My mom and I stayed there in November and enjoyed it. The rooms were modern-looking and it was a nice enough place. My mom (a bit of a hotel snob) actually thought it was as nice or nicer than the Paradise Pier, though that was probably mostly due to the super-modern decor and the very friendly service. You do have to pay for parking, but you may be able to find a free parking deal online.
It was a bit of a walk--I had no trouble making the walk to and from the parks, but after a long morning/afternoon in the parks I did take the Toy Story tram back to the Toy Story lot and walked from the lot to the hotel (to save my feet a bit). You still probably have to walk a block or two from the parking lot to reach the Red Lion, but it's not bad. The walk isn't quite as nice as the walk to the Hojo and the hotels over there, in my opinion, but it was OK. I had no problems and felt safe.
Have a great trip!