I just realized that you didn't specify if this was a Grand Gatherings event. If not, don't pay attention to what I just typed!!
We did the cruise in 2005 and 2008. In 2005, we loved it. This past cruise was a little disappointing for us, BUT we had the 2005 cruise to compare it to. If this had been our first time, we would have really loved it.
Here is the rundown:
You will go to the Contemporary and congregate in a waiting area with couches and benches. When the time comes, you will go into a smaller room to meet the characters and eat some snacks. The snacks were packaged things like popcorn, granola bars, doughnuts, and chips. There was also fruit and lots of drinks. Then Mr. Smee and Captain Hook will come out for pictures. It goes by pretty quickly, but everyone had a chance to see both of them. The groups will be divided into Mr. Smee's boat and Captain Hook's boat. You will go with your group to the pier and get on your boat. The boats hold about 50 people, I guess. Your captain will be a pirate and they tell stories and joke around with the guests. You will watch the Electric Water Parade (AWESOME) and the boat will stop for the Wishes fireworks over Magic Kingdom. The music is piped into the boats, so you can hear it loud and clear. It is pretty amazing, to say the least. After the fireworks, the boats will head back to the pier to meet Peter Pan. The whole thing will last about 2 hours, I think.
It is well worth the money to attend this. Let me know if you have any more questions!!