Here are my thoughts on what they should do, as a Laker fan:
At #8, I agree with you that they should move them. A deal that goes like this would benefit them greatly. Udonis Haslem and Miami's future 1st Round Pick for Jared Jeffries and the #8 pick.
Then, I'd trade Chris Duhon, Wilson Chandler, Danillo Galinari and Quentin Richardson for Manu Ginobili, Kurt Thomas, Bruce Bowen, and their 2nd round pick (where they draft Derrick Brown).
Then, for their third and last trade, they send Al Harrington and Nate Robinson (sign-and-trade) to Cleveland for Ben Wallace and their 1st Round Pick (where they draft Darren Collison). Ben Wallace and the Knicks come to a buyout, then Wallace retires.
Then, in free agency, they sign Raymond Felton, Marcin Gortat and Kyle Korver, then resign David Lee.
PG - Raymond Felton, Darren Collison
SG - Manu Ginobili, Bruce Bowen
SF - Kyle Korver, Derrick Brown
PF - David Lee, Udois Haslem
C - Marcin Gortat, Kurt Thomas
With this lineup, you have solid "glue-guys" and role players that understand what is expected from them. They can also run-and-gun, plus they get rid of their bad contract of Jared Jeffries. Sadly, Eddy Curry is untradeable, so they will just buyout his contract.
I wouldn't be surprised if that was a playoff team, plus, the only players that go past 2010 are Gortat, Lee, Korver, Collison, and Felton. This could be a great year for New York if they did these moves.
What do you think?