Just back from a week at Nags Head....six families, 18 people total! Great place for a family vacation

As for the "lack of things to do", that's why we chose the OBX!! We wanted a laid back area, no strip, etc. WDW is my idea of vacation, but the rest of my family was in for wearing nothing dressier than a swimsuit for a week, so that's where we went! There was lots of swimming in the pool, burying Grandpa, and sandcastle building to while away the days
Some of our party had a chance to mini-golf, do the Wright Brothers Memorial, and drive down to Hatteras to climb the lighthouse. Had dinner one night at Kelly's, ice cream at Dairy Queen, and prepared lots of fun, family meals in house. One of the cousins went hang-gliding and some of the girls went shopping. There are LOTS of bike rental places and plenty of paths along the beach road for you to ride if you're so inclined.
We were in Nags Head, in a house called the Nags Header, that rents through Carolina Designs Realty. One thing I REALLY like about this company is that they provide your bed linens. Most do not! We did have to bring our own towels and beach towels. Our house was comfortable, but not too swanky. I avoided those since we had 5 kids along....I didn't want to worry about stuff!!
We were oceanfront with a private pool and hot tub. 7 bedroom house (really 8, but they don't include the private upper floor as a bedroom for some reason), 7 with their own bath, plus there were 1.5 other baths inside and one out with a full shower and also a "get the sand off" shower. I loved our house as it has a full sun-deck that shades most of the pool area, so when our little kids had had enough sun, we could retreat to the pool for fun, but not worry about frying them

Typical rental...there were a few maintenance issues, but the handyman came to take care of them (screen out on screened-in porch, leak in bathtub). Every bedroom had a tv and vcr, 4 had dvd players, too. Living room had big tv, dvd, vcr....small collection of movies, but we'd brought our own. Some games in the closet and the kitchen was well-stocked...at least 2 of everything (pan-wise).
We were at milepost 11.8, which was only 5 or 6 houses down from the Nags Head Fishing Pier. GREAT seafood at their restaurant. You can go on the pier for sightseeing for $1.50 (I think) or $8 to fish...both passes good all day. Kids liked walking down there and back in the morning, hunting for seashells....and at night to watch the ghost crabs scuttle along the beach.
After 5:30pm you can call the local fire department and ask about bonfire permits on the beach. If the winds are low enough, they'll issue you a permit to burn on the beach

Lovely way to end the day.....the kids loved it, even though we didn't do s'mores or anything. Just enjoyed the night air, sound of the waves, etc.
Some links:
Carolina Designs Realty
The Nags Header -- the house we rented
Outer Banks Visitor's Bureau
Other realty companies:
Seaside Realty
Twiddy Rentals--not Nags Head, though.....they do Duck and Corolla
Vacation Realty