The three zones are located at:
Red Zone - Sunshine Plaza. The "parade" comes out playing music until all of the floats are out & circling the plaza. Toy Story is the first group, Monsters Inc is the middle group, and Bugs Life is the last group. After the Party Bash, the floats fold up and move to the
Green Zone - Entrance to Bugs Land - just past the entrance to It's Tough to Be a Bug. Since this is a straight area, the floats are in a line when they stop and perform. When they're done they fold up and move to the
Blue Zone - In front of Golden Dreams Theater, and perform their last bash there.
Each bash lasts about 10 minutes or so. If the Red Zone is at 5:15, then the Green Zone is 5:30, and the Blue Zone is at 5:45 (unless there is no blue zone that afternoon).
If you're up front you or the kids have a good chance to join in a bit of dancing with the entertainers. Because the parade route is so spread out you have a good chance of getting a good view and even participating.