Hi, Natalie!
I stay at Disney's All-Star Music each Spring when I chaperone our Senior Class Trip to Walt Disney World. This is a great resort, one which I recommend to family and friends whenever they are trying to plan a trip to WDW on a budget. You won't be disappointed!
Regarding Magic Your Way Packages, an ideal schedule would allow you to visit a WDW park on each day of your visit, so I suggest that you purchase a package with park tickets for each day of your stay. While park hopping is a great convenience (meaning you can go to as many different parks in one day as you'd like), eliminating the Park Hopper Option from your ticket is one way to save money. We park hop on days when we'd like to spend most of a day in one park, then return to our resort to swim, shower and change, then head to a different park in the evening for a great dinner. Park Hoppers allow us to do this. However, we can also plan our days more carefully so that we return to the same park in the evening after a break at the resort as well. (Park Hopper Option not needed there.)
We also eliminate the Water Parks & More Fun Option on most trips, as there is so much to do in the four main parks (Magic Kingdom, Epcot, Disney's Hollywood Studios and Animal Kingdom) that we seldom have time for a water park. Should we determine that there is time for a day out of the four main parks, we simply pay the single day park ticket price at either one of the water parks, Blizzard Beach or Typhoon Lagoon, as well as DisneyQuest Indoor Interactive Theme Park.
You may want to check out packages that are available including
Special Offers at Walt Disney World Resorts. There, packages usually include an appropriate number of tickets for the trip, while allowing Guests the option to customize their packages as well. It's a great place to start!
Send more questions as you think of them, Natalie; I love to help!