Hi Darlene!
I've always found the best rates are offered booking ahead. My favorite page on www.disneyworld.com? The
Walt Disney World Special Offers page! I check it out at least once a month to see the promotions available. For your travel dates, I'd start checking summer 2014 into the fall. I'm hoping you'll get a good deal!
Keep in mind that Special Offers do have certain restrictions and stay minimums. They can also save you a great deal of money!
As far as where to stay? When traveling with family, we've always booked separate rooms for the grandparents, and requested adjoining rooms. We've always had great luck with rooms that are close to each other, and everyone gets their own space. Otherwise, you could look into a 2 bedroom villa.
Because of Disney Transportation, you'll be able to easily access the parks with the great bus service that's offered. If you would like to stay close to Magic Kingdom, then I'd suggest a monorail resort (Disney's Grand Floridian Resort and Spa, Disney's Contemporary Resort, or Disney's Polynesian Resort). This convenience is great, but will cost you more as well.
Have a magical vacation!
Amanda