but does the points and ammo really work if you are host for other people?
Yes it does. But not really worthwhile until they get the weapons they want or they will keep bugging you to "redo hakks plz". But once everyone has some decent weapons, max everything, then lock the points and ammo.
Finally got it working late last night. Godmode doesn't work even as host. But running with no clip makes you somewhat godmode'ish. Stand in front of your allies and the zombies usually will attack only you and they can shoot em down around you, but shooting is impossible while in no-clip mode.
Not for Dead Ops arcade apparently though, but being a different setup and with the Arcade being a different game, that's natural. Just wish for more maps.