We've stayed at three hotels in Cape Canaveral:
Best Western: in '05, we stayed here, and it was nice. It was right on the beach, close to a few restaurants, and the rooms were the usual, typical hotel rooms. They have a pool, it was fine. You have to arrange for a van to take you to the port on Sat. am; it was pretty cheap if I remember correctly - around $5/per person?? I could be totally wrong about that - it was almost 4 years ago...
Radisson: in '06 we stayed here. The rooms are nice - we had a suite and it was very roomy - and a jacuzzi bathtub which the kids loved! The pool is great (although we only used it once since it rained) but the kids loved it. Cruise morning is HECTIC! They have a shuttle that almost everyone arranges for - be sure you schedule yourself when you check in - if not when you make your reservation. They also have a Starbucks kiosk in the lobby - high marks from me for that!

We also had an issue the first night - we had asked for a crib when we checked in, and we still didn't have it by the time we got back from dinner - when we really needed it! And the manager
comped us that night - just for not bringing a crib earlier! It was really surprising to us to comp us a night's lodging for such a small thing. But they take their reputation of having good customer service very seriously - obviously.
Residence Inn by Marriott: in '07 we stayed here and will stay here again in '09 - mostly because we stay for free on Marriott points that I've earned. They too have a nice pool and the rooms are good - it had only opened a month earlier when we stayed there, so everything is new and clean. I think all the rooms are suites - with a kitchenette, microwave, full size fridge, plates, cups, etc. The Residence Inn branch of Marriott is typically designed for people who plan to have extended stays, so they try to provide as many comforts of home as possible. They also have a basketball court on property, and I believe a complimentary breakfast. We had a rental car so we returned the car and used the car's shuttle bus to get to the port that morning. I'm not sure what, if anything, the Residence Inn offers in terms of port transportation.
Personally - I feel like you can't go wrong with any of these hotels, though I prefer the slightly more upgraded Radisson or Marriott to the Best Western. I'm a huge Marriott fan, so that is always my first preference for hotels - and not just because I am a Platinum Member!
Hope this information helps!! Johnna