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PASSING GRADE ; FIRST-PLACE KNICKS GET ASSIST FROM STEPH

Midway through the first quarter last night, Stephon Marbury had racked up seven assists without a shot attempt. This wasn’t the Marbury of years past, hasn’t been since the season began.

Marbury is making his teammates better, has gotten everyone involved, and has gotten the Knicks back to .500 and in sole possession of first place in the mediocre Atlantic Division.

With 11 first-half assists, Marbury guided the Knicks past the horrible Hawks, 104-88, at the Garden. The Knicks (5-5), who have won three of four, can move above the .500 mark for the first time since the early days of Don Chaney’s interim season (December 2001).

Tonight, the Knicks go across the border to face the Raptors and struggling, on-the-block Vince Carter, who said early in the summer he wanted to be traded to New York.

“It’s satisfying [to be .500], but we won’t sit on our laurels and say we’ve arrived,” said Lenny Wilkens, who tonight revisits the city where he sustained his largest professional wounds.

Point guard Jamison Brewer inflicted the final wound on the Hawks. After being activated Sunday for Moochie Norris, Brewer, on a fast break, took a bounce pass from Jamal Crawford. Brewer dribbled twice and threw down a vicious right-handed dunk over Boris Diaw early in the fourth quarter that would’ve made his former Pacers buddy, Ron Artest, proud.

“It’s the best way to let them know you’re a Knick,” Brewer said. “It’s like, ‘Who is this?’ ”

Brewer said it was his best NBA dunk.

“Because I haven’t played much,” he said. “I’m a highlight reel waiting to happen.”

The Knicks have come a long way since steamy socialite Paris Hilton last graced the Garden’s celebrity row during their worst home-opening loss in history. With Hilton back again, clad in a dungaree mini-skirt and knee-high beige boots, the Knicks shared the ball, rebounded like menaces (55-36) and got out on the fast break (18 transition points). They have been a different team since the buzzer-beating win last week in Houston.

“We’re playing together,” Marbury said.

Marbury, who had all of his assists in the first half, set the tone.

“It’s a credit to him,” said Penny Hardaway, who scored 12 points and was the recipient of a couple of Marbury drive-and-dishes. “He’s figured out how to use us to help him. When he gets assists early, it opens the floor up for him. That’s a sign of maturity and wanting to win.”

Marbury finished with 16 points, 11 in the second half when he heated up from the perimeter.

“It’s all about guys making shots,” Marbury said. “If guys aren’t making shots, I can’t penetrate, and the lane won’t open if Kurt [Thomas is] not making his shot. It’s hard.”

With Marbury’s brilliant setups, the Knicks shot 51.2 percent in the half and led 52-43.

Marbury’s 11 assists by intermission was modest, considering it should’ve been at least two more. Twice he fed perfect bullets underneath for Nazr Mohammed (18 points, 14 boards). Mohammed blew the layup on one of them, got the offensive rebound and laid it back in. He blew the stuff on another before scoring on his own put-back.

The Knicks’ first bucket came on a no-look feed from Marbury to Kurt Thomas underneath for a layup. Moments later, Marbury, amidst a fast break, whipped a lookaway feed to Thomas for another layup, his night’s best dish.

The lone downer was still Tim Thomas, who shot 1-for-9 for nine points and several boos. Every miss now Thomas hears it from the crowd, starting with the opening possession when he missed in the lane.

Tonight, Thomas gets Carter. Ironically, the Knicks offered Thomas for Carter over the summer, a deal that was and still will be rejected.