regression testing Questions

Teams are moving to a scrum type sprint. We understand the sprint mechanics for story pointing and committing to user stories etc - but cant wrap our heads around how we would handle a large manual regression within the sprint team/process?   Automation isnt available right now but will be in the future (but need to plan for the now).

Would we create a regression user story and point that?  if the points are large enough that the qa would only be able to achieve that in a full sprint what do the rest of the team do.  I understand we would be better off releasing in smaller increments but again - have to have a plan for the now and move over time.   

When we ask for suggestions, we are being told we can work it whoever it works best for the team  BUT we are having difficulty envisioning the ways we could go to make a choice.

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