My kids have 2 full weeks off this Dec. Any ideas for a 4 or 5 day trip that won't cost thousands? Live in NY, will fly or drive. Need 2 rooms where ever we go. Any help would be appreciated.

How old are your kids? We go to Breckenridge, CO for xmas. Not exactly cheap--but you can rent a house. We use White Cloud lodging (I think it is white-cloud.com. Rates are higher around xmas. A great ski resort town with lots of activities!

If you can go before Christmas its pretty reasonable, for ideas look at www.summitnet.com

Since your post appeared under Louisiana, I'll offer a few ideas for this part of the country. (And with all due respect to Kristy, I lived in Colorado for four years and visit often-it is NEVER cheap in December )

Check out NY-New Orleans airfares on Jet Blue, at times as low as $99 RT. (Nonstop flights are a very manageable three hours.)
There is a month-long holiday promotion called Christmas in New Orleans - restaurants have special menus in the old Creole tradition of "reveillon" dinners and hotels have special rates and packages because it is generally a "soft" tourism time. Look at neworleansonline.com, or Christmas in New Orleans may even have its own website.
New Orleans is not up to NYC standards in terms of holiday decorations, but is definitely very festive. Check out the Fairmont Hotel which drapes its entire lobby in angel hair and ornaments for a really over-the-top effect. Also, City Park has Celebration in the Oaks all month - the huge old oak trees and the lagoons and pretty much anything that doesn't move are decorated with millions of tiny lights. It's quite beautiful and you can take a driving or walking tour for a minimal fee.
Then we have the usual attractions that kids love (you didn't say how old they are) - a great zoo and aquarium, a children's museum, riverboat rides, etc.
A bonus for New Yorkers traveling here in december is that the weather will likely be quite mild compared to what you're used to. It can get chilly here because of the humidity, but it rarely freezes, and gets a light snow dusting only about once a decade. Air conditioning use is not unheard of in December.
For an add-on to a New Orleans visit, or if you only want to use NO as a jumping-off point, try an Alabama or Florida Gulf coast beach or a Louisiana plantation house stay. Both would require a rental car.
You can reach any of a number of grand old plantation homes in 1-3 hours from the city. At most homes you stay in the main house or some have cottages on the property with their own fireplaces. This can be a nice romantic getaway; it probably doesn't offer as much interest for your kids as the city or the beach. The closest best beaches would be 3 - 4 hours from the city: Gulf Shores is kinda touristy and built up but has a variety of hotel options, all at winter (low) season rates. Off the main drag is a lovely area called Fort Morgan that has rental beach houses at very reasonable rates. We rented there last Christmas - it was chilly for swimming but we took long walks on the almost deserted beach and built roaring fires in the fireplace every night. Or you might look for a townhouse or hotel that has a heated pool. Also most houses or hotels have satellite TV and VCRs so you can always send the kids off to watch a movie or Nickelodeon. Farther east are Perdido, Orange Beach and then you're into the Florida beach towns like Pensacola and Destin.
I didn't mean to carry on for so long here but hope it gives you some ideas. The key would be to find those cheap airfares on Jet Blue or another carrier - you can be here in 3 hours and then have all kinds of options for things to do.

why dont you drive down to DC for a weekend trip and check out the holiday festivities, come down for the lighting of the Xmas. Cheap to drive down and hotel rates are reasonable that time of year. All the Smithsonian musuems are free and less crowded that time of year.