Hi Craynerd, can I suggest asking the users what they would like to use Moodle for? You mentioned that it's not being used for online marking, assignments, quizzes, etc - are these all functions staff would like to use? I've just recently joined Overnet and have already seen that Moodle can be a powerful tool, but this could be daunting and potentially put users off if their needs are not being catered for.
The good news is that I recommend several sites in your local area that are doing some really interesting things with Moodle. If you PM me I'll be happy to share this with you. Another good way to encourage user uptake is to deploy a theme to make it more personal. I'd be happy to arrange a web demo for you and show you some ideas around this, and also show you functionality that will meet the user needs.