I'm currently a freshman living in the honors village, specifically in Bagwell, who was in your exact same position exactly a year ago.
Long story short, it's fantastic. Everybody on the village I've met so far (and I've met a LOT of people) is smart, hardworking, fun to be around, it's just a fantastic place to live. The people in the village are just fantastic, basically.
The dorms themselves are also very good, very clean, and being hall style to me it feels more like one giant suite where everyone's each other's suitemates. Location wise it's pretty good as well, you literally have a dining hall 10 seconds from the quad, there is a C-store in the honors village commons, and you have a whole menagerie of study rooms across the lounges of the dorms, the HVC, and the upper floors of the Clark building. There are also tons of programs and events ran by the Quad Area Council (QAC) which vary from movie nights, to grass days, to lego days to disney movie trivia events.
So, now for the honors experience. First, if you do get into the program, (I believe you find out April 1st?) and live on the quad, do kickstart in the fall. You move in early, and get to meet with your "fellow" ahead of time and meet a lot of the new students.
So, to explain fellows - honors students have to take honors seminars, normally 1 per semester for the first four semesters, which are literature or philosophy-esque classes that really can range to be about anything (here is a list, you'll be likely in an HON 202) and are discussion based sort of classes which are pretty darn interesting, also nifty ways to get rid of GEP's. Your first honors seminar will consist of around 20 students who constitute your 'cluster', which is your psuedo-intro sort of group that will (should) be invited to do activities and whatnot outside of class with your honors fellow.who is the guy/gal you meet at kickstart
And those are quite fun as well. That's sort of a lightning-summary of some honors stuff, if you're going to engineering open house/prospective student night on March 20th you'll get the opportunity to ask a lot more questions. Maybe I'll even see you there, if you're male I might even be hosting you for the night, who knows.
So there's the summary, good luck, hopefully you get in and all works out well.