I went to the annual meeting in 2000 and they claimed it was coming soon.
Considering all the computer problems they are having, I don't have much hope.
Obviously any year 2000 promises were wishful thinking but I fully expect we will have on-line reservation capabilities in the next 12-18 months (including my own margin for error.

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As for the issues Disney is having now, I don't mean to sound callous toward those who have suffered due to conversion issues but frankly there is little about this process that surprises me. I've worked in IT for almost 20 years. Conversions are NEVER fun but they are a necessary evil if many organizations can ever hope to move forward.
Disney currently has about 35,000 hotel rooms in the US alone. With reservations accepted more than a year in advance, there are literally
millions of pending transactions in their system at any given time. No matter how carefully they designed and tested the conversion programs, there just isn't time to account for every unique situation (many of them mistakes) made by reservation agents under the old framework.
Honestly you go into a conversion KNOWING that there will be problems. But the reality is you can only invest so much time and money into fixing those problems beforehand. The other bad thing about conversions is that they are a moving target. You can test and test and test for months on end, and come up with ways to address 99.999% of the problems, but at some point you have to stop programming. And there's no way of preventing the live agents from introducing new problems after that programming cutoff.
In the grand scheme of things, the volume and severity of problems that I have seen reported here since the conversion began in October are pretty mild when held up against the 3000+
DVC Villas with near-max occupancies for 2.5 months.