Memphis is definitley not ready for prime time. Here is another illustration of the reason game 1 is the least important in a 7 game series. By winning, the Spurs have placed a stranglehold on the Grizz. Had Memphis won, they would be sitting pretty heading back home with HCA.
However, regardless of the outcome of game 3, I think it will be the Spurs who are given the opportunity get ground up by the Heat. Actually though, I expect the Spurs to give the Heat a decent series. I don't mind seeing the Spurs lose (even if it is to the Heat) -- it keeps the Lakers with the most championships in the millenium.