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It is basically as much as you wanna put into it. You can update all of your starts weekly in about 10-15 minutes and not look at it again until the next week, as long as you have no injuries. Others will monitor all of thier starters everyday and scan the free agent list looking for that next sleeper pick. And the live draft takes about an hour, or you can pre rank your draft list, and the computer will pick for you based on this list.
So to sum it up, it really can take almost no time at all, and yahoo does all the work as far as tabulating stats, so its pretty effortless. Its the draft that makes or breaks a team IMO, and where I spend the bulk of my time on the league.
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