Kid Friendly Restaurant (Or Other Suggestions) - New York Restaurant

I love Two Boots, It's a cajun/italian resturaunt and has I think 3 locations, 1 in the East Village, 1 in the west Village and 1 in Park Slope BKLYN. They are super kid friendly, their specialty is amazing pizza and the kids can go to the "pizza" window and the cooks toss them raw dough to take back to their tables and play with, plus crayons and stuff are at the tables. The wait staff is adept in carrying huge trays while the kids run around. For me personally it's a little mayhemy, but when you've got several kids and want to sit down, eat and yes have a cocktail it's the place to be.

If you must drive, try to park further away from the central area. There are deals at lots on 11th and 12th avenues in midtown. Go in early leave by a certain time and it'll cost you less than other times.
There is a fun restaurant called Ellen's Stardust Diner. Typical diner food, but the waitstaff is dressed in 50's outfits, and they ALL sing and perform. Loads of fun for kids. It's not fine dining, but it will keep kids occupied. it's on 51st and Broadway.
There is Mars 2112 across the street. A Mars themed restaurant where you take a "spaceship" to the dining area and get served by aliens.
Otherwise, as another poster noted, NYC though big and bad, is pretty good for kids. If you find a few places that match your palate, call them and ask them directly how they fare with kids. You'll find that the reservation staff can be quite honest and helpful.
Good luck!

You might look into Mars 2112. Its great for the older kids and friendly to the younger ones. http://www.mars2112.com/
Its near Times Square so its a bit chaotic but plenty of parking very nearby.

Here is also a great resource for other restaurants (just make sure they are still in business before you plan going there!)
http://gonyc.about.com/od/familyfun/a/kid_restaurants.htm

good luck!

I bring all my visitors with their kids to Landmarc in the Time Warner Center. Go to Columbus Circle - Broadway at 59th - overlooks Central Park and super kid-friendly!

Finding parking in NYC will always be hard. My husband hates public transportation and needs to drive everywhere, so he has become a pro in parking. Finding street parking on a Saturday can be tricky as most places do not become "free" till the evening and has 1 or 2 hour parking regulations. NYC also has some confusing parking signs and I've been a victim of quite a few parking tickets. If you want to just avoid the trouble and stress of finding street parking, I would just pull into a lot and suck up paying for it. http://nyc.bestparking.com/index.php is a great site to check out to see the best rates for parking lots for whatever area you guys decide to eat in.

In terms of restaurants, I've always found restaurants in nyc quite accommodating with kids. A suggestion I would have is go earlier, probably 5-6pm when the restaurant is not as busy. The waitstaff will probably be more accommodating in whatever you guys may need. Another suggestion is probably restaurants in neighborhoods where there is already a lot of families. Upper West, Upper East, Tribeca, FlatIron District areas. My husband and I go out to eat with our 2 year old and my niece who's 4 quite often, and as long as we're earlier then their normal dinner crowd - have never had any issues. Good luck and have fun.