I'm sorry, I didn't see your response until I had already pushed forward. That was rude of me to ask you a question and then not wait to consider the response.
I appreciate your suggestions re filling my needs through the draft and I'm sure that is the best long term strategy. Right now this franchise has more money than draft picks and I would think I could get it going quicker with some free agents. Later when I need money for Jake Long, Kenny Phillips and Andre Woodson (all 2008 picks headed for big money), cheap labor from the draft to fill holes will be the only way to go.
I couldn't bid on Suggs, Baltimore Franchised him. But, I found a LOLB, Michael Boley, who was the same age (25) with the same OVL (87) was also available. I got him for 3 years with a $4.6M cap hit in 2009. (He didn't meet my GM's season goal, even when I moved him to ROLB!)
Two factors kept me from getting L J Smith. I hadn't accounted for the fact that 1) I was going to have to pay a bonus on top of my bids and 2) the bidding on Smith went higher than I expected. I did get Patrick for 5 years with a $3.6M impact in 2009. (The bonuses added 16.7% in one case and 20% in the other).
A couple of minor cuts left me at $6.88M for the draft and "walk-ons". I actually only had picks 10, 42, 74 and two 7th rounders. I needed help at WR, DT, CB and FS. What I got with my 5 draft picks were WR, WR, CB, OT and CB. The second WR and the OT were rated (on my draft board) significantly higher than the spot where I drafted them.
Now I finally got to the question of how "walk-ons" impact the cap. I signed 5 UDFAs for $1.59M total. The cap space went from $6.88M to $6.36M as my roster went from 52 to 57. The cap space went down $520K, not $1,590K. $1,070 didn't hit the cap. Not enough for the 4 cheapest 2009 "walk-ons", but maybe enough for my 4 cheapest players. A quick check shows my 4 least expensive players are 240, 250, 290 and 290, exactly 1,070!!!
Sorry to tell such a long story to get to an answer that I may be the only one who cares about!
I do think that the best way to minimize the money given back at year end is to push the cap space as close to zero as possible during training camp. It can only go up as I make cuts and then as players get put on IR and replaced by cheaper players the cap space will go up some more.