It's good you are trying to take luck and subjectivity out of distributing drops. It makes it clear to your clan that members are rewarded according to the effort they put in.
It takes time investment to do it properly but it eliminates a lot of loot issues. Yes you have to take attendance for every boss kill, give people a certain amount of points for each one. There are a couple ways to use those points to distribute loot. Some clans want to do bidding (using points as currency). I dont like it because it doesnt guarantee that your most active (most points) end up with the best/most loot. The value of loot also changes depending on who is bidding and it can also be manipulated when people agree on the side to keep bidding low so they can bid again on another item (thats called collusion). It would be easier to just give the loot to the one with most points.
A dkp system is really just a smart round robin system. People get their turn, and people who are more active get more turns to get items.
There are many implementations of dkp sytems, most of them have issues, you have to determine which one you can live it.
http://en.m.wikipedia.org/wiki/User:Saraid/DKP
In the last few years most MMO guilds have used what we call EPGP, which solves a lot of problems inherent with other systems and is actually the one we use for our clan. But nothing wrong with using Simple/Traditional DKP either especially for a small clan just starting out.
This thread has a lot of discussions about loot distribution, it would be a good read:
http://www.celtic-heroes.com/forum/view ... =4&t=55747
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