There is a specific club level and then they also use rooms on other floors. Personally, my family had a bad experience with the Club Level cast members and would not waste the Starwood Points again. Unless you are at the hotel, the only time getting the "food" they give is breakfest, the other times most people are out at parks, etc... so it's sort of a waste.
EDIT - Club level rooms do not have balconies because the rooms are in the main part of the building (triangle) whereas the rooms with balconies are the extended parts of the building.
Mike