Well, first off, I don't think you overpaid too much for anything. You have to expect to overpay for the first few rounds if you want any of those players. It's just how the auctions work. Plus, you can afford to spend more in a 10 team league than in a 12 team league to get the top players.
Now, as for your team: It's solid, although I'm sure that you know that you need help at SS and OF (Millar and Dunn have no place starting in a 10 team league). You need another top starter, maybe two. You overpaid for Dontrelle, though you got Santana pretty cheap. You should be in the top half of the league or so in saves- thanks to Gagne, though maybe you could use one more guy. You cobbled together a nice staff of #3 guys, though.
Overall- you could use a little more speed, though it isn't necessary. If Piazza stays healthy, you should be fine in the power cats. You need a top SP who will strike some guys out. Another closer wouldn't hurt.
I would also try and trade R. Soriano. He says that he wants to stay in relief and I don't know that he'll earn you $9 this year. But many are high on him.. In any case, you'll compete, though you need to tweak your team somewhat. You definately need more cap room in case a stud minor leaguer matures faster than expected.
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