Below is a sample spreadsheet you need to create before participating in an auction draft. There is no need to include kickers and defenses, as you should never pay more than $1 for a kicker, or $2 for a defense, in my opinion. The key is to look at all positions and realize you can really only afford to buy one or two players every two or three tiers. There are plenty of ways to make this work if you want to spend on a QB or TE, as opposed to a RB or WR. The key is to prepare before your draft to make it work for you. (Love Over the Cap.com as a way to see how actual NFL teams use their cap money - see the Positional Spending page). Auction drafts are similar to snake drafts in that it is difficult to actually end up with more than one first round talent, as the cost should be too high. The benefit comes in that you can pick which first round player you really want, and then get a chance to get some under-priced players in the mid to late rounds.
Balanced Budget. This option for building your team is where you try not to spend too much money on any one player. This allows you to be able to buy a lot of medium range players to build your team more evenly. The theory here is to let other managers over spend on the top few players at each position, while you buy ones slightly below the top tier at a reduced price. This will also typically allow you to have more money at the end of your auction to purchase bench players.