Since the beginning VMware has a had a requirement for candidates to complete an authorized course. This has been a thorn to those wanting the Cert because the class is not cheap. VMware has done this to help reduce the probability of 'paper' VCPs.because the course is rather intensive and does provide limited hands on experience. Having been a Certified Instructor I can tell you many times I have had students like yourself with a lot of hands-on experience who complained they needed to sit in the class to obtain their VCP but all of them left saying they learned something so I do not think it will be a waste of your time -
Yes if you fail you will have to pay the $175 over again.
These are the classes tha qualify:
VMware vSphere: Fast Track [V5.1]
VMware vSphere: Install, Configure, Manage [V5.1]
VMware vSphere: Optimize and Scale [V5.1]
VMware vSphere: Troubleshooting Workshop [V5.1]
(This course is only recommended for candidates who have significant experience with VMware vSphere 5.x technology and a high level of comfort with the exam objectives.)
vSphere with Operations Management: Fast Track
You can search for authorized classes here http://mylearn.vmware.com/mgrreg/index.cfm?ui=www_edu&redirect=off