This would be pretty easy to do with Dungeonbuddy. You could select your tank as leader and everyone else as follower. As for loot, just have them mail everything to one toon. A couple of issues I run into with RAF in dungeons- One, I out level gear very quickly leading to more wipes. Two, I have a higher ban rate when using RAF in conjunction with Dungeonbuddy. The later is very recent, resulting in three 6 month bans so far, on fresh RAF accounts. If I were to do it again, I would use it more cautiously.
As for 5 pally's. I would tank with the pally, use 3ea ranged DPS and a Druid Healer. I prefer hunters for DPS because they rarely have issues and the druid healz works well because of the HoTs.