(I would have NBA Trade Machine-d this ish, but it doesn't allow you to include cash or draft picks. Bummer. But without further ado...)
PG Chris Paul
SF Matt Barnes
SF Hedo Turkoglu
Cash considerations (from Hornets)
SG/SF Landry Fields
PG/SG Toney Douglas
Knicks' first-rounder in 2013
PF/C Daniel Orton
PF Lamar Odom
SF Trevor Ariza
Lakers' first-rounder in 2012
WHY THE KNICKS WOULD DO IT: They get their Paul/Melo/Stoudemire foundation, amnesty Hedo to keep their payroll under the luxury tax (around $63-$64 million, so they could even afford a couple of veteran-minimum guys), and roll out a starting five of Paul-Barnes-Melo-Stoudemire-Turiaf, which has the potential to be even better than Chalmers-Wade-Lebron-Bosh-Anthony.
WHY THE HORNETS WOULD DO IT: Paul is pushing hard for New York, and the Hornets don't want to go through the same charade that Denver went through last year with Anthony (thus increasing their pressure to pull the trigger on a deal right away). They end up still getting a decent haul of young players; Douglas/Fields/Anderson is a potentially powerful trio, and with Chauncey/Jack at PG and Okafor/Anderson at center they could even be a playoff team AND a young rebuilding team in the same year. Worthy of note: Some cash has to go to the Knicks to offset the salaries they'll be taking on; as this trade would push New Orleans far under the salary cap (at about $50-$51 million), they would be the most likely to pass cash on to New York (about $7 million would be required, which incidentally would be the exact amount the Hornets could spare while still remaining under the cap).
WHY THE LAKERS WOULD DO IT: Kobe, Gasol, and Howard. Yikes. It'd be hard to imagine them losing the West anytime soon. They'd also save around $6 million in the trade, which'll be extremely valuable considering the new CBA and their current glut of high salaries.
WHY THE MAGIC WOULD DO IT: It sucks to lose Howard, but getting Bynum is almost the best compensation you can get. Add in the underrated (and underpaid) Odom, as well as the overpaid-but-potentially-valuable Ariza on a team in need of a swingman, as well as the fact that the deal actually saves Orlando $2 million and gets them a second first-rounder in 2012, and it makes sense from their angle as well. Also, a starting five of Nelson-Reddick-QRich-Odom-Bynum, if Andrew can actually stay healthy, could potentially make some noise in the East.
Fire at me in the comments!