There are different types of leagues. Some leagues are "Salary Cap Leagues," where each team manager has so much money to work with. Certain players are more expensive than others ... Marvin Harrison v. Freddie Mitchell for example, but your players also increase in value. So, if you picked Priest Holmes at the start of the season, and he's had 3 sick games with great stats, his price will increase. You keep him for the price you originally paid for him, and when you want to get rid of him, you made a profit.
That's not this.
Live Draft / Player Preferences
Here, there will be a live draft. When all teams are registered (I think there are 3 spots left?), Yahoo will give us a draft order. If you can't make the draft (like most people here), you can set up the preferences for whichever players you'd like to have first.
For example, I think Yahoo is putting Payton Manning as the default #1 pick. If you rather have someone else... LT or Priest Holmes, then you can change it.
Details
If you read my first post, I go into detail about how many players we each get, which spots you'll draft, how many, and a bunch of other info. So that you don't have to scroll up, we each draft 15 players. That means there will be 15 rounds in the draft. From there, you can choose players from the waivers.
Head-To-Head means just that... teams face-off against each other, each week, and whichever team has more points gets the win.