Disney8704 said:
We are gonna do the magical express but I understand that they get your luggage for you at the baggage claim.
Even better, they grab your lugggae "behind the scenes" before it even makes it to baggage claim. As goofy4tink just said, the checked luggage is then transported to the resorts by truck. You never see your luggage during the process, and you never see anyone who's handling that luggage during the process.
Disney8704 said:
What if you do carry on's? Do you just carry it out and hand it to them and they take it to the hotel or do you just take it with you?
Carry-ons are your responsibility. You carry them with you. There's no one to hand them to, to then have the carry-ons "magically" arrive in your resort room. Now, when you get to your bus, you may take your carry-ons into the bus with you if they're small enough to fit under your seat or on the overhead shelf. If it's not a good fit, or if they would fit but you want them stowed anyway, the driver will be happy to load any or all of your carry-ons under the bus. When you get to your resort, the driver will unload your carry-ons for you (and then you should tip appropriately).
Disney8704 said:
Also has any luggage ever been lost or delayed or has it actually gotten to your hotel room all there with none missing before you get there?
EVER been lost? Probably, but I don't know that we've read any actual first-hand reports of that happening to members of DISboards. Delayed? Well, it all depends on your definition, on your expectations. DME wasn't designed to have your bags make it into your room before you. Expect a 2-3 hour lag between the time you check in and the time your checked luggage "magically" appears inside your resort room. Pack accordingly in your carry-ons. This is a good idea to do, anyway, just in case the AIRLINE delays your luggage.
DME seems to be remarkably reliable. It's been around just over one year, has served over 2 million passengers, and it's been such a success that Disney extended it through 2011 (it was supposed to end in late-2006).
I used DME when it was only a few days old in early May 2005, and I loved it. I've been an avid reader of these boards over the past year, and I've read NOTHING to make me even consider using anything but DME for my family's next WDW vacation this November.
ENJOY YOUR TRIP!