Just adding some information from our experiences...
We have sailed on
DCL 5 times now (at least, we will come Nov when we leave again!)

Our first was our honeymoon, when we paid cash, and our second trip was paid cash and that's when we joined the DVC. Our other 2 cruises and this upcoming cruise was all done via points or points and cash combinations.
I know personally, that we probably could not have been in the verandah rooms we have been in had we not had the DVC, as the cash price always seems so much more! We bank points or borrow to do the cruise, but now with 2 children "of age" for a cruise fare, its way too many points! (as always I need more points!!!)
This year, the cruise was the following totals for us. We have a Category 4 (family verandah) stateroom on Deck 8. We are sailing on Nov. 1st, on a Western Carribean itinerary, which when I put it into the DCL website (which I realize can often be more expensive than some deals you can get) came to $7700 total.
We used 837 points and paid $1012 in cash total for this trip. The Confirmation letter I got from MS states the following:
Total 1st passenger: 344 reservation points
Total 2nd passenger: 344 reservation points
Total 3rd passenger: 149 reservation points
Total 4th passenger: $917
Non-refundable transaction fee: $95
They also send the cancellation information with this too. Talks about the policy for 75+ days out, 45-74 days out, etc. For 75+ it says "all reservation points returned to the appropriate Use Year or 100% of the cash payment made is returned. The $75 transaction fee is non-refundable" (I think they just didn't update that form to say $95, but same thing)
I will tell you though, that is a bit unclear. In 2005 we had a cruise booked, and I was pregnant. I ended up on bedrest and I wasn't allowed to go on the boat (OB was fearful of what would happen if I was in St Maarten or somewhere and couldn't get decent OB/Gyn services). Anyway, we were 75+ days out when we tried to cancel, so our points WERE returned BUT they could no longer be used beyond that use year. Additionally, in making DCL reservations, we were unable to use them for a DVC property, and had to instead book another cruise, or book one of the Disney Hotels, etc and couldn't use them at a DVC property (since the points had been exchanged for a "Member Getaway"). Its pretty hard to use 837 points in a Disney World Resort Hotel within the months left on your use year!! And, since some of the points were borrowed, they also had to be used within the same use year, they couldn't be returned to their original use year(i.e the points we borrowed from Use Year 2006 couldn't be "banked" or returned to that year, we had to use them up before their expiration in our 2005 use year).We ended up re-booking a stay at Animal Kingdom Lodge (before, obviously, there were DVC villas!)
Just trying to clarify for those who had questions about the points and also the cancellation policy. Its really as clear as mud! Let me know if that didn't answer your questions, we've done this a few times now, and I think may finally have a handle on it. Well, at least until they change it again!!
