[bluedevil2k]

This is just a Reverse Vickrey Auction, not the VCG described in the article. Given that most people aren't familiar with 2nd price auctions, a good solution is to say the winner will receive $1000 less than the 2nd lowest bidder (2nd price - increment). Note, this is similar to an English auction (Ebay style), but all the bids are sealed bid.