Hi Sarah and welcome to the Mom's Panel,
How exciting that you are in the planning stages of your very first visit to Walt Disney World! I have absolutely no doubt that you will take away many magical memories which will last a lifetime.
You don't say in your Question when you are planning to visit, but if you thinking about 2012, there are some super deals currently being offered to UK residents on the Walt Disney World website
HERE
As you can see, if you are travelling during select dates, you can take advantage of Free Dining as well as a 14-day Ultimate Ticket for the price of a 7-day Premium Ticket.
My family have been able to take advantage of Free Dining during our past two trips and I cannot tell you how much money this saves and better still, it is very straight forward to use.
As to where is the best place to stay, that really depends on your preferences and budget. As a Disney Resort hotel Guest, you will benefit from extended theme park hours, complimentary transportation between Orlando International Airport and your Disney Resort hotel as well as use of the monorails, ferryboats and buses around the entire Walt Disney World Resort.
I would recommend that you have a look at the different types of accommodations available
HERE to narrow down your choices.
The Value Resorts offer the lowest rates and whilst they are small on cost, they are certainly big on fun. The Deluxe Resorts offer the ultimate in Disney luxury, style and service whilst the Moderate Resorts fall somewhere between the two.
If I can be of any more help with your planning please feel free to visit the Mom's Panel once again to ask me another question.
Wishing you a magical holiday!