From Chad Ford of ESPN.com as of Wednesday morning around 10:30:

Cavaliers interested in Gerald Wallace?

The Charlotte Bobcats seem intent on moving Gerald Wallace to a new team by the Thursday deadline and have aggressively courted the Mavericks, Rockets, Clippers, Pacers and Cavs. The asking price has been an expiring contract and a protected first-round pick.

So far they've been unable to get a team to bite, though there have been rumblings Wednesday morning that the Cavs may use their $14.5 million trade exception generated in the LeBron James sign-and-trade this summer to land Wallace by the deadline.

If these reports are true and all Charlotte is seeking in a trade is an expiring contract and a protected first rounder, I don't see why we don't jump on him.  Wallace is on the hook for three more years (the third year of his contract is a player option @ $11.4 million). Mike Dunleavy has a comparable contract.  T.J. Ford + a first round draft pick is also match salary-wise.

Wallace, although he's a natural small forward, is slightly smaller than Granger and could easily slide into the shooting guard position a la Mike Dunleavy.  He's an upgrade over Dunleavy and at a much cheaper rate (considering Dunleavy is in the final year of his contract, the Pacers would have to consider resigning him at the end of the season) over the next three years.  He adds both scoring and defense - two things that could put the Pacers in serious contention for a middle-of-the-pack playoff spot.

Even if the Pacers acquired Wallace, that still gives them upwards of $20 million in cap space for next season to sign a top free agent at the power forward position.  Imagine a starting lineup of Collison, Wallace, Granger, FA Power Forward, and Hibbert with AJ, Rush, George, Hansbrough, and Foster as the second unit.  That's a deep, competitive eastern conference playoff team!

A trade can be made!  Do it, Larry!  Here's your chance to one-up MJ yet again!