Maybe I'm crazy (I've been called worst) but I think this deal would possibly get Melo to the Knicks (and it checks out via ESPN's Trade Machine in regards to salary exchange):
Denver Nuggests acquire: Jamal Crawford (SG), Wilson Chandler (SF), Bill Walker (SG), Eddy Curry (C) and NY Knicks' 1st Round Pick in 2014. Chandler could be replaced with Gallinari, but with Crawford (and Harrington) onboard Gallo won't get enough shots and too many perimeter players on the floor simultaneously for Denver.
Why it works: Atlanta replaces Crawford (seeking a trade) with Smith and land Turiaf after striking out all summer on trying to find an adequate backup Center for Horford.
Denver solves both problems (ridding themselves of Smith and moving Anthony for value). Crawford will take the shots Anthony leaves behind, while Walker and Chandler will fill the supporting roles vacated by Smith and Afflalo. Curry basically serves the purpose of a salary exchange, but his good friend Crawford may actually help inspire him to make an eventual return to the floor. Not to mention a future 1st round pick from Knicks.
New York obviously gets their guy in Anthony, but Afflalo would play defensive specialist in the starting rotation as a SG who doesn't require many shots... yet is very accurate from beyond the arc (perfect for D'Antoni system).
Okay... now the rest of you can tear me apart for my insanity! :)