So I can't sleep, and just heard this stuff about a possible sign and trade of Davis to NJ, and figured I would play around with this a bit, because perhaps this is what is holding up the Daniels signing.
So here is what I have:
Boston sends Davis (signed for a deal starting at $4 million) to NJ, Tony Allen to NJ (whose contract would be absorbed by the trade exception they got for Vince Carter), Gabe Pruitt to Indy, and a future first rounder to NJ.
Boston gets Daniels (signed to a deal starting at $3 million), and Yi Jianlian. This should work, even with Davis' base year status.
This deal makes some sense for NJ, if they really like Davis, and have soured on Yi (OK, this part is just speculation...but you can also plug in Dooling, or Hayes, and make this work in a similar way). They get a future pick, mainly for Yi (they wouldn't get this if they gave up someone like Hayes). And Tony Allen might actually be a decent pickup for them, since he can excite some of their fans for the year, even though they will be sucking it up.
And for the Pacers, they don't take on any guaranteed salary, but get a trade exception, and the option to give a guy like Pruitt a try. Walker or Giddens could also be substituted for Pruitt in this scenario.
As you can see, the parts are still up in the air, but I would not be the least bit surprised if there is some sort of three-way deal being formulated here, that uses NJ's trade exception to help balance off the salaries, to get around the BYC status.