well there are plenty of hotels on and off site.. It will depend on your budget?, what facilities you want?, how close you want to be from the park?
There is 6 on site hotels which have different budgets and themes. All the hotels are in walking distance of the parks or you can get a shuttle bus. The Disneyland hotel is located at the entrance. I think the furthest on site hotel is about a 15-20minute bus which is the Santa fe, this is also the cheapest onsite hotel. The cheyenne is also one of the cheaper on site hotel and the coyboy themeing is very popular. Sequioia Lodge and Newport bay club are Mid price hotels and The New York Hotel Is located next to the Disney Village and is a deluxe hotel, It is a good cheaper option for the Disnyeland hotel.
There are some off site which are about a ten minute bus ride away, I think..I am not sure if you can walk to the park. Hotels such as the Holiday Inn and Explorers Hotel seem to be very good value and the explorers is particularly good for children.
Have you looked at the official website there information on the hotel. Also There is some information on the FAQ section of this board.
Thanks everyone I will go take a look at the DLP site (didn't dawn on me to do so before posting ) and if I've got any questions, I know where to go now Thansk again!