Welcome to UK Trip Planning.
As you're probably already beginning to realise, you'll get hugely differing answers to your questions based on people's own preferences and opinions.
Other than our first couple of visits, we've always booked the separate elements of our trip independently. We've found it to be considerably cheaper and it gives us much more flexibility. However, it isn't always true that packages work out more expensive, so it's worth shopping around. Many people prefer the convenience of a package and I can certainly see the attraction for a first trip. If you're looking to pay just a deposit at this stage, then your options are limited and you could find you're forced to take the package route.
Virgin Atlantic and British Airways are scheduled airlines offering direct, non-stop services to Orlando. They both fly into Orlando International airport. You can book flights directly with the airlines, or packages with their relative tour operator arms (Virgin Holidays and BA Holidays). Virgin and BA certainly aren't your only options, though. Continental also offers scheduled services from several UK airports and various big-name tour operators charter flights as part of their packages. These all fly into Orlando Sanford airport, which is further out, but still a straight-forward journey.
Accommodation choices can be summed up as:
- Onsite at Walt Disney World at a Disney resort
- Onsite at Walt Disney World at a non-Disney owned hotel
- Onsite at Universal Orlando in one of three themed Loews resorts
- In a hotel or condo hotel (apartment style accommodation) on International Drive
- In a hotel/condo hotel along the US192 in Kissimmee
- In a hotel/condo hotel in the Lake Buena Vista area
- In a private villa on one of many residential/vacation sub-divisions roughly grouped around 3 main areas - the Formosa Gardens area on west US192 directly south of WDW; the Davenport/US27 area to the south west of WDW; and the Poinciana Boulevard area on east US192 to the south east of WDW.
Official Disney resorts fall into three price brackets - Value, Moderate and Deluxe. If you're very keen to stay onsite, the Values and Moderates can be very good value for money, particularly if you're able to secure the free dining package. Broadly speaking, the Deluxes are comparable with 4 Star hotels elsewhere, but at 5 Star+ prices. That's to say, you pay a premium for location and that indefinable Disney factor. If a Disney Deluxe is a consideration, you'll really pay through the nose by booking a package. There are ways to achieve substantial discounts by booking independently. Many people opt for a split stay, with just a few nights at a Deluxe and the remainder in less budget-busting accommodation.
Non-Disney owned onsite hotels include several on Hotel Plaza Blvd near Downtown Disney (ranging from some keenly priced options to some higher-end places) and the Walt Disney World Swan and Dolphin located right in the thick of things within walking distance of Epcot and Hollywood Studios. [There are also some upscale offerings currently being built and a couple more resorts which are in the middle of WDW property, but not actually on land owned by Disney, but that's possibly more information than you need.

] Generally speaking, these hotels are seen as a cheaper way to stay onsite, but there's none of that Disney magic (which for most people is a huge part of the appeal). It's sometimes possible to get deeply discounted rooms at the Swan and Dolphin and they're certainly worth considering if you can get a bargain price. I don't really see the attraction of staying on Hotel Plaza Blvd. You don't receive any of the onsite benefits, so you may as well take your pick from any of the Lake Buena Vista area hotels (which is effectively what these are, but located on land owned by Disney as opposed to land next to it

).
The three Universal resorts are all
very nice, but can be fairly expensive and, although not unheard of, most people don't choose to spend their entire time there. A popular option (and one we've done many times) is to spend one or two nights there as, not only is it convenient for visiting the Universal parks, resort guests are entitled to "Front of the Line" access to the rides. A one-night stay gets you two full days of Express Pass privileges.
I-Drive is a stretch of highway situated to the north east of WDW, with Universal Orlando at one end and Sea World at the other. It's densely populated with hotels, restaurants, shops and tourist attractions (albeit more so at its northerly end). Parts of it could be described as tacky, but plenty of people like the hustle and bustle and you'd certainly never be stuck for eating options. Between the I-Ride Trolley (a tram system which operates constantly up and down its length) and the Lynx Bus service, the area's attractions are all easily accessible for non-drivers.
The US 192 in Kissimmee is another drag, this time to the south of WDW and running east to west. Again, much of it is less than salubrious. It's far more spread out than I-Drive, but there are still plenty of restaurants. All the hotels offer shuttle services, but they can be infrequent and run at inconvenient times. You could find that you waste a lot of your holiday waiting around, arriving later than you'd like and even having to miss some of the evening entertainment at the parks.
Lake Buena Vista is a smaller, more quiet area to the east of WDW (in fact, it actually encompasses the north east corner of WDW, hence my earlier comment). There is a current thread discussing the merits of this location
here.
The closest of the villa communities are those located in the Formosa Gardens area. They tend, also, to be the most expensive. If you're not keen to drive, though, a villa holiday is simply not an option.