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Bonzi gets S&Ted to Indiana on a 5 year deal(team option for the 5th year) starting at 8 million. The Pacers also get a first round pick(edit: forgot to say who it was from, thanks for pointing it out) from Sacramento.
Why Indiana does it: They don't have the money to just sign Bonzi(who Jermaine wants on the team). This way they also get a durable pass first PG in Andre Miller and a first round pick. The pacers want to get rid of Stephen Jackson too right? Giving up David Harrison is hard but you still have the MLE to go get someone like Lorenzen Wright that can fill the C spot for you.
Pacers line up after this:
Miller/Tinsley(if he plays)/Jasikevicious
Peja(if the pacers want to re-sign him, they can always S&T him)/Granger
Why the nuggets do it:
They get a ton of expiring contracts(Corliss Williamson, Croshere) so they can pay for Melo's extension and re-sign Nene. They get a shooting guard that will start and a solid PG in Anthony Johnson. They don't want Kenyon Martin anymore anyway.
Why the Kings do it: It's tough to give up Bonzi(kings probably plan on re-signing him) but the team already has Martin+Garcia anyway. The frontcourt needs a lot more athleticism+size because Bibby and Miller are bad defenders. The pick could probably get the team a back up PG but you have the MLE there too. The Kings basically need more frontcourt depth(and I do not mean bad players like Kenny Thomas! ). This trade does that for them.
The kings sign Bobby Jackson and Rasual Butler with the MLE