Hi Melanie,
My family were at Walt Disney World from 22 December 2010 - 4 January 2011 and to be honest, I didn't see much variation in the crowd levels throughout that 2 week period. As I am sure you are aware, the week between Christmas & New Years Day is one of the busiest weeks of the whole year but that said, it is also one of the most magical times of the year to visit and with a bit of planning, you can still have a fantastic time!
If eating with the Disney Princesses is a must-do during your trip, I would suggest that you make advance dining reservations for
Cinderella's Royal Table or
Akershus Royal Banquet Hall right away.
Reservations can be made online
HERE or by calling (407) 939-3463 up to 180 days prior to your visit.
Both character meals are extremely popular and as you will be visiting during a busy time of year, it is absolutely essential that you make your dining reservations before the restaurants of your choice are fully booked.
Wishing you a magical trip!