Steve,
Yes, you are using it right. Samples should be quite dense in the halo, and a few outside, to keep the background flat and avoid oscillations on the synthetic model. You may need to repeat DBE one or more times, to get the result you desire. To simplify this, just create a process icon right before you finish your first DBE. After applying, just double-click the icon, and make any needed changes for the second/further iterations.
You should use subtraction, since this is an additive effect (light from the bright star is added to the background sky and the stars). The normalization option should ensure that the background remains at the same level, and that you effectively only removes the halo.