So it seems like his situation is coming to the end.
http://hangtime.blogs.nba.com/2010/08/26/melo-situation-at-boiling-point/?ls=iref:nbahpt1

I know Houston and Orlando were named as possible destinations. Houston has the pieces to do it. They could package Battier, Kevin Martin, and Jarred Jeffries. And they would get Carmelo and JR Smith. I know stats say this and stats say that. But Carmelo has a much, much, much higher PER than Kevin Martin. Yes Martin is more efficient, but all he does is shoot. Carmelo rebounds and can play some pretty tight defense (when motivated) and is one of the leagues best players. If I am Denver I am not so sure that is a bad deal to turn down. Two expiring contracts and Battier is still a good player. Very solid. And they clear a bunch of cap space.

What does Orlando have to offer, let us look. Bass and Gortat are obvious candidates. If at all possible, I would keep Ryan Anderson. From reports, it looks like he is going to have a JJ Reddick type break out season this year. Pietrus? Should be able to hold onto him. Need his defensive presense. But he is still tradable. In fact I include him in this trade.

Vince Carter, Pietrus, Gortat, Bass for Melo, JR Smith and  Nene. If I am Denver I don't mind holding on to Martin and getting the cap space. His 16 mill plus the 13 from Vince Carter allows us to start getting under the cap. Plus 5 more from Pietrus. Clearing34 million in cap space would be fantastic if you are gonna blow the whole team up.

So if your Denver do you look to build around a shooter in Kevin Martin or blow the whole team and clear as much space as possible?