Most people here will strongly advise you against using the DLR dining plan. It is essentially a book of vouchers that total a dollar amount (which is what you will be charged). Depending on the # of days you purchase, you may/will have premium character vouchers ($40) character meal vouchers ($33), $15 counter service vouchers and $5 snack vouchers.
The main problem people have with the vouchers is that you will not get change back if you use (example) a $15 voucher for a $13 purchase...therefore, you may lose $.
I purchased a 3 day dining plan back in April because I wanted to experience it for myself. I understood that I could lose $, so I made sure I just paid the difference by using a lesser $ voucher. You can use the vouchers in any combination anywhere they accept them. So, if you wanted to go to Blue Bayou and your bill is $98, you can use 2 $33 vouchers and 2 $15 vouchers and then pay the remaining $5 cash.
The only downside is that I thought it was too much food. If I were to purchase it again, I would do one less day for the dining plan than we were in the parks.
My preferred method of payment is gift cards. Throughout the year, I purchase gift cards from Disney and use them in the park. That way I don't lose $ and can also use the card for merchandise, tours, etc.
Character Meals vouchers can save you a little $ if you purchase them for use in peak times (Summer, Christmas). The Premium character meal vouchers for meals other than breakfast will save a decent amount especially if used during the peak season...more than the AP discount.
