Adina:
Thanks for coming to the Mom's Panel!
I am assuming that you are talking about
Disney's Deluxe Dining Plan. (I found it on the Disney website under Plan/Why Stay at Disney World?)
You are correct that you can use the plan for Character Dining and Dinner Shows--best part: you don't have to pay anything to "upgrade." It's built into how you use your plan credits!
The Deluxe Plan allows you three table service meals and 2 snacks per day of your stay. (Where I come from, that's a lot of food--especially if you're bringing children on the plan.) Most Character Meals "cost" only one credit. However, if you'd like to experience the Character Meal at Cinderella's Royal Table or a dinner show like Hoop dee Do Revue, it will cost you
two of your table credits (see the pdf pamphlet for the restaurants that require two credits).
In my opinion, I don't think I could eat three table service meals a day--or have the hour to 1 1/2 hours out of my schedule to give to eating....so the plan works
best when you double up your credits and plan ahead!
Wishing you a magical vacation!
Whitney