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.

I truly don't know if I can help, but....
 

A few years before my dad had died-he 'decided' on his own which of myself and my many siblings should get what. Much of it were antiques, many pieces needed 'work' and he decided who HE felt loved some things more than others.
He then arranged w/a moving company to do the 'partial' loads for delivery. That way there was little to complain about and actually everyone was happy in the end. Tho I gotta admit some always thought I'd gotten what they had wanted? I'd not complained, I was just grateful to get a part of our family's history. Granted, we could have all traded off things, but we all happen to live way too far apart. It's been over 25 years so I guess there are no great resentments floating about? Or the others would know.

This all is never easy, but it's a lot easier to have it all sorted out way before it becomes essential. I think the pics and grand-dad bucks idea really sounds a good idea for these days and times! Much harder to do ages ago before PC's and digital cameras etc.

Good luck! - j

On your shoulders
 

This is a hard thing to do and I'm sorry it's on your shoulders; since your brothers aren't near by. However, I do agree with letting the kids/grandkids/great-grandkids have a say in what precious items they would like to inherit that their grandpa handcrafted. It's a lot of work, but I know you'll figure out what is best and fair for everyone.:)

Good luck, Twink. I think it's a good idea in theory but maybe it would be wise to approach the granchildren (or their parents, depending upon age) and allow them to give their input before moving forward. I'm just not sure that putting a monetary value on these things is the best idea, even if it's only imaginary. At least if everyone is on board with the idea they'd have nothing to complain about! I've been through this and I know it's difficult to do this in a way that someone doesn't feel left out or cheated.