When you bid on Priceline, they'll take your credit card info and bill you (if they accept your price), plus their $5.95 fee, and the applicable taxes. The hotel is basically prepaid. I was billed by the hotel when I was in Austin last month, but a quick phone call to them and they credited me back the amount.
I don't use hotel programs, but many have reported success presenting various membership cards and getting upgrades/breakfasts. If you get stuck somewhere, e-mail me, as I've done probably 100 Priceline nights the last few years.
[This message has been edited by tom911 (edited 04-22-2002).]