lavasushi

I just have a couple questions about the new MSU Program (if it ever gets implemented given the strong dislike for it, me included).

First, earning MSUs at the 10,000 "paid base mileage" mark. Does this mean actual mileage or MQMs?

Second, with the 500-mile upgrades will there be a grace for flights under a certain mileage. For instance, if a flight is 540 miles, then do I have to use two?

Thanks for your help.