The joys of the waitlist game. If you selected the entire trip as the waitlist request, then yes, the whole thing needs to come up at once for your waitlist to be fulfilled. Now you could keep watch and snag individual days as they come up, but this means you may have to switch at least once, or possibly multiple times depending on how many holes you are left with. But then the question comes, do you change the waitlist or not? Waitlists are handled in the order they were received, so if something does open up, changing it to a shorter duration could mean you get skipped over. IE you requested Aug 1-7 on April 1. Someone else requested Aug 4-7 on April 3. Now if you manage to get 1-4 and 6-7 by stalking open rooms, and then change your waitlist to the 5th on May 1, if someone cancelled that whole week, instead of you getting it with your April 1 waitlist, it goes to the April 3 waitlist person and you still don't have that room. Make sense?
I've had mixed luck. Gotten in at WDW, not at DLR. If you could out the availability tool and pretty much your whole trip shows as unavailable, then I wouldn't put too much hope in it. But it its showing only a few nights, then your odds increase greatly.