Everything said above is correct. I'll just reword it a bit.
Disney's Magical Express (DME) is a new FREE service that just started in May. Before DME, you had to pay to get from the Orlando airport (MCO) to your Disney resort (you paid a shuttle bus company, or a limo company, a cab company, or you rented a car). DME is a free bus ride AND luggage handling. It's ONLY for people staying at Disney hotels. Wording can be confusing -- Disney calls its hotels "resorts," but if you're like me the first time I saw something referring to a Disney "resort" I incorrectly figured it was talking about a theme park.
Anyway, in addition to being FREE, the main perk of DME is after you check in your luggage at your home airport, you won't see it again until it "magically" appears in your resort room a few hours after your flight lands at MCO. After your flight arrives, you don't go to baggage claim, Instead, you go to the DIsney Welcome Center, which is just a fancy phrase for the DME counter. You check in, get bus vouchers, and they tell you where to get in line for your bus. You'll be on a bus with people staying at up to 3 other resorts. The buses are air conditioned, plushly upholstered, and have TV screens for an entertaining WDW infomercial.
When it's time to get back to the airport, some people (who fly a "participating" airline) will get to check their luggage at their resort rather than at the airport; they won't see it again until the arrive back at their home airport, and they also get to get their boarding passes actually at the hotel, which speeds things up at the airport. For the rest of us on "non-participating" airlines, you just have the DME driver load your suitcases into the bus's cargo hold when the bus arrives at your resort. In both cases, everyone gets a free ride back to the airport.
It's actually a very simple system once you know how it works. I've read VERY few complaints from people who've actually used it, but I've read lots of fear and rumor-spreading by people who've never used it. All I know is, you'd expect a new system to be shaky at the beginning and then get better with experience, right? Well, I used DME on its 4th day of operation, May 8, and it took me all of 53 minutes from the time I first got in the DME line until I was dropped off at my resort. I was pleased.
-- Eric
