Hey Canuck,
I own at Vistana Villages. Been there once, but Vistana Resort three times.
Vistana Villages is new, and still under construction. Though, from what I read, the construction won't bother you. It is a very nice resort. I was at Vistana Villages in 04, and it's grown by leaps and bounds since then. I've read there are plans for a restaurant on premises, don't know if it's built yet. In 04 there was a full bar, and a deli/souvenir store on property. Vistana Villages is a beautiful place. You can't go wrong.
Vistana Resort is the original Vistana. It's bigger, with more pools, more things to do, and it's closer to Disney World. Vistana Resort is in the middle of a massive rehab to the units. Many are done, but there are still a few sections left to go, including the previously notorious Courts section.
The grounds of Vistana, the pools, the common areas etc, are wonderful.
I've found the 'dump' comments are reserved for the older sections of Vistana Resort. But those sections are being rehabbed.
I think by the time you are ready to travel in 2010, those 'dump' comments will be a lot less common.
The way I see it, if you have kids, they may like Vistana Resort better. But they'll find plenty to love at Vistana Villages too.
You are going to have a great time.
Hope that helps,
bward