Jimbo,
You are wrong about the Illini/mich point: after the B10 champ, there is no tie-breaker. The fact that Mich beat Ill doesn't mean anything except in the eyes of the bowl reps. They have final decison on whom they pick. Mich does not have a high enough ranking to qualify for a BCS bowl, but Illinois may.
From BCSfootball.org:
"Any Division I-A program can qualify for at-large consideration if it wins nine or more games and is ranked 14 or higher in the BCS standings. "
this was also expanded to 16 this year to ensure enough eligable teams (remember, no conf can have more that 2 BCS berths)
Illinois sits at 17 now. If OSU makes the title game and Ill slips into the top 16, look for the Rose bowl to take Illinois to complete a B10-PAC10 game