If you're planning to watch the Castle Projection show followed by Holiday Wishes, move to the Town Square/City Hall area after Wishes.
You can sit curbside in front of the tree, on chairs on the upper level of the Train Station, or curbside in front of City Hall. To have some fun interaction with characters, curbside is best. For the City Hall area, I sat down in from of a lamp post and when the Parade began to circle around Town Square, I stood up as I wasn't blocking the view of anyone. It really is a great area as there is only a few more feet of the parade left to go and the CMs are going all out at that time!