Shirley:
Thanks for coming to the Mom's Panel!
Disney's offered free dining since 2005 for a short window from August to September and then during select dates last fall. There's been no official announcement of it this year yet (although there is quite a track record). In the past, Disney has announced it first to Disney Visa cardholders around April.
Usually Disney doesn't allow you to combine discounts, and I would think that if they offer free dining this year they wouldn't double up the two offers. I did the math on comparing the two packages in an answer just today
here. And the short answer is that free dining does offer greater savings, but only if you use the dining plan to its fullest. I've known many families who can keep their food budgets to a minimum and in those cases, the 7-for-4 package can be quite a value.
Wishing you a magical vacation!
Whitney