Edwards was promised an RC211V and it was assumed that given his success in WSB and Suzuka 8 Hours and his relationship with Rossi that it would be the second Repsol seat. Hayden wanted to make the move to MotoGP and HRC told him to win another SBK crown (rumors run a bit inconsistent as to whether they wanted another AMA title or whether they had planned on him replacing Edwards (Edwards told HRC before 2001/2002 the only man he felt deserving of a second factory Honda SBK ride was Hayden) in World Superbikes).
At this point, Hayden went to Yamaha who quickly got him to sign a letter of intent for a factory ride in 2003. Upon hearing this, Honda (with major funding from American Honda) offered Hayden the second Repsol ride. Hayden signed and eventually settled the legal battle with Yamaha.
Once this announcement was made, Edwards was told there would be no RC211V with his name on it for 2003. He then told Honda to get stuffed and signed for Ducati to race WSB in 2003. After this happened, Honda told Edwards that there would be an RC211V for him in 2003 after all. So he managed to free himself from the Ducati contract under the stipulations that he not ride WSB that season.
When the details of Edwards' Honda GP contract began to unfold, it was discovered that the ride he was offered was the Bridgestone shod Pramac bike that Tamada rode that season. Anyone who knows Edwards knows that he is a Michelin man through and through and at this point told Honda to get stuffed (again) and began his search for a GP ride and landed at Aprilia.
To my knowledge (based on heresay at Colin's forum, many of which personally know him and interviews with him) this is all true.