I think they're a much better playoff team than Denver (defensive teams do better in the playoffs) but I DO think that they're a little overrated right now. Only way I can see them getting to the Finals is if Granger starts playing out-of-control from this point forward. They need a player to emerge as a superstar, to pull them through tough situations. George i too young, Hill is turnover-prone, Hibbert is currently unreliable (might change) and West is past his prime. Granger's performance is the biggest "if" for that team.
Right now, George Hill turning over the ball left-and-right isn't going to cut it. A full-strength Miami Heat team would easily dispose of the Pacers; the lack of Chris Bosh really hurts things for their team, though.
Ok, then Memphis.