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Suggestions for trip to Cayman Isl.

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Hello all,
After a long absence from the fodor-land (and a couple of weeks after the arrival of our new addition to the family :) I am inquiring again and seeking more info about a trip to Cayman Islands. I had asked in the past more general questions to get an idea, but this time I think we are committed to going to CI. First, we will be 4 adults (mother/mother-in-law!, my wife and I, and our 3 kids ages 6, 3, and 5 months old by the time of travel). We chose (were actually recommended) CI because I was looking for a TCI kind of waters/beaches, but in a more 'cosmopolitan' setting. Secondly, we will be traveling the last week of June and we hope for similar to Provo weather/crystal clear waters/and clean beaches. We are...cool with temps in the 90s F. I am not sure what to 'budget' for this trip in terms of lodging, however the general idea is that we are looking to spend about $500 per night (is that too low of a price?) for all 7 of us....(impossible?). Now, we will probably be renting a minivan (if there are available on the island) thus we are open to a 'remote' villa, but we would prefer a place relatively close to the main town or bigger city or what ever part of the island can be close to the best beaches yet not far from a city with shops/downtown/etc. Safety is also very important (although I have not heard anything seriously negative about CI...) so, if a resort is a better option, please do advise. Because I am in the 'beginning' part of planning this trip, and although I do recognize that it is not too far from the actual date, I apologize in advance if I have not set my inquiry to be a clear and concise set of questions. So, if I am missing things I should be asking, please take a moment and volunteer any additional suggestions.
Thank you,
yannis

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