Hi Tarah!
How cool is it to have Disney just down the road from you now? Of course, all your friends and family can now lounge with you when they plan to visit Disney :-) I take it soon you'll be getting many calls from family looking to pay that impromptu visit...
Yes, Christmas day/weekend is MEGA busy, and is easily one of the busiest days I've ever experienced at Disney World, hands down. Of course, some people enjoy the whole busy-ness of it all. But there's a sea of people, and, as someone who's spent Christmas at Disney the last 2 years, we're staying clear away from it this year.
But, if you're looking for something to do, Disney is definitely the place to be!
Good luck, and have a fun, exciting Christmas holiday!