I've never played in anything larger than 16 teams. In the 16-team league it was difficult to secure more than 3-4 stud players, while the rest of each roster was mainly a bunch of junk. We used a full 16-player roster, with 9 starters and 7 bench. There was basically no waiver-wire to speak of. It's going to be difficult to spread the talent around with 32 teams. If you limited the number of starters and/or bench that would help significantly. The salary cap would help some sure, but there are maybe 40 "starters" period, so each team is going to get 1 stud player...maybe 2 if they're lucky. And those few that are lucky enough to score 2010's Miles Austin or 2011's Victor Cruz will likely win it all in such a huge league. The other thing is, I don't think I even know 32 people who play fantasy football!
Good luck though!