I believe the reason we're hearing reports of a 3 way deal with DAL, POR, and NJ is that Portland doesn't want Kidd. He doesn't fit with their long term plans and IMO would be a MAJOR risk to their current chemistry. It just doesn't make sense from a Trailblazers perspective.
Here is the trade I proposed:
http://games.espn.go.com/nba/features/traderesult?players=987~429~2382~998~841~2768~454~2795&teams=22~6~22~22~17~6~17~17&te=&cash=
This is a bit more simple trade that I believe works for all three teams. Portland's got Jack, Webster, and Lafrentz going out for Harris, Collins, and Hassell. Hassell can provide spot minutes at 2/3 and Collins essentially takes Raef's spot as an emergency big man. Hassell's contract is the same as Miles, hindering Portland's '09 cap space plan. Harris becomes, IMO, an almost ideal backcourt compliment to Roy, he can focus on playing stellar defense, pick his spots on offense, and get the ball to the guys around him.
Dallas has Kidd and Jack coming in for Harris, Hassell, and Terry. Dallas can take a shot winning big with Kidd/Howard/Nowitzki and they get a young Jarrett Jack to help with the loss of Terry and Harris. IMO this trade is the most unbalanced for Dallas, so perhaps some other form of compensation (Portland has 4 picks, Cuban could care less about cash) would have to be given to them.
New Jersey gets decent value for Kidd in Terry and Webster, plus Raef's big contract comes off the books next year. Next move for NJ: Trading Vince Carter - let the rebuilding in Brooklyn commence! If I were a NJ fan I'd certainly rather have M. Williams, Terry, Webster, Jefferson, S. Williams, Boone, and something for Carter that what they have now.