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Chris Paul had 31 points and 14 assists as the Hornets won their fourth straight to maintain the best record (48-21) in the Western Conference.
Danny Granger led Indiana with 26 points and nine rebounds against his hometown team. The Pacers had been on a four-game winning streak, but the loss gave the Pacers back-to-back losing seasons for the first time since 1987-88 and 1988-89.
The Pacers lost amid reports that Walsh would take over the New York Knicks. A Pacers spokesman said Tuesday that Walsh hasn't made a decision on his future and hasn't agreed to anything with any team.
The Hornets led 59-56 at halftime, then went on a 13-2 run at the start of the third quarter to take a 72-58 lead. The Pacers ended the period on a 9-2 run that included two 3-pointers by Granger and another by Shawne Williams to cut New Orleans' lead to 86-79 at the end of the quarter.
With Paul on the bench to start the fourth quarter, the Pacers chopped into New Orleans' lead. A three-point play by Williams made it 88-82, and a pair of free throws by Granger two minutes later made it 90-86 before Paul returned.
Tyson Chandler's dunk off a pass from Paul extended the lead to 98-89, but the Pacers quickly rallied. A 3-pointer by Granger, a short jumper by David Harrison and a baby hook in the lane from Mike Dunleavy trimmed New Orleans' lead to 100-98 and forced the Hornets to call timeout with five minutes left.
The Pacers made just two field goals in the final 4:30.
Notes: Indiana F Jermaine O'Neal has missed 31 straight games, but he has been practicing and said he expects to be back soon. Indiana coach Jim O'Brien says it's a matter of O'Neal deciding his cardiovascular conditioning is good enough to play. ... Former Purdue basketball coach Gene Keady attended the game.
[Associated Press; By CLIFF BRUNT]
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