Ms. Kraus and Ms. McLaughlins disillusionment with the film contract they signed appears to be substantial. Sources involved in the negotiations said that Ms. Kraus and Ms. McLaughlin were distressed to learn that in signing initial binding short-form agreements with Miramax, they had signed away rights to their characters, not just to the novel. They were also upset that Miramax would have the right to turn the story into a television property. But The Nanny Diaries had already hit the best-seller list, and Miramax was sitting on a potential gold mine.