Having compiled information from here and another board all day on this topic, here's how to stack best odds with Priceline in achieving Disney All-Star bookings:
Go to
http://www.priceline.com
Click on "Hotels."
Click "Orlando" and choose dates for May/June 2006, and number of rooms.
(Note: If you are successful in booking,
Priceline will offer you the option to extend
your stay at the resort [usually proportionate
to the days you are booking - book 2, get offered 2
more, etc] so you can try booking less days than
you actually need. Be aware that you WILL be
charged for however many nights you book,
regardless of what hotel it chooses for you.)
Then, click "Next."
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On the next screen, click "Name Your Own Price" in the yellow box.
On the next screen, the headline reads "Select the areas where you want to stay."
Put a check in the box for "Disney World Vicinity" (and ONLY this box.)
Then, click "Next."
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Click the radio button for "2 1/2 star Moderate Plus"
Below that, in the yellow box for "Name Your Own Price" enter 36 (the site puts the .00 on for you)
Fill out the reservation name at the bottom, and click "Next."
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On the next screen, review your request to make sure it is accurate. Initial the Terms and Conditions box at the bottom, and click "Next."
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So far, on the boards, it seems about 3 out of every 4 people who are booking are ending up at All Star Music or Sports. The ones that aren't are going to the Nikki Bird Holiday Inn in Kissimmee, or Amerisuites Orlando Lake Buena Vista...
To stack the odds in favor of obtaining a Disney hotel, other board posters recommend going to Expedia, entering your dates in question, then checking availability at All Star Sports and Music for those dates. Expedia's database will show you current availability at the hotels. If your dates do not have red X's over them, they have vacancy, and there is a stronger possibility you will end up at the All Stars vs. somewhere else.
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About me:
I actually have 4 different reservations for our trip (which until I read this thread this morning, was not even a figment in my mind!) covering May 29 - June 4. I made the first reservation for two nights, the 29th-30th, with the full intention of discarding it if I did not get a Disney hotel -- just decided to take the gamble!
After successfully receiving the All Star Music, Priceline asked if I would like to add 2 more nights to my stay - I said yes. This added another reservation through June 2. After checking flights (I told you, this was a brand-new trip not planned out before today!) and finding better airfares if we stayed through the weekend, I Pricelined again, for one night, June 2, knowing it would most likely ask if I wanted to add the second night on as well. Again, I received the All Star Music for June 2, and it asked if I would like to add another night on as well.
So that's how I did it - we are thrilled. We usually stay at Coronado Springs, but we weren't sure if we were wanted to spend the $ to do another Disney trip this year. Now we can
Our daughter was quite surprised and thrilled to come home from school and find out we are headed to Disney a month from now!
Edit: Update...
Then, about an hour ago, my mom decided she wanted to go for 2 days coinciding with our trip (my parents will already be in FL on business.) We tried -again-, booking June 2 (and hoping to get it at the ASM like us, and then hoping also to add a day.) She got ASM for June 2, as well as the offer from Priceline to add an additional day, but when she then went to add June 1, it tried and came back and said ASM was full. Did we want to try another hotel in this category? Knowing we were risking ending up at the Holiday Inn or somewhere else, she went for it anyway -- and got All Star Sports. So, it has worked out very well for us.
Thank you to everyone who posted about this incredible price.
I understand the concept of bidding on priceline and got all the way to the cc part and chickened out...now I don't need anything until July 22 in Tennessee and July 23 in Orlando/Kissimmee before going to POP on July 24th for 10 nights which I would not try to change as I got a CM discount at 40% off. Just want to stay somewhere before,so am willing to take whatever for the night but just have to get the guts to do it!!! 
this is great news about Disney rooms on PL. Let's hope this trend continues. 
