Hey there, the free dining is not for us dvc'ers but if you wanted to stay in a regular resort you can, here are the details. Stay at a resort between Aug 13 and Sep 30 on a package (tkts included, you could get a 1 day tkt) and your dining is free. Must be booked by June 4. Let me know if you have any questions.
There are only limited numbers of rooms available for the free dining. Some room categories are not available on the plan. You will pay rack rate for the room. I think there is a minimum stay of at least three nights. You must purchase a ticket with this package.
This is just a way for Disney to fill up the vacant rooms since kids have gone back to school and it is the main part of hurricane season.
You have to pay rack rate for the room, DVC points are not rack rate. You can stay at a DVC resort with cash through CRO and get the free dining (with the purchase of at least a one day ticket). The lowest priced room is an OKW or SSR studio for about $300 per night.