I'll try to explain it...
each owner gets a certain amount of fictional dollars, like 360.
Then the owners get into order, and following that order, they call out a name. First owner says maybe, marshall faulk, and now everyone can bid for marshall faulk, highest bidder wins.
then the next owner calls out a name and the bidding begins again.
you have to fill out a whole roster with those dollars so you could be left out to fill five spots with your remaining five dollars.
There are quite some strategies for fantasy auction, a common one is to call names of middle-of-the-pack players early and wait for someone to bid too high on him. Or you call Edgerrin James first because you expect him to play very little but you know some guys will spend lots of money for him thus leaving them with less to outbid you for guys like Curtis Martin.