Well, now it's public that Denver would like both Favors and Batum. IMO Portland may bite at D. Harris and a 1st for Miller and Batum (Miller to NJ and Batum to the Nuggz), but it's not looking likely. What would pique Portland's interest, however, would be to rid themselves of Roy's contract. So let's make things a little simpler for the Nuggets FO with the following trade...
Here it is on the trade machine.
NJ gets: Melo, Harrington and Roy (get well soon Brandon!!).
Denver gets: Batum, Favors, T. Murphy and Morrow and a pick or two
Portland gets: D. Harris, D. James and a pick
I know Denver is reluctant to take Murphy's contract, but I think that is posturing at this point and becomes less of an issue as the season rolls along and their obligation to pay his salary is reduced. They also get cap relief by swapping Al's contract for Morrow's (who has some upside and provides depth in case any other roster moves need to be made). Most importantly, they get two young pieces plus a pick or two (hopefully). What Denver is giving up compared to the much rumored deal is cap relief. If they covet Batum this much, though, then I think it's worth it. BTW if I was GM and was looking to rebuild the team, I would want to keep Chauncey the next year or two to mentor them on playing the right way (especially given that KMart may leave after this year).
Portland needs to shed the Roy contract and will be hard pressed to do so this year because of his BYC status. They upgrade at the PG position andcan bring Miller off the bench or trade him to another team. A 1st round pick is included to seal the deal.
NJ gets Melo plus another star in Roy, plus a decent depth player in Al. Obviously this trade has a huge caveat in Roy's health, but if he can play at 80% of his normal self on a regular basis NJ may take it.