The Packers have only one notable free agent this offseason in DT Corey Williams and there is no way the Packers will resign him to a long-term deal. It's possible the Packers place the franchise tag on him to keep him for one more season, but that would cost around $7 million in 2008 (the cost of the franchise tag hasn't been released yet). Since they have around $25 million in cap space to work with that wouldn't be the worst idea. The franchise tag might be used to receive some compensation, not necessarily a 1st round pick, but a good draft choice in return.
The Packers won't sign him to a long-term because it would cost around seven years and $49 million which is what Detroit's DT Cory Redding signed for last July. Redding turned a good 2006 season with 8 sacks, 48 tackles, and 1 forced fumble into a monster contract. Williams had 7 sacks, 35 tackles, 3 forced fumbles, and 1 interception last season, and had 7 sacks in 2006 too. I don't see why he would accept less than Redding. Such a long-term deal would make Williams the highest paid player on the team eclipsing the extension given to LB Nick Barnett last year. Plus the list of free agent defensive tackles is a short one. Tennessee would be crazy to let DT Albert Haynesworth go anywhere, and after him and Williams it is a weak group of free agent tackles.
His stats are good, but he didn't start ahead of DT Johnny Jolly (when healthy) and DT Justin Harrell might be better. At times he was very disruptive and he will be missed, but GM Ted Thompson can find a replacement internally and he is likely to add some depth through the draft too. If the Packers throw crazy free agent money anywhere I would prefer it go to New England CB Asante Samuel.