Hi Christien,
When we visited WDW over New Year's Eve when our children were younger, we did a couple of different things. One was to begin our morning at a park then leave as the crowds began to grow. A second plan for us was to sleep in then head over to the pool (weather permitting) and enjoy the activities by the pool. We would then have dinner at a resort that has lots of fun, such as '
Ohana, then we would wander over the beach at the Polynesian Resort to watch the early fireworks from there (lots of space for the kiddos to run around). Wishes are currently scheduled at 8:30 pm on December 31, 2011. A few other suggestions for dinner that would let you still see the early fireworks by walking to the beach or observation areas are
1900 Park Fare at the Grand Floridian and
Chef Mickey's at the Contemporary. And if you aren't able to obtain a reservation, you could certainly visit one of the counter service restaurants, such as Captain Cook's at the Polynesian Resort, then have a New Year's Eve picnic on the beach!
If you'd like to visit a park, Epcot can handle large crowds well, and you could celebrate some New Year's celebrations beforehand as many countries in the World Showcase celebrate when their country greets the new year.
Thank you for visiting the Moms Panel; please let us know if we can help again!