Hi!
This year will be our second Christmas at Disney - we loved it and I'm sure you will too!
I'd say it's better to stay onsite, simply because you're guaranteed entry to the parks. OK, so you can usually get into Epcot - I understand from CM's it's only been closed to the public a couple of times in its history.
Magic Kingdom is a different story though! I went there on 27 December 2000 on my own (hubby was at Kennedy Space Centre for the day) and it was closed to all but resort guests arriving on the transportation system. I have never seen crowds like it in my life... and the queues for the attractions were beyond belief!

OK, so when it's that full, it's not much fun, but if you want to go in to see the parades or even for a meal, it's nice to know you'll be able to get in.
We found Christmas at the Beach Club truly magical - the CM's were all coming up to us on Christmas Day, wishing us "Happy Holidays" and we even had a stocking left on our door from Father Christmas!!
Disney's Christmas decorations are something else...! All the resorts are decorated, but from what I've seen, the best are the Grand Floridian and the Beach Club. Disney lay on all sorts of extra things during the Christmas season, like the Christmas tree switching on ceremony at the Boardwalk and we had special visits from characters in the lobby of the Beach Club in the run up to Christmas.
As to what we did:
Christmas Eve - gorgeous, hot weather, so spent the day in Typhoon Lagoon (that was the first day that year it opened after its rehab). We had dinner at the Yacht Club Galley. Not too impressed with that, so this year, we're booked in for the Flying Fish Cafe.
Christmas Day - breakfast at Cape May Cafe with Minnie, Chip and Dale and Goofy, followed by a morning around the pool (hot weather again!). Went into Epcot early afternoon, shopped and strolled around, then saw the Candlelight Processional at 5 p.m., before dinner at Chefs de France.

Fantastic and we're doing exactly the same again this year - obviously lazing round the pool will be weather permitting!
Boxing Day - we went to Sea World, big mistake - lots of crowds and a total nightmare! Won't be doing that again this year...

We have the Princess Storybook breakfast booked in Norway for this year.
The only advice I would give if you're planning on going at Christmas - book your meals ahead, particularly between Christmas and New Year. It was quite quiet until 24 December and then it went mad! We tried to book a couple of meals on Boxing Day for the rest of the week and we struggled to get into places... it was really heavily booked! We've learnt our lesson again and will make sure we've got the bookings made long before then this time!
Hope this helps!
Cheryl
