Hi Rita,
I haven't stayed at Little Dix in a few years, but I have noticed they are giving HUGE discounts on many websites (whereas they did not EVER do this before.) I don't know if it's due to a drop off in business/quality, or the overall slump of the travel industry.
It is also kind of complex to get there.
Almost all of the Caribbean slows down in the summer months, so you would probably have the place largely to yourself in July.

Hi Nancy,
Yes, I have also noticed some very deep discounting in general lately. I think the travel industry in still in a slump which is one reason why we want to take advantage of this. I know that July is slow but this is the only month we can do it...any suggestions of places that could be a bit more lively (other than Atlantis, don't think I could take that!) Thanks!!!!!!

I probably won't be very good at this because we LOOK for places that are dead but I'll make some suggestions.
Cancun has beautiful water and beaches, great prices in summer (we stayed at one of the nicesy hotels there in July for $115.00 per night), lots of restaurants and things to do and see. (It's also easy to get to.)It's pretty active year-round.
Cozumel is laid back fun with a lot to do and see and gets really wild when there are cruise ships in town - but it's fun to watch.
I've never been to any of the other Caribbean islands in the summer months when the atmosphere could be called "lively" though.
Anyone else?

Okay Nancy: which hotel in Cancun, I have avoided going there thinking it is too touristy...any all inclusive packages...thx!

I too look for the less lively places and I always go to the caribbean in July..I can afford to stay at a much nicer resort for a lot less than the winter months.It is by no means dead there are plenty of people who go to the caribbean in the summer but there are no real crowds and you can enjoy the islands with no waiting on lines, crowded beaches and unbelievably good resort rates...Contrary to what people think the only real difference in the weather is the humidity .

Well, it IS pretty touristy...
I'd suggest Cozumel if that's a concern. I'm not sure what you mean when you say you want a lively scene. Some of the islands in the rest of the Caribbean (other than Mexico) that I have been to in summer have really been very quiet. (Resorts and restaurants closed - that's when they do their maintenance.)
For instance, we went to Anguilla during the summer for two weeks. One of the main reasons we went was the fantastic resturants. Waah, they were all closed!
Maybe someone who has been to a Caribbean island in July with the age kids you have can help?