I remember back before Black Friday, when Full Tilt had their WSOP
pools for each event, if you finished in the top (my memory probably fails me here) 1000, you'd be automatically entered into a freeroll for that particular event. So, if you were picking your horses for a Stud Hi/Lo event, that would be the event you'd play if you finished in the top 1000.
It was common to have a lot of sit outs, and it was always pretty easy to make the money in those tournaments.
I say just go with it, enjoy the free chips, and build up a stack so that when you are seated with players actually playing, you'll be able to play some poker against them.
On UB, the sitouts would have their stacks removed from play after a certain period of time (probably the first level - now I don't recall for sure exactly what the criteria was, but you'd have freerolls
go from 1000 players (just picking an arbitrary number) down to 400 after the first level.....also pretty easy money, of course as long as you weren't playing against a superuser who saw your hole cards. ;P