Have you looked at the Amtrak schedule? the train from NYC to near Montpelier is once a day and takes about 9 hours. there is no station in Woodstock and I'm not sure what the closest is. I can;t imagine spending 18 hours on a train for a 3 day trip.

Sounds like you're looking for a Norman Rockwell or Currier and Ives experience. I'm not even sure such a place exists, let alone is accessible by train. What type of snow activities to you have in mind?

Christmas is relatively early in the snow season - many years there won't even be snow on the ground on Christmas day at lower elevations where most towns are.

Ski mountains will be open since they make their own snow, so your best options may actually be a ski resort, not a town. Ski resorts are part of the recreation and family fun business and many have sleigh rides, tubing, and offer the opportunity for festive fun.

NE states are very good at keeping the roads clear, so unless it's actively snowing or a 3-4" storm just ended the roads will be clear and dry, so you shouldn't rule out driving by car.

I suggest you look into someplace like Stowe Mtn Resort near Burlington, or some other ski resort. You could rent a couple of condos from the resort or online from VRBO or other source.

To be honest, public transit in VT once you get here isn't great. Will you rent a car once you arrive?

Stowe usually has plenty of snow at Christmas (some off years we don't), but possibly not enough for snow related activities like snowmobiling. Sleigh rides can often happen in less snow. What other type of snow related activies were you thinking?

Some thoughts and suggestions as follows:

1. Mohonk Mountain House, in New Paltz New York. You take the train to Poughkeepsie and then would take a taxi/limo or other transport to the lodge. I don’t believe the lodge provides free shuttle service. Check out their website at Mohonk.com. The lodge would certainly be Christmassy, and they have a ton of indoor and outdoor actives. I don’t think in 3 days you would need to leave the resort, so a car is not necessary. Drawbacks are that snow cannot be guaranteed in December, esp that far south.

2. The Equinox in Manchester Vermont. Take the Amtrak Ethan Allen train to Rutland, which is about half an hour from the inn, you could either rent a car or I am sure taxi/limo/van service is available, see something like http://www.thebus.com/routes/rt7commuter.htm, costs $2. You can also take Amtrak to Brattleboro and then it is about an hour by car, again either rent or take a taxi/van. The inn is really lovely (just had a redo) and offers many activities on site or nearby, you can also go into town where there are dozens of outlet shops and restaurants. You probably would want a car to go into town; I have biked, but in the winter that is not so great an option. It would be quite a long walk. While snow cannot be guaranteed in December, it is more likely than places further south.

3. Rutland Vermont. You can take the Ethan Allen train here. While this town does not have the charm of a place like Manchester, it offers lots of accommodation and restaurants and some sightseeing, and not having a car should be workable in a town this size. You can also get from Rutland to ski areas like Killington, Pico or Okemo, where there are more accommodations and activities (although having a car in the ski areas would be quite helpful.) Another stop along the Ethan Allen route which may work is Castleton VT.

4. Newport Rhode Island. As you don’t need skiing, this may be a good option. Very Christmassy and lots of hotel and restaurant options. I imagine this is fairly lively on New Year’s Eve. The mansions are also dressed up for Christmas. You do not need a car (there are shuttles out to the mansions, otherwise the town itself is quite pleasantly walkable). Take Amtrak to Providence or Kingston RI and then either a public bus from Providence (1 hour) or a van service from Kingston (should take about half an hour). Again, snow not guaranteed.

5. Cape Cod. This might be another good non-skiing alternative. You would take Amtrak to Providence, a bus to Hyannis and then a taxi to Chatham (or rent a car in Providence). I would look at the Chatham Bars Inn (http://www.chathambarsinn.com) which will offer a Christmassy atmosphere and the charming little town of Chatham for shopping and restaurants. There are some other hotels in Chatham as well. Ocean’s Edge at http://www.oceanedge.com would also be a good choice. You can do walks and there are bike paths (weather permitting). Again, snow is not guaranteed, but IMO the beaches in winter are very lovely.

6. You could consider a bus/train connection to get to places like Lake George (train to Albany, bus to Lake George). I have not looked at all the options, but if you go to the Amtrak website, you will see them.

7. You could look at vrbo.com to see if condos/houses are available for rent in any of the above places as well. Chatham has a number of them and in the off-season may be more available and cheaper than in the summer high season. If you want a condo on a ski town for any time after Christmas, and are just starting to look now, you may be out of luck.

I would also say to look at White River Junction Vt as a possible place to stay. I have not been to it or Montpelier so don’t have any particular reccos.

I agree with nytraveler about the Amtrak schedule to Montpelier. It is a long trip. I took it often to Ct when my mother was sick and it was convenient for me because I could read, do work, etc en route. It is also often late in my experience
Montpelier is not going to be deserted over New Years--there is a big (and fun) First Night celebration

For real New Englandy Christmas charm, I would choose Woodstock, Stowe, or Manchester. Montpelier is also quite nice, but has more of a urban vibe. Downtown Rutland would not be my first choice, although lots of nice towns are close by.
You could take Amtrack to White River Junction, then catch a cab to Woodstock, which is less than a half hour away. There is snow on the ground about 70% of the time by Christmas.

The OP has already been to Woodstock, see her post.

Several good ideas from Cicerone. Note that if Chatham on the Cape is your destination, you don't need to take a cab from Hyannis to get there. The H2O bus (a year-long route offered by the Cape Cod Regional Transit Authority) runs several buses between the two towns every day except Sunday.

we had a similar idea several years ago. thought it would be fun. a 6 hour train ride ended up being over 12 hours. just sat on the tracks every little bit. no explanation. i love trains-- but just beware at christmas time. crowded trains. it's just a gamble.
kawh