Check this link for hotels in the area:
http://www.geocities.com/ashpsyche/DisneylandLinkMap.html
FWIW, we have six in our family - for boys 14, 13, 11 and 10. We have stayed at a DL hotel (the PP), the Howard Johnson's, and Best Western Park Place Inn (BWPPI) right across the street.
Folks are different, so this is just us. What we found out on previous trips is that we primarily use our hotel for sleeping. So a really nice place is not worth it for us. As long as it is clean and quiet then we are good.
Something to note about DLR is that you can walk everywhere - especially if you are close enough. And we take breaks back to our hotel every afternoon when the lines are longest and takes naps - and then come back to the parks refreshed at 5-7 PM.
When we stayed at the PP and the HoJos's the walk was too long. And the wait for the Monorail was painful (at least 30 minutes one day). So the last two trips we have stayed at the BWPPI which is the shortest walk possible except for certain parts of the DL GCH. From our hotel room door to the DLR gates it is 10 minutes max - maybe 7 - depends on the traffic light on Harbor at the crosswalk.
Other hotels further away you may need to take a shuttle (I hate waiting for shuttles) or a cab or walk further.
On another note, pay attention to the ride closure schedule (see
http://www.mouseplanet.com/articles.php?art=dl060626xx#Rehabs ). The Matterhorn will be down - nothing you can do about that - but Haunted Mansion is closed every year usually the after Labor day - Spet 5. So make sure you ride that ny Sept. 4 or you will miss it!