Hi TCups4Me!!
We LOVE the kiddie slide area at the base of the pirate ship!
It's located just by the stairs to the jib slide, it's not sand bottom, there are no loungers in that area (at least there were no loungers during our last stay in August.) They do have a bench in the corner overlooking the lake, and we've used that quite a bit to store our things, towels, etc. and dry off. We just bring towels over from the main pool area. One thing I love about that area is the wonderful view of the lake - very nice!
Here's a link to Stormalong Bay photos I took (mostly from our August trip) and you'll see a section regarding the kiddie slide area:
http://www.disboards.com/showthread.php?t=2790323&highlight=stormalong
I've copied some of that thread (with additional notes to address your question) below:
Guests must exit the main area of SAB and cross the pathway to get to the slide entrance.
You can see the kiddie slide area at the base of the pirate ship in the bottom left part of the photo:
Here's the view of the jib slide entrance/kiddie pool slide area as you exit the main area of SAB:
And here's the path along the side of the ship to the jib slide entrance:
Here's the stairs up to the top of the jib slide entrance:
And more of the kiddie pool/slide:
4) Kiddie slide/pool at the base of the pirate ship. This pool overlooks the lake and is 2.8 feet deep.