Last year we took the Famliy to Disney to celebrate our 10 yr anniversary. We stayed at Animal Kingdom Lodge and the kids loved it (7,5,3 yrs old). Our room had a great view of where the animals roam and the kids would get up early every morning to see them. Like another poster stated staying on Disney has it's advantages, special early park openings, free shuttles to the parks, activities at the hotels.
I would reccomend getting Biranbaums(sp) Disney Guide book to help you plan your trip. We were able to book special lunches and dinners with the characters which I understand book up quick.