Tony Jackson of ESPNLosAngeles.com updates the arbitration situation with Hong-Chih Kuo and James Loney:... In each case, the gap seemed small enough that the sides would appear likely to reach an agreement well in advance of going to an arbitration hearing in February.Kuo, who made $975,000 last season, is seeking $3.075 million through the arbitration process, while the club filed at $2.55 million. Loney, who made $3.1 million last year, is asking for $5.25 million while the club filed at $4.7 million.If either player goes to a hearing, after hearing each side state its case, a three-person arbitration panel would be forced to choose one of those two figures, with no wiggle room in between. Until such a hearing, though, the two sides are free to reach an agreement at any figure, and the