When we were there over spring break, the entire area in front of the Chinese Pavilion was used for viewing. I was worried about having to get a good spot in time, but people were just sitting in lines on the ground. There wasn't any problem getting a good spot since the area is so large. Many people stood when the fireworks started. I would just aim to be in that general area to get the best view
When facing the theater, we stood across the street to the right of the dessert party setup near the corner of Hollywood and Sunset. Saw everything w/o an issue.
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