We are traveling to Denver with two children in August and will be staying in Denver for a few days but then want to venture outside of that area into the mountain cities. We will have 5 days. I am trying to get advice as to what cities would be the most kid friendly yet fun and gorgeous. We thought about Telluride as we have friends that live there however it is a 6 hour drive which would take about a day off of our vacation. Does anyone have any insight on cities we should visit?

Estes Park/Rocky Mountain National Park/Grand Lake

5 days in total or after Denver?
How old are the children?
What do you like to do/want to do?

Depending on the ages of the childen, I agree that Estes Park/Rocky Mountain National Park would be fun. Lots of activities: hiking, horseback riding, whitewater rafting, and lots of activities available at Estes Park Marina.

http://www.rockymountainhikingtrails...ings-to-do.htm

If you enjoy wildlife, you'll have opportunitites to see elk in the park.

We love Breckenridge, and it does have its Peak 8 adventure park, though it is expensive for what it is.

Glenwood Springs has a better adventure park an hour or so further west. But the city itself isn't as scenic/enjoyable IMHO.

Steamboat Springs is about 3 1/2 hours from Denver and is very scenic. There is a rodeo, tubing, hiking, alpine slide,... Glenwood Springs does have activities, but more of a city.

We lived in Denver 16 yrs our kids were 10 and 15 when we left but to this day even as Adults they talk about the Denver Zoo, truely one of the best in the country, the childrens museum its great for both kids and adults . The Museum of natural history is amazing and Water World water parks is so much fun.
If you go to Estes Park remember its a tourist trap but RMNP is beautiful, depending on the weather TRR may not be open so you may not make it to the top. Check at the ranger station or web site as they have all kind of stuff going on in the summer for the kids. A great place to eat in Estes park is Mama Roses wonderful old world Italian. The actual town of EP is just a big traffic jam, you can park and walk the shops but its the normal Tshirts and over prices cup that you see in every store . Depending on the age of your kids Mesa Verde National Park is a amazing site and history lesson, not really safe for younger children or older adults as the climbing in the ruins can be a little scarey for small children and its clear across the state. Colorado Springs Area ,Cave of the winds is something they will not forget soon. its really neat. There is a lot to do in the Denver, Colorado Springs area with kids. I have not been there in years so Im sure there is lots more then I remember, Hope you have a great time .