As you have clearly layed out we have two distinct needs that need two player each: Late inning relief and corner outfielders. There are many solutions to these holes but being a armchair GM this is how I would solve it with the ~23-25M to work with.

The late inning relief problem should start to be addressed here later in the summer. By this I mean that our promising in house canidates should be given chances in late high leverage innings. With Hanson or Glavine taking Medlen’s spot here in a few weeks, Medlen should be sent straight to a spot setup role. If he does well in his chances we should slot him in for 0.5M 8th inning work for next year. (insert other promising in house closer canidates for Medlen if you wish)
My next solution will be an unpopular one. When Hudson comes back and the DL/JJ/JV/KK/TH:G is still going strong, Huddy should go to the pen. Again, if he performs well, his relativity small frame, slightly advancing age, and arm strength could make the closer role the best fit for him. Giving him 12M to do this will rub some the wrong way but if we can have a veteran ace arm throwing arguably the most important 70 innings of the year who also has the ability to go back to the rotation if someone goes down, he would be worth 12M.
Some other advantages to using Huddy and Medlen in the 8th and 9th would be gaining all of the compensation picks from Gonzo and Soriano while also putting us in the position to trade a starter for a large haul midway through ’10 to get some blue chippers or a big bat.

23M – 12.5M = 10.5M

The corner outfield solution is not a simple one to be certain. In left we should go with a platoon of Diaz and B.Jones to start the season. There are several reasons for this: I believe that Bos/NYY will seriously outbid us for the two LF prizes this year (Bay/Holliday) in terms of years and cash. Outside of Damon, and I don’t think we can stomach his defense again in LF, there are no other appealing LF options. Also, leaving at least one corner open will leave the door open late in the season should Gorkys or Heyward be ready for a cup coffee or a mid-summer call up. Diaz should run around 1.5M and B.Jones around 0.5M for a 2.0M total.
In RF with the remaining ~8.5-11.5M (depending on final payroll) we could really address defense and offense in RF. The most appealing options would be Ankiel, DeRosa, Nady, Byrd, Andruw, Cameron, Crisp and maybe room to take on salary in a trade.

Just because I can I’ll do some rosterbation

2B 1. Johnson
SS 2. Escobar
3B 3. Chipper
C 4. McCann
RF 5. Ankiel (or other RF pickup)
1B 6. Kotchman
LF 7. Diaz/B.Jones (spot for uberprospect call-up)
CF 8. Schafer

That would be a very good defensive lineup that would produce solid but not fantasic offensive numbers.

The strength of the team would be the pitching:

Lowe
Jurrjens
Vazquez
Hanson
Kawakami (could be really good on 5th starter rest)

9th Hudson
8th Medlen
7th Valdez
GB/DP Moylan
LM Campillo
LOOGY O’Flaherty
Mopup Acosta

Bench:
PH Norton
INF Prado
UTL Infante
4OF Diaz/Jones
BUC Ross

does people spelling multiple names wrong make you think they’re less credible?

Why pick Hudson’s option? Didn’t we learn with Hampton’s case? Why pay 12 million to a guy coming from Tommy John surgery?

I’d decline the option and sign him to a Manny Ramirez like contract for one year for less than the option and with a team option for a second year. If the guys shows he is healthy enough then negotiate an extension.

The bullpen can be very effective and cheap if given the chance to the young fireballers in the farm. Guys like Luis Valdez, Manny Acosta, Todd Redmond, Steven Marek, Jorge Campillo and even Jo Jo Reyes (if he is not traded before) are cheap, and young talent that can thrive in the bullpen.

I’d resign Soriano if healthy and if he is not too expensive. I don’t like Gonzalez, he is prone to bad control and loses it fast. And I’d get rid of Bennet.

The rotation is the strenght of the team so there is no problem there. Next year Tommy Hanson and Medlen/Morton should be starting full time, with Locke and Rourgbourgh knocking the door in AA or AAA; along with JJ, Lowe, Kawakami and Hudson (if signed).

This depth is the reason Vasquez is movable for an OF bat or a 1B. A package with Kotchman and Vasquez could get the Braves a big bat.

The infield should produce enough but I think it’s time to demote Schafer, get rid of Anderson and Francouer, sign at least a free agent (1B if Kotchman is traded or OF), let Infante play right field and platoon Diaz with Brandon Jones until Heyward and Schafer are ready to take over.

If he pitches well this year and wants to keep playing we know ATL will be in discussions with him at the very least. If he’d go back to the bullpen that could solve the impending closer problem. It’s not my style to predict at what cost though, merely a potential point of interest. I do love me some John Smoltz (queue mancrush).