Submit the site to the deepest, most approriate section - if you don't, they'll keep your $299 and reject it.
You can expect traffic and some help in PR - but really, it's just one link, so don't expect miracles.
I personally do not have any of my personal website sin the yahoo directory - I won't pay the fee, and the free submissions I sent in over a year ago have yet to be reviewed...thus, IMO, there are no free submissions anymore.
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