We are going in July 06 also, and I have gotten a lot of advice. Some encouraging, some not so encouraging. We can ONLY go in July, so I have decided to plan, plan, plan ,and be prepared for hot weather, storms,

long lines, and so on. We are staying onsite, so we will take advantage of the EMH in the mornings, have an early lunch, return to the resort to nap/swim/rest, and return to the parks in the early evening, and take advantage of the evening EMH. We will take lots of water, and duck into the gifts shops for some quick A/C relief, as well as take in some shows which might provide some A/C as well. Also, we will be taking those mister fans that you can buy. We are gonna take a break in the middle of our stay to spend one relaxing day at our resort, and another day to go up to Kennedy Space Center and Cocoa Beach.
I for one can't let the discouraging words about going in July get me down, because it's either we go in July or we don't go. (Hubby teaches and is on contract from August till June every year. And not going is just not an option!
If July was soooo bad, then it wouldn't be sooooooo crowded, right?
I'll see you at WDW next July!