I know annual dues can be paid with the rewards, but can I pay the dues with my visa card and pay my visa card with rewards dollars? (so I get the points)
No, you cannot pay your card off with the Rewards Dollars, but I am not sure I understand that correctly, why would you pay off with rewards dollars, it wouldn't give you any more 'rewards'.
I did this last year. I called MS Accounting and gave them the number on my rewards card. The balance on the rewards card was not enough to pay the entire dues bill so I paid the rest with a credit card. Very easy! I don't know if this works online or not. I don't trust the website any longer so I don't bank points or pay dues online.
It won't work online because you only have the option of paying in full. Maybe if you called MS first and used the rewards it would change the balance due online, and you could then finish the transaction yourself. But why not just handle the whole thing with one phone call.