Hi Mark,
In an email draft, owners simply email each pick to the entire league, updating the draft list as things go along.
You are correct about how the dispersal draft works.
In the interest of full disclosure, we're also looking into the possibility of folding our five owners into a new start-up AL league, essentially "rebooting" AL-Phillips, because we're not optimistic about being able to fill all five openings. That said, if three other potential owners were to materialize in the near future, the five existing owners would prefer to do that. We're just being realistic. The commish of our league is also inquiring with the commish of the other league to see if he would be open to have a *12* team AL league. Frankly I like that idea a lot. Thin talent can make for more interesting leagues.
-Rob