scott,
to respond to your question completely would take so many words as to hijack bryanz's thread, which i am not inclined to do. but i will say this in short. i rarely try to out-handicap vegas, although i do on some infrequent occassions, to mixed results (see last night's play on ga southern). i believe the linesmakers are most likely better than me at handicapping games so, unless i'm sure i know something that hasn't been reflected in the line, trying to outcap vegas is just not going to work out in the long run.
i do, however, believe that the betting lines are market-driven and that this market approach almost always makes money for the sportsbooks, except when some smart-money guys outwit them (no, i'm not there yet).
ok, let's look at tonight's ill/wisky game. although there is a certain amount of debatable quantification that goes into various power ratings, most that i find credible would make wisconsin a 1 and a half to two point favorite with the awesome home court edge they carry. yet the books can make the line at illinois -1- and still draw 70-90% of the action on the illinii. many would cry that this line is begging for wisky money but it's really not. what the books are ending up with is a stake in wisconsin at a grossly favorable line, which, contrary to popular opinion, i believe is what they really want (exhibit a - last week's indy/ne playoff game).
in short, imo, no matter what line the book makes, you cannot consistently win betting the side that carrries the heavy majority of the action, as you will not be getting full value.
hope that helps. g/l