So if I were to bid 3m on Justin Smoak and he's called up on August 1st how would it theoretically work?  How long would I have him and at what price?

You could bid $3m a year for 5 years if you wish since this is more than the value of a prospect contract.  You could also bid $3m for 1 year, and then retain Smoak's rights under the league minimum $500k due to him being a prospect.  It doesn't matter when he is called up, but which YEAR he accrues 50 GP in the majors.  If he does that in 2009, then he may is a prospect through 2012.  If he does that next year, then he is a prospect through 2013.

I'd like both deals to be for the maximum 5 years at .5m per season.

You hit a caveat in the rules.  If a player falls under a prospect contract, then they cannot be signed to more than 1-year since you are able to release them at no cost (if their salary was $0.5m).  You have their rights until you either release them, trade them, or they are no longer considered a prospect.

I am not sure if we are interested in anyone on that list... maybe Kendrick, but I doubt it unless there was another prospect in the mix.

Would you be interested in MI Dan Uggla?

Marlins GM approves the deal.

Trade is official... and I officially put MI Dan Uggla on the trading block.

FLORIDA RECEIVES
Burnett, Sean, $0.5m (2009)
Chavez, Jesse, $0.5m (P-n/a)
Grabow, John, $1m (2009)
LaRoche, Adam, $7m (2009)

PITTSBURGH RECEIVES
Uggla, Dan, $5.5m (2009)
Miller, Andrew, $1.5m (2009)
Tankersley, Taylor, $0.5m (P-2009)
Vanden Hurk, Rick, $0.5m (P-2010)

Pending Marlins GM approval, this trade will go through under both caps.