completely agreed, auction is the way to go.
But, if you do a draft, I'll tell you what we did a couple years ago. It's somewhat cumbersome, but I liked it.
We held a 30 round initial draft for an IDP league, in 6 phases. 5 rounds each. The odd # phases were live. Every other Saturday, we got together in person if available, if not, those unavailable either traded their picks (2 guys traded entirely out of a phase, one did it twice), sent proxy picks (only 1 guy did this, I don't suggest it), or were online (best idea). The even #s were done via email over the course of 2 weeks each.
We started in early April, ended a couple weeks after the NFL draft. Rookies were available at any time throughout the draft. We had gotten through 15 rounds before the draft, most of the big time rookies were taken, but some of the rookies became great values in round 16 - which worked out alright, as the serpentine draft made the guys with late 1sts get some value. These were mostly IDPs and lower WRs, so mostly not the guys that will make or break a team, but this was 2002 and one guy got Portis, others got Randle El, Bryant, and Westbrook (he would have slid anyway).
It was interesting and we enjoyed it. you may choose to do things differently with the NFL draft, but I like the phasing.