First - the DNP from last year is irrelevant in an RT league. What matters is if he has played this year.

You don't have to cut anybody until after the rookie draft.

Who knows, someone who hasn't played yet, may get called up and suddenly look attractive. Wait as long as you can before cutting anybody.

You'll have to cut to 27 after the rookie draft, but the guys you cut now may not be the same ones you would cut later once there are more 2005 stats available.

If you cut a player who has not played in 2005 at the time the FA draft is set up, I think he will still show up in the FA draft if he isn't a rookie. I might be wrong about that but I think some long retired guys still get listed in the FA draft list for RT every year. (I wouldn't pick Mark McGwire this year...).

If you keep the guy on your roster, even if he did not play, he will be yours for as long as you keep him on your roster whether he ever plays another game or not.