Yes, this is correct. If you've ever set up an account through Disney's website, that will be your user id and they will give you a temporary password that you will change once you get into the site.
Call the 800# when you're in front of your computer and they can get you logged in pretty quickly. I will admit, though, I don't think the DVC website is much to write home about! I thought it would be much more advanced than it is. With today's technology, you'd think they could link it to the reservation system and allow members to at least see what's available versus calling MS every time you want to check availability. Heard this has been a member request for quite some time and is being considered.