New York ? The first week of the NBA free-agent signing period dramatically altered the landscape in the Eastern Conference with the arrival of Shaquille O’Neal in Miami and the departure of Kenyon Martin from the Nets.

The Knicks’ activity was confined to generating the most trade rumors, some of which actually have a chance of coming true, with team president Isiah Thomas in his wheeling-and-dealing mode.

Now that the dust has settled after the initial flurry of signings and trades, it’s time for Thomas and Nets CEO Rod Thorn to make the moves necessary to remain competitive. The elite teams in the East — NBA champion Detroit, Indiana and now Miami — all improved.

The Pistons managed to re-sign Rasheed Wallace and added former Knicks forward Antonio McDyess in a backup role. Indiana traded Al Harrington for Stephen Jackson, giving the Pacers the shooter they need as aging Reggie Miller winds down. Miami needs forwards and a backup point guard, but Shaq makes the Heat an instant threat to win the conference.

New Jersey’s Thorn can afford to be patient because he’s in position to take $30 million off his salary-cap figure and become a major player in the free-agent market next summer. Trading for Portland forward Shareef Abdur- Rahim would be an upgrade, but Trail Blazers general manager John Nash might be reluctant because Abdur-Rahim’s salary comes off the cap next year.

In that case, Thorn would do well to trade for Cleveland free-agent forward Eric Williams, who can replace some of the defensive intensity lost in the Martin trade.

Thomas has three primary targets — Chicago combination guard Jamal Crawford, Golden State center Erick Dampier and Dallas power forward Antoine Walker — but there are problems with each trade possibility. In addition, a report out of Toronto that had Vince Carter asking for a trade to New York made little sense considering Carter’s poor relationship with Knicks coach Lenny Wilkens when he was coaching the Raptors.

Talks with Bulls GM John Paxson about a deal that could include eight players have stalled because Thomas insists on including backup point guard Moochie Norris and his bad contract.

The Knicks also would have to accept the overpaid contracts of Jerome Williams and Eddie Robinson.

Trading for the 6-11, 265-pound Dampier is attractive because the Knicks need a big body to defend the Heat’s O’Neal.

Rumors also have swirled about a multiple-team trade that could bring Walker from Dallas. His propensity for bad three-point shots and handling the ball too much might lead to conflict with point guard Stephon Marbury. But there’s no question Walker can score inside and be counted on for eight rebounds a game.

However, the East GM said the Mavericks weren’t as anxious to trade Walker as advertised because he comes off the salary cap next year and won’t be going anywhere unless he brings a big return.