I don't have the reference at hand that broke down Peyton's contract against the cap, but I remember the numbers to be in the $8 mil range for the next couple of years, then $10M in years 3 and 4. Considering he counted $15M+ against the cap last season, we now have a lot more cap room to work with. I think the sticking point will be cash for signing bonuses. Irsay has to shell out $34.5M in cash for Peyton's signing bonus in two installments, and Marvin will get a nice signing bonus.
We'll see how it works out, but I'm not optimistic. Polian has made the right calls in the past (excluding perhaps first round pick for Rob Morris), including trading Marshall Faulk, drafting James v Williams, and drafting Manning v Leaf, so I'm not about to question our FO and Dungy. They know a lot more about football than I ever will! Their philosophy is to build through the draft, keep our own if possible (but don't overpay to do so), and scour the undrafted ranks to find gems in the rough. Our cap is concentrated in the offense (kind of a reverse Miami situation), so we have to have low priced talent to fill out the team.
Again, good luck with your season.