I am trying to have self control and utilize using my remaining points before my use year begins and reserve a studio at ssr, instead of staying at a 1bd during the month of August. I have stayed in both and I must admit, that after staying in a 1 bdrm and up, its so hard to go back to a studio


I don't want to borrow points and I have considered reserving a couple of night of
DVC cash rooms. But the extra money can go on other activities at WDW.
However I plan on returning in December and will definately reserve a 1bdrm. I love the space the separate shower, the kitchen and most of all the washer and dryer (taking clean clothes back home and living out of the suitcase for and additional day is wonderful

I think of the worst case senario and think about returning home and my suitcase malfunctions during baggage handling and all of my dirty clothes spill out (but that may be just me)
Thanks for letting my share that. Has anyone else ever had this dilemma?
I think your dilemma is the same problem many DVCers have. It often turns into addonitis. I also think the many travelers prefer to come home with clean clothes versus dirty ones. So you're not alone on that on either.
Back to your problem, am I understanding that you have points for 2008 use year that you didn't bank and will lose before December? And you already have a stay booked in December using the 2009 points?
I suggest making a list a prioritizing each item you mentioned above. I would think it would start as follows:
Number 1 - No borrowing of points;
Number 2 - December 2009 trip, staying in 1 BR;
Number 3 - How much cash is available and what activities will it be needed for for our December trip?
Number 4 - Number of points leftover from 2008(?) and what type of unit can I reserve with those points?
Number 5 - What monies (not counting the money used in No. 3 above) do I have to increase the either the length of stay or room size in August?
Number 6 - Could we shorten our December trip and August trips so we can stay in a 1 BR each trip? And is it worth it?
December trips to DVC are pretty special. You don't mention who is traveling with you so I can't make any arguments regarding them. And laundry can be done at the community laundry room. I have not used one at a DVC property but at other Disney Resorts the laundry rooms are easily accessible while the family is having pool time. Or as in my family (no kids) we often do it this way:
One of us gets up and gets dressed in todays clothes and takes the laundry to the laundry room and starts the loads in the washer(s). The other adult takes a shower, grooms and dresses. Then when the first adult comes back they switch. Then the second person places the clothes in the dryer.
Then we both check email or write postcards to family and friends or sometimes just reorganize the room a little. Then when the clothes are dry we both fold (sometimes at the laundry sometimes in the room) and put everything away. We even share this chore when doing pool time, so a switch could be made watching children.
This method of doing laundry has been used by us all over the world as we love to travel. We often cruise and the pool method works best on those vacations. We have found it just makes our whole vacation better, especially not returning to huge amounts of laundry (because somehow you seem to have more laundry than usual on a vacation

).
Good Luck on your tough decisions!