Hi, Lori!
There is a great option for Disney Vacation Club Members to add on one of several Disney Dining Plans when using Membership points to secure villa reservations.
At the time of this writing, the 2012 Disney Dining Plan costs $51.54 per adult, per night of stay, with kids' plans, ages 3-9, costing $15.02 per night of stay. In 2013, the cost is $55.59 per adult, per night of stay, and kids' plans costing $17.16 per night of stay, ages 3-9. Deluxe Plans can be added, too, as well as Quick-Service plans. All of these plans include one Resort-Refillable Mug per Guest as well, which really adds on even more savings.
Free Dining, however, is a perk that goes along with booking a package. As DVC Members don't need a vacation package (the cost of their accommodations have already been paid) it wouldn't apply to bookings. However, two other Member Perks help Members save significantly on their Disney Dining. DVC Members are currently able to purchase discounted Annual Passes (right now, the deal is exceptionally great, with Premium APs going for $399 (a savings of $300) per adult ticket. We purchase APs, then book at least two, week-long stays within the year (in August one year, for example, then June the next) all on one ticket. Huge savings there! Once you're an Annual Passholder, you can purchase the
Tables in Wonderland Card for $75 for a one-year membership. This will save you and up to 9 Guests 20% on most Table-Service dining, including alcohol. Again, another great savings.
Incidentally, even if you don't purchase Annual Passes, DVC Members can purchase a TIC for $100. Still a great savings for a year's worth of Dining!
Send more questions as you think of them, Lori! I love to help everyone understand the great benefits of Membership in DVC! :-)