Hi Terry,
I've been asking about the DL resort hotels recently myself, and my family and I will be staying at the DLH for the first time in 13 days - YEH!

Normally we stay at a Good neighbor hotel.
Anyway, I'll pass on to you the advice I've been given.
The
Disneyland Hotel is very nice with little Disneyl touches throughout the hotel and rooms. Most people have said that it adds to the "Magical Disney Experience". The rooms have glow-in-the-dark pixie wallpaper border, Disneyland map on the entertainment center, Mickey hands holding light fixtuers, and other Disney features on the bedding and bathroom wallpaper. The kids should love the pool themed after Peter Pan's Capt. Hook, and the character meals at Goofy's kitchen, located inside the hotel, are reported as being very fun and not to be missed. However, I've read many reviews from people who normally go to WDW and stay at a WDW resort, but tried Disneyland and the Disneyland Hotel for the first time, and they were disappointed with the hotel because it lacked that strong themeing that is so well done at the WDW resorts.
The Grand California Hotel does have a bit of a "woodsy" feel to it, but the architecture is a Frank Lloyd Wright style, although to me it looks like a craftsman style. This hotel has that strong themeing that you are used to at the WDW resorts, but if you don't like a bit of a woodsy theme (although I don't think it's a strong woodsy theme like at the Wilderness Lodge in WDW) then you might want to consider the Disneyland Hotel.
I broke up what the pro's and cons of each might be for you to make it simpler for you to make a decision.
Disneyland Hotel: Pro's - Has lots of special Disney touches.
Great & fun themed pool and slide.
No woodsy theme.
Beautiful grounds w/waterfalls, ponds
A little larger rooms.
Con's - Older resort
No theme (just lots of Disney touches)
A little further from parks (but still close)
Grand California: Pro's - Newer and beautiful hotel.
Easier access to parks and DTD.
More like a WDW resort hotel.
Also has nice pool with slide.
A little more luxurious
Con's - A bit of a woodsy feel/theme
Very few Disney touches
Rooms are a little smaller
More expensive
I'm sure I'm missing a few pro's and con's of each, but I hope I helped a little.
I would also recommend you visit in October when the crowds are light and the temperature is more comfortable. August can be hot and crowded. (I've been there in both October and August, and October is just a more enjoyable time to visit)
Good luck!
