1.Draft a SG
They should get a good SG. Hakim Warrick is I think what they're focused on right now. Other good choices for the 20th and 22nd draft picks would be Johan Petro, CJ Miles, Kennedy Winston, Rudy Fernandez, ior they could trade their draft pick, like they did last year, and hunt for a free agent, like Ray Allen!
2.Resign DerMarr Johnson and let go Voshon Lenard
Nuggets should definately resign DerMarr Johnson. After being in a bad car accident, I think DerMarr had proved that he deserves a roster spot on the Nuggets. Lenard needs to lose the thing that hangs to his stomach and start working on conditioning. They should also resign Wesley Person and maybe Flores and Pope, since they don't have big contracts, they would be taken from the injured list if someone gets hurt. They should also let go Bryon Russel, he is too old. He probably play one season with a team like Atlanta or Charlotte and then retire.
3.Get some players from free agency.
They Nuggets should compete for Ray Allen. They also should compete for Larry Hughes(alothough I think he'll stay with Wizards). Personally I think they should try to get a SF that would be subbing in for Melo. Also they might want to sign a three-point shooter, Person can't score 7-8 three pointers every game, since he is the onyl three point thread, if they won't resign Lenard.