you came close, but next time put it in the fantasy baseball TALK section or the classifieds.
well, here is the auction settings that i usually play by:
25 players (C-1B-2B-3B-SS-OF-OF-OF-MI-CI-SP-SP-RP-RP-P-P-P and 6 bench, 2 minor leaguers) also 2 DL spots
$260 to allocate
10 managers is good, 12 is perfect, 14 is borderline on too much
you can choose who you want to go at the auction at any time (IE, A-Rod OR Mike Maroth could be first in the bidding wars, depending on who the manager wants to bid for)
once you have won the player, you choose how long you want to keep him for (1-5 years for major leaguers, 1-7 for minor leaguers and rookies)
After you have had the player for the designated time, he goes back into the auction pool, where you can bid on him even if you had him before.
free agents can be picked up for $5, but if a player gets injured he still counts towards your cap
I'm interested in the league, but with minor league stock you might not want 14 people. 12 would be optimal.
i'm not exactly sure if there is a calculation for the allocated money, but i hope this helps.