We booked a room at Sheraton Four Pts downtown DC over Easter break. It wouldn't have been my first choice but got a deal with airfare included and this was the only available hotel during that time. Is this a convenient location? Also, I had read some posts a few years ago that said this hotel is bordering on seedy neighborhood. Is this area safe? We are traveling with our two children and now I am worried we made the wrong choice.

The Four Points is fine. The neighborhood is improving and you should be fine. I wouldn't wander north too far, but anywhere south of the hotel is fine.

It's a pretty new and nice hotel. The location is not perfect, it's several blocks further to walk to the main sites than some other hotels that are closer to the National Mall (like say the JW Marriott.) You might end up cabbing it a few times if you are heading back to the hotel and are tired of walking, but it will be a short cab ride if you are seeing the main sites. I think the location is perfectly safe during the day. Personally, I would not walk it at night- but then I have an office in the metro center area and I do not walk at night in alot of areas of downtown D.C., w/exception of going out to dine around Natl. Place.
BTW, your hotel has a nice indoor pool, which is very rare in D.C., and you may enjoy that after a full day out w/the kids. I wouldn't worry, I think you'll be fine there, you just may end up getting a cab a few times w/the kids. DC cabs work on zones, and
it won't be expensive to/from the main sites and the hotel.

Agree that Four Points Sheraton is fine. Metro Center is only 3 blocks south, located on G st.(there is no "J" st.). Their restaurant, BTW, is a favorite of the Wash Post food critic Tom Sietsema.
Here's a map of hotel neighborhood. 4 Points is just off top of map above old convention center.
http://www.stationmasters.com/System.../metrocen.html

Thanks for the replies. It should work out fine. Also, looking for dinner suggestions, something more casual, and that kids might enjoy (ages 14 and 10).

I didn't realize your kids were that old- you won't have a hard time walking the distances then. Your hotel is close to Chinatown area- I would do a dinner there. My kids are almost same ages as yours and they like browsing the Chinese market stores around that area and trying different Chinese candies, looking at all the herb medicines for sale, etc. There are other places to eat besides Chinese/japanese (although if you like those, I like "Wok 'n Roll" in Chinatown- a little basement place but the suchi is incredibly fresh and good and so are the chinese dishes- very clean w/good service and great prices. There are other types of places in Chinatown (even a FuddRuckers for burgers) including a nice looking big tapas place but I haven't tried that one yet.

P.S. The non-chinese dining in Chinatown is on the block as you are walking from Chinatown towards the MCI center. You'll find something there that will fit the bill for you I think, if you don't want Chinese.

Specifically, as emd1 was pointing out, the non-Chinese restaurants are grouped along 7th st. between D st. and I st. A good area for groups w/ kids.