For DVC members, BCV and BWV are the places to stay for the F&W Festival. There are culinary demos and wine tastings throughout the day at The Terrace between France and Morocco -- which is very close to the International Gateway entrance from BCV and BWV.
2004 is the first year that the F&W Festival will start at the beginning of October and last for 45 days. For the past few years, the F&W Festival started in mid-October and lasted for 30 days.
The special dining events (such Signature Dinners, Party for the Senses, Reserve Dinners) tend to be on Friday, Saturday, and Sunday evenings. Reservations go fast for the dinners. The Party for the Senses has a huge capacity and is easier to get. There should be more dinners and thus more capacity this year due to the longer Festival run. They usually start taking reservations some time in July.
Unfortunately, if you limit your stay to Sunday through Thursday night to conserve DVC points, you won't be around for some of the special dining events.
Finally, I can't say that any particular week of the Festival is better than any other. There's a different roster of guest chefs and winemakers every week.
Park hours are limited during the Festival because it's a traditionally slow period.