Hi Karen,
You are getting so close to your upcoming trip and must be on pins and needles with excitement! My favorite memories from all of my Walt Disney World vacations were from trips when my kids were the ages of your children. This is bound to be a very magical trip for your family, full of precious memories which you will treasure for yEARs to come!
Karen, if you are looking to dine with a view of the fireworks I have a number of suggestions.
California Grill is my absolute favorite. While more upscale, we still dined here when our children were as young as yours. However, I highly recommend that you book an early reservation and then return for the fireworks. As long as you hold onto your receipt, you can return anytime the same evening to enjoy magnificent views of the fireworks on the restaurant observation deck perched atop Disney's Contemporary Resort.
Perhaps more family friendly,
'Ohana at Disney's Polynesian Village Resort is another terrific option. This wildly popular all-you-care-to-enjoy Hawaiian feast is served family-style at your table and also offers games and entertainment for the children.
As for character dining, I personally prefer breakfast or dinner reservations so the kids are relaxed and neat and tidy for photo opportunities with the characters. Our favorites are
The Crystal Palace with Winnie the Pooh and friends, and
Chef Mickey's with the Big Cheese himself. Be sure to make your dining reservations as soon as possible since you are so close to your trip!
Bon Appetit!
Trish