Kristen:
I don't know what your friends meant by "not a nice place to stay" because our family has stayed at All-Star Movies and loved it--and I've recommend it to many of my friends looking for an affordable option at Disney. In our experience, the rooms were very clean, the transportation swift, and the food court on par with other resorts, including the moderate Port Orleans (well, except for the beignets!)
Best of all, our children adored the stories-tall Buzz Lightyear and Woody! For the ages of your children, I think you're making a solid choice.
The only downside I hear about the All-Star hotels is how busy they can be during Spring Break and the Pop Warner week (the week AFTER your trip). You'll be at Disney during one of the slowest times of the year, after Thanksgiving, so I think even this complaint will not apply.
With all that said, I think the moderate hotels offer one of the best values for Disney accommodations because the rooms are marketly larger than the Values, include a refrigerator, privacy curtain in the vanity area, and landscaping that reminds you of the Deluxe resorts. Each resort's pool certainly is a step up from the Values, but you'll be visiting during cooler weather and this would not necessarily make me change my reservation.
My suggestion is to go back to your friend for specifics on why they didn't like it and check to see if any of their concerns are echoed in the Reader's Comments section under Accommodations at
www.allears.net--a good source for unofficial Disney information.
If you have any other questions, don't hesitate to come back to me via my bio page--especially if you do decide you need help finding another resort.
Wishing y'all a magical vacation!
Whitney