Thanks serra142 for the detailed reply. Even though the OCI application is one of the easiest I have ever seen from the Government of India, some of the rules are ambiguous. For instance, the online instructions clearly say that "Please produce
your passport(s) and PIO Card, if applicable, in person/ through authorized person /by post for affixing OCI visa sticker".
One more question guys, can we combine the amount on the DD for the entire family?
For the documents to enclose (including DD), treat as if every family member was applying separately. Since each family member gets their own registration number when you register online (even if applied as family group). So it is better to have separate DD.
See first post in the following thread. I find many of the tips in this thread very useful
http://www.immigrationportal.com/showthread.php?t=227390