Keeper League ?s

[Dr. Sabonis]

We had a 10 team h2h points league with 3 keepers. Each team kept 3 players and the draft started with the first pick of round 4. We changed to 4 keepers with a two round penalty based on the previous year's draft. So now the draft starts with the first round and teams pick according to who they have/haven't kept.

We used the 12th round as the minimum cost.

Questions:

1. Is the 12th round too low? Players like Hanley Ramirez and Justin Morneau only cost that much and won't be a their true value for like 4 or 5 years.
2. Should Free agents be allowed to be kept? If they weren't drafted, I think they should be allowed. Else players like Pujols, Sizemore, Ramirez, etc, are too cheap.
3. Is two rounds too cheap? Should it be 3 or escalate each year?

Just looking for some advice for this type of league. I'm worried that we'll have a great disparity between actual cost and the true value of a player.