Tough break, you have a lot of players that are not good enough to keep but not bad enough to drop. Plus, it's going to be hard trading outfielders for infielders. Erstad is coming off the DL and so he's a big question mark. Lofton starts hot but then cools off later so he's not a great investment. Olerud is more reliable but unspectacular.
I don't think Bagwell is your biggest concern. First, you need to find a 3B fast. Unfortunately, this position is probably pretty shallow in your league. As for SS, there has to be a better player in the FA pool than Vizquel. Unless you are in a 15+ team league, you can probably pick up someone.
Experience is a hard teacher. She gives the test first, the lesson afterwards.