gZusLuvsU15 -- you should be out of it. Are you not? It will still list you as in the red on "Proj. Budget Room" HOWEVER, that's before you add in your available cash, which should push you over the midway point into the black. You can check this on the "Front Office" screen, in the bottom right where it says "The financial situation for your team is secure. You have XX dollars etc."
STL10WC -- and anyone else who downloaded the first release and want to fix things, no problem, its not too difficult. Simply go to each team's front office screen, and check the "Proj. Budget Room" on the left hand column (it will probably be in red as it is negative). Hit the "edit financials" button right below that. You're going to want to add more cash (add in the cash field on the left hand side, about 3/4 of the way down) so that it is MORE than what that Projected Budget Room was in the red. So let's say Atlanta is 35M in the red. You would go to Edit Financials, and add 40M in cash. This cash does not carry over to 2008, so you won't have to do anything after this year.
Also go through on the Game, Game Setup, League Setup menu, click on each league's name, and hit "Functions," and then "Set all computer-controlled teams to allow AI roster changes." Make sure you do this for EVERY league or you could have problems. This is only if you haven't downloaded my latest release though in which I fixed all of these problems.