That's pretty much how it works. They will send you a order confirmation email which includes the details of your order, instructions on how to mail your loose dvd's, and a shipping label for you to print out.
I called a local EB today and got some discouraging news. The employee I spoke with said that while they were still running the promotion, they were only offering $25 for a ps1 and 5 games now. I plan to check a few other EBS. That sucks if it is true.