We went to Orange Beach Alabama with my parents and sisters' families. It's a 12 hour car ride for us. We were in a condo on the beach with a pool. That was fabulous. I recommend getting a 10'x10' tent. We set it up with our portable chairs and left our beach toys there every night. Bring lots of sun screen reapply every hour. I saw some babies who were burned. Bring hats and an extra swim suit for each of you. I hate putting on a wet suit! My youngest loved it but she was 2 and a half. Not sure how she'd do at age one. My older kids loved it.
I LOVE Disney! Go get The Unofficial Guide To Walt Disney World. It has lots of great advice and planning strategies for all kinds of families and configurations of ages. My hubby used it to make a schedule of which park for what days.
If you have a room with a fridge, we recommend that you stop before getting to your room, on the way from the airport, to a grocery store. We had a driving service pick us up at the airport and we stopped at the local grocery store (it cost the same as a taxi, but taxis do not stop extra for shopping unless you pay them extra). We went through more of the breakfast dry goods food items (like pop tarts, power bars, granola bars, baby yogurt melts, and Gerber puffs, and dry cereal) than the other snack items like chips and crackers. I got pita bread since it takes up less space and a couple of packages of cold cuts and cheese too. Milk takes a lot of space, so get boxed Horizon milk that doesn't require refrigeration. You can buy them and add them to the fridge as needed (same with juice boxes and canned soda). We were there a week. My hubby freaked when he saw how much food I got, but they were all glad I did. I recommend any kind of bars, bananas, apples which are easier to carry with you to the park. Pack or buy some zip lock baggies of small and large sizes, bring some small ice packs for a lunch box sized cooler. Bring those disposable sippy cups with lids, great for drinking fountains at the park. Also pack those plastic spoons by Gerber, I think. It was great to have them at the park and in the room. I did buy dish soap at the grocery store and a sponge with scrubber there instead of packing it. My hubby thought that was silly, but we had to wash out the plastic sippy cups and spoons for later use (even though I brought 15 spoons and 4 cups). All this sure did help. I learned all this from our previous trip.
We were not on a dining plan. Some like it, we didn't. We splurged on 2 meals with the characters (Crystal Palace and Contemporary), and had 2 other dinners reservations. The rest was counter service and the food we bought. Be sure to not pack any food that you can buy at the grocery store there. My son has nut allergies, so I had to buy and pack the only bars he could eat Special K bars (chocolate drizzle and no protein added) b/c there was no guarantee that I'd be able to find those exact ones there.
If you can stay on the monorail system that would be ideal and best. We stayed at the Polynesian. We even stayed in the building closest to the the ticket and transportation center/monorail. It was worth the extra money. I had a 7 month old the first time we went, and she was 2 yrs. old the second time we went. It was a nice quick easy get away to go back to the room for a nap. I also have a 9 and 7 yr. olds. My hubby, and I split up so my older kids didn't have to go back to the room, but I do recommend napping, they last longer for the night stuff. I'd usually go back to the room after lunch for a nap and return to the park before dinner.
Anything your kids cannot ride on, you can get a baby pass/ticket. Also, try to go early and get the fast passes for the most popular things (saves time in lines). Those help so you are not standing in lines. This is in the book!
My youngest loved the Winnie the Pooh and Honey I shrunk the kids play areas. We went there a lot, she also loved any ride that moved along like It's a Small World. She hated anything we had to sit and watch, like shows. She'd be okay for the first 5 minutes and then want to get down and walk around, so we didn't do those after I knew she would not sit through them. You can test yours and see.
Bring a leash for your kids. We lost (but found) my son when he was 5 yrs. old the last time. It only takes a few seconds to loose them in crowd. I had my 2 yr. old on a harness with strap and it was the best way to give her freedom to walk but not get lost. Also, rent a stroller too! Those help keep the kids from getting tired and prevent you from having to lug your stroller through the airport and on buses. Best of all, you know where they are!
I'd suggest that if you wanted to you and your husband can take turns on separate nights to stay with the kids after dinner while the other goes back to the park to see the fireworks and anything you missed. That sounds selfish, but we did that and it was really nice. The parent with the kids didn't leave until after baths and dinner. We had them in bed or watching a movie. We brought our DVD player and a some movies. Bring your cell phone and charger! It helps when you split up and want to meet up. As for dinning, make a reservation now! The Cyrstal Palace is great for little kids with Winnie the Pooh and friends and the food is buffet, so is the Contemporary, and they have Micky and Minnie.
But get the Unofficial Guide to Disney World! It is a great thing to read before and while you are there to help you. We have used it on all our trips. Yes, I've been there at Christmas time before getting married. Everything looks empty to me at other times. I still enjoyed Disney at Christmas time. If it gets too much you can always take some time at the hotel to nap and recharge; you don't have to stay nonstop all day. Have a great trip! Sorry I'm a bit long!