Just ran a quick check on Expedia and looks like a number of acceptable options. I've stayed at the Hotel Royal Plaza (3.5 stars), which is on Disney property with and easy walk to Downtown Disney, and it's $130/night. The Peabody Orlando is on I-Drive (there is a bus that goes up and down I-Drive, where there are lots of restaurants), is 4.5 stars and available for $160/night--and they have ducks on parade! Check out mousesavers.com for lots of hotel discount info.

I am 30-40 minutes north east of Disney and Daytona is at least 45 minutes further NE from me. Cocoa Beach is closest to Disney by way of the Beach Line...still an hour or so at least I would imagine.

Agree with bnbtraveler about Cocoa Beach being closer. IMO, it is a better beach too because the sand is not hard-packed and therefore you don't have to dodge cars driving on the beach. You can also consider Indialantic and Melbourne Beaches as well. They are equally close and nice.

Just an FYI - the Easter Surfing Festival will be held March 20 - 23 in Cocoa Beach. It's a family-friendly event, but thought I'd give the OP and anyone else a heads up.

Wow..thank you very much, luv2plan (could have been my screen name!), 321go, OrlandoVic, bnbtraveller, DancingBearMD....it is so fun to read your posts and re-plan my trip!

Unbeknownst to me, my Mom's Aunt is going to let us use her car (she doesn't drive much) while we are there. So, we still have to commit to the Hyatt Regency or other hotel, get to her (taxi, and I will plan to bring a carseat for my almost 2 yr old) and then use her car (she lives on E Church St I think.) This will save us a little $, but moreso, it will be a greater convenience. Cocoa Beach sounds great and if we/she weren't visiting her Aunt, I would go in a heartbeat, but we do need to visit (in addition to plan some fun!) So I think it comes down to chosing hotel/location and hoping to get to Downtown Disney for some fun.

Thank you, thank you, thank you everyone!