Welcome!
As others have said, the July 4th crowds will be huge. Because of this, it will help you a lot to stay on-site.
Disney calls all their hotels "resorts"; they also call WDW as a whole, the "Walt Disney World Resort". Disney resorts are divided into categories - Value, Moderate, Deluse, and Home-Away-From-Home. The Values, of course, are cheapest, and HAFH are most expensive. I stay mostly at the Values when I stay on-site, and once I stayed at a Moderate. Your budget will limit you to a Value or Moderate resort. Check this link to see photos and descriptions of all the 22 Disney resorts:
http://allearsnet.com/acc/faq_hot.htm
Just skim the info a little to get a general idea of which resorts appeal to you, then come back here and ask some questions and we'll help you narrow the choices further.
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Besides accomodations, you will need park tickets. To get a handle on the complex subject of ticket choices, skim through the info in this link:
http://allearsnet.com/pl/ticket.htm
Again, after you get a little basic info, come back here and ask questions to clear up the confusion and help you tailor your choices to your family.
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Next, you will need to become a little familiar with the 4 WDW theme parks and 2 water parks. Skim this link for a general intro to the parks, then come back here for any questions:
http://allearsnet.com/tp/themeparks.htm
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Dining is also an issue. Food is pretty expensive at WDW, so you will need to do some planning to fit your faves into your budget. Being that your trip will take place during a very busy time, you will also need Advance Dining Reservations (ADRs) to get into the more popular table-service (sit-down) restaurants. WDW has a fabulous selection of table-service restaurants, and an equally fabulous selection of counter-service eateries (sometimes caleld "fast food", although they are way better than any fast food restaurant). Here's another link, which has the actual menus and prices from all the WDW restaurants in the parks and resorts:
http://allearsnet.com/menu/menus.htm
Same drill - skim quickly to see what jumps out at you, them come back and get more detailed info here.
Keep in mind that you can eat in any of the resort restaurants, no matter where you stay; my favorite is 'Ohana, in the Polynesian resort. It's pricy, but fabulous!
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General tips:
* July is HOT. You will need to drink lots of water, but bottled water is $2 each inside the parks, so plan on carrying water bottles with you. You can fill them at any drinking fountain, plus you can get free ice and water at any counter-service eatery.
* I use a pedometer when touring the parks; I average 3-5 miles per day on park days (4-7 at Epcot because it's bigger). Put thought into your footwear well in advance - new shoes before a WDW trip will HURT; flip-flops will HURT; a good walking shoe is a must. Many on these boards swear by a shoe called
Crocs (though I personally hate them). I wear New Balance walking shoes. Mini-tip: find something called Mole-Skin and take some to WDW with you to treat any blisters you might develop.
* Touring style: some go slow (Lazy-Butt Touring), some go full-throttle all day (Commando Style Touring). I have done the Commando route in the past, but now that I'm old and fat, I am a Lazy-Butt tourer. Your milage may vary, but with an 8-year old, don't be afraid to take a break at mid-day (when it's hottest) and go back to your resort for a refreshing swim and a nap.
* Take sunscreen and USE it!
* Click the link in my signature to see my Maps page; looking over maps of WDW, the parks, the resorts, and surrounding areas often helps people to get their bearings and get a general feel for the size and layout of WDW.
* Most important: don't let this stuff make you feel overwhelmed! Just take it slow, do one thing at a time, and build the vacation piece by piece.
