All of this is jmo:
Tennessee is technically IN the tourney. Anyone who bet against them making it owes up. The NCAA refers to it as the first round and Tennessee is in the tournament field.
Now from a fan's perspective: Many people, including myself, feel the tournament doesn't start until Thursday. The notion that 60 teams receive a bye and 8 teams play in the "first round" is laughable. What the NCAA calls the "first round" is in all reality a play in game. I think most people realize this but don't like to hear others undermining the Vols situation.