We live in South Texas(almost never freezes here) so we're looking forward to COLD! I got a fantastic airline deal--$354US (including taxes and fees) R/T to Buffalo, NY.
We want to stay on the Canadian side. Should we rent a car? Would it be better to just take a taxi ($$$??) from Buffalo Airport to Canadian side? Is parking there a problem? What can anyone tell me about the area? We'll probably stay in the Sheraton on the Falls but have not reserved a room yet. Are there better options?
Thank you for any and all advice.
Jane

I think renting a car would give you more options for looking around outside of Niagara Falls (like a side-trip to Niagara-on-the-Lake which is very pretty in the holiday season). There will be parking offered at your hotel and the Sheraton is a decent hotel. The Canadian side is more attractive than the American, though you are in a tourist haven...all kinds of attractions in varying levels of taste. Do the Maid of the Mist Tour if it is on offer at that time of year. The light show of the Falls at night is fantastic.

Thanks, LJ. How long is the wait usually at the border? We arrive in Buffalo in the early afternoon on a Thursday and return at 10am on a Sunday morning.

Maid of the Mist is closed for the season. The only "water" attraction opened in December is Journey Behind the Falls.

If you're staying in Niagara Falls, then do take a trip to Niagara on the Lake (easy drive along the river) and stop off at one of the vineyards for some wine tasting (try the IceWine) e.g. Peller Estates. Another hour's drive takes you to Toronto- a great city

Take a quick look at the web sites for Fallsview Resort and Casino or the Seneca Niagara Casino showrooms... lots of concerts and stuff... also plenty of Christmas things both in Niagara and Niagara on the Lake(NOTL). If you like wineries,there are over 70 in the region, many of them offering fine food... If you like cold, there's also a horse drawn carriage in NOTL and you can follow that up with a fireside drink in the village...

You are better to check border crossing times in this up-to-the minute format than listen to my estimate! Have a great trip and do a trip report please, as this is a nice weekend away.
http://www.cbsa-asfc.gc.ca/general/times/menu-e.html

I'll be reinforcing some of what already has been said. Two of my favourite things to do when visiting the Falls area are to drive down the scenic Niagara Parkway to the picturesque historic town of Niagara-on-the-Lake, and to tour the wineries of the Niagara Peninsula. Both are best done with a car (although there are some bus tours which do the wineries that you could investigate, don't know if they're seasonal). If you do google searches on Niagara Wineries and niagara-on-the-lake you'll get lots of info.
Within Niagara Falls itself you won't need a car as you can either walk or take the complimentary Shuttle buses which travel frequently between the major hotels, the 2 Casinos, and one of the main overlooks over the Falls themselves.
The wait at the border is quite variable and not very predictable. There is business traffic as well as day-trippers and vacationers from both sides. Going back on Sunday morning "should" be fairly quiet, but leave yourselves plenty of time just in case.

Thanks, all. You've been a big help.
Jane