Thanks everyone. Makes sense now.
Silly question but say I've got a number of ~1600 blocks staking right now. Do the staked coins join each block once either the 1000 limit hits or 30 day limit hits (whichever happens first)?
I guess I'm asking is it an instant addition of coins to the wallet and then I need to re-calculate new blocks and repeat?
In the newest version of the wallet you can tell it what to do. It is called "splitstakethreshold" and is in the RPC commands. If you set the threshold to 1,000 (default setting in new wallet) it means that it will take your full reward and old block amount, and if it is over 2,000 HYP it will make them into two blocks. If the full amount was less than 2,000 it would combine them as one block.
So you think of the threshold number as the minimum block size it will make if it splits.
and it saves to the wallet!!!! man I LOVE that... one less thing for me to forget to do!