Do you mean Disney World in Florida?
We stayed on international drive, we are intending to go back in 2010 and next time will stay in a villa, but that is only because we will be going with BIL and his family. If we were to go again just the 4 of us we would probably opt for a cheap disney hotel.
The parks are fantastic, there is so much to do, we went for 2 weeks and had a great time.
Some of our favourite things were:
The Pirate Show - it's not part of disney, but located just off international drive, DH got pulled up to be a pirate and the dcs also got involved in the show, the tickets were quite expensive but a meal was included.
Discovery Cove - you can book to swim with dolphins, but I'm not sure of the min. age, dd1 was 6 when we went and dd2 was 4, dd2 wasn't old enough but there is still lots for younger children to do, dd2 loved the stingrays.
Disney Fireworks - make sutre you stay for the fireworks at least once, they are amazing.
We ended up spending more overall than we thought we would but it was an amazing holiday, we went in 2006 and the dcs still mention it a lot.