Twinks, why not just post an album on Photobucket and let them email you their bids. Tally out the grandpa funds to each one and keep track through email. This way once an item is "bought" you can remove it and send an email saying who won the item. The shipping should be by pick up only to avoid the hassle. The ones who are out of the country would pick it up once they are back. You'd have to store it somewhere in the house but at least you'd know who it goes to.

If there is a tie on any item, the "winners" would have to continue bidding like in a poker game or forfit the item. Or you could play a trivia game with the participants and whoever gets the right answer wins the tie breaker.