I just finished my call with DVC as well. I had booked two studios on April 1. I just thought I got lucky and that the resort had recently expanded its allotted inventory. Clearly, that was wrong. Anyway, the person I spoke with identified herself as a supervisor, and she said that my points *would* become reservation points if I accepted two standard hotel rooms in place of the studios I originally booked. I declined and asked that my reservation be canceled instead.
Sounds like they are screwing this up about every way humanly possible between this post and the one before it.