Thanks for great input, I have it narrowd down to two vrbo.com listings: #322771 in Pigeon Forge (in Smoky Cove) and #344471 in Townsend (Laurel Valley Golf Community).

So, just to decide which is a better location for: GSMNP, Cades Cove, Laurel Falls, Arts & Crafts Communuty, one day in Gatlinburg(visit to Ober Gatlingburg), caverns, hiking, winery.

Which one??

Townsend

Hi Pigeon Forge is more of a touristy town and I think more geared towards families. Townsend is close to the park and is alot quiter and is known as the quite side of the mountains.

And Townsend it is!

Make sure you check out the Apple Valley Store in Townsend it has alot of wonderful stuff and a restaurant too.Enjoy your stay and have fun.

Got back last night! Had an awesome trip. The Townsend rental was perfect for us. Love being able to reside so close to the entrance of the park. We loved the house. (http://www.vrbo.com/344471) Clean, comfy, awesome! PERFECT location for us as our goal was to spend time in the park and enjoy nature. We loved staying right outside the Park without the chaos fo PF or Gburg. We spent time with Foot Hills Parkway, hikes by Tremont Inst, Dave Crocett horseback riding, Tucaleechee Caverns, Heritage Center, hiked Abrams Falls, Sugarlands Center, hikes at CHimney Tops area, picnics, evening in PF, drive up the New FOund Gap Road to the clouds, a hike on Appalachian Trail, Roaring Fork Nature Trail, evening in Gburg, more horseback riding in Cades Cove, Ober Gatlingburg tram to top of mountain and ice skating. Great vacay!! Nice weather, didn't rain as they predicted. Awesome trip.

So glad you had a great time!

Glad you had such a good time and glad you liked the location. It was definitely the quieter choice but the one I would choose for that kind of vacation. Everything sounds wonderful - even the weather.

Im so glad you had a nice trip.The cabin you stayed in was nice.
Do you see any Bears?

No bears, except at the Ober Gatlinburg wildlife area. We saw deer and turkey in Cades Cove. Saw a badger in the parking lot of the Heritage Center and a fox (or cayote) on the Park road.

My kids were especially excited about the (remnents of) snow on the Appalachian Trail and Tremont trail. Just small areas but they were thrilled. Even built 6 inch tall snowmen.

I feel sorry for those Ober Bears. An employee told us last year that the wild bears try to get in there sometimes. I guess they smell their food or something.
Exciting that your kids got to see and play in the snow.
We came up for Christmas and got a foot of snow.It started Christmas eve and snowed till the 27th it was awesome.