Kempis--yes, in Apirl Vacationmiles stopped transferring program points into American Airlines miles. So, your Vacation miles need to reach at least 24,000 to be able to get a ticket (less for $50 and $75 off awards).
Sheetz--If you haven't already done so, the best thing to do is to check out the vacationmiles website (vacationmiles.com, I believe and the mypoints page which outlines the Vacationmiles program). Realize that there are some restrictions for Mypoints members who convert their points to Vacationmiles--not all of the options on the vacationmiles site are available to mypoints members.
I assume "airline of your choice" means just that, but for that question and others you may want to call Ann Marie at 1-800-343-4034 ext. 214. She was the point person for the American Airlines miles transfer when that option expired in April.
There is a clause on the award form, that the saver awards (x dollars of ticket of $xxx or more) awards apply to "any travel, worldwide, that meeting pricing requirements" I don't know if there would be any pricing requirements for the ticket awards, but you may wish to ask.
The form also says of the award tickets:
"Frequent flyer miles can be accrued. Passengers must return to the city of origin. Open jaw and stopovers are not allowed. Advance reservations and balckout dates apply. All travel must be on the same airline....taxes and surcharges are not included in awards". As leroy11 noted, there is the 21-day requirement as well.

You may wish to also check out the car rental awards--if you're needing a car rental and if your ticket isn't that expensive (midwest airlines), then getting a week of car rental plus $100 in traveler's checks for 23,000 vacationmiles (vs 28,000 for airline of your choice award) may be a better value.