survive and excel without Shockey in the line-up. Though it does put extra pressure on Kevin Boss to continue his maturation into a top tier tight end.
Maybe Sheppard is next in the series of stars being traded for picks.