lisaes,
The Crystal Palace is a short walkway distance from the parade route along Main Street. The daily afternoon parade at MK is at 3:00 p.m. with rare exceptions. Main Street is usually crowded with spectators. Depending on the time of year, you may want to pick a parade viewing spot 30 minutes or more before parade time. I can generally find a good spot 10 or 15 minutes before 3 p.m. in Frontierland, especially along the walkway near Liberty Tree Tavern, but I would line up earlier if you're there during busy season.
Steven Barrett, author of "The Hassle-Free Walt Disney World Vacation" and the "Hidden Mickeys" book