Now that the HYATT CERROMAR is closing, can anyone suggest a good family resort in PR. The kids are 9 and 12 years old.

You should try the West coast of Puerto Rico for Children friendly vacations.
There are a lot of great vacation homes to rent at affordable prices. You should check out this website www.prwest.com for great vacation rentals.

can talk about puerto rico but we go to punta cana dominican republic this is our fourth trip and my son 13 loves it there alot of kids in the resort that speak english and lisen to rap

Thanks but we are into the "resort" atmosphere with lots of activities. Also we want to be near San Juan, El Yunke, and Vieques. I am leaning towards the Wyndhan El Conquistador or the Hyatt Dorado.

El COnquistador woud seem to be a better family resort than Hyatt Dorado. I haven't styed at the Hyatt but everything I've heard indicates that it is a pretty quiet resort. I have stayed at El COnquistador and think it's a good family destination, albeit a pretty expensive one. Big grounds, couple of different pools (one with a water slide). Private island for beach, snorkeling, horseback riding, hiking, etc. It is close to El Yunque and, I think, to Vieques but not so close to San Juan (about 45 minutes away if I remember correctly).

Is it true that the private island at El Conquistador is for nude sunbathing. Not sure if I should "expose" the kids to that.

If it is a choice between Dorado and Conquistador I would chose the latter. The Dorado is a very quiet resort and has a pool that won't inspire the kids. It is a basic rectangle and doesn't have a slide which attracts kids. Both are approximately the same distance from San Juan but the Conquistador is a few miles from the Vieques ferry and about 10 miles from El Yunque.

Wyndham El Conquistador! It's a great hotel with kid-friendly activities, night entertainment and your own private island.
On Palomino Island, there is a nude bathing section, but do not worry... it's private and remote, so your kids won't be exposed to that. I've been to the hotel many times, and have not seen the nude section. I stay near the dock, where all the music and activities happen.
The hotel is very close to el Yunque, and "El Embarcadero" (where the ferries to Culebra and Vieques are taken). San Juan, is not too far (about 45 minutes -1 hour).