I guess there are different ways to go about this. I fax room requests almost every time (which is 3-4 times a year--yes I have a Disney addiction problem.) I look up the room layout on these and other boards and pick my spot. I look for what has been renovated in my resort and what has not been done yet. I usually want 1st floor, fairly near the lobby (it's just easier, and I do walk all day!)
3 or 4 days prior to my arrival, I fax a short letter request to the specific resort fax line. Each resort has its own--they are listed on each resort description web site in wdwinfo (this website).
I address my letter, "Dear ______ Resort Scheduler," give them my arrival/departure dates and reservation number, and cheerfully make my request. I never ask for an upgrade, just a range of room choices--"like 1816 through 1806," for example, that I want. And of course, I remind them to "Have a Magical Day!" just as they would remind me.
Earlier this year, I did not fax a request, and suffered for it. I got a Boardwalk Inn room right next to the world's noisiest elevator. It was so bad, that other guests were down in the lobby with me complaining. So one more tip is to request at least a few rooms distance between you and the elevators. At least one of the Disney elevators is a BEAST.
I have had nearly 100 percent success in getting what I have asked for. Even though the room schedulers do not confirm that they get the fax requests, in my experience, they get them and schedule your room accordingly.
I hope you have a wonderful vacation, and get the best room at your resort!