Our leagues have auction priced salaries and a hard salary cap that applies to draft day only -- your traditional rotisserie. If you are stuck looking up at everyone, do the logical things:

1. You must attempt to build for the future. This does not mean dumping your team. If you are in a keeper league, decide who you would keep right now if you were turning in next year's roster. Those who do not apply get moved.

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2. Do not make all of your trades at once. Remember that as time goes by, the 'top feeders' will have needs/injuries and those will result in your getting more for your players.
3. If you have a free agent or waiver system, be active. Sure, you are going nowhere, but picking up that middle infielder off waivers may result in a later trade or be just enough to put you over the hump in a deal.
4. Be very contract conscious. You are in last place -- you need a lot of help. The more room you have to work under the cap next year the better.
5. Don't fall in love with a player. Players have career years, both good and bad. Does anyone really think that Ed Taubensee will hit .350 the rest of his career? No, but I bet the owner who has Todd Hundley would gladly give him to you for Taubensee at this point. Remember, you are building for the future. Likewise, proven players having off-years come cheaper now then they will in the off season when every publication you read is predicting a comeback year for them.
6. As you look to make deals, attempt to make yourself strong in a few categories. No matter how much money you have for a draft, it is very difficult to get 'a lot of everything'. You are at the bottom -- a little won't do. If you focus on getting strong in half of your categories through deals, you will have more cap room to focus on the other categories in the next draft.
7. Seek out the owners in your league who always go for young players, and unload yours. Yes, a young, cheap player can be a great asset. But typically they are not consistent enough to rely on and a solid veteran will do you more good in the long run. Also, most people believe everything they read so these hyped-up rookies usually get you more than they should in trades.
8. Speak to the other owners in the league regularly. Be sure to mention any deals you have on the burner. This really works. It's natural for that other owner to think about whether they would be interested in your player on the block and they may make you an even better offer.
9. If you are in a league with free agents, keep a slug active at DH and pitcher, at minimum, at all times. You must be in position to bid on players. The better teams usually have to position to get ready to go after a free agent. This puts you a week ahead of them. Most of these free agents will be young players and remember that they get you more than their acutal value.
10. Finally and most importantly, take risks. You can not get much worse. Sitting back and doing nothing only leads to being in the same stuation next year. You must not get disgusted and throw in the towel. You will be back next year -- tell yourself that. I have taken two last place teams (neither was mine when they finished last!) to first the next year. It can be done.