If you can, definitely stay in one of the Disney Hotels...
Caribbean beach is excellent for a mid priced option, or if you want to spend a bit more, stay at the Yacht club!
Not a Disney hotel, but also worth considering is the swan or dolphin - at the end of the river to Epcot.
One of the benefits of staying at Disney hotel is that your keycard is also your park pass and anything you buy in the park can be delivered back to your room - a godsend when you're knackered!
We normally do the parks in chunks of 1 1/2 days, and the 2nd day afternoon is for rest & recovery & pool time, but then we go out in the evening to downtown disney - you MUST go to disneyquest (included in your room key if you get the 2 week option) and then repeat all over again!
The disney hotels all have a laundromat (normally next to the pool area) so don't pack too much clothing.
The Disney transportation system is excellent, but remember at the end of the day when the parks close, there WILL be a queue, but they normally move quite quickly.
you'll be sick of fried food (and the smell of it) by the time you get home, but...
you MUST book at least two dining experiences - the Crystal Palace for a winnie the pooh & friends experience (my favourite!) and it's a 'help yourself' style buffet, but really lovely fresh food. Cinderellas castle also has dining, a bit more formal as they serve you, but you may come away traumatised by meeting all the disney princes and princesses, especially cinderella who wears turquoise contact lenses!!!
Mickeys back yard barbecue is great fun, and the hoop-de-doo musical review is brilliant.
Book these well in advance - before you fly as they get booked up really quickly and queueing for them will destroy your holiday.
Dont forget there are other parks - seaworld is good, a mixture of rides, animal shows (shamu) and displays. Feeding the seals is fun, and the pirate show is brilliant (and a welcome chance to sit down for a bit!) Universal studios would probably be better for younger kids than Universal Islands of adventure.
Don't forget there are age/height restrictions - normally available on their websites, so check out beforehand to avoid disappointment.
Don't take a big camera, you'll be worn out with the heat, a compact is much easier to manage.
if you can, go to kennedy space centre, it's totally awesome but your kids might be a little bored as it's not as full on as the disney experience.
Hope you have a lovely time!
x