We've been playing in free fantasy baseball leagues on Yahoo for several years and it becomes a better place to play each year. We've found that the "jerk factor" (number of managers who decide to screw things up by dumping all their players or engaging in other "unethical" behavior) has gone down significantly. And Yahoo tries to add some small improvements each baseball season. You'll have the option of joining "public" leagues (where anyone can join) or create a private league and play against the competitors of your choice. Public leagues use a standard set of statistics, while "commissioners" of private leagues can choose from a huge set of statistical categories.
We prefer head-to-head style leagues, but there are plenty of old-fashioned rotisserie-style leagues, too. Each Yahoo ID can be used to sign up for four leagues each season, but you can also join up to four "mid-season" leagues which start around the All-Star break. One of our favorite additions in the past year is the "fantasy profile" that Yahoo keeps for each fantasy player. The profile keeps track of your results in each league (in any fantasy sport) and even gives virtual trophies for finishing in the top 3!