JoeFlyer
You are correct about the process but your numbers are a little off at:
1200 points/credit x 8 Credits = 9600 Points for a 1 way Flight
19200 for a round trip.
I have used the transfer in both directions and it works almost instantly although you sometimes need to log out of you account and back in to see the new credits.
Also once you have credits you cannot change them back to points but you can move them between programs.
One important point if you can book the flight through Southwest you can cancel and get your points back. On Airtran you pay a change fee.