From experience and multiple stays. Here is how it seems to work.

No credit for the daily room rate as it is some sort of pre-paid rate. BUT you get nightly credit towards gold, diamond etc and you get points for all charges on the folio at check out. Now is the catch--make sure you get some charge on the folio (even a $1.25 phone call or a beverage from the mini-bar) this insures nightly credit.

So if you like or need the great rates that Expedia often has (20-40% off low pub) then the trade off seems to be no HHonors points for the room rate.

I for one make that trade every day (but I am cheap). Value the HHonors pts yourself and see if the cheaper room rate is worth it.

The GREAT news is I have been able to get the Gold benefits that I am entitled to. Room upgrades, free breakfasts etc with the same issues as on other Gold threads but not related to the Expedia Special Rates.

Overall I have become a huge fan of Expedia.