Wow, this news was unexpected to say the least. I don't even know all the details so here is the story:
Basically Foulke, who had MRIs the other day, is getting arthroscopic knee surgery. This will put him out for about 4-6 weeks. Meanwhile, Schilling will probably not join the team until after the All-Star game but will be rehabbing out of the pen in Pawtucket.
I think this is a good move for the moment. Schilling was doing very well early in the season in the 1st and 2nd innings. I calculated it at one point and opponents were batting .100 in Schilling's first inning and .250 in the 2nd. The first time through the lineup, opponents were batting .269 which wasn't bad at all compared to the .400+ they were batting their 3rd time up.
Long term though, we need Foulke as a closer and Schilling as a starter.