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Taxi or Tube from LHR to Gloucester Road Tube?

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Hi all,
Starting to think about the options for getting to our flat in London, located near Gloucester Road tube station, and would appreciate your help sussing out the choices.

1) Private car service: most expensive option, but is it worth it?
2) Taxi: what's the typical fare for a family of 4 with 1 piece of small luggage each?
3) Tube: obviously the cheapest option, but will it be hard to navigate with kids and luggage? Lifts, escalators, etc?

If I go with the Tube option, can I go ahead and get my 7 day Travelcards at LHR? Would I also fill up our Oyster cards there and use the Oyster cards to take the tube into London?

Also, re: the kids' Oyster cards, I will have to mail ahead for those before our trip... so should I just order all 4 of our Oyster cards ahead of time with a nominal amount of $ loaded onto them?
Thanks!
-skatterfly

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