If the parade they're in starts in Frontierland, we found the best place to stand was at the foot of the flagpole (on the curb, looking up Main Street USA) at Town Square. You'll get a great shot of the banner with the name of the band that will no doubt lead the band.
If you have a DSLR, consider getting a lens that shoots well in low light, such as the "nifty fifty" lens for Canon or Nikon. Then you can open the aperature and reduce the flash for terrific night time shots. Or maybe invest in a point-and-shoot that performs well in low light.
Great camera advice. If you don't want a new camera or lens, at least use a "sport mode" on your camera.
I am a tour director for bands and choirs and visit WDW 5-10 times a year with them. The kids love the night time parade for the lights and crowds, but getting good pics is very difficult, since they are a moving target!
I believe the bands that march in the evening are always before the MSEP (as Robo said, about 15-20 minutes before, spaced about 5 minutes apart, often up to 3 bands). They travel up Main Street to the castle, ending in Frontierland.
Your director will receive the information about the time they will march, and where they are in the lineup the day of the parade, so hopefully your group has a text message system in place or another way to communicate that.
My advice to the parents is to station themselves at the edge of the hub, to take pics as the kids come up Main Street. If there are people already there waiting for MSEP, I strike up a friendly conversation, assuring them that we just want to take pics of our kids, then we will be out of their way. That strategy has worked so far!
Here are a couple pics. You can see that they're a bit blurry due to the movement of the kids and the low light.
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If you're quick, after they pass by that point, you can catch them circling the hub (they turn right, you go left), then hustle through Adventureland to catch the end by Splash.
Here's a shot of a group circling in front of the castle in the daytime:
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If the group is reentering the park after the parade, they will come in a gate to the left of Pirates.
Your kids will have a blast! This thread makes me excited for my upcoming trips!