First of all, staying on-site is the best and it spoils you. While staying on-site you get front of the line privledges. Front of the line privledges allow you to bypass the regular line and result in less time in line and riding more lines. Second, if you stay on site you will not have the hassel of traffic. The resorts are so close to the parks you will only need to take a small boat ride or a 15 minutes walk to the parks.
If you are unable to stay at any of the resorts this time, make sure you at least visit the one of the resorts to see what they are like. It will convince you that staying on-site is a must.
You can stay off-site but it puts a little more pressure on you. You have to find a hotel outside the parks, and there is the issue of driving,and time could be a factor as well.
If you want to stay off site I would suggest going to this website and book the holiday inn at 8214 universal blvd.
www.priorityclub.com If you have an entertain book this room will only cost 54.50 per night plus tax. This hotel is small but has refrig/micros in rooms. It is in a nice area but the hotel has a small pool. there is also a small grocery store behind the hotel it is called Goodings. We always stay here on our first and last night. Kids also eat free at the small restaurant with paying adult(buffet)
If you stay at disney and commute expect to get up very early and drive to universal or lose valueable time by not getting around early enough.
These are just my opinions and I am sure there are more for you to listen to as well.
Kimberly