This needs to be moved over to the DVC board.
I know that as a DVC member, you get a substantial discount on an Annual pass, but not THAT substantial, the discount is like 100 or so depending on the type of pass.
As for how DVC works, it is a Disney prepaid vacation plan similar to a time share but for Disney properties like Beach Club, Boardwalk, and others. There is alot of information about it on the DVC board. Check it out!!