UPDATE Monday PM: The coin flip process is confirmed by NFL.com.
Now everyone can stop speculating (or you never did speculate if you came here). The coin flips are traditionally done at the NFL combine at the end of February.
Where will the Chiefs draft in 2008 you ask? Here's the current scenario, with tiebreakers to come.
1. Miami (1-15)
2. St. Louis (3-13)
3T. Atlanta (4-12)
3T. Kansas City (4-12)
3T. Oakland (4-12)
6. New York Jets (4-12)
7. New England (from San Francisco) (5-11)
8. Baltimore (5-11)
The Chiefs are currently tied for the third draft pick, with the final result dependent on one or two coin flips. Major props to cdcox from Chiefs Planet for the following breakdown. Its the first place I saw it.
Now who should pick first between Oakland and Atlanta. Here the tiebreaker is a coin flip since Atlanta and Oakland are not in the same conference or the same division.
If Atlanta wins the coin flip they will pick 3rd. Oakland will pick 4th because the have to pick before KC. And we will pick 5th.
If Oakland wins the coin flip agains Atlanta, they will pick 3rd. Who picks 4th and 5th? Again we would need a coin flip between KC and Atlanta to determine this.
Note: Here is the official wording on why the Raiders will automatically pick before us:
2. Best won-lost-tied percentage in games played within the division.
3. Best won-lost-tied percentage in common games.
Therefore, we cannot pick before the Raiders and since the Raiders and Falcons are in different conferences, a coin flip will determine who gets what spot ahead of the Chiefs. Then, like cdcox said, if the Raiders win the flip with the Falcons, the Chiefs and Falcons will have to flip because they're not in the same conference.
Make sense? What my previous breakdown of the draft order didn't really take into account was the strength of schedule of each team changing so much. That's why it's not exactly falling into line with what's actually happening.