There are cap holds for draft picks, obviously. It goes by whatever pick they were (which determines the contract the player is capable of getting), but the hold is usually less than the actual salary a pick can get.

There is like a 10-15% negotiating room on rookie deals (can't remember the exact %, sorry). Almost every team gives the rooks the most they can, but teams like the Clippers have forced the kids to sign the lower end of what is allowable.

You will note that teams with cap room generally wait until they've signed any free agents they want before signing their picks for this reason (the hold is less than the contract).

It's doubtful we'll have a lot of cap room, but Flip Murray supposedly has an opt out as well and I'm sure Dumars will make some moves if the season is looking iffy or if Chauncey looks ready to bolt.