We just rang in the 2006 New Year at Disney. We chose to hang out at the Boardwalk Inn, and the kids had an absolutely wonderful time. They had a DJ playing for 4 hours and they had stilt snowflake ladies walking around and all sorts of other entertainment. They handed out party hats and noisemakers. It was not crowded at all, and you could walk around the Boardwalk, or just sit and relax. At midnight, you could see the Epcot and MK fireworks simultaneoulsly. That in itself was quite a sight!
The biggest mistake we made though, was taking a bus to PI from the Boardwalk Inn, as we thought it would be easier to catch a bus to our resort----BIG MISTAKE! Avoid the area toward DD at all costs. It took us over 2 hours just to get to POFQ from PI. Traffic was a complete gridlock and there were tons of "hardy" partiers at PI. Next time we will just walk over to MGM from Boardwalk and catch a bus directly to the resort from there.
The night before though, the kids sat on the beach at the Poly and watched them do a preview run for the NYE fireworks at the MK.