I'm not sure about the number of seats. I thought I saw the number 60 somewhere, and I thought that's about what it looked like when we were there 3 weeks ago, but I could be wrong.
Some people swear that you have to call exactly 30 days in advance at the stroke of 8 a.m. PST, but I've heard that's a holdover rumor from days when there were a lot fewer seats and it was much harder to get in. We called 27 days before and there were plenty of seats available for both shows, and this was during Spring Break crazy crowds.
As far as lining up-- I don't know if they always line up this early; again, we were there during a record-breaking attendance week. To CHECK IN and choose your seat (just one person from the party has to do this) you showed up near the churro cart across from Haunted Mansion. Check in for both shows began at the stroke of 7 p.m. However, they pulled out the podium and people started lining up to check in at around 6:25 or 6:30. I got in the check in line about 6:40 and there were probably 25 people ahead of me. I got seats in the section that was more toward the middle of the two water screens, second row. The view was great, but the preferable seats would be more to the right facing the river, more directly in front of the right water screen. The CM checking you in will tell you which seats are the best available.
To BE SEATED for the performance (9 p.m.), you and your party can show up any time after 8:30 p.m. It's preferable to get there early so you can get your drinks (the hot chocolate was very good) and maybe even a refill before the show starts... and start chowing down on your delicious goodies.
Don't forget you need to pick up your tickets to the show sometime during the day (don't leave it till the last minute... ugh, jogging back out to the gate and back). Go to guest services by the front gates.
Hope that helps!