I do a combination live draft/online draft. Only about half of the 12-team league I run lives in the same city. So, those of us that can, get together for the live draft and we each have our own laptops. The league is hosted on the ESPN site, so we use the online drafting software. Those people that live out of town are able to login and use the online draft software too, and participate via the chat function. It's super fun. Not sure if that is what you're looking for, but it could be a possibility. It would require everyone to have their own laptop I think (or maybe as commissioner you can auto-assign the picks, I'm not sure). I would think that a computer would be the easiest way to do it. If you could get your hands on a projector, or hook up the laptop to a big-screen TV, that would be even better. FFToolbox
has some resources for drafting software, and Fandraft has gotten good reviews.