Found the Portable Perks with the pool hopping rules. They are as follows:
Pool Hopping
You and any guests staying with you at Old Key West, BoardWalk, Wilderness Lodge, Beach Club, Saratoga Springs, or Animal Kingdom Villas, Bay Lake Tower, or Vero Beach are permitted to use other DVC and WDW resort hotel pools (in addition to the pool at the hotel at which you're staying) if they are not at capacity. If the pool you're visiting reaches capacity, you may be asked to leave in order to accommodate Guests of that hotel. Please check with a host/hostess at the front desk of the resort you wish to visit to find out about pool-access availability. You must present your current "Key to the World" card with the DVC Member designation on it to use other resort hotel pools.
Pool hopping is not available at Uzima Pool at Animal Kingdom Lodge and Stormalong Bay, the leisure pools at the Yacht & Beach Club, Samawati Springs Pool at Kidani Village, and Bay Cove Pool at Bay Lake Tower. There are no exceptions to this policy.
As a reminder, during times of high occupancy, please be mindful of the limited number of pool chairs available, and refrain from leaving towels/personal items on unoccupied pool chairs.
Due to expected high occupancy, DVC Members may not "pool hop" July 1-5, 2009, September 4-7, 2009, November 23-29, 2009, and December 12, 2009-January 3, 2010. (Other restricted dates may be added based on projected pool capacity.)
Looks like there is no rule about me a DVC member staying on another DVC members points. We will still have the DVC member designation on our cards since we are guests of that member AND we are DVC members, so looks like we will be pool hopping on this trip!
You are not a member for this trip. You are a non-member using a member's points. So the perks don't apply to you. The rules you quoted are for members staying on their own points. Likewise you would not be able to contact MS about this reservation because you didn't own the points to make the reservation - unless you transferred points. Then those points became yours. But if you did not transfer the points, you are no different from any other non-member.
Just like if you decide to stay at a non-DVC resort paying cash. You are not eligible for DVC perks except for shopping and dining. You can get those anytime, even if you aren't staying on the property. Or if you are just passing through town on your way to somewhere else. But pool hopping is different.
Not your points, not your perks.
From the DVC Website - this precedes what you copied:
"Whenever
you are staying on
your Membership at Bay Lake Tower at Disney's Contemporary Resort, Disney's Animal Kingdom Villas, Disney's Beach Club Villas, Disney's BoardWalk Villas, Disney's Old Key West Resort, Disney's Saratoga Springs Resort & Spa, Disney's Vero Beach Resort, or The Villas at Disney's Wilderness Lodge, you and any Guests staying with you, are permitted to use most of the other Disney Vacation Club and Walt Disney World® Resort hotel pools (in addition to the pool at the resort hotel at which you are staying) if they are not at capacity."
You are not staying on your membership.
Unless you got those points for free from the other member, you are not really their guest. You are their rentee and MS must be notified that you are renting the reservation.